Published On: October 28, 2021
What Is A Cooperative?
Types Of Coffee Cooperatives
Why Not Sell Directly To Coffee Roasters And Retailers?
Impact On The Colombian Specialty Coffee Industry
Problems With The Cooperative Model
Sustainable And Profitable Coffee Production
Â
Very few farmers in Colombia are able to individually process beans to the point that they’re ready for export. In many cases, the assistance of a cooperative or a private processing station is needed to produce bags of green coffee that can be sold to exporters and international buyers.
In this article, we explore what coffee farming cooperatives are, how they contribute to coffee production, and where they fit into the overall Colombian coffee supply chain.
Learn What Makes Colombian Coffee So Special
Â
Cooperatives come in various shapes and sizes and their structure and goals differ depending on the needs of their members.Â
In the most basic sense, a coffee coop is designed to share resources, equipment and knowledge, as well as strengthen the position of small producers in the global coffee market.Â
Specifically, a cooperative might:
Handle the drying and milling of beans
Give farmers access to processing equipment, supplies and farming toolsÂ
Combine the yield of multiple farms to increase volumes and find suitable buyers
Provide loans and low-interest financing for farm maintenance and development, or to rebuild after natural disasters (e.g. landslides)
Offer technology and communication support to rural farms with minimal digital infrastructureÂ
Share marketing resources and business opportunitiesÂ
Educate farmers about the needs and preferences of consumers
Help members achieve coffee certifications and the necessary licenses needed for international trade
A coffee coop is designed to share resources, equipment and knowledge, as well as strengthen the position of small producers in the global coffee market.
Â
Some coops are huge, with hundreds of members pooling their resources, while others are much smaller and contain only a handful of neighbouring farms.Â
These smaller groups may not be able to achieve large volumes of coffee, but with fewer members, it's more possible to strive for distinct coffee profiles and flavour in a way that simply isn’t viable with larger organisations.Â
Within a cooperative, members typically pay a fee that is then reinvested into the community, with a certain amount of the group’s profits used to finance what farmers are most in need of.
Some may have full-time staff that help with bean processing, marketing, accounting, research, training and administration. Others may be forced to rely on seasonal staff or do everything themselves.Â
It all depends on how much money can be collectively made each harvest and the proportion of eventual sales that goes back into the coop.
Â
Many individual growers sell to an international buyer without the need for a cooperative. There’s nothing stopping Colombian farmers from dealing directly with traders, intermediaries, exports and roasters as long as they have permission from the FNC. And the most obvious benefit of going direct is the ability to achieve a better price for coffee sold.Â
However, not all producers have the ability to make deals with buyers, with pretty much all of their time taken up by actually growing coffee — a labour-intensive process.
They might also lack the resources, technology, knowledge and confidence in negotiating with buyers and it can often make more sense to outsource key activities to the cooperative who can achieve better outcomes due to the combined resources and knowledge of the group.Â
A huge barrier to direct trade is also volume. Some farms (especially smaller micro-lots producing single origin coffees) simply won’t produce enough coffee to attract buyers. The choice then becomes either to increase quality and distinctiveness to attract exporters and roasters, or, work with other farms in a coop so that volume can be increased.Â
Some farms (especially smaller micro-lots) simply won’t produce enough coffee to attract buyers.
Â
While the coop system isn’t perfect (more on this below), it’s played a crucial role in developing the country’s specialty coffee market and allowing smallholders to band together and promote the attractiveness of their beans — consolidated under one single origin brand.Â
As this system has evolved and coops have strengthened, knowledge has also spread through coffee growing communities about how to adapt processes to achieve higher quality yields that command better prices in international coffee markets.Â
Together with government initiatives and NGO programs aimed at supporting rural farmers, the country’s reputation for producing some of the finest specialty grade Arabica coffee beans has been reinforced by the opportunities offered by the coop model.
