2020 De La Gente Annual Report

2020

Contents • Letter from the Director

4

• About DE LA GENTE

5

• Our Partner Cooperatives

6

• Partner Cooperatives

7

• Our Partner Roasters and Customers 9 • Coffee Program

10

• Our Direct Trade Business

11

• Green Coffee

12

• Roasted Coffee

13

• Cooperative Assistence

14

• Young Farmer Fund

15

• Community Tourism

16

• Service Learning Trip

17

• SLT Pivot

18

• Financial

19

• Meet the Team

20

• Board of Director

20

• Thank you

21

Letter from the Directors W

e’re sure you have heard it a

ous levels until 2022. Guatemala depends

The situation is complicat-

countless number of times,

on agriculture and tourism as its main job

ed, but as the rest of the

2020 has been described with

generators in the country, which means

world, we are seeing better

adjectives varying from challenging to un-

that a vast majority of the nation is being

times ahead. We will continue

precedented. The fact is that it was cer-

affected due to the repercussions of the

to work to improve smallholder

tainly different. We like to use a metaphor

pandemic and the lockdowns.

coffee farmer’s lives in Guatema-

we heard recently—”We are all in the same storm, but we are not on the same ship.”

This certainly proves true for smallholder farmers in developing countries. The pandemic is an added complication to their already challenging situation of low commodity prices, consolidation in the coffee industry and climate change.

Our mission is to pay farmers as much as possible for their coffee and services, which means that in order to sustain ourselves, we rely on other sources of income besides the coffee exports. As you may know, revenue from tourism and service learning trips accounts for the majority of our budget. Travel to Guatemala came to a complete stop in 2020, and we don’t see it returning to anywhere near the previ-

We are aware that it was a challenging year all across the globe. We are extremely thankful to our customers for their business and commitment to our organization. Regardless, coffee exports decreased during 2020 compared to the previous year and 2021 will be even lower.

In order to compensate for the decrease in income for our producers, we have been very active in creating online courses and virtual experiences. Sales have slowly started to increase. Every time a course or

la and with your support, we will find ways to make it happen. We invite you to share information about our online experiences and virtual tours. As well, please visit our online store and buy some of our delicious coffee!

With support from our customers and donors, along with our amazing staff and committed Board, we are confident we will return to normal and become an even stronger partner to our farming communities.

a virtual tour is sold, the farmers who par-

We hope you and your loved ones have

ticipated in creating that content receive a

a great 2021. We hope to see you again

royalty payment. We have also been very

soon!

active in promoting our online coffee sales and have seen a large increase.

Much thanks,

Julio Martínez

Interim Executive Director

Brandi Stewart-Wood Board Chair

About De La W Gente

VISION

temala. Enabling farmers to access the

Cooperative Assistance - Investing in

best markets for their coffee by offering

the capacity of the coffee growing co-ops

them export opportunities, technical as-

to be successful farmer-run organiza-

sistance, business coaching, loans at a

tions delivers economic benefits for their

0% interest ate and market diversification

members and allows for improvement of

opportunities.

their individual and collective abilities.

De La Gente’s operations are divided into

Community Tourism - allows for farm-

ducers and buyers, and that meets eco-

three major programs;

ers to find varied sources of income by

nomic, social and environmental needs of

Coffee Program - the commercializa-

e envision a coffee industry that is equitable and inclusive, that enables small-hold-

er farmers to earn a dignified income and live prosperous lives, that facilitates au-

MISSION

D

e la Gente’s mission is to create economic opportunity for cof-

fee-producing communities.

thentic relationships between coffee pro-

everyone involved.

De La Gente is an organization dedicated to providing sustainable economic opportunities for coffee producers in Gua-

tion of coffee bought at better and more stable prices provides improved mar-

welcoming visitors to local communities and open up a world of adventure, immersive learning, and cultural exchange.

ket access for farmers while delivering

Through these programs De La Gente has

a high quality product to roasters and

been able to bridge people with limited

consumers.

opportunities with an equitable market.

Our Partner Cooperatives UPC

APCASA La Suiza San Miguel

Escobar

ljza´tz

“2020 was a hard year for all of us. We had to do drastic changes during the pandemic, we began to use face masks, alcohol gel and distancing. Tourism stopped and a lot of people went without an income. Fortunately, thanks to De La Gente, our sales remained the same and we were able to keep making an income because De La Gente did not alter our agreement”.

