The coffee business needs to create a social niche focus thanks to innovative strategies

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The price volatility of coffee in the world, and especially the low profitability that it is affecting small coffee producers in Latin America and other countries of the coffee belt, is generating great social problems due to the great competitiveness that green coffee buyers are generating in the coffee ecosystem.

Colombia has been the country that has generated more innovation in the marketing process in the coffee sector, from the creation of the Juan Valdez brand that unites different coffee growers, to the country’s branding that has helped attract foreign investment due to its wide variety of climates and soils, as was the recent investment process that Nestlé made in the country.

This situation has generated that in other coffee producing countries such as Bolivia, Costa Rica, Ecuador, Guatemala and Peru, a great opportunity arises to create a new coffee commercialization model that has a strong social benefit component to coffee producers, that improves the current operation of the cooperatives, which has not been entirely successful due to the high competitiveness that exists.

According to the Investment Broker of the Coffee Consulting Division of AgroWine Lab Business Accelerator, Maximiliano Morales: «It is enough to analyze the price of a cup of coffee in Chile or in Argentina, which can cost more than 3 dollars, being clear that the real cost of that cup does not exceed the 15 cents, adding the service, etc. At that point, we decided to start the search process of a global investor who would like to change the current stagnation that thousands of small coffee farmers are suffering that are not receiving the economic benefits of their hard work in the field. »

«We want to focus in one country and the new structure of the coffee business that we propose in AgroWine Lab should be centralized in the creation of a social-collaborative Coffee Federation or Foundation that is led by specialists in agriculture management, marketing and sales who would be hired by this entity with a fixed salary, and annual profits must be distributed among coffee farmers. The creation of a coffee brand that has coffee shops in different countries is the only way to consolidate the business to obtain the highest profitability in the final sale process of that cup of coffee, thus avoiding intermediaries. » Agronomist Maximiliano Morales.

The search strategy for capitalist partners to implement this initiative will begin next week, after having built a network of international contacts in recent months thanks to the support of Splash Coworking of San Marcos, Texas, cowork

andes@andeswines.com

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