Finally, as Colombia’s landscape of steep mountainscapes and farms, often inaccessible by vehicle, make it impossible for mass-scale production and machine harvesting (which would otherwise result in higher yields and lower costs), joining forces with other farmers in a coop is sometimes the only route to better margins for many growers.
Cooperatives have played a crucial role in developing the country’s specialty coffee market and allowing smallholders to band together and promote the attractiveness of their beans — consolidated under one brand.Â
Â
Cooperatives aren’t perfect for all growers. For producers who wish to differentiate themselves or develop a more profitable direct trade relationship with roasters in foreign countries, the coop may prevent them from reaching their potential. Below are a few more potential drawbacks.Â
Â
To an extent, coffee cooperatives require their members to conform to a certain standard of quality and coffee profile. An unfortunate result of this uniformity is that the unique properties of individual farms are sometimes sacrificed, as subtle notes and nuances in flavour of a certain bean become undesirable.Â
Instead of working hard to emphasise these differences and experiment with new growing methods, farmers must instead phase out differences so that beans align with the overall profile of the cooperative.
Â
Who decides how much is invested back into the coop? And, how are decisions reached about investing in certain programs and equipment when the needs of individual farmers may differ significantly?
The problem of deciding how money is spent can be a difficult one and it would be natural for one farm to feel dissatisfied when group profits are invested in programs that are not seen to be as important as others. Â
Ultimately, there is still a level of complexity (and indeed bureaucracy) that exists in some coops and smallholder farmers may not always get the share of the benefits they hoped for.
These challenges are more evident in larger cooperatives where needs and goals diverge more, yet, it’s clear that profit may not always flow to the “right” places in the cooperative model.
Â
With dozens of different farmers delivering their coffee to one processing station, coffee quality can vary drastically. The bigger the coop, the more this is an issue.Â
Testing quality and categorising batches into high and lower grades is incredibly important. This ensures that strong yields get higher prices and poorer yields are also sold on the market at a suitable price point — removing the chance of bad beans contaminating the overall batch.Â
The Colombian coffee industry overcomes this issue through rigorous testing and consistent cupping at the processing stage. Farmers now realise the importance of differentiating truly great beans from average or poor beans, and making sure they are each sold on the market for a fitting price.Â
Again, direct communication with roasters has, over time, helped growers and coops to understand what is desired in consumer markets. And with constant testing and cupping, farming methods can more easily be optimised to meet the style that coffee roasters and their customers want.
Learn how the hard work of coffee farmers can best be appreciated through medium-light coffee roasting profiles in our guide: Understanding Different Coffee Roasts - A Beginner’s Guide
Direct communication between growers and roasters has helped growers and coops to understand what is desired in consumer markets.
Â
Producing coffee for profit can be challenging. It involves success on the farm level (mitigating the effects of disease, weather fluctuations and climate change), but also requires an understanding of factors that are far removed from the world of the humble coffee farmer, such as shifting consumer preferences.
While it’s not simply because of cooperatives that farmers are able to improve yields, access facilities and get a better price for their produce, they’ve no doubt supported the efforts of many Colombian producers, giving them a chance to profit from their hard work in a way that may not have otherwise been possible.
Â
Discover Our Full Range of Colombian Coffees!
Â
Â
Sign up to receive exclusive offers, updates and news on our products and services. Join our community of coffee enthusiasts and stay up to date with the latest coffee trends, roasts and brewing techniques.
Journal
VIEW ALL
Upgrade your Morning with a Monthly Coffee Subscription
A coffee subscription is more than just a convenience—it's a way to simplify your daily routine and enhance your coffee experience. By automating your orders, you save time, ensure consistent quality, manage your budget better, and avoid decision fatigue.Â
READ MORE
Fully-Home Compostable vs. Home Compostable: What’s the Difference?
84% of households recycle incorrectly. The rules and guidelines may seem confusing, but we're here to take the first step. Today, we're breaking down the confusing world of coffee capsules...