Roberto Coj´tin - Ija´tz Vice President

Partner

Cooperatives

Cafe Artesanal San Miguel

I

t was De la Gente’s first partner cooperative. This tight-knit group of farmers have dedicated their efforts towards growth, innovation and constant improvement of their produce’s quality.

Santa Anita APCASA

I

t is a group of ex guerrilla fighters, who had spent the better part of their lives in the mountains fighting for their ideals and hopes of a brighter future. They decided to reintegrate into civilian society by purchasing an old coffee farm with a low-in-

terest government loan offered as a part of the Peace Accords signed in 1996.

With their characteristic zeal for learning and teamwork, members of Santa Anita dedicated themselves to figuring out everything they needed to know about growing, processing and selling coffee.

La Suiza Cooperative

I

t is a located in the remote tropical highlands of the San Marcos department.

The finca was sold under a government loan program implemented after the Peace Accords, which formally ended the 36-year Guatemalan civil war. It is the most rural and isolated of DLG’s partner co-ops and support is still very needed.

Asociación Unión de Pequeños Caficultores (UPC)

I

t is a group of farmers spread over a large mountainous area around the town of La Democracia,

Huehuetenango, located in Western Guatemala. The region provides ideal conditions for coffee production, even if many plants are situated at inclines that boggle the mind when considering the work that must be done to take care of them.

Ija´tz Cooperative

I

t is located in the department of Sololá, on the shores of Lake Atitlán. This crater lake surrounded by mountains with three majestic volcanoes is known not only for its stunning beauty, but

also for the small picturesque and relatively untouched villages with strong Mayan culture and traditions. Ija’tz in particular is a community organization made up of indigenous Maya Kaqchikel-Tz’utujil families. In total, there are 35 small-holder farmers in the co-op and they own an average of approx. 5-10 acres of land. All coffee is farmed and processed by hand.

Our Partner Roasters and Customers Roasters in USA:

23. Rob Beans Coffee (CA)

1. Nossa Familia Coffee (OR)

24. Lighthouse Coffee Co. (NV)

2. True Stone Coffee Roasters ( MN ) 3. SK Coffee (MN)

Roasters in Canada:

4. CoffeeBar (NV)

25. Milano Coffee (BC)

5. Zona Coffee Roasters (FL)

26. Mogiana Coffee( BC)

6. Happy Cup Coffee Company (OR)

27. Snapping Turtle Coffee Roasters

7. New Life Apostolic Fellowship Inc. (OH) 8. Church of Saint Andrew (MN) 9. Broadsheet Coffee Roasters (MA)

(ON) 28. Moonbean Coffee Company (ON) 29. Granito Coffee (ON)

11. Rustbelt Coffee ( OH)

Roasters in the Netherlands:

12. Zion Coffee (IL)

30. Roast Factory (NL)

10. Deeper Roots Coffee (OH)

13. Repetition Coffee (KS) 14. Union Coffee Roasters (MA)

Home Roasters:

15. East Pole Coffee Co. (GA)

Richard Giles (ON)

16. Green Glass Coffee Co. (MI)

Zach Latimore (MN)

17. Bellwood Coffee (GA)

Eva & Paul Sylvestre (AB)

18. City League Coffee (NY)

Daniel Bernard (QC)

19. Mythical Coffee (AZ)

Peter Warren (ON

20. The Belted Cow Orchard (IL) 21. Cafe Cultura (TX)

Roaster in Belize

22. Sandhill Coffee Roaster (IL)

Copal Tree Farms (Punta Gordal)

We absolutely love working with De la Gente. The mission, the coffee, the people. It’s all connected and thriving. We have been getting the natural process from Ija’tz Cooperative for the past three harvests and it has become a staple for our customers in Minneapolis-Saint Paul. Each harvest brings something new, something beautiful, and always developing.

We can’t wait to see where things go!”

By: Sam Kjellberg - Founder and Owner of SK Coffee in Minnesota.

