We have been having a lot of conversations recently about transparency, with colleagues, industry leaders and customers. These conversations are vitally important and the direction our industry needs to move in, particularly in the area of price.
Our goal in pursuing transparency is to secure a supply of high quality coffee. In order to achieve this we have to pay premiums for quality that get coffee producers above the poverty line and incentivise them to invest in producing quality coffee.
Transparency will not solve this issue on its own, but it is a step towards creating a sustainable market place for quality coffee.
We delve into these topics in a series of blog posts called Why Transparency Matters.
Read part 1: What I Thought I Knew About Coffee
Nordic Approach intern Timna Eckschmidt charts her journey from consumer to coffee professional, and what she learned about the supply chain along the way.
Read part 2: The Real Power of Price Information
Joanne writes that beyond simply publishing numbers, price transparency is important for understanding the supply chain, for valuing the different parts of that supply chain and most importantly for stimulating a greater responsibility to pay producers a price that not only makes their production sustainable but profitable and enriching.
Read part 3: Creating a Specialty Coffee Pricing Mechanism
Joanne shows how the specialty coffee sector is still dependent on the C-price in varying ways. Even when we make our best efforts to pay prices that are not influenced or related to the C-market, we are compared to it. In order to break entirely from the C-price, the specialty industry needs its own pricing mechanism for distinct high quality coffees.
Read part 4: Being Transparent About Transparency
Morten demonstrates how comparing a cherry price to a parchment price is comparing apples to oranges. In order to understand the price the farmer was paid, we must first understand the supply chain in that origin, the product the farmer delivered and the investment, value and risk associated with that product.
Read part 5: Close Encounters with the C-Price
Our resident historian, Alec, recalls the early days of Nordic Approach when we took a big risk. The team bet that a community of quality-minded roasters would value exceptional coffees from trustworthy and progressive producers, regardless of any movement of the C-market. Thankfully they were right.
Personalised transparency reports
We currently offer a personalised transparency report for roasters which gives the exact breakdown of costs from FOB to the price you paid for any coffee you purchased from Nordic Approach, including our margin.
If you buy coffee from us, you can sign The Pledge. This report includes the information you need to meet the transparency goals of this initiative. Contact your sales rep to request your report.
Nordic Approach 2019 transparency report
We are currently working on detailed transparency reports for every coffee purchased since September 2018. The first report will be published later this year. Our goal is to include the ‘farm gate’ price, the FOB, and the costs and value added in between. In future years we will work towards providing cost of production and cost of living context for this data.