Direct Trade Explained

The key drivers to what is rapidly becoming a "mad rush" to source Direct Trade products have been partly due to the following situations:-

• price volatility having negative impact upon farmers - this creates consequential origin issues whereby whole communities are adversely affected when farmers cannot receive a fair and reasonable price for their crops. The situation has escalated where some regions have effectively withdrawn coffee from sale due to supply and demand factors. Recently, Colombian coffee farmers went on strike to protest the government and local country Coffee Boards not doing enough to protect their livelihood.
• A desire for industry players (the hundreds of so-called Specialty Coffee Roasters around Australia) to appear as "leaders" by creating exclusive or differentiated products in what has now become a confusing, un-structured and saturated specialty coffee market!
• Exaggerating the social benefits of Direct Trade by attempting to leverage the conscious of buyers - mimicking programs like FAIRTRADE, etc.

If we look at the evolution of the quality coffee segment, we have seen the trends grow from Premium Single Origin, single estate microlots, traceable and sustainable coffees to a natural transition of Direct Trade linking the roaster to the farmer.

In theory, this sounds fine, however, all is not what it seems and the stated benefits of Direct Trade are not always available.

In our previous articles published during 2012, we explaining the Direct Trade practice by outlining our own personal objectives associated with Direct Trade sourcing.

In late 2011 and for most of 2012, we experienced haphazard supply of coffees from PNG.

Issues with a primary processor (and a major export group) at origin forced us to re-think our options.

For us, engaging in a Direct Trade arrangement was seen as one strategy to resolve supply fluctuations and at the same time ensure that quality and consistency was maintained - well, at least that was our intended goal.

It had nothing to do with cost or conscious - purely an attempt to ensure supply.

Initially, the Direct Trade program operated successfully, however, after a few months we once again experienced sourcing and quality issues.

In reviewing the situation, we came to the conclusion that our arrangement with that Direct Trade supplier was not meeting our objectives and we faced additional risks and issues that would normally be managed by a local Australian broker - so the perceived benefits were not realized.

Recently, there have been an increase in the number of Origin brokers attempting to establish direct contact (and relationships) with Australia roasters.

We see these origin brokers falling into 2 separate categories:-

• Opportunistic - suppliers at origin attempting to secure higher pricing for their product or offloading excess inventories by effectively bypassing one or two sets of brokers (export and/or import).
• Quality focused - origin partners with considerable pride in the quality of their products and seeking to avoid their high grade crops from being soaked up by local co-ops only to be blended and diluted with other lower grade coffees to make up a standard.

It is the Quality-Focused origin partners that are stimulating our interest - creating a situation whereby we can access some of the Origin's finest qualities ahead of the large brokers and coffee traders diverting these prime coffees off to other destinations.

Recently, we commenced a trading arrangement with Minas Hill coffees of Melbourne for the purpose of accessing high quality Brazil lots.

Minas Hill is run by Marcelo who is 3rd generation Brazil coffee family.

Marcelo's family and their connections in Brazil can provide some of Brazil's best quality coffees from award winning farms.

During March, April and May 2013, we have purchased some exceptional specialty coffees from Marcelo.

All of the coffees supplied by Minash Hill have met and exceeded our expectations.

From May 2013, we will be featuring more of the Minas Hill Brazil specialty coffees for our mycuppa customers to enjoy.

Roaster's Notes

I have to be brutally honest and state upfront that over the last few years our affection for the coffees of Brazil had waned - for no real reason at all.

Yes, it's true that with such a vast array of coffees to sample from more than 20 origins, we were in fact being distracted by Ethiopia, Tanzania, PNG, Colombia, Guatemala and seduced by the many quality Central American microlots from Costa Rica, El Salvador, etc.

Whilst Brazil has always remained our #1 in terms of volume, we found that the emerging trends in specialty coffee were pulling us towards acidic, fruity coffees and hijacking the majority of our mindshare.

I've had a "born-again" experience with Brazil coffees recently. This was sparked by the high grade microlots now being made available within Australia by brokers.

Recently, we have roasted Cambara and Cerrado naturals that were amazing. Minas Hill sold us one of their top-shelf coffees - Specialty Matas de Minas "Cachoeira Alta Farm" Lot# 02 Pulped natural that has been the most amazing coffee we have cupped in more than 12 months. The Matas is a rock-star coffee with a price tag to match, but it does underline a very crucial point - Brazil can match it with the best !

