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Transparency and coffee prices

Friday, August 20th, 2010

Yesterday I got a link sent to me by a good friend and coffee enthusiast in San Francisco. The link is to an Internet forum called Home Barista that is basically a discussion forum for coffee enthusiasts from around the world. I was a bit surprised to read this post on a forum created by and for coffee lovers, so I felt I had to reply in order to educate our customers and also to try to explain that not all coffee companies are the same.

Transparency

A lot of high quality driven roasters, including ourselves, preach that transparency is the most important part of our trade, but rarely do we actually get to see the numbers in the coffee industry. Sustainable Harvest is one of the few companies that are trying to do something about this through their Relationship Information Tracking System.

Cup of Excellence is also a great example of where consumers can get full traceability of the coffee trade.

I have been trying to establish a traceability system of our own and also to develop a contract that shows what the farmer gets when we pay USD 3 pr. lb (453g) FOB for coffee. We do have the contracts in Kenya as this is cooperative coffees created by hundreds of farmers. For all the other coffees we have bought this year we feel we don’t need it as we are communicating directly with the farmers anyway. We are still far away from being 100% transparent but hopefully in the future we will be able to get a system for it that enables our customers to get all the info they need.

As a temporary solution I have started to systemize all the information about our coffee purchases from the end of last year, and to my surprise we are actually paying a higher average price for our coffee than I thought we were.

Coffee prices

For the past months we have read that the C market price for coffee is at it’s highest in over 10 years at about USD 1,6 pr. lb. (453 g) of green coffee.

Although this is not a very high price for coffee it is still very positive that it is going up, as the price has been way too low for the last 10 years, forcing a lot of producers to start growing other cash crops in order to survive.

As you all probably know, we do not trade coffee based on the C market price and we do not sign future contracts based upon today’s prices like most of the bigger roasteries do. We buy the coffee direct from exporters or farmers and negotiate the price based on taste and quality. We negotiate with the farmer and the exporter. Not with a broker. We also have gentlemen’s agreements with farmers that if they continue their work with quality, we will be there to support them by buying their coffees.

Cupping at Carmo Coffees

As promised, I will try to do an effort for transparency, so here are the prices in USD pr. lb that we have payed for our coffees FOB  (free on board) in 2010:

Panama, Hacienda la Esmeralda:______ 26,50 $ + packing

Honduras, Cielito Lindo 2010 COE:_____  8,10 + packing

El Salvador, Las Palmas 2010 COE:_____ 5,31 + packing

Honduras, Naciemento:______________  3,50

Honduras, Finca El Pantanal:___________3,00

Guatemala, Santa Ana:_______________ 3,50

Kenya, Mugaga:_____________________ 4,77

Kenya, Tekangu:____________________  5,23

Of course these lots are not the same size. The Esmeralda was only about 120kg for instance. So the average price per lb. so far this year is actually USD 5,06.

Adding to the cost

As you may know, this is just for the green coffee. We also need to  pay for the shipping and handling of the coffee before it gets to our roastery. Shipping cost can vary greatly depending on the origin of the coffee. The price of the coffee gets about 25 to 30 % higher for the coffee when we include these costs. On average this means the price for the coffee when it has arrived to Norway is about USD 6,58 pr.lb.

We also need to cover our travel expenses that we spend when we travel around the world to find these coffees and visit the producers.

So far this year I have been to Kenya and Honduras, and I am going to Brazil next week, to Colombia in October and visiting Kenya again in November. That adds up to 60 days of traveling and a cost around NOK 120.000,- or about USD 20.200,- only for 2010.

My accountant may think I am crazy spending so much on traveling, but I think it is totally necessary and a good investment for the future. We are building relationships with serious farmers and we are trying to secure a good supply of great coffees in the future. We want to develop long term relationships with the farmers, not have one night stands with them.

After the coffee has arrived to Norway we still need to roast it, so you have to add the  cost of production, rent needs to be payed as well as salaries, delivery truck, electricity, maintenance, etc, etc. Of course the cost of living is higher in Norway than in Colombia and therefore we need to add a bigger margin to the coffee than a farmer in a producing country needs in order to make a living. For example, a beer in Colombia is about 1 USD. In Norway a beer in a bar is about 10 USD.

Is coffee expensive?