Coffee Program he global coffee market is steadily increasing, which not only benefits small producers but mostly large scale coffee corporations. Coffee is one of the biggest sources of income for families in Guatemala. Unfortunately due to an unjust supply chain and most of the power falling on the hands of the purchasers, coffee producers sell their coffee beans at a price that makes it very challenging to generate a decent income. This is why De La Gente’s mission is to create equal economic opportunities for coffee growing communities.

T

With a growing demand for specialty coffee and transparency on behalf of the coffee industry, De la Gente has developed a business model that promotes a sustainable top- quality coffee production. Through our green and roasted coffee operations DLG works to create a more equitable and inclusive coffee industry that benefits all the stakeholders.

20 organics Coffee Producers

What´s New? Ija’tz Honey processed - In 2020, DLG implement- This process consists of removing the first layer ed unconventional coffee processing methods of the bean (Known as the pulp) and then put it at the Ija’tz cooperative. Considering that being to dry in the patios for approximately eight days. innovative in the industry is a key to emerging Unlike the conventional wash process, neither in other markets, our quality control coordinator fermentation nor washing is involved. We are so Zach Latimore spent several days in the cooper- excited about the pretty satisfying result, with ative doing different experiments with the pro- sweet flavor notes, red berries, a bit of wine, ducers to obtain a Red Honey processed coffee. and a silky body.

40 Women

139 small scale coffee producers

Our Direct Trade Business Model he direct trade business model goes beyond creating connections between coffee consumers and producers. This model encompasses essential activitiessuch as quality control, sustainable agricultural & business practices, ensuring that the producer benefits from fair prices that can help them and their families live a dignified life. This commercialization model represents a minimal and still growing segment of the whole coffee market.

Plenty of roasters and coffee shops are already adopting this model within the US, Canada, and Europe. However, there is much controversy between the true meaning of the “direct trade model.” Even though roasters/buyers directly connect with producers, they do not have the

T

Average Coffee Commercialization Model Importers Shippers

Farmer

resources such as a license to export and import the coffee. Hence, DLG plays a significant role in our roaster partners’ supply chain by facilitating the logistics of transporting the coffee from Guatemala to its destination. As well, implementing quality control programs on the ground, maintaining transparency & traceability in the whole transaction, and ensuring our partner producers’ well-being. In 2020, DLG partnered with RGC Coffee, a company based in Quebec, Canada, to transport the coffee from Guatemala to four different warehouses within the US (Continental Terminals, The Annex, Deeper Roots Coffee, and Nossa Familia Coffee) and two warehouses in Canada (Philburn Logistics Inc and Alternative Grounds).

Coffee processors

Exporters

Retailers

Roasters

De La Gente Direct Trade Commercialization Model Plays the role of importer, invests in quality control and markets the coffee

Farmers are registered as exporters and they process their own beans

Roasters, retailor and final consumers are able to purchase the coffee directly

Green Coffee ike many industries in the world, the coffee sector was affected by the global health emergency created

by COVID-19. The entire supply chain was interrupted due to different government regulations that each country had to take to prevent the spread of this disease.

L

In Guatemala, the producers were right in the middle of the harvest when the first positive case was identified in the country back in March 2020. Measures were taken that restricted the movement

94,732.6 lbs of Coffee Sold

of people between the villages and a curfew ran every evening for almost six months. These actions affected the flow of exports in the country, consequently, the coffee took more than two months to arrive at its destination in the United States. We also saw a change in the operations of transportation companies and warehouses, which had to reduce staff and establish protocols that at the end of the day reduced effectiveness in the supply chain.

$348,702.00 in Revenue from Coffee Sales

Thankfully, throughout the years, DLG has built bonds of trust and loyalty among all the stakeholders in the supply chain.

Therefore, we decided to take the risk to commercialize all the coffee as initially planned. By implementing this plan, we were able to support producers in face of the financial repercussions that the pandemic created, since some producers don’t rely only on coffee for their livelihood, but on other industries such as tourism.

?? Pay out to Producers for Green Coffee Purchases

30 - 50% paid on average over the next best buyer

Roasted Coffee

$150.000

$100.000

$50.000

oasted coffee became a more important part of our revenue during 2020. Roasted coffee sales increased considerably.

Most of the roasted coffee sales were made online by clients who either purchased individual coffee bags from our online store or clients who subscribed to receive our coffee on a monthly basis.

