direct trade

Statement of Principles

We are committed to working with coffee farmers who are true artisans of coffee cultivation and practice their craft with a dedication, passion and skill. We work with, and offer our support to, these skilled producers/artisans for the sole purpose of presenting our customers only the highest-quality coffee.

We believe there are a number of critical factors contributing to the growth of a truly exceptional coffee, and that farmers are one of these key factors. Therefore, we believe those who do the best work should get the best price; we do not believe in coffee subsidies.

We believe working with these farmers to deliver the highest-quality coffees requires us to listen, learn, cup, and give feedback in their creation.

We believe that a coffee farmer who grows an award-winning coffee is an artisan and should be given his due. This recognition develops dedication to craftsmanship, skill for production and passion for the harvest quality.

We believe that great coffee is inherently produced through sustainable methods. We therefore only work with farmers are dedicated to improving and maintaining the economic, social, and environmental conditions of their farms and communities. It is important to note that sustainability may not necessitate organic products.

We seek to deliver the highest possible return to farmers and therefore require our importers, exporters, cooperatives and farmers to agree upon the financial distribution prior to harvest and act transparently in the execution of distribution, allowing us to monitor the committed delivery price to the farmers.

We believe that our goals are more effectively achieved when the number of individuals and organizations between the producer and Klatch Roasting are minimized to allow for direct and better communication. Through our Direct Trade program we aim to simplify the coffee supply chain and improve quality as well as sustainability.

Direct Trade Coffee Criteria for Klatch Roasting

• Coffee quality must be exceptional.
• The verifiable price to the farmer or the local coop, not simply the exporter, must exceed the higher of the C Market price and or Fair Trade price by at least 25% with a minimum paid to the farmer of $1.85 at time of harvest.
• The farmer must be committed to healthy environmental practices.
• The farmer must be committed to sustainable social practices.
• Klatch Roasting representatives must visit the farm or cooperative village at least once per harvest season, understanding that we may visit multiple times per year: pre-harvest to craft strategy, during the harvest to monitor quality, and post-harvest to review and celebrate the successes.
• All the trade participants must be open to transparent disclosure of financial deliveries back to the individual farmers.

Fair Trade vs. Direct Trade

Fair Trade was created at a time the coffee market was well below $1.00 per pound and coffee farmers were going broke and starving. It currently applies not only to coffee but also cocoa, sugar, bananas, and other commonly traded agricultural products. It is a certification designed to ensure that every product bearing its label is purchased at a base price that is above the cost of production for the farmer. For coffee, the Fair Trade export price is $1.26 per pound for unroasted beans and $1.41 for unroasted organic certified beans regardless of quality. Certified Fair Trade is a certification owned by FLO International and licensed in the US by Transfair USA. It is specific to democratically run cooperatives, and does not apply to private farms. This is where KR Direct Trade helps.

KR Direct Trade Coffee is designed to meet the needs of private and family coffee farms and co-ops in today’s market. We pay a base price that must exceed the higher of the C Market price and or Fair Trade price by at least 25% with a minimum paid to the farmer of $1.85 at time of harvest. We do not believe in coffee subsidies, but believe those farmers who do the best work, are committed to healthy environmental and social practices should get the best price. That’s why we work with and offer our support to these skilled producers/artisans for the sole purpose of presenting our customers only the highest-quality coffee.