Some people think our coffees are expensive, and I understand that they believe so, especially if they compare us to a coffee sold in a supermarket. But if you taste the difference and understand how much work and effort is behind these coffees, I still believe that our coffees are cheap. It all boils down to about NOK 5,- or about USD 0,9 pr. cup. Compare that to what you pay for a bottle of water here in Norway (USD 5) where we have plenty of super clean water free from the tap, I think there is no need to discuss whether coffee is expensive or not.

Why is some coffees worth more than others?

Because quality of the coffee varies. Not only from farm to farm but within the same farm we can sometimes find a huge range of different qualities and varietals.

Jobneel, Tim & Extreberto

Take Cielito Lindo and Naciemento for instance. These 2 farms are neighbouring farms run by father and son. They grow coffee from 1500 to 1800 masl. in 2 very different types of soil. They grow 5 different Arabica varietals (Pacas, Catuai, Catimor, Geisha and Bourbon) These trees produce (like all other fruit trees) both very mature coffee cherries and also unripe and cherries that fall to the ground and get mouldy and rotten. Of course this will produce coffee of different quality.

Next year we will be there during their harvest in order to help them separate the different varietals. We are going to taste the coffees blind and  score them according to the COE cupping form. We will pay more for the better tasting lots and less for the lots that get lower scores. Would we do this if there wasn’t a difference? I think not. So, why do we do this? Because we want to encourage the farmers (above: Jobneel and Extreberto) to grow more of the qualities we like so that we can get more of this coffee in future years.

Simple and easy.

Why pay more for coffee?

Well, I see it as an investment. The farmers are able to invest in necessary equipment in order to raise the quality and they are able to save a little money and make a decent living. If we treat them well today, they will treat us well tomorrow.

I  believe that we cannot continue to exploit the coffee producers. Sooner or later they will stop producing coffee and that is a scenario I would not like to see. So, if you love coffee and would like to continue to be able to appreciate its wonderful flavours and diversity, then choose quality coffee before cheap quantity coffee.

I also think all roasters need to practice transparency in a greater way. It is time we practice what we preach so that more people understand what we are all about.

Hopefully this post was of some help to clarify what we are doing and trying to do in the coffee world. I could go on and on writing about this, but instead I encourage you to leave comments in our comments section and I will make sure I reply as soon as I can.

Great philosophy

La Marzocco Strada – first thoughts

Wednesday, August 11th, 2010

I know I have been writing about the La Marzocco Strada before, but back then I did not have a lot of experience using the machine.

Not that I have a lot of experience now either, after only playing and working with it for some weeks. To be honest, I haven’t had the time to use the machine as much as I would have liked, but I did get to use it during our 3 year anniversary and I was the only one using it for the whole day, profile-pumping out about 300 espressos from the 3 groups. I have also managed to make some terrible shots on the machine as well as some super delicate and sweet shots. (More about that later.)

IMG_2984

Since this La Marzocco EP3 is a prototype, there are a lot of details that needs to be changed. I am not going to bore you with all that stuff, but I did send a 3 page long document to Paola and Roberto, the engineers at La Marzocco, and I got a great reply from them telling me that they are on the case in most of my comments.

So, what are my thoughts after using the machine in a more realistic environment?

  • Working with pressure profiles, when it comes to taste,  is very difficult. It changes the taste of the espresso so much that you can get anything from syrupy sweet espressos to more elegant and transparent shots. It is also very easy to make really bad tasting shots. I no longer know what I want my espressos to taste like. It is very frustrating! Therefore I think one needs to have a clear vision of what the espresso should taste like before one starts playing with profiles.
  • Playing with the electronic paddle is very easy. The paddle is super responsive and allows you to change the pressure with great accuracy, once you get the hang of it.
  • When experimenting with different pressure profiles, I always record them, meaning I am always programming the pressure profile when I experiment, as it is extremely difficult to make the exact same profile manually from shot to shot. When programming / recording, you are able to reproduce the profile you just made as many times as you want. But does it work when it comes to taste? See next point..
  • When using a pre-programmed profile, one has to be super consistent in dosing in order to get the same results. I struggled a lot more getting consistent results with my blend than I did with the Single Origin coffee. Probably because the blend consists of different coffees and you will always get different beans in the filter from shot to shot. It is definitely more noticeable on the Strada as opposed to the FB80, probably because the coffees respond to pressure profiles differently.
  • A profile programmed for one coffee on a Wednesday does not necessarily work with the same coffee on Saturday. The coffee degasses and this changes the taste a lot. I had to totally change the pressure profile from Wednesday to Saturday even if I was using the same coffee from the same roasted batch.
  • Playing with the Strada is definitely very difficult when it comes to taste. Maybe there should be a default pressure profile that is similar to what you would get on a FB80, pre programmed, so that baristas could always use that as a standard reference to go after? I know the La Marzocco team is working on some standard factory default profiles that will help you get started. Realistically I know that time is expensive and also a thing we do not have enough of in our coffee shop. I spent about 2 hours tasting maybe 40 or 50 shots of coffee on the morning of our 3 year anniversary in order to make some decent profiles for the 2 coffees we were serving from the Strada. Of course with some experience you will get better at developing profiles more easily, but in order to make all my employees understand the machines and the effect of pressure profiling, I think we need to train and taste a lot together. It is going to take a lot of time and effort to become a true Strada player, so this machine is definitely not for the lazy barista or the cheap bar owner.
  • Would I buy a Strada? YES, I can’t wait to get my hands on one! The possibilities are fascinating and when you nail a profile

