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LETTER FROM THE DIRECTOR Dear friends, Thanks for checking out our 2018 annual report. We’re pleased to share with you what we’ve accomplished in De la Gente’s 5th year. In 2018, DLG imported 139,750 lbs of green coffee, growing by 22% over the prior year. We provided $391,937.33 in income to farmers, at effective prices that averaged 54% better than their next best options, providing significantly improved income to our partner farmers. We hosted a successful season of student programs, with over 250 participants throughout the year. It was also another record year for coffee tours, and we were awarded TripAdvisor’s Certificate of Excellence for the fifth year in a row. DLG ran a second round of training in partnership with Root Capital, providing farmers from the San Miguel Escobar cooperative practical skills for managing their business operations in a transparent and effective manner. Farmers told us that they found this training helpful and have already put into practice many of the procedures they learned. To invest in farmer relationships, we visited our partner cooperatives to present detailed information about our supply chain, clients, and pricing. By sharing openly all facets of our operations, we helped farmers learn more about how their coffee makes it to market and where all the money goes, living out our values of transparency and farmer education. To wrap up the year, we gathered for our first organization-wide planning meetings, developing a strategic plan that will guide our work over the next three years (2019-2021). We’ll be sharing more in 2019, but in short, we’re laying out a path of how DLG will increase our commercial capabilities to bring more of our partner farmers’ coffee to market at good prices. Stay tuned. All of the above is possible because of your support. Thank you to everyone who makes up the DLG ecosystem. We appreciate you believing in us, and hope you’ll continue to support us in 2019 and beyond. ¡Adelante!

Andy Feldman Executive Director - 1  -


MISSION:                         De la Gente’s mission is to create economic opportunity for coffee-producing communities.

VISION:                     We envision a coffee industry that is equitable and inclusive, that enables small-holder farmers to earn a dignified income and live prosperous lives, that facilitates authentic relationships between coffee producers and buyers, and that meets economic, social and environmental needs of everyone involved. De la Gente works towards its mission through three major programs: 1. Coffee Business 2. Cooperative Assistance 3. Community Tourism We facilitate direct We provide technical assistance We welcome visitors to trade coffee sales, in order to improve the capacity local communities for providing greater market of our partner cooperatives to be immersive learning, access and better, more stable successful, farmer-run cultural exchange, and an prices for farmers while organizations that deliver high improved perspective delivering a high quality quality coffee while supporting while giving back to product to customers.  their families & community.  hosts.

Our partner cooperatives: Café Artesanal San Miguel Entre Volcanes de Antigua San Miguel Escobar, Antigua No. of Members: 28

Asociación Unión de Pequeños Caficultores (UPC) La Democracia, Huehuetenango No. of Members: 164

Ija'tz

San Lucas Tolimán, Lake Atitlán No. of Members: 35

La Suiza

La Suiza, San Marcos No. of Members: 45

Asociación de Productores de Café Santa Anita (APCASA) Santa Anita, San Marcos No. of Members: 8

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COFFEE BUSINESS

We believe that the best kind of trade is built on long-term, trusting relationships, transparency, and a quality product. Having built a supply chain that directly connects coffee farmers with roasters and consumers who share our values, we are able to deliver higher, more stable prices to the producers. As a result, the farmers are able to invest in their families and communities for a brighter future.

TOTAL PAYOUT

$391,937.33* TO PRODUCERS 15% increase over 2017!                    paid on average 54% over the second best option

5

partner cooperatives

280

cooperative members

137

farmers exported coffee with DLG

                                                   of green coffee 139,750 lbs exported to USA, Canada & the Netherlands 22% increase over 2017

6,290 lbs

1,937 lbs

of roasted  coffee sold online in USA & Canada

of roasted coffee sold locally in Guatemala

17% increase over 2017

13% decrease over 2017

Coffee Club Growth In 2018 the number of coffee club subscribers grew by 51%! The Explore Guatemala club, which delivers a different offering each month, underwent the biggest growth, as more people decided to travel through the delicious tastes of our partner cooperatives' coffees. However, the I Love Antigua club still boasts the majority of devotees, providing floral and citrus flavored coffees cultivated between the looming volcanoes of Antigua. Both subscriptions automate ethical consumerism, sending meticulously cultivated coffee straight to your doorstep once a month or every two months! *This is our best approximation of farmers' income. The given number is our payout to the cooperatives minus average export cost and taxes they need to pay. Milling cost or cooperative's overhead are not included.


