Why is Traceability Important In The Coffee Value Chain

Coffee traceability

There are millions of coffees on offer at any given time and sometimes it is not easy to trace where a particular coffee came from. This leads to the some quality specialty coffee being treated just as any other commercial coffee. 

Transparency is a subject that has been talked about so much in the coffee industry. There have been many instances where good coffee from hardworking farmers is deliberately mislabeled or wrongly valued to deprive the farmers of a just wage. The need to know where a certain lot of coffee originated from is even more important now than ever. 

Giving recognition to these hardworking producers and farmers is an aspect that needs to be reinforced. Therefore, traceability is not just about tracing the journey of the coffee from the farm, it is about transparency and validation. Everyone involved in the value chain will be able to understand the complexities of coffee and understand why we have to be serious about sustainability, traceability and transparency.

These days, there is a rise in infused coffees and other experimentally processed coffees. It is important to distinguish between these coffees and the more traditional ones. By including all relevant information, we can understand the values and ingredients used during the processing phase.

Alejandro Hernandez is a coffee farmer from Costa Rica. he says, “We have washed, natural, anaerobic and even honey coffees. It is good to indicate these processes in the bags so that the clients understand the various processes and characteristics of each”.

Hernandez adds that if it is traced back to their farms, the farmers feel proud and appreciated, motivating them to produce even higher-quality coffee.

How is traceability achieved in coffee?

Coffee traceability is essentially the ability to trace and monitor the entire journey of your coffee throughout every stage of its supply chain.

Different origins have different approaches to traceability.  The most important aspect of the whole notion is to have a standardized, uniform definition of traceability.

In some East African countries such as Kenya, traceability starts at the processing facilities with the various coffee lots being assigned unique designations known as Outturn numbers. 

Outturn numbers are unique designators that show the origination farms, cooperative societies, the coffee miller who milled the lot, the processing techniques used and basically all the steps the coffee underwent till the milling. This enables the farmers to also understand and know how their coffee is traded and who the eventual buyer is.

Traceability in the supply chain – Farm to Cup.

It is important to understand what the coffee value chain looks like to understand the need for traceability. In each of the supply chain phases, proper documentation must be included. A general coffee supply chain looks like the following:

Farm: In all origins, the coffee value chain starts at the farm. This is where the most need for traceability occurs. Details required here include farm location, size, altitudes, agricultural practices and type of coffee. These practices that are carried out at the farm have a huge effect on the rest of the supply chain and should be carried out with utmost care. Also included in the traceability system in the farm are the harvesting season and methods.

Coffee Processing:  After the farm, the coffee is harvested, and there is the processing phase. It is important to document the processing method and the process must be clearly indicated as part of the traceability process for coffee importers to know how the coffee was processed because we have different processing techniques for coffee and each has its effect on the cup quality.

Milling and Storage: After processing, the coffee, irrespective of its processing method has to be milled and stored. The traceability apparatus requires that weights, origin, packing dates and processing dates are included with these batches. This will determine the eventual cup valuation, quality and logistics to make it easy to identify the various coffee lots.

Exporters: Exporters play a crucial role in the coffee industry by exporting green coffee beans to various countries. They ensure that the coffee reaches international markets, contributing to the global coffee trade.

Importers: Importers are responsible for importing green coffee beans and selling them to roasters. They bridge the gap between farmers and roasters, facilitating the flow of coffee through the supply chain.

Roasters: Roasters are essential in the coffee value chain as they transform the green coffee beans into the aromatic roasted coffee that consumers enjoy. They carefully roast the beans to bring out their unique flavors and characteristics.

Consumers: Consumers are at the heart of the coffee industry. They enjoy the end product, savoring the diverse flavors and aromas of coffee. Their preferences and demands drive the entire supply chain.

Traceability is more pronounced where liberal coffee markets are present. In this way, it is easier for a producer to know who is buying their coffee and can furnish them with all information pertinent to the transparency and traceability of the lot. 

In addition to this, direct trade has greatly improved the notion of transparency and traceability. The coffee buyers can physically visit the farms from where they source their coffee from. This is the most efficient way to achieve traceability, but it has its logistical challenges. The farmers can create worthwhile alliances with the buyers through direct trade.

The farmers can provide all details pertaining to their coffee. From the origin country, to grade, variety, species, processing, altitude, harvesting dates and even packaging. Hernandez adds, “For us, we have to include each detail that pertains to a certain lot. From the species, variety, varietal, farm altitude, harvesting and processing dates, weight, processing methods and even packaging”.

