Farm to Home, a new company in the UK is taking direct trade to the next level by delivering 100% of the profits go back to the farmers. They are supported by The International Trade Centre (ITC) initially working with four different East African farms.
Although the company is not a Not-for-Profit company, they estimate the farmer will receive a conservative 10 times more profit compared to selling into the local supply chain at the farm gate. I have ordered a kilo of their Ugandan beans which we’ll review on our Bean Talk podcast.
The ITC is working with coffee farmers and organisations in Eastern Africa to introduce an initiative, “Farm To Home” creating a new business model where the profits of coffee farmers are put first.
This project aims to create a model where producers can sell their own brands direct to consumers and fully benefit from the value of their crop, raising incomes and ensuring sustainable livelihoods for themselves and their families – Alan Newman, Managing Director of Sensible Development
A consumer-focused eCommerce website has been built by Sensible Development, providing access for the farmers to the retail market. Profits from the sale of the coffee go directly to the farmers. Each purchase through this website will benefit the producers of the coffee with value addition not normally available to them when they sell into the local supply chain.
Whilst coffee farming is getting more challenging, the industry itself is booming. The retail coffee market is estimated to be worth over $83 billion USD per year. Across the world, 80% of the coffee produced is grown by 25 million smallholder coffee farmers and their families who rely on coffee for their livelihoods.
All the coffees are chosen for their distinctly unique flavour, quality score and cup profile, a result of the coffee’s distinctive terroir, variety and, of course, production. The result is a range of coffees that are as distinctive and vibrant as the people who grew them. We are offering 4 varieties of coffee from:
- Ethiopia – Yirgacheffe Coffee Farmers Cooperative Union. A floral and creamy coffee with notes of apricot, peach and lychee.
- Tanzania – Communal Shama, Tanzania. A bright and sweet coffee with notes of blackcurrant, candied raspberry and black tea.
- Uganda – Rwenzori Sustainable Trade Center. A creamy and fruity coffee with notes of orange, milk chocolate and forest fruits.
- Burundi – Migoti Coffee Company. A lime, crab apple, black tea and chocolate coffee.
Key information about Farm To Home:
- Across the world, 80% of the coffee produced is grown by 25 million smallholder coffee farmers
- The partnership between Sensible Development, the International Trade Centre (ITC), the Alliances For Action and coffee producers and organisations in Eastern Africa Press Release
- Access for farmers to the increased value their coffee gains after it has left the farm and receive more profit for their hard work
- At full retail price, the farmers stand to earn 10 times more profit for their coffee than they would at the farm gate
- The supply chain is pre-financed after the coffee has left the farm by ITC
About the International Trade Centre
The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations and has worked to improve the conditions of trade for coffee farmers for decades. In a recent project, referred to as “MARKUP”, covering 5 countries in East Africa (financed by the European Union) the agency accompanied over 70 local coffee firms to improve their commercial skills, and gain a better price for their coffee.