I’ve had the pleasure of working with De la Gente and several farmers for the past 4 years. We purchase green coffee from 2 cooperatives through DLG, and participate yearly in their coffee tourism program through origin visits. We have deeply appreciated DLG’s closeness to the farmers themselves, and their willingness to assist us in coordinating these trips. DLG is one of our most trusted partners at Nossa Familia, and it always seems that every action they take is done for the good of their member cooperatives, first and foremost. De la Gente’s work directly supports our ability to carry out our own goal of connecting our staff and customers directly to the source of the coffee we roast and serve, in a mutually beneficial way for the farmers and visitors. We are deeply appreciative of the expertise and care that De la Gente brings to our partnership. Karen Lickteig Marketing & Sustainability Director, Nossa Familia Coffee

credit: Nossa Familia & Cortney White

In 2018 we extended our offerings by adding several microlots, one of which is of a new Generation! Ija'tz natural processed coffee Ija'tz cascara tea

UPC women's microlot

San Miguel youth group blend

In 2017, we brought you natural processed coffee from the farmers of Café Artesanal San Miguel. This past year, Ija'tz decided to try their hand at natural processing as well. In addition to this delicious offering, they are now producing cascara tea, a lightly caffeinated, fruity tea which can be brewed hot or cold! Our other new offerings include a women's microlot from UPC in Huehuetenango, and a blend from the newest generation of coffee farmers in San Miguel Escobar. La Segunda Generación--the Second Generation-- features 21 young men and women who want to follow in their parents and grandparents footsteps in keeping the coffee industry alive and thriving in the Antigua region. These hardworking young men and women have been receiving guidance from the proceeding generation of farmers from Café Artesanal San Miguel. Thanks to their determination and the support of the older generation, this year they were able to produce a wonderfully well-balanced blend. 

Building up Trust and Improving Transparency This off-harvest season we focused our efforts on improving inclusion and engagement with our partner cooperatives. We traveled to Ija'tz and UPC to give a presentation on our business model and finances, making sure to include time for socializing in order to foster one-on-one interaction between farmers and De la Gente staff. The presentation contained a detailed explanation of our supply chain and was richly-illustrated with maps showing  the path each cooperative's coffee takes after export. We also included photos of roasting facilities and cafes where their coffee is roasted and served, along with personal messages and videos made by their clients in the US & Canada. We also shared our financial details, explaining what FOB price is vs. the amount of money a farmer actually receives, specifying all the cooperative’s costs. Farmers could also see our contracts with buyers, sale prices, and the breakdown of all our costs - from importing to warehousing. Then participants helped us prepare coffee for the coffee break, using brewing methods completely new to them like Chemex or Aeropress.


COOPERATIVE

ASSISTANCE

We work to build the capacity of our partner cooperatives to be successful farmer-run organizations that deliver economic benefits for their members and invest in the continued improvement of their individual and collective abilities. Through trainings, materials & microfinancing, we provide access to the knowledge & resources they need to succeed.

MICROFINANCING 10 new loans totaling

$24,644 1 first-time borrower

3 machinery purchases 1 fertilizer purchase 4 land purchases 2 youth group projects

Total investment portfolio:

$95,785

29 active loans

MACHINERY & INFRASTRUCTURE 4 farmers received new 

coffee-drying beds

and 2 others gained

coffee-drying patios

Ija'tz got 2 new

fermentation tanks to better regulate the fermentation process Youth Group Fund

This year, we created the De la Gente Young Farmers Fund which was designed to provide low-interest financing to the Second Generation of coffee farmers in San Miguel Escobar. Many of these motivated men and women own little or no farming land at all, mostly working on land owned by their parents. Thanks to the fund, they will now be able to purchase their own plots to build their coffee businesses and support their growing families.  -  5  -

3 farmers received

electric de-pulpers thanks to the

Sociedad Honoriaria Hispanica


NEW VARIETALS TESTING

This year, Manuel Gutierrez, a member of the Café Artesanal San Miguel cooperative, was selected to participate in a study being conducted by the Borlaug Institute for International Agriculture at Texas A&M University. Manuel is one of nine farmers from Guatemala, El Salvador, and Honduras to test new varietals of roya-resistant plants. He received 1,000 trees free of charge; 250 of each of four experimental varietals: H1, Obata, Marsellesa, and Anacafe 14.  The goal of the study is to discover a high-quality, roya-resistant varietal that will allow farmers to forget about the devastating coffee disease, decrease their spending on anti-roya treatments, and provide them with a strong production year-to-year.

LA SUIZA Biofabrica Training & Implementation

To set up a biofabrica -- an organic fertilizer factory -- in la Suiza we partnered with Cooperativa Nahuala from the department of Sololá an expert in the field. The goal of the project was to create eight products that the farmers could use to improve the quality and quantity of their coffee production, and which they could also sell to other farmers in the area to ensure better income for the community. By the end of the training, seven farmers had been trained in the production and implementation of the organic fertilizers, all locally and affordably sourced. Funded by True Stone Coffee Roasters and individual donors.

