Issue link: http://www.e-digitaleditions.com/i/673312
70 Tea & Coffee Trade Journal | www.teaandcoffee.net T oday, sustainability is much more than a trend; partic- ularly in coffee it has become a market-entry require- ment. Countries such as the Netherlands are developing their own sustainability standards, leading retail chains are demanding different levels of compliance from their suppliers, and global brands are following suit. The American market is moving everyday more in the same direction. In Colombia, we are very much familiar with these stan- dards. They come in different forms, always with a combination of the three pillars of sustainability: social, environmental, and economic. I see it as a three legged table. However, this "sustainability table" seems to have one shorter leg: economic sustainability. We care for the flora, the fauna, the air... And we should. However, as an industry, we have forgotten to also make sure that coffee is a profitable business for the grow- er. As CEO of the FNC (Colombian Coffee Growers Federation) and representative of Colombian growers, it is my mission to rally the international coffee industry around this issue: if growers are not able to live from coffee production, then soon there won't be an industry at all. I have met with representatives of the producers of most African and Latin American countries, and we all share the same problems and challenges. By talking to the trade and the industry in general, I know that many are aware of the situation. That is why the dialogue needs to broaden and include all the links in the coffee chain. Fortunately, consumers are also becoming more aware and demanding in this sense; they are no longer satisfied with the basic sustainability standards. For Millennials in particular, sustainability has a lot to do with information; who is behind the coffee they consume, how and where is it grown and are the producers receiving a fair price? Who is surprised today to see them get their produce at farmers' markets and line up at the new Third Wave coffee shop around the corner? In Colombia we are working hard in finding ways to impact profitability through cost reduction and higher quality by– among other things–directing our R&D and technical assistance efforts in this direction. But we need to find ways to make sure that the industry recognizes the cost of growing coffee. In this sense, the specialty coffee industry has made the most improvements by economically recognizing the price of quali- ty. That is why we are developing initiatives to strengthen the marketing of Colombian specialty coffees; in particular, devel- oping mechanisms to connect buyers and growers and hopefully building long term commercial relationships that generate value beyond standard market prices. This is the rationale behind Expoespeciales-Café de Colombia, an exposition we hold every year in October with the objective of giving visibility to the growers and their cof- fees, and connecting them with market possibilities. This year, Expoespeciales (October 4-7 th in Bogotá) will host, for the first time, a competition awarding Colombian exceptional coffees in different categories, which will be auctioned live during the expo. The contest aims to give visibility, not to one, but several exceptional coffees with particular quality attributes that are sure to claim higher market prices. With quality differentiation in mind, we are also working on innovation in fermentation processes, as well as development of varieties with specific quality attributes among others. We will continue working on these avenues for specialty coffee, however, the greater proportion of growers still needs a viable solution. Those growers who are producing the coffee to supply the mass market are still at the mercy of market volatility. Not too long ago prices for Colombian milds were close to USD $2.00/lb. Consumption did not suffer. Today, those same growers are expected to produce the same coffees at levels of USD $1.20/lb. Is that logical? The problem is that no one is thinking about it. We are all finding new environmental standards that the growers need to fulfill, coming up with new quality measures, but no one is asking how much do efforts cost. The ironic part is that new consumers are aware and con- scious enough to be willing to pay higher prices as long as they are fair. The question is, what will we do as an industry to match these consumer demands when, at the other end of the chain, producers around the world are barely making a living? We need to balance the sustainability table again. Roberto Vélez Vallejo was elected by the Colombian growers as CEO of the FNC in August 2015. He is an economist from the Universidad del Rosario (Colombia), with postgraduate education at the University of Brighton in England, and New York University. He has served as Colombia's Ambassador to Japan, the United Arab Emirates and Malaysia. Vélez Vallejo worked at the FNC for 20 years, where, among other positions, he served as chief commercial officer. 70 Tea & Coffee Trade Journal | www.teaandcoffee.net Balancing the Sustainability Table Views expressed in Straight from the Cup (SFTC) are not necessarily those of Tea & Coffee Trade Journal or Lockwood Publications. If interested in authoring an SFTC column, please contact Vanessa L. Facenda for full details or questions concerning submissions: v.facenda@teaandcoffee.net. Articles must discuss or analyze a relevant issue, trend or event within the coffee or tea industry, not solely promote a company or its products. THE CUP Straight from