R

2018 Value (USD) Sold

We started 2020 with 222 coffee subscribers and finished the year with 318, representing a 43.24% increase. $100.000

Value (USD) Sold

Value (USD) Sold

EXPLORE EXPLORE I ANTIGUA I ANTIGUA GUATEMALA GUATEMALA COFFEE COFFEE SUSCRIPTION SUSCRIPTION

51.3% Subscribed to I love Antigua

Value (USD) Sold

Value (USD) Sold

from sales in 2019 Increase in lbs of Roasted Coffee Sold

$50.000

2019

2020

67% increase

$150.000

2018

2019

2020 Value (USD) Sold

Cost

breakdown per COFFEE COFFEE SUSCRIPTION SUSCRIPTION 12 Oz. Bag 48.7% Subscribed of coffee to Explore Guatemala

Average farmer payout

38%

Importing & transport cost

6%

Roasting & packaging

20%

Bags

6% 2% 10% 18%

Labels Marketing DLG Operations

8,720.94 lbs roasted coffee sold

$143,118.35 income from roasted coffee sales

4,087 online orders

Cooperative

Assistance

ooperative Assistance works as the backbone for the organization. Offering each community support in the areas in which improvement is necessary for their progress. Cooperative Assistance provides the organizations the opportunity to reach a higher quality coffee production which enables them to obtain a better price for their production as well as nurture and maintain a loyal customer base.

C

Rigoberto from Santa Anita with New Roaster Members from the Santa Anita co-op have been working on starting a roastery business for a over two years. This year, with the help of loans and donations they finally purchased a new Roaster.

Zach Latimore was hired as the quality control coordinator to teach methods and implement a quality control program for the coffee. One of the projects including the implementation of the honey processed method in Ija’tz. Improving the quality of the coffee means greater income opportunities for the communities.

Coffee roasting training: some young farmers see coffee production as a way to reach their long-term goals of studying other crafts like engineering, medicine, law, etc. But others see a bright future within the coffee industry. That is why four members of the group were granted with a donation of US$100 each in November 2020 to be trained with Wilker Lopez (a coffee farmer from the San Miguel Escobar Cooperative or as we call them, “the grown-ups”) to learn how to use a roaster, and the different types of roast profiles.

3

Young Farmer

Fund

Microfinance: sixteen young coffee producers, members of the Youth Group of San Miguel Escobar received a US $ 400 loan each with a 0% interest rate to cover harvest expenses in 2020.

1

A new computer: the young farmers of San Miguel Escobar are eager to be independent, but at the same time they are interested in following their parent’s footsteps to keep learning about the coffee industry. As a first step to start their own business, they requested and were granted a US$575 donation from the Youth Fund to purchase a computer. This computer will be very useful for the group and will allow them to save information, facilitate communication and increase their number of coffee buyers.

2

Community

Tourism TOURS 660 people took tours Gross Income $15,861.00

ommunity tourism has been offered as a mechanism to diversify the families income in the coffee producing communities. The experiences include coffee tours, workshops and cooking classes . These experiences mean a way to diversify the income of the coffee producing families.

With each tour the producers not only show their public meaningful information but also learn and grow from giving the tours.

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The workshops at the beginning of 2020 included pepian cooking classes conducted by women of the community, a peanut butter cooking workshop conducted by the two daughters of a coffee producer, a burlap bag workshop conducted by three daughters of another coffee producer and a textile bag workshop conducted by another talented daughter of a coffee producer.

Trainings were given to a group of women for them to learn the protocols on food handling hygiene and vegetarian cooking in order to improve the quality of the workshops they give.

TOTAL PAY OUT TO COMMUNITIES FROM TOUR EXPERIENCES 82 people took workshops Gross Income $2,230.00

TRADITIONAL MEAL COOKING CLASSES 157 people took classes Gross Income $3526.00

WORKSHOPS 82 people took workshops Gross Income $2,230.00

Service Learning

Trip

LT is a community led educational exchange program designed to approach global issues at a local scale, creating global relationships based on solidarity and respect for an inclusive, just and sustainable future.

S

5 Student Groups from Universities

During 2020 there was participation from the following universities: UWEC: Built a kitchen for the women’s catering bussiness in the Ija’tz community.

