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Every $1 you contribute helps a coffee producer get a fairer price for 1lb of coffee, forever.
One of the biggest problems most smallholder coffee producers
face today is that they run out of money before the year is
over. The end of the year for a coffee producer is harvest time
and they need to pay the pickers. To pay the wages, the
producers often have to sell their coffee at the local market
price leaving little to no coffee to sell at the higher, export
market price. Selling coffee at the local market price is
unsustainable as the income isn’t enough to maintain the costs
of running the farm for a whole year which makes them sell their
coffee at the local market price... Over the last two years at bridazul we have been supporting many local farmers faced with this problem and with money from our own pockets. We believe that we could help many more smallholder producers by helping them get the coffee to the export market. Last year we worked with 12 producers, we have 21 confirmed for this year and possibly up to 25. That's why we want to ask for your help. We are asking for $5,000* which is
the equivalent of 5,000lb that enables us to prepay to those
producers during the harvest that is happening now. If we are
not able to prepay them, they will have no other choice than to
sell to the local market and lose the extra margin. *In reality we're asking for €4,100 as Fundrazr, or any other platform for that matter, doesn't allow funds to be collected for Nicaragua. Tim, one of the founders of bridazul, being originally from Belgium has made it possible to collect funds through his account, that's why the goal is in Euro. All possible bank charges and valuta changes to transfer the money here will be handled and paid by bridazul. We pledge that every $1 will be used to get 1lb of coffee on the export market. | Picture 1. One of the coffee producers we've been working with for the last 3 years and one of the buyers that has been buying his coffee consecutively for the last 3 years together bought a fridge for the farm (most coffee producers don't live on their own farms here) which we helped deliver. It changed the lives of the people living and working on the farm as they now could store fresh-made juices, cheese, cream and meat they bought at the market. It seems like a relatively small and easy-to-do purchase, but it created a ripple effect in the community around the farm and the producer in question was asked by several other producers why he did it. This is what he answered them:"Because I finally could. The money I received for my coffee was sufficient to share with the people I've been working with for such a long time." |
The Backstory
Harvest is the period of the year with the highest expenses on the farm because of the labour costs involved with manually picking the coffee. At that time there is little to no money left from the sales of coffee from the previous year. To have enough money to pay the pickers, the producer needs to sell his coffee at the local market price at around $1*. The figures don’t work out, as in this area the average expense to produce ( Cost of Production) 1lb of coffee is around $1.3, this is not even taking into account any environmental or humane concerns.
This means that their coffee only brings in around $1/lb on the local market, whereas that same coffee sold at export market can bring (called Farm Gate Price) in $1.3/lb or more depending on the quality, covering at least Cost of Production.
Bridazul commited to pay $1.5/lb or more to the producer in the 2019-2020 harvest season. This wasn't only covering Cost of Production, but actually made room to improve the working conditions and/or the farm environment.
*Coffee is traded on the international stock market in $/lb that's why we use this measure. $1/lb equals to about €0.42/kg, which doesn't quite have the same ring to it. The day price on the local market is dependent on this trading price (ICE coffee future).
How You Can Help
Figure 1. From the traditional model, where coffee producers don't have enough income to cover the costs of the year, over the 'bridazul fund', that makes them earn more for their coffee, to being a self-sufficient farm, where income surpasses expenses. | By contributing to the 'bridazul fund' you pledge to help coffee producers get a fairer price for their coffee, forever! The 'bridazul fund' is used to pre-pay the producers $1 when they need money, the same as if they would sell it on the local market. But the difference is this: the producers are still able to sell their coffee on the export market at a higher price. Actually, we're even going to help them sell it. After export we pay-out the Farm Gate Price minus $1 (which we already paid) to the producer. We charge all our service fees directly to the buyers and don't touch the agreed upon Farm Gate Price. The bridazul fund is self-sufficient, the fund empties during harvest and refills after export by design, year after year. We try to make all farms we work with self-sufficient too. Every time we succeed in making a farm self-sufficient (Farm Gate Price ≥ Cost of Production) we succeed in making the fund obsolete for that farm thereby making room for other farms to participate. Therefore we need to get producers to be able to sell their own coffee on the export market, which is why we're asking for your help. More contributions to the 'bridazul fund' means more producers can sell more of their own coffee directly on the export market earning more for their hard work, in order to do this we need to break the vicious circle of having to sell coffee at $1/lb just to pay the pickers. |
Picture 3. Claudia & Tim, the founders of bridazul | Meet Claudia And Tim, The Founders Of BridazulClaudia Lovo, born and raised on a farm in the country side, started working in coffee in Ocotal almost 15 years ago. She is a woman in a men’s industry in a macho culture, but well respected. And often seen as an independent and true voice in coffee here. During her coffee travels she made numerous friends and learned a lot about the other side of the supply chain. Tim Willems moved to Ocotal after a having worked in advertising and coffee in Belgium. The combination of his experience in coffee on the 'consumer side' and his eagerness to learn everything 'producer side' has made him a great partner to all coffee producers who work with bridazul. Together they co-own one farm & run two other farms, all farms are in partnership with international friends and serve as a role model in social and environmental care and advanced coffee processing techniques. They experienced the problems producers face first-hand even before starting bridazul. | |
TL;DR
Every $1 you contribute helps a coffee producer around Dipilto, Nicaragua get a fairer price for 1lb of coffee, forever.
Exporting their own coffee with the help of bridazul makes them earn at least 50% more for every 1lb of their coffee than if they would sell it to a middleman. This is the start to make their farms self-sufficient.
It would help us a lot if you could get the word out on social media. Sharing is caring!
Abrazos,
Claudia & Tim
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