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Burundi 2010

Financial Transparency Report: Burundi 2010

Crop to Cup’s 2011 financial transparency report for the Burundi origin is just one part of our Whole Crop Project. Our goal is to better understand how our purchases impact coffee farmers at origin and to determine how value is distributed across coffee’s supply chain. Most buyers in Burundi’s coffee industry come together at the beginning of each season to agree on a price they will pay to all farmers. While this does not reward farmers dedicated to specialty coffee, it reduces the presence of middlemen and distributes more sustainable wages to all coffee farmers, regardless of their commitment to quality coffee. Crop to Cup purchases both in-season prices that go to all farmers, along with postseason bonuses specific to the Buhorwa region where our coffee is grown. This report details the exact prices paid to farmers in 2011, and highlights our goal to continue our transparency and work towards purchasing 100% of Buhorwa’s harvest– both the specialty and lower grades of coffee. The more of their coffee we can purchase, the higher the impact of the premium paid to farmers.

In Burundi, at the beginning of each season a majority of buyers come together with Burundi’s coffee industry association- Intercafe- and agree on a price they will all pay their farmer suppliers. This system doesn’t reward farmers or washing stations for any dedication to quality, so farmers will see their incomes increase due to their neighbors’ strong efforts. However, this system can simplify the business landscape by reducing the market clutter of middlemen, and it can work to distribute more sustainable wages to farmers who are not able to invest in higher quality coffee production. In Burundi, we purchase through both in-season prices which go into a pool for all farmers, and post-season bonuses that benefit the small region where our coffee is grown.

Crop to Cup Premiums

To recognize Buhorwa farmers’ extra effort to meet our cup quality and direct-trade communication standards, we pay premiums that go only towards the coffee harvested for the Buhorwa Washing Station. In 2010, we chose to pay a premium of 20 cents per lb green upon export of the coffee from Burundi (a total of 8,417,215 francs)

Crop to Cup Premiums

To recognize Buhorwa farmers’ extra effort to meet our cup quality and direct-trade communication standards, we pay premiums that go only towards the coffee harvested for the Buhorwa Washing Station. In 2010, we chose to pay a premium of 20 cents per lb green upon export of the coffee from Burundi (a total of 8,417,215 francs)