the taste

is just absolutely fantastic. It has made me become enthusiastic about espresso again. The shots I have made with our Kenyan Mugaga espresso has been by far the best espresso I have ever tasted made on a Kenyan coffee, Ever!! The brew profile that worked for this coffee and actually has worked for some days now, has been like this:

Parameters:

Brew water temperature: 93,5 C +/- o,5 C

Pressure profile:

1-10 seconds: slowly ramp up from 0 to 7 bars

11 – 13 seconds: brew at 8 bars

14 – 20 seconds: brew steadily at 7 bars (slowly raising the paddle as pressure decreases during brewing due to less resistance in the coffee puck)

20 – 25 seconds: Ramp down to 4 bars and then shut off.

(This was an attempt to replicate on a blog post. I might post some videos later)

I haven’t measured the weight of the shot nor the coffee. The espresso is not short but normal, so I am guessing about 25+ ml per shot and the wight of the ground coffee might be abut 18 to 19 grams as Kenyan grounds tends to be quite dense and heavy.

Real time pressure profiling

The flavour profile of this espresso is:

Aroma: Strikingly winy and fruity. Intense!
Acidity: Super balanced and refreshing. Like eating very ripe fruit. Winy like in light red wine.
Mouthfeel: Very delicate. Not heavy but lively and light. The shot is still concentrated in flavour yet texture is somewhat between a french press brew and an espresso.
Flavour: Very intense and winy fruit flavour. Juicy berry aromas. Tropical fruit in the end.
Finish: Sweet and lingering. No harsh bitterness like in a lot of SO Kenyan shots I have had before and that is much more present when pulling this coffee on a FB80.

We will be having a Strada party in our bar tomorrow where some fellow coffee enthusiasts and I will be playing with the machine. The machine is on trial for a couple of more weeks in our bar, before we have to send it back to Italy. Feel free to ask questions in our comments section on this post, and I will be happy to answer. (If I know the answer).

Happy 3rd Birthday Tim Wendelboe

Saturday, July 31st, 2010

Honduras

Friday, May 14th, 2010

After a long flight over the Icelandic volcano and spending an unwanted day in Panama waiting for my flight to Honduras, I finally made it to San Pedro Sula, 36 hours behind schedule. Nevertheless, my plan to visit Cielito Lindo was not affected, and I have to admit that I was very excited but also a bit afraid that my expectations were too high before my visit to the farm we have bought coffee from twice at the Cup of Excellence auction. I guess that not being able to communicate directly with the farmer and also hoping that he would be the “perfect farmer” was making this visit extra exciting and nerve wrecking for me.

Jobned, Tim & Extreberto

Afer a 2 hour drive from San Pedro Sula, I finally met with Mr. Extreberto’s son who kindly showed me around his farm and then his father’s farm. I have to say that not only is their coffee beautiful, but it is grown in one of the most beautiful farms I have ever been to. The landscape is breathtaking and really impressive. I spent over 4 hours walking from 1500 m.a.sl. to 1800 m.a.sl. struggeling to get both up and down because of the extremely steep hills. I can only imagine how hard it must be carrying a lot of coffee on your shoulders walking up and down these hills, and Mr. Extreberto does it every day at the age of 71.  To be honest, I was exhausted after the first 100 meters, but the beautiful scenery just made me want to see more.