READ MORE
Everything You Know About Cold Brew is Wrong - Here’s Why
You may order a cold brew for its reputation of giving a big kick of energy, you may order it because it's the it-coffee of the moment, but what makes it so different to an Americano? Spoiler alert - everything.
READ MORE
What Makes Specialty Coffee Special?
If you’re an avid coffee drinker, chances are that you’ve come across the term specialty coffee at least once in the hunt for that perfect cup of coffee. But what truly makes it so special?
READ MORE
Hario V60 Dripper - Everything You Need to Know
Picture this: It's 2005 and a Japanese glassware-making company called Hario has just introduced a brewer that will revolutionise the coffee scene. Read on and find out all there is to know about the Hario V60 and it's fascinating history.Â
READ MORE
Pink Bourbon: a Colombian Specialty Coffee Like No Other
Pink Bourbon - Colombian specialty coffee's latest gem? Learn all about this dazzling new varietal, its unique rise to global recognition and what the future holds for it. And don't forget to try our very own Hermanos Pink Bourbon - La Aldea.
READ MORE
It's A Hermanos Christmas
From Christmas Market prep to festive coffee-roasting to the birth of new seasonal characters like Santa Santiago, it’s been a rollercoaster of a month - and we’re only halfway through. Come along for a ride through the Christmas rush at Hermanos.
READ MORE
Feliz Navidad - Introducing Hermanos Christmas Coffees
We’ve curated two limited edition coffee beans for you this Christmas - Santa Rita Honey and Finca Las Brisas. Take a deep dive into their backstories and find out why they make the perfect Christmas bean.
READ MORE
Stories from Colombia
From Colombia, with love. Follow along as we take you on a trip through the journeys of four Colombian speciality coffee farmers and their families. From seemingly insurmountable hardships to deaths within the family, these farmers have seen it all, done it all, and persevered through it all. And now they want to thank you - for the unwavering support you've shown their beans through the years.
READ MORE
Hermanos Coffee Pods
Crafted by Hermanos, compatible with Nespresso®. Our sustainable single origin pods are finally here! Available in three of our most loved beans, get ready for your very own specialty Colombian coffee experience at the push of a button.
READ MORE
All About Yellow Fruits
This coffee will blow your mind - in the best way possible. With inimitable notes of pineapple mango and manuka honey, one sip is all it takes to fall in love. Get ready for Yellow Fruits to whisk you off to a tropical paradise.
READ MORE
How is Decaf Coffee Made?
Can't handle caffeine? That's where decaf comes in! Learn all about popular decaffeination methods used in specialty coffee and which one we prefer to use for ours.
READ MORE
Light Roast vs. Medium Roast - Coffee Roasting Explained
READ MORE
A Coffee Varietal Guide
The 2 main species of coffee are arabic and robusta, where arabica is mainly used for specialty coffee. Within the arabica family there are different varietals, similar to different apple types (eg. Fuji, gala, granny smith), each varietal boasts distinct flavours and flourishes in different growing conditions. Let's explore the world of Colombian coffee varietals and its diverse tastes.
READ MORE
The Coffee Supply Chain - How Does It Work?
Whatever your connection is to the world of specialty coffee, we’re all at the mercy of the coffee supply chain. And knowing a little more about how it works (and the threats that it faces) can help you understand just how appreciative we should all be of great coffee when it’s available to us.
READ MORE
Colombian Coffee vs. African Coffee: What’s The Difference?
How does Colombian coffee compare to African coffee? We explore the main differences between the two, including roast, processing, and tasting notes.
READ MORE
Hermanos Colombian Coffee Roasters — The Brand Refresh
Over the past seven months, we’ve been working hard behind the scenes to hone our branding and enhance it to better convey our values and our mission.
READ MORE
Gender Equality In The Colombian Coffee Industry — An Introduction
The Colombian coffee industry is reliant on the work of women. Yet, women are often not recognised enough for this contribution..
