A Presentation on Cost of Production In Latin America

A Presentation on Cost of Production In Latin America



June 17, 2020

 1 Minute Read

Alejandro Cadena
Co-Founder & CEO

 

Recognizing the need for a detailed study about costs of production in coffee, in 2017 we decided to perform our own, using data gathered by our PECA team run through an innovative cost of production model.  By developing our own study and using market data from each origin, we could better understand and compare the costs of production in the countries where we source coffee in Latin America, allowing us to pay sustainable prices to our partner coffee growers in each origin.  In 2019 we unveiled the results of our model, publishing a White Paper  on our website, which compared the results of 2017 and 2019.

To create further awareness and to educate the coffee industry and coffee consumers regarding this important subject, in the summer of 2019 we embarked on a worldwide tour to present the model that we developed and share our results.  From June to December of last year I personally presented the results, starting in Berlin during World of Coffee, and then across ten cities in North America, as well as London.  In 2020 we planned to visit other European, Asian, and Australian cities.  However, due to COVID-19 these plans have been suspended indefinitely.

Luckily, we filmed the last presentation I did last year, which took place at CoRo Coffee in the Bay Area.  We invite you to watch the presentation and if you have any questions or comments, please feel free to leave a comment below. Thanks for watching!

 



June 17, 2020

 1 Minute Read

Alejandro Cadena
Co-Founder & CEO

Recognizing the need for a detailed study about costs of production in coffee, in 2017 we decided to perform our own, using data gathered by our PECA team run through an innovative cost of production model.  By developing our own study and using market data from each origin, we could better understand and compare the costs of production in the countries where we source coffee in Latin America, allowing us to pay sustainable prices to our partner coffee growers in each origin.  In 2019 we unveiled the results of our model, publishing a White Paper  on our website, which compared the results of 2017 and 2019.

To create further awareness and to educate the coffee industry and coffee consumers regarding this important subject, in the summer of 2019 we embarked on a worldwide tour to present the model that we developed and share our results.  From June to December of last year I personally presented the results, starting in Berlin during World of Coffee, and then across ten cities in North America, as well as London.  In 2020 we planned to visit other European, Asian, and Australian cities.  However, due to COVID-19 these plans have been suspended indefinitely.

Luckily, we filmed the last presentation I did last year, which took place at CoRo Coffee in the Bay Area.  We invite you to watch the presentation and if you have any questions or comments, please feel free to leave a comment below. Thanks for watching!

 

 

Did you read our latest blogpost?

Meso-American Producer Survey: The Pandemic Will Leave Long-Lasting Scars

0 Comments

Submit a Comment

Your email address will not be published.

Was this interesting? Grab a coffee and pick another from the articles below
Grade Expectations: Finding Versatility and Value in A and AA Coffees

Grade Expectations: Finding Versatility and Value in A and AA Coffees

A Presentation on Cost of Production In Latin America

A Presentation on Cost of Production In Latin America

Meso-American Producer Survey: The Pandemic Will Leave Long-Lasting Scars

Meso-American Producer Survey: The Pandemic Will Leave Long-Lasting Scars

Invisible Barriers for Moving Coffee

Invisible Barriers for Moving Coffee

Caravela at 20: The Journey is Only Getting Started

Caravela at 20: The Journey is Only Getting Started

Certifiably Awesome: Passion and Persistence Turn Promise into Parchment in Mexico

Certifiably Awesome: Passion and Persistence Turn Promise into Parchment in Mexico

Harvest Arrives, Along with a Pandemic

Harvest Arrives, Along with a Pandemic

Minga From Field To Filter: Coffee Reacts and Adapts to the Covid Era

Minga From Field To Filter: Coffee Reacts and Adapts to the Covid Era

Mother Nature Turns The Volume Down in Nicaragua

Mother Nature Turns The Volume Down in Nicaragua

LOTSA Potential: The Long-Term Supply Agreement as a Tool for Financial Stability and Building Relationships

LOTSA Potential: The Long-Term Supply Agreement as a Tool for Financial Stability and Building Relationships

Progress in a Picture-Perfect Coffee Setting

Progress in a Picture-Perfect Coffee Setting

The Price and Value of Consistency

The Price and Value of Consistency

Looking Back and Leaping Forward

Looking Back and Leaping Forward

Womxn-Powered Coffee: Why It Matters

Womxn-Powered Coffee: Why It Matters

Behind the Scenes in Peruvian Coffee

Behind the Scenes in Peruvian Coffee

Unpoppable Opportunities for the Future

Unpoppable Opportunities for the Future

Equipping the Equipo: Playing to win in Guatemala and El Salvador

Equipping the Equipo: Playing to win in Guatemala and El Salvador

Agronomy to Keep the Microlots Coming

Agronomy to Keep the Microlots Coming

Evolution in a Land of Revolution

Evolution in a Land of Revolution

Cupping as Meditation

Cupping as Meditation

Origin Revelations

Origin Revelations

Avoiding the Poverty Trap: Choosing Stories Instead of Emotional Marketing

Avoiding the Poverty Trap: Choosing Stories Instead of Emotional Marketing

I’ve Bean Everywhere, Man

I’ve Bean Everywhere, Man

Have Yourself a Mara Little Christmas

Have Yourself a Mara Little Christmas

All Roads Lead to Coffee

All Roads Lead to Coffee

How Coffee can Complement Food

How Coffee can Complement Food

Building Projects at Origin

Building Projects at Origin

Shining a Light on Defect Detection: How a $9 UV torch could be one of the best investments for the coffee value chain

Shining a Light on Defect Detection: How a $9 UV torch could be one of the best investments for the coffee value chain

Coffee: Culture or Business?

