Although the direct business can be between a processor and an individual coffee grower, processors do normally prefer dealing with groups of growers who have come together and formed a cooperative society.Â Espresso Coffee An appointed board of directors usually runs such cooperative societies. Dealing directly with a cooperative society assures the processors of continuous supply of fresh coffee beans, meaning that their processing business is not interrupted. In the case of individual coffee growers, such growers must be producing reasonable tones of coffee beans to be accepted as direct suppliers.
It is a fact that coffee processors who source their coffee beans supplies in the traditional way (through coffee auction houses or intermediaries) are required to have varied coffee business licenses. In addition to licensing requirements, these processors are usually forced to endure fluctuating coffee beans prices at the auction houses or as set by intermediaries. On the other hand, coffee growers who sell their coffee beans in the traditional way do complain that they do not reap enough monetary reward for their growing of coffee, with a good percentage of sales amounts ending up with intermediaries.
Proponents of coffee direct business, especially producers who engage coffee growers directly argue that their model of business is the best. They argue that by dealing directly with coffee growers, they are not required to fulfill some coffee licensing requirements. They also are assured of continuous supply of coffee beans at stabilized prices and can therefore offer coffee growers better prices for their produce.
A coffee processing company may at times be forced to engage coffee growers directly in doing business because of pressure from coffee consumers. Consumers are now very conscious of the health and prefer consuming products that have been grown in safe environment without too much use of chemicals in the form of pesticides. It is a fact that coffee is one cash crop on which many pesticides are used. Knowing this fact, consumers are always on the look out for organic coffee, which is grown without the use of chemicals in controlling diseases and pests. A coffee processor may decide to engage growers directly with the aim of ensuring that such growers supply coffee beans that are free of any chemicals.
Coffee processors engaged in coffee direct business do go to great lengths in ensuring that the fresh coffee beans they receive from their contracted growers are of the highest quality. They ensure that healthy environmental practices are employed in the coffee growing farms. They provide their contracted growers with specifications and guidelines on how they want their coffee grown and such specifications may include the requirement that they only want organic coffee beans produced. These growers do not only look at their side of the bargain, they pay close attention to workers on such contracted farms. Some processors go ahead and set up physical facilities for such workers. It is common to find coffee processors organizing trips for their buyers to pay visits to growing farms in any part of the world where coffee is grown to assure them that the coffee they buy is indeed grown on farms where safe environmental practices are employed.
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