IJA'TZ Fermentation Tanks Construction

Fermentation is one of the most crucial stages in coffee processing. Without quality equipment and precise timing, this essential step can ruin the quality of the final cup. For years, Ija’tz had been using shallow channels to both ferment and wash their coffee, however, this method was far from optimal. Therefore, with the help of 13 students from University of Wisconsin Eau Claire we helped build two large fermentation tanks, just in time for the 2018 harvest. Funded by Joe Van Gogh Coffee.

In 2018, we continued our collaboration with Root Capital, providing a total 15 days of financial advisory training to the Café Artesanal CAFÉ San Miguel cooperative. Twenty-two of the twenty-four cooperative were in attendance at the training sessions which covered ARTESANAL amembers wide range of essential topics: communication styles & techniques, Financial Advisory banking processes and controls, petty cash processes and control, voting procedures, excel functionality, and specific job manuals & protocols. Training Funded by BFB Foundation and Root Capital. -  6  -  6  -


COMMUNITY

TOURISM

Our community tourism experiences welcome visitors to local communities and open up a world of adventure, immersion, and exchange. Through spending time with farmers and artisan guides, and hearing their stories, participants experience the human side of the often faceless coffee industry, and create connections that cross cultural, linguistic, and national barriers.

$54,630.93

TOTAL PAYOUT TO THE COMMUNITY

6% increase over 2017!

5 20

coffee tour guides

5

artisans

11

pepian cooks

What's new? 8

local interpreters

2,476 738

PEOPLE JOINED US FOR

coffee tours artisan workshops

PEPIAN COOKING - PEANUT BUTTER MAKING - WOODWORKING HUIPIL / BURLAP BAG MAKING - IRON WORKSHOPS

Still ranked #1 for things to do in Antigua! “The amount of hard work these farmers put in is incredible, as is the laborious process from fruit to cup. [...] The experience was a definite eye-opener for me. NGOs like De la Gente — and the proud cooperative local farmers they work with — deserve our support and admiration." Coffee Tour Visitor

Improved Booking & Payment! In 2018, we implemented a new online booking system! Our new system makes booking tours and workshops quick and simple. Check availability, easily pay online, add on lunch at a farmer's house, or make multiple bookings at once! Tour participants must be happy because there were no "no shows" throughout all of 2018! -  7  -  7  -


SERVICE LEARNING

Service learning trips create opportunities for authentic exchanges of culture and immersive learning experiences, while giving back to local communities. Participants spend a week or more alongside coffee-farming families, learning firsthand about Guatemala’s rich culture and history and working on community-driven projects. SLTs leave a lasting impact on everybody involved.

TOTAL PAYOUT

$23,746.20 TO THE COMMUNITY 20% decrease over 2017 New Learning Objectives  This year we developed new learning objectives to better facilitate cultural learning. The updated objectives focus on a deepened understanding of Guatemalan history, reflecting on global inequality, stepping out of one's comfort zone, ethical consumerism, and the appreciation of other cultural perspectives. Refocused and enthusiastic, we are excited to facilitate cultural learning in 2019!

21 groups

259 participants joined us for Service Learning Trips

11

farmer-proposed service projects were constructed to improve coffee production and processing methods

"I will continue to serve in my local community to help those in need, and will more closely examine my choices for global impact. Conscious consumerism is a great way to make an impact through choices I already make, just being more mindful and intentional about the purchases I make and the causes I support."                              Student Participant

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FINANCIALS SLT 19%

INCOME Coffee Sales

$561,435.62

Donations and Grants

$62,684.29

Tours and Workshops

$94,657.66

T $177,906.05 10%

Service Learning Trips Others (Volunteers, Merch, etc)

TOTAL Income

$16,060.82  

$912,744.44 Don

7%

EXPENSES Coffee Purchases

$539,995.26

Cooperative Assistance

$24,193.32

Tours and Workshops Costs

$66,254.14

Service Learning Trips Costs

$77,580.66

Salaries and Benefits

$83,593.21

Occupancy and Operating

$48,235.86

Others (Merch, etc)

$6,854.41

TOTAL Expenses

TOTAL SURPLUS

Oth 2%

$846,706.86

$66,037.58

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CS 62%


A HUGE THANK YOU TO EVERYONE WHO SUPPORTED US IN 2018 THE BOARD

DONORS

PROFESSIONAL SERVICES

International Foundation, Sanibel Captiva Rotary Club, Sidney H. Smither Charitable Fund, Sociedad Honoraria Hispanica, Aaron Thornburg, True Stone Coffee