Beautiful view at 1800 m.a.sl.

Well, enough of the romantic rant. To my surprise they were still picking coffee on the farm. The climate has been changing in Honduras during the past years, and we are starting to see a similar situation to what Kenya and Colombia is having with 2 harvests per year. At Cielito Lindo they start picking coffee in november and they finish in may. That is a very long harvest and by the looks of it they are going to have a tiny harvest in late august as well, due to some rains that occured some months ago.

Another interesting thing is that they grow a lot of different varieties, and have competed in the Cup of Excellence with great results both with their Catuaí and their Catimor varietals. Up until now they have normally been blending these 2 varietals, but I suggested that they separate the varietals next year, so that we will be able to taste them side by side. They also grow some Bourbon and Pacas and are looking in to other varietals too. The biggest issue with separating these varietals from each other is not during the picking, but the lack of drying space makes it difficult not to mix them up. They need to invest in new solar dryers (raised drying beds) as they have very limited drying space. Hopefully we will be able to help them invest in this by purchasing some more of their coffee this year.

Tall trees

I have asked for some samples of their harvest, and apart from the coffee they have delivered for the Cup of Excellence it looks like they will have 20 more bags for us to buy if the quality is satisfying. So I am very happy that we have the opportunity to continue buying coffee from Mr. Extreberto and his son, and hopefully we will see more of their coffees in the future.

Well, that was a short report from a very interesting day. I am absolutely beat after a long day at the farm and a 5 hour drive from Cielito Lindo to Santa Rosa, Copan, where I will be staying for 2 days cupping coffee and visiting some other farmers. On monday th Cup of Excellence is on, and I can’t wait to taste all those coffees.

More pictures below.

Re-Constructed Shakerato

Sunday, May 9th, 2010

About 10 years ago, Mr. Willy Hansen who is barista trainer at Solberg & Hansen, showed me how to make a delicios iced coffee called Caffè al freddo Shakerato. He simply put some ice cubes in a shaker along with a double shot of espresso (at that time a double shot was a full 60 ml+ made on a blend with a lot of Monsooned Malabar, aged Brazilian coffee and robusta) with 2 teaspoons of sugar and shook the mixture for about 30 seconds. The result was a foamy iced espresso served in a wine glass. I was astonished by the refreshing flavours and also the looks and “wow” effect from the texture.

I have served a tremendous amount of Shakerato during my long barista career, but for the past 3 years I have been really disappointed by the taste of this once delicious drink. I don’t know what has gone wrong, as I truly believe coffees are getting better every year, my espresso is definately tasting better now than 10 years ago, but still  none of the shakerato’s  taste like the first one I ever tried.

I decided last week to start working on a better recipe. After some trials, I found that what I really disliked with my shakerato’s is the watery texture and the bitter foam on top. Therefore I decided to give the old drink a real makeover, and after 3 hours of intensive trial and error, I was finally happy with the result. The flavour profile of the TW Re-Constructed Shakerato is a lot cleaner and more defined shakerato, still with that kick that the old Shakerato once gave me.

Here is a general recipe for the “TW re-constructed Shakerato.” I recommend using a single origin coffee in order to get more flavour definition:

1. Make  0,5l filter style coffee of Cielito Lindo “espresso roast.” Add sugar to taste and 3-4 double espressos made on Cielito Lindo espresso. Add Gelatine or similar and stir. Strain liquid in to a espuma syphon and charge with nitrus oxide. Shake well. Leave to cool in the fridge.

2. Make 2 double espressos of Cielito Lindo. Pour it over some ice cubes in a stirring glass along with 1 teaspoon of sugar. Stir until cool (like you stir a dry martini)

3. Strain cooled espresso in to a martini glass

4. Layer about 1cm of  coffee foam on top and serve.

There you go.  A “Tim Wendelboe Re-Constructed Shakerato.” Stirred, not shaken…

TW Re-Constructed Shakerato

World coffee map

Thursday, April 15th, 2010

I just started working on a coffee map over all the great coffee shops and espresso bars we have visited around the world that we can recommend to all our travelling readers. There might  be a couple of great food places that we recommend on the map as well, but this map is mainly for coffee places. We only recommend places we have been to, and also some places we haven’t been to yet but where we know that the owners or people who work there really knows their stuff. This map will be a constant work in progress, so hopefully it will be a nice guide for the coffee thirsty traveller.