Indiana University: 1 water retention tank for the Minas family that will allow for a more sustainable coffee production system by storing up to 2000 gallons of water.

Embark Center: 1 patio for drying coffee of 6 by 9mts in lenght with the cpacity to dry 30 quintals of coffee cherries which turns into 450lbs of green coffee per batch.

AGC: Two works of art for Virgilia, one of the members the community to allow of the coffee producing connection between our communities, to allow her a partner coffee producers more dignified home. and art.

Vanderbilt: 1 concrete wall for

1 Middle School Group

1 Open Trip

SLT Pivot

Coffee, Culture, Community Service

he trips that had been programmed to take place after March 15, 2020 had to be cancelled or postponed in order to protect the health and integrity of the communities. De La Gente pivoted by investing in the creation of virtual tours and online courses in order to allow for the community to keep making an income during lockdown .

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Once the service learning pivoted into the online world many new opportunities materialized, such as a virtual experience for Indiana State University where the students could take part in community service, coffee market and culture in Guatemala.

First Virtual Experience was with Indiana State University!

One of the online service learning programs that was started during 2020 was the De La Gente Coffee Course, a program made up of 10 sessions dedicated to provide analytical information for the students to learn about the coffee industry in Guatemala and how it relates to the international market.

Participated as guest speakers for Windermere Prep School

The course covers subjects ranging from environmental issues to the history of coffee in Guatemala. In addition to the De La Gente Coffee course there were also pre-recorded workshops created including subjects such as Guatemalan textiles, Guatemalan kite making, cooking a traditional Guatemalan meal, a coffee roasting workshop and the decolonization of coffee markets.

These courses are a huge step in the diversification of income for the cooperatives we work with. Allowing them to showcase their skills and profit from them online from the safety of their own communities.

Financials INCOME • Coffee Sales

Tours & Workshops 4.38%

Service Learning Trips 2.74%

Other 5.47%

$480,552.99

• Tours and Workshops

$24,075.27

• Service Learning Trips

$15,090.45

• Others

$30,090.95

Coffee sales 87.40% Tours & Workshops cost 3.67% Occupancy & Operating 5.67% Service Learning Trip Cost 6.01%

Cooperative Assistance 0.23%

Salaries & Benefits 11.13%

Coffee Purchases 68.8%

Total pay out to producers from virtual experiences

EXPENSES • Coffee purchases

$544,701.67

$399,201.44

• Cooperative assistance

$1,264.48

• Tours & workshops cost

$20,000.00

• Service learning trips

$32,719.50

• Salaries & benefits

$60,635.45

• Occupancy & operating

$30,880.80

Total Expenses

$549,809.66 Total Income

$5,107.99 Total Surplus

Virtual Tour Cooking Workshop Coffee Course Textiles Workshop Translation

$ $ $ $ $

60.00 60.00 52.00 60.00 45.00

Meet the 2021 Julio Martínez Anderson Interim Director

Danilo Rodríguez Director of Operations

Silvia Méndez Financial Manager

Ronald Vega Service Learning Program Manager

Moises Hernández Sales Coordinator

Camila del Mar Suarez Marketing Coordinator

of Director Brandi Stewart Wood Chair

Catriona Forrester Treasurer

Rupesh Shah Member

David Wilson Member

Les Stoneham Member

A Huge Thank You

THE BOARD Brandi Stewart-Wood, Catriona Forrester, Rupesh Shah, Les Stoneham, David Wilson

Who Supported Us

In 2020

DONORS Chandler Scull, Jeanne Ellsworth, Taylor Shuurmans, Graham Carson, Daryl Bosma, Tim Cameron-Kitchen, Matthew Drain, Troy Wiezbiskie, Linda McKay, Joshua Ford, Network for Good, Nossa Familia Coffee, Rupesh Shah, Walter Benoit, Kari Grace, Kanu Patel, Mary and Gary Doten, Debbie and Stevie Feldman, Bryan Chehock, Clate Mask, Katherine Morris, Erick Schwartz, Harry Grace, Micah Jacobson, Lynn Carr , Service Learning tour cancellations who donated.

FORMER STAFF Emma McDowell, Cecilia Diaz, Zach Latimore, Carolina Mendez,

VOLUNTEERS Maximo Nivel Spanish amd English School

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

2020