Green Coffee Cooperatives Explained!

It’s hard to spend too much time roasting coffee without hearing the word “Cooperative” (Co-Op).  A Co—Op is basically a large group of farmers that band together to sell their coffee.   Initial reactions might include a degree of skepticism about the true identities of such Co-Ops, or reservations about the quality of the resulting coffee.  In some cases, those worries are true – there are Co-Ops large and small with less than good coffee, and less than perfect financial arrangements.  That said, the coffee world as we know it today wouldn’t be possible without Co-Ops…. 

At the minimum, good Co-Ops create business relationships that are very valuable to farmers.  Many Co-Ops fall under the “Fair-Trade” descriptor, guaranteeing certain prices – regardless of economic conditions or other factors.  Optimally, these prices will at least guarantee at least a living wage, with premiums for high quality green beans.  These kinds of financial arrangements are especially valuable in poor economic conditions, and times of excess supply.  In the past, certain worldwide financial organizations have pressured farmers to produce more – and more and more.  Ignoring the probable quality issues, these practices create a veritable glut of supply.  (Not dissimilar to the recent hop situation)  This is good for no one. 

Cheap coffee floods the market – consumers are happy with the savings (the average coffee drinker doesn’t drink stuff as good as you do), and at some point, supply outstrips demand.  Farmers end up having useless inventory, along with having trouble repaying the loans they took to up their production.  While Fair-Trade may (or may not) put a limit on the poundage a farmer can produce at a certain price, the idea is to let the farmers produce a sustainable amount of coffee.  While better prices may be the main benefit of Co-Ops, that’s not all they do.

As a result of bulk selling and generally better prices, members of Co-Ops are often able to create the sort of infrastructure and social services that are relatively rare in the coffee producing nations of the world.  Things like schooling programs, medical clinics, better equipment to take coffee from cherries to green beans, and home improvements (electricity, running water) for the farmers are a couple of examples.