Go here to see the map of recommendations.

New bag labels

Friday, March 5th, 2010

While enjoying an excellent Bourgogne, Tim and I noticed the simple, elegant label. It was uncluttered, modern and timeless, and without any gimmicky design elements. Conversation erupted over our own coffee bag labels and those of others. Over the 3 years, we haven’t developed or changed the bag labels much at all, and while they have had plenty of information, we thought perhaps there was too much. Altitude information for instance now seems a little irrelevant and meaningless, however harvest dates and roast dates are essential. We don’t want the labels to appear cryptic like some French wine labels, and we also don’t want an overload of pointless information, keeping them clean and easy on the eye.

So here are our new coffee bag labels which we will start introducing over the next couple of weeks. To make it easy to understand and interpret, here is the label broken down.

1. The name of the coffee

Fairly self explanatory, could refer to the name of the farm, the locality, the mill or the cooperative.

2. The name of the producer

This is often the owner of the farm or estate, it may also refer to the cooperative or the collective of farms or small holders.

3. The origin

Basically, town, region and country.

4. The varietal

The type of coffee plant, or subspecies of the Arabica varietal. This is just like the grape varietal in wine.

5. Taste description

The tasting notes have been derived from several cuppings, they are flavours and aromas we have found and are a broad evaluation of the characteristics of the coffee. Aroma, acidity, mouthfeel, aftertaste, etc are some of the criteria for the taste description. You will, however, find varying aromas and flavours.

6. Harvest date/degassing time

On our regular roasted coffees designed for filter style brewing, we have included the harvest date on the coffee, this will tell you the month and year the coffee was picked and processed. However, on the espresso roasted coffee bags, the degassing time is included. This is very important to take into account when brewing espresso, as espresso roasted needs time to rest and leave behind any flavours and aromas from the roast process. We would normally let espresso rest for a week, however this may change from coffee to coffee.

7. Roast and batch date

One of the most important indictors on a coffee bag, as we recommend to use the coffee within 3 weeks of the roast date. The batch number is for our reference, to ensure we can source all the information from that particular roast.

More in depth information will still be available here, in the Resources section of the website.

Nordic Barista Cup 2010

Thursday, February 18th, 2010

As head of the educational programme I am proud to announce that the preliminary programme for the 2010 Nordic Barista Cup in Oslo is published. For more info go here.

If you are considering attending I recommend signing up as soon as possible as there is only a limited 150 available tickets.

Kenya pictures and wrap up

Wednesday, February 3rd, 2010

I am finally back home again after a fantastic week in Kenya.

It looks like we will be buying a lot from the Karogoto factory which is part of the Tekangu coop and a lot from the Kiamabara factory which is part of the Mugaga coop. More info on these coffees will come when the coffees are ready for sale in our store. First it needs to be processed, sorted, packed and shipped to Norway. It will probably take about 2 months before we have it in house.

I have made a slideshow with some comments for every picture. Watch it in full screen and click “show info” to see the comments.
I Hope you like it:

New coffees

Thursday, December 3rd, 2009

We are glad to announce that we now have 2 Best of Panama lots and a Christmas espressoblend for sale:

The Christmas espresso blend consists of:

50% Badnekhan Estate, washed coffee from India
50% Suaza, washed coffee from Huila Colombia

Flavour profile: Rich, nutty, chocolaty, dried fruit, oak and spice.

The Panamacoffees are:

Lot no. 14: Panacoffee, espresso roast
Lot size: 220 kg
Producer: Finca la Milagrosa, Mr. Héctor Vargas
Harvest: January 2009
Origin: Alto Jaramillo, Boquete, Panama.
Growing conditions: 1600 m.a.s.
Botanical variety: 50% Caturra & 50% Typica
Processing: Washed.
Flavour profile: Fruity, light, sweet and refreshing.

Lot no. 7: Café Ole
Lot size: 150 kg
Producer: Café Olé S.A.
Harvest: January 2009.
Origin: Barriles, Volcan, Panama.
Growing conditions: 1380 m.a.s.
Botanical variety: Geisha.
Process: Washed.
Flavour profile: Floral, fruity, citric and sweet.


bunn