Coffee: Culture or Business?

Café: ¿Cultura o Negocio?

Café: ¿Cultura o Negocio?

A Study on Costs of Production in Latin America

A Study on Costs of Production in Latin America

Fermentation Experiments in Nicaragua – How We Managed to Go from RTB to AAA

Fermentation Experiments in Nicaragua – How We Managed to Go from RTB to AAA

Constantly Adapting to Change

Constantly Adapting to Change

Mind the Gap: A Growing Gray Area Between Market and Production

Mind the Gap: A Growing Gray Area Between Market and Production

Embracing Technology to Create New Pathways in Coffee

Embracing Technology to Create New Pathways in Coffee

Forward Contracting to Secure Quality, Quantity and Relationships

Forward Contracting to Secure Quality, Quantity and Relationships

Caravela Sponsors Seven Small-holder Coffee Producers to attend the Producer and Roaster Forum in Guatemala

Caravela Sponsors Seven Small-holder Coffee Producers to attend the Producer and Roaster Forum in Guatemala

Colombian Specialty Coffee Scene. A Perspective from Café Quindío

Colombian Specialty Coffee Scene. A Perspective from Café Quindío

Coffee Sampling  Increases Farmers Profitability Opportunities

Coffee Sampling Increases Farmers Profitability Opportunities

Caravela From a Newcomer’s View

Caravela From a Newcomer’s View

Water Activity: Predictive insights Changing Processes and Profits

Water Activity: Predictive insights Changing Processes and Profits

Blending Experience with Passion in Mesoamerica

Blending Experience with Passion in Mesoamerica

Coffee in Galapagos: Evolving To Thrive

Coffee in Galapagos: Evolving To Thrive

What Traceability Offers Farmers

What Traceability Offers Farmers

The Specialty Coffee Transaction Guide – Setting the Bar on Prices

The Specialty Coffee Transaction Guide – Setting the Bar on Prices

A Tale of Two Customers: Caravela Coffee and the Rethinking of the Coffee Import Model

A Tale of Two Customers: Caravela Coffee and the Rethinking of the Coffee Import Model

Arriving at a price

Arriving at a price

Rich Farmer, Poor Farmer

Rich Farmer, Poor Farmer

Low Prices, Risky Times

Low Prices, Risky Times

Making it Work as Well as it Can

Making it Work as Well as it Can

Discovering the Source

Discovering the Source

A Mutual Evolution: Caravela Nicaragua’s William Ortiz, on helping people grow coffee, and how coffee helps people grow

A Mutual Evolution: Caravela Nicaragua’s William Ortiz, on helping people grow coffee, and how coffee helps people grow

The High Price of Getting the Best from Ecuador

The High Price of Getting the Best from Ecuador

Victims of Exchanging Currencies – Who Should Take on this Risk?

Victims of Exchanging Currencies – Who Should Take on this Risk?

A Pilgrimage to the Future

A Pilgrimage to the Future

Why We’re Investing in World Coffee Research?

Why We’re Investing in World Coffee Research?

The Making of a Champion

The Making of a Champion

Peru, an Unpolished Diamond in Coffee Production

Peru, an Unpolished Diamond in Coffee Production

Investing in Education: Investing in People

Investing in Education: Investing in People

How Roasters Can Influence the Supply Chain

How Roasters Can Influence the Supply Chain

Aromas: More than Just a Coffee Competition

Aromas: More than Just a Coffee Competition

FOB vs. EXW – Two Buying/Shipping Methods for Your Green Coffee

FOB vs. EXW – Two Buying/Shipping Methods for Your Green Coffee

Sample Roasting vs. Profile Roasting

Sample Roasting vs. Profile Roasting

How to Keep Records of your Costs of Production?

How to Keep Records of your Costs of Production?

Why and How to Estimate Costs of Production in a Coffee Farm?

Why and How to Estimate Costs of Production in a Coffee Farm?

Supply Chain Logistics – The Clockwork of Coffee

Supply Chain Logistics – The Clockwork of Coffee

Forecasting Green Coffee Purchasing

Forecasting Green Coffee Purchasing

What is specialty Coffee

What is specialty Coffee

Drying in Peru: the Final Step in Quality Improvement

Drying in Peru: the Final Step in Quality Improvement

Specialty Coffee Thought Leaders: Interview with Alejandro Cadena

Specialty Coffee Thought Leaders: Interview with Alejandro Cadena

Partner Farm Purchasing and How it Impacts Sustainability

Partner Farm Purchasing and How it Impacts Sustainability

FOB vs: EXW – Two Buying/Shipping Methods for Your Green Coffee

FOB vs: EXW – Two Buying/Shipping Methods for Your Green Coffee

When is it time to harvest?

When is it time to harvest?

Just In Time Inventory

Just In Time Inventory

Baristas Are Your Final QC Check

Baristas Are Your Final QC Check

Spectrum Purchasing and How it Impacts Sustainability

Spectrum Purchasing and How it Impacts Sustainability

  • This field is for validation purposes and should be left unchanged.

Pin It on Pinterest

Share

Share this content with your coffee community!