READ MORE
Choosing A Chocolatey Coffee — Insider Tips
Coffee and chocolate are two of the most popular flavours out there. We’ll talk through the characteristics of chocolatey coffee and what's on offer at Hermanos.
READ MORE
The Colombian Coffee Federation — What Is It And Why Is It Important?
The Colombian coffee industry has an outstanding global reputation, and for good reason. To maintain this quality and put frameworks in place to protect the coffee growers, the Colombian Coffee Federation was created.
READ MORE
Can Coffee Farmers Stop Climate Change Killing Their Crops?
There are around 25 million smallholder coffee producers in the world and over 125 million people who rely on the sector. What can they do to save their crops?
READ MORE
What Are The Key Differences Between Colombian Coffee And Brazilian Coffee?
How similar is Colombian coffee to Brazilian coffee? Despite both countries being in South America and sitting in the coffee belt, they differ vastly from each other.
READ MORE
Colombian Coffee Facts — Everything You Need To Know
We’ve summarised 10 of the best Colombian coffee facts, which you can use to find out more about what makes coffee from Colombia so unique.
READ MORE
How Does Climate Change Affect Coffee Production?
While local adaptation and agricultural innovation is helping some to mitigate the effects of climate change, several studies carried out over the last decade predict we’re looking at a drop of up to 50% of total landmass suitable for coffee production by 2050.
READ MORE
Koji Fermented Coffee: Innovation in the Coffee Industry
We’re invigorated by experimental coffee processing techniques, which is why we're so excited about Koji, our new bean.
READ MORE
What Is Natural Coffee Processing And How Does It Impact Your Coffee?
We dive into the natural processing method, and see how it weighs up against the washed and honey processes.
READ MORE
Our Visit To Colombia: Meeting Coffee Farmers And Discovering New Coffee Beans
Last month we travelled through Colombia. Our aim was to visit as many coffee growers and farms as possible in just a few weeks. Here's what we learnt...
READ MORE
Coffee Freshness - Does Fresh Ground Coffee Taste Better?
We’ll walk you through why coffee freshness is so important, as well as some top tips on how to preserve the freshness of your coffee.
READ MORE
UK Coffee Subscriptions – Coffee Clubs, Bean Boxes and In-Shop Subscriptions Explained
The UK coffee subscription landscape is incredible. Many of the nation’s most established coffee roasters have doubled down on their online subscription models since the pandemic, while a huge number of new and digital-first brands have also entered the market.
READ MORE
Is it Better to Buy Coffee Beans or Ground?
The vast majority of supermarkets and specialty coffee roasters offer both whole beans and pre-ground coffee. But which is the better choice?
READ MORE
Coffee Flavours by Country: How Does Location Affect Flavour?
Factors ranging from climate and altitude to the way local farmers process their beans have an impact on flavour. We explore how coffee origins influence coffee profiles from different countries.
READ MORE
5 Reasons To Visit A Coffee Roastery
A coffee roastery is one of the most exciting places to be if you’re a coffee lover or interested in how the process works. However, there are still misconceptions about what a coffee roastery is and how it relates to the other parts of the global coffee supply chain.
READ MORE
The Beginner's Guide To Different Coffee Types
There are so many different types of coffee out there, from Espresso-based drinks to fancy pour overs like the Chemex and V60. We’ve put together a beginner’s guide to different coffee types to make it easier for you.
READ MORE
What Is A Coffee Roaster? Wholesale, Subscriptions & Coffee Roasting Explained
The majority of coffee shops around the world buy their beans from a wholesale roasting company. But what is a coffee roaster? We explore!
READ MORE
Ground Coffee vs. Instant Coffee: What Are The Main Differences?
If you’re looking to brush up on your coffee knowledge or want to make the change from instant coffee to ground coffee, then you’re in the right place. In this post we explore the many differences between ground coffee and instant coffee, including the type of beans typically used for each, caffeine content, shelf life, taste, and the way these coffees are brewed.