This week Marcelo from Minas Hill dropped in a new arrival - Espresso De Minas Volcanic Blend.

The Volcanic blend is from a single farm in Cerrado growing the coffee inside a large volcanic crater, the rich soil provides a unique flavor.

The beans are processed using two different methods which combine together to make the blend, offering complementary characteristics that enhance the finish.

This coffee further extends our firm belief that high quality Brazil coffees provide exceptional flavor and a beautifully balanced cup profile.

After drinking these high quality Brazils over the last month, I am personally finding it quite difficult to enjoy other origins - such is the powerful and memorable cup character.

 This month we turn the focus onto

one of our favourite origins - PANAMA

Is there a better place on Earth than Panama ?

Many call it an ex-pat's retirement paradise.

Recently, Developers have been moving into this rapidly advancing country and constructing large commercial and residential facilities in what had remained for so long an un-touched beauty.

Panama has a perfect micro-climate and the Boquete and Volcan regions produce absolutely stunning coffees and over the last few years the Geisha varietals have been generally regarded as the best coffees in the world - unfortunately, with a massive price tag attached.

Boquete region benefits from rich volcanic soils that develop a wonderfully clean cup.

Last year we stumbled onto a real cracker of a bean in the superbly presented Casa Ruiz.

So good was this coffee that we had to put down some "hard-earned" up front to secure more of the recent crop that has just arrived into Australia in late April 2013.

One of the key reasons we like this coffee is verstalility and reliability - it never fails to impart enjoyment across a wide range of coffee lovers.

In terms of versatility, some of our specialty cafes run this as a black coffee - something that is quite unusual for Central American beans as they tend to deliver quite high acidity. But this baby has the goods and delivers a sublime creamy texture in a black brew that defies the general laws.

One word describes this coffee - CARAMEL. Truckloads of caramel, especially in milk and the natural sweetness and creamy mouthfeel make it a well-balanced, full flavoured cup.

Hints of apricot and stone fruit dance across the mid-palate when you have nailed the extraction perfectly.

Available in our store in the Single Origins - Panama section.

Tthis 100% Arabica blend of the best Brazil, Sumatran and Guatemala beans available in Australia is nothing short of amazing.

ESE Pods are great for the office—easy to use, fresh coffee and no mess—it’s perfect.

Available in the shop now in the format of 7g single PODs in boxes of 150.

Suitable for all ESE compatible POD machines and domestic machines with ESE filter baskets.

We roast POD stock every 6 weeks so you can be assured of freshness.

Each POD is individually sealed.

Our roaster, Carlini Coffee Company won 5 medals in the Golden Bean 2010 roasting competition - the largest roasting competition in Australia (some say the world's biggest comp) with more than 340 coffee companies and over 1000 entries submitted.

Silver in the most competitive milk-category (96+% of all cafe coffees have milk) High-ranked Bronze in the Espresso, Organic Espresso and Single-Origin Espresso categories.

We scored so well across the Espresso categories that we ranked a stunning #2 Overall (Event Silver), mising #1 by 0.5 point.

Costa Rican farmers have developed some of the most advanced and highest quality farming practices in the world.

This translates into high cup quality.

Available in our FAIRTRADE section http://www.mycuppa.com.au/Costa-Rica-FAIRTRADE-and-Organic.html

What can we say........smooth, rich, creamy with that classic Colombian milk-chocolate finish.

Available in our FAIRTRADE section http://www.mycuppa.com.au/Colombia-FTO.html

One of the most complete single-origin coffee we have cupped in a long time.

Full flavored, rounded cup with lingering chocolate finish.

Available in our FAIRTRADE section http://www.mycuppa.com.au/Bolovia-certified-FAIRTRADE-and-Organic.html

New season/crop Ethiopians now in the store.

This Yirgy is nice and clean with dominant notes of honey and lemon - you won't be disappointed with the King Of Coffees.

Once you try this coffee you will be hooked.

Available in our Single Origins section http://www.mycuppa.com.au/Ethiopia-Yirgachaffe.html

The Australian coffee palate was raised on PNG coffees.

Available in our Single Origins section http://www.mycuppa.com.au/PNG-Kimel.html

Honduras is gainly a massive reputation for producing excellent coffees.

Premium grade specialty coffee with a large screen offering super sweet, syrupy honey finish.

This is one of those rare coffees that is capable of being superb as a long black and exceptional with milk.

Available in our Limited Estate section http://www.mycuppa.com.au/Honduras-Minas-De-Oro.html