Drop Coffee - Transparency report 2018
We at Drop want to be open with you, our beloved customers. We are continually visting all of the producers we are buying from. We want to show you what the farms look like, what the producers are called and when the coffee was harvested. Knowing as much as possible about the product you are purchasing means that you, the customer, are in charge. You can decide what you buy and where your money is going. That is why we have made this Transparency report. We want to show you how much we are paying for the coffee that you are drinking.
About the 2018 transparency report
The current market price for coffee is less than the production cost, an equation that doesn’t add up for the producers. You can read more about it in our previous blog post. The market price is currently under 1 USD per pound in FOB. In some cases it would have been more relevant to talk about farm gate price, but to use the same measurement to be able to compare our prices to the marketplace, we are presenting the FOB prices in this report.
The FOB prices are the price the coffee has when packed in a container on a ship at the harbor at origin. On top of this, shipping, import including staff costs, and delivery to our roastery is added.
In this report we chose to show you the FOB prices for all coffees that we bought in 2018. We also include how many years we have been working with the producers and the purchased volume. You will see these coffee in 2019 as well, but that will be on next years report.
To be able to buy more from the people we are working with, is strong motivation for us to grow as a business. Currently we are buying two farms exclusively. We are a small buyer compared to a commercial coffee roastery, but we want to make sure the coffee we are buying is paid for so it covers the production costs and gives a profit to the producer.
Economy is one of the three factors of sustainability, the other two are climate and social. While visiting the producer we are also filling in our sustainability report that we have written up with a lawyer in sustainability.