He adds that these details included helps the buyer have no doubt about the authenticity of their coffee. He says that it is easy for good coffee to be used to lift the quality of another lower-quality lot without giving the correct indications and then sold as the higher-quality lots. He says that this labelling has helped in a way to reduce these instances.

Each coffee lot comes with a story. As we say, coffee talks, therefore it gives its story about its journey. Some people trace this journey through photographs, social media posts, videos and other electronic media. This is visual traceability and it helps in getting the message across to all consumers worldwide who understand the paths taken by the coffee.

Alejandro continues, “On all our social media pages, we try to tell our story. Coffee stories are beautiful and thus we feel that all our buyers and later the consumers should know of it. Coffee allows us to connect to the world and people get to know about us this way”.

Social media and electronic media are playing a stellar role in advancing traceability in coffee. Beautiful posts with touching stories are becoming the norm for all coffee producers who are sharing their stories visually. This mode of traceability is one of the most notable ones in recent times.

From the location of the coffee farm, the stories explore coffee production and the day-to-day activities that take place in a coffee farm. This lets the consumers understand the difficult nature of this undertaking. By viewing this, experts out there can get in touch with the coffee farmers and let them know of the best practices.

Benefits of traceability.

As in all other aspects of the coffee transparency efforts, traceability has its share of benefits and challenges. For coffee farmers, traceability helps them tell their own stories about their coffee, their journey and their overall efforts. In this way, coffee farmers can earn more for their coffee,  feel appreciated and valued, which in turn gives them the morale to continue producing quality coffee.

For coffee buyers and consumers, traceability helps them understand the various coffee-producing nations and the processes involved. This helps in appreciating the complexities of the coffee production process and thus are motivated to pay fair prices to the farmers. 

Good coffee producers create a name for themselves. With traceability aspects in force, these hard-working farmers will create a highlight for themselves and by extension, get recognition for their work. A name in the coffee business is quite important in that it will create more business opportunities for them and gain a wider market share.

Farmers are also able to create a brand for their farms. In a sector where many farmers do not run their farms as businesses, creating a brand for coffee farms through high-quality coffee traceable to these farms is an added plus for the farmers. It is easy to create a brand that represents high-quality coffee that showcases its unique qualities and can reach a wider audience.

Consumers will be able to identify with a particular farmer who is offering exceptional quality coffee. Once the farmers with great coffee can offer their coffee to the consuming world, it is easy for the consumers to fall in love with this coffee. In turn, they can know who produced it and this is where traceability is most important.

“Over the years, we have been able to get some very good feedback directly from coffee consumers far away from home. This makes us feel very proud of our work and our coffee. Gives us the morale to keep making better coffee”, explains Alejandro.

Challenges with Coffee traceability.

Some challenges that prevent the traceability of coffee from being achieved include poor communication channels between producers and buyers. This affects how and which information is required to trace the coffee back to the farmer. 

The farmers sometimes are so preoccupied with affording the cost of production that the notion of traceability goes out the window. Due to the bad prices paid for the coffee to the farmers, they struggle to have all the requisite information and don’t even understand the reasons for including these details.

Poor structures that allow for dishonest traders who take advantage of the farmers is another stumbling block. These traders make it hard for the farmers to reap the full rewards of their hard work which results in poor prices. The traders undervalue the coffee to their advantage and reap huge rewards.

Data integrity is a crucial aspect of traceability. While producers attempt to document crop details, it becomes essential to verify and ensure the accuracy of this data. Solutions for traceability require collaboration and the integration of technology among the key players involved in the coffee value chain

We need to have traceability improvement from all sectors of the coffee value chain. This will improve the sector that has been riddled with mistrust and improve the livelihoods of the farmers who do the noble duty of producing coffee.

It is also important that all stakeholders involved in the entire coffee value chain get more involved in realizing coffee traceability, transparency and sustainability. For now, it seems that only the consumers have the drive to understand the coffee journey thus making traceability a difficult dream to achieve.

AGnimble is actively working with producers and farmers in Kenya to address the challenge of traceability. By providing a digital platform that farmers can carefully input traceability data, including farm names, altitudes, and processing methods. However, it is crucial to incentivize farmers to embrace these tools further. As younger farmers enter the coffee farming industry, they are more likely to adopt digital solutions and create added value for their coffee. This increased traceability empowers importers and roasters to gain awareness of the unique characteristics and origins of each coffee farm, further enhancing the overall coffee supply chain.

Peter Gakuoh
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