READ MORE
Espresso Explained: What's The Difference Between Espresso And Filter Coffee?
What makes an espresso different to filter coffee? Many factors ranging from the size of the drink, the caffeine content, the taste, and even the aroma all play a part. But most importantly, these coffees differ due to the way they are made.
READ MORE
Coffee Tasting Guide – Top 10 FAQs Answered
There’s a strict protocol to follow if you are coffee cupping, but the general act of coffee tasting can take many forms. Here’s our coffee tasting guide for beginners.
READ MORE
Coffee Tasting Terms Explained — How To Taste Coffee Like A Professional
Whether you’ve got a coffee cupping session coming up, or you just want to learn how to appreciate your morning coffee more, it’s never a bad idea to brush up on your knowledge of coffee tasting terms.
READ MORE
A Visit from the Producers of El Vergel - What We Learnt
From challenges faced by climate change to why they choose to grow specialty coffee over commodity coffee, here’s what we learnt when we interviewed the Tolima-based producers of our popular El Vergel coffee.
READ MORE
Coffee Traceability: What Is It and Why Does It Matter?
The desire for traceability in the specialty coffee industry is growing, with more interest than ever in where coffee comes from, who grows it, and how it gets from farm to cup.
READ MORE
The Cost of Coffee - Why Are Coffee Prices Rising?
The cost of a simple cup or bag of coffee is connected to so many of the world’s most critical issues, ranging from the climate crisis to the global pandemic. We explore what’s really behind the rise in coffee prices.
READ MORE
Natural? Washed? Honey? Coffee Processing Methods Explained
Although you don’t need to know the difference between natural, washed or honey processed coffees to enjoy them, cafes, roasters and specialty coffee retailers are increasingly using these terms as selling points for their beans.
READ MORE
How Does Altitude Affect Coffee: Colombian Coffee
Coffee beans grown at higher altitudes tend to produce coffees that are more complex, rich and distinct due to the cooler temperatures that extend the growth time of the coffee plant, adding more depth in flavour.
READ MORE
Specialty vs. Commodity Coffee: What's the Difference?
There's never been so much interest in specialty coffee as there is now. A growing number of coffee shops and roasters define themselves by their commitment to specialty coffee, and, in a way, their opposition to 'commodity coffee'.
READ MORE
Coffee Tasting Experiences - What to Expect During Your First Cupping Session
Anyone can taste coffee but 'cupping' refers to the standardised process of evaluating coffees used by the coffee industry. We explore what you need to know before your first tasting (or cupping) experience.
READ MORE
How Is Coffee Decaffeinated? - Decaf Coffee Beans
We shed light on what decaf is and how exactly coffee is decaffeinated using methods like the sugar cane decaf process so you can make a more informed decision when choosing your next bag of Colombian decaf coffee beans
READ MORE
What is a Colombian Coffee Cooperative & What's Their Impact?
While the coop system isn’t perfect, it’s played a crucial role in developing the Colombia's specialty coffee market and allowing smallholders to band together and promote the attractiveness of their beans. Learn more!Â
READ MORE
How to Buy Specialty Coffee Beans - A Beginner’s Guide
Learn how to start buying better specialty coffee with our beginner’s guide. We discuss roast dates, flavours (notes), supermarkets, descriptions on coffee packets, and provide a simple checklist for when you’re in a fix.
READ MORE
What is Arabica Coffee & Why the World Loves it
Arabica coffee beans offer a smoother, sweeter taste than Robusta. And despite being harder to grow, are widely considered to be the superior bean in the world of specialty coffee.
READ MORE
The Colombian Coffee Triangle - The Past and Future of Colombia’s Most Famous Coffee Producing Region
Nearly a third of Colombia’s coffee growing happens within the “Colombian Coffee Triangle” and its major cities are strongholds for a century-old tradition of coffee farming. Learn more.
READ MORE