Catriona Forrester, Julio Martinez Anderson, Rupesh Shah, Brandi Stewart-Wood, Les Stoneham

Alternative Grounds, Cooperativa Nahuala & Pascuala Marroquin, Deeper Roots Coffee, Rob Hoos, Curtis Hughes, Karen Lickteig, Ryan Lodge, Root Capital, David Wilson

                   +    BFB Foundation, Linda Bytof, $1,000

             -   $999                Katie Begley, Kevin Blanchette, $500 Graham Carson, Steven and Deborah Feldman, David and Shannon Hitchcock, Peggy McDaniel, Winnetka Northfiel Rotary, Zion Coffee

SERVICE LEARNING PARTNERS

                       Amazon Smile, Anonymous, Daniel $1-$499

Boston Scientific, Centro, Dominican University, Harvard Westlake School, Lindsey Wilson College, Mary Carroll, Mt. Royal University, Northampton High School, Peace Works Travel, Rebecca Boardman, Rutgers University, St. Norbert’s College, Southern Oregon University, Temple University, Unearth the World, University of Wisconsin Eau Claire, University of Wisconsin Oshkosh, Vanderbilt University, Wolcott School

Benevento, Daryl Bosma, Elizabeth Botz, Zachary Boutin, Kathryn Butler, Jennifer Cheslock, Sally Cleaver, Laurie DeAngelis, Matthew Drain, Stephen Dunn, Brian Duplisea, Jeanne Ellsworth, Rick Feavel, Alan Fishman, Josh Ford, FreeportMcMoRan Foundation, Yoko Futagi, Cindi Gellert, Giving Assistant, Patricia Gleason Wynn, Marion Gottuso, Emily Grace, Harry Grace, Kari Grace, Joe & Merna Guttentag, Mary Ellen Hale, Allina Health, Patrick Healy, Ellie Henderscheid, Darby Hering, Eva Hilton, George Holden, Joyce Hughes, Herb Hurley, Julie Johnson, Florence Kamm, Gary Kaplan, John Killmer, Mary Kilnoski, Natalie Kordal, Bruce Krawisz, Maeselle La Paz, Carol Lee, Michelle Lee, Mary Lemay, Lance Lickteig, Laura Lipson, Branislav Males, Barbara Mann, Pamela Manning, Julio Martinez, Samuel Mason, Laura Matthew, Eugene Meyer, George T. Mickley, Cynthia Miles, Roger Mitchell, Network for Good, Charles Nimick, Meleokalani Ortiz, Lynnette Paasch, Joana Palero, Scott Parsons, Romney Pearson, Cedar Reimer, Henry Ricci, Charles Rolke, Jeffrey & Sharon Rosenblum, Kathy Rowell, Lisa Ruff, Doug Schneider, Taylor Schuurmans, Darin Shireman, Evelyn Smith, Wayne Smith, Danielle Stachiw, Anna Staniszewski, Herb Staniszewski, Richard Sundberg, Kristin DeVoe Talluto, Cecil Tates, Jean Warneke, Cary Williams

COFFEE BUYERS

BaseCamp Coffee, Broadsheet Coffee, Coffeebar, Deeper Roots Coffee, Drink Coffee Do Stuff, East Pole Coffee, Forged Coffee Co., Gryphon, Happy Cup, Ikon Coffee, Joe Van Gogh, Karma Coffee, Lighthouse Coffee Co., Peggy McDaniel, Milano Coffee, Moonbean, Moose River Coffee, Nossa Familia, Repetition Coffee, Ridge Runner Coffee, Rustbelt, SK Coffee, Sandhill Coffee, S. Michael’s church, Slightly Coffee Roasters, Snapping Turtle, Will Stevens, Eva & Paul Sylvestre, Truestone, Union Coffee Roasters, Peter Warren, Zion, Zona Coffee

INTERNS

Moises Hernandez, Laura Palantone, Laura Riddering, Rachel Shinabarger, Shane Sullivan

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YOUR CONTINUED SUPPORT IS CRUCIAL TO DE LA GENTE!  None of our achievements in 2018 would have been possible without your support. To continue our work of offering resources, financing, and training to our partner farmers, we need your support. A donation, a coffee purchase, a gift of time - it's all important to our joint success.  

TO FIND OUT HOW YOU CAN MAKE A LASTING IMPACT, VISIT WWW.DLGCOFFEE.ORG/DONATE

info @  dlgcoffee.org US: 617-963-0962 GT: (+502) 7834-0142 /dlgcoffee @dlgcoffee  

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Annual Report 2018  

Annual Report 2018  

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