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L eve l Gro u n d Tra din g

Transparency Report 2 0 1 8 An n u a l Re po r t


Every day, three times a day, you need a farmer.

Jaime, coffee famer in JardĂ­n, Colombia.


Co nt ent s

4

6

8

10

12

14

16

18

22

Letter from Laurie

Fa i r Tr a d e O v e r v i e w

Colombia

Ta n z a n i a

D.R. Congo

Bolivia

Peru

Ethiopia

Appendix


2018

To Our Community Since 1997, we’ve been all about connection. It started with small-scale coffee farmers in Colombia, and it’s grown to a community of like-minded people connected by the belief that our choices matter.

Thank you for being a highly engaged

These are critical times in the coffee industry.

human-being, curious & invested in living

Climate change and global oversupply are

intentionally. You know your power to effect

keeping

change and the enrichment that comes from

excited that farmers are voicing their need for

being connected to something bigger than

sustainable prices and the industry is beginning

yourself.

to share information and search for solutions.

We’re grateful to be connected to people like

We’ve always been huge supporters of publishing

you.

trade information and prices paid to farmers.

risk

high

and

prices

low. We’re

This year, we decided to give the data some Level Ground is a pioneer in the fair trade

context, so the story and the data hold hands,

movement in Canada. In the early days, only

a give you a better sense of the impact of your

a fringe of people were nodding their heads

purchases.

when we described our dream of creating opportunities for others, simply by choosing

Thank you for joining us on this journey, and for

what you buy. Our community didn’t really

recognizing small-scale farmers each morning

have the language for this idea yet. In fact,

with your cup of coffee.

lots of people referred to us as the ‘free trade’ company. (We will still fight that battle. Fair trade, baby!) Wow have things changed! Corporate Social Responsibility is a given. Brand Activism, Beneficial Corporations, ‘not just for profit’ businesses abound. community.

We’re glad for the

2018 TRANSPARENCY REPORT by Laurie Klassen, CEO


Members of Fero Co-op in Ethiopia dry and sort coffee parchment. In a time of price volatility, we’re focused on building lasting connections.

We ’ r e f o c u s e d o n b u i l d i n g c o n n e c t i o n s a t h o m e a n d a t o r i g i n .


1,572,424

CO FFE E O R IG IN S

P OUNDS OF G R E E N C O F F E E P U R C HAS E D

$384,176 ($506,670 CAD)

IN CO M M U N I T Y P R E M I U M S

AVER AGE P R I C E F O R C O F F E E

UN DE R STAN DIN G

Fa i r Tr a d e P r e m i u m s Commodity ‘C’ $1.23

Coffee cooperatives quote prices on coffee by balancing their costs and the commodity market price. We aim to know that 65% of the price we pay goes to the farmer by negotiating

Fa i r Tr a d e $ 1 . 9 0

with the co-op and adding a fair trade premium to be directed to the farmer or to a social infrastructure project.

Level Ground $2.36

A fair trade premium is the difference between the market price and the price we pay.

2018. All dollar values are USD unless otherwise stated.


OVERVIEW

Transparency and Fair Trade Impact

When we purchase coffee, we make sure the biggest portion goes to the farmer). In 2018, we paid an average of 64% to the farmer and 30% to the co-op. The remaining 6% was premiums used for community building.

64%

30%

Fa r m e r

Co-op

LEVEL G R O U ND PRICE

C O MMO D I T Y ‘C’ PRICE

C O LO MBIA

TA NZA NIA

D.R. CONG O

BOLIVIA

PERU

ETHIOPIA


ORIGIN

COLOMBIA Deep in the Andes Mountains in Colombia you’ll find some of the most gregarious people in the world. At 2000 metres of elevation, we are greeted by warm hospitality and some of the world’s best coffee.

Julian Toro works in Colombia to distribute the community premiums in coffee farming communities. What is Julian’s role with Level Ground in Colombia? He is the Director of Famicafé, which is the non-profit foundation established by Level Ground in 1999. Famicafé focuses on provided educational scholarships and school infrastructure upgrades. What are fair trade premiums used for in Colombia? In 2018, fair trade premiums were allocated towards education for children in coffee farming communities. This money allows students access to manditory supplies like uniforms, books, bags, lunch kits, and shoes.


Co lo mb i a

When you buy this coffee, you fund education. Significant work was accomplished this year in Colombia. We were pleased to continue to partner with Alba, a seamstress in Santa Inés. During 2018, Alba taught three courses for rural women, including ones geared toward teenagers, and a course for men; 21 students got to learn sewing skills and create uniforms for school through these classes. Students also had the opportunity to win sewing machines provided by Famicafé. With the fair trade premiums she receives from Level Ground, Alba provides school uniforms, backpacks and lunch bags so that children in Santa Inés can attend school.

P R ICE PAI D P E R P O U N D

N UM B E R O F FAR M E R S

PO UN DS O F COFFEE

$2.09

400

Of the price we pay,

All

61% goes directly to the farmer

purchase

11% is invested into community

Farmers’ Co-operative of Andes

small-scale farmers in the Andes

programs.

(Co-op

region of Colombia. This includes

the

Colombian is

from

Andes)

in

coffee the

335,651 we

Coffee

Antioquia.

Annually, we purchase the harvest In 2018, the average price we paid

In 2018, we purchased 335,651 pounds

of

green

coffee

regular and decaffeinated coffee.

of 400 members.

was $2.09USD/lb.

“In Colombia, Level Ground gives a spirit of equality a n d j u s t i c e ! ” - J u l i a n To r o

from


ORIGIN

TANZANIA In Ileje, rich orange soil provides fertile ground to grow organic coffee, bananas, citrus fruit and vegetables. 2018 was a year of major disruption for coffee cooperatives in Tanzania. The Tanzanian government announced a transition to centralized, auction-based coffee buying. This change meant that Level Ground could not continue purchasing organic coffee directly from farmers in Ileje. In our search for alternative supply, we learned just how special organic Tanzanian coffee is. It’s hard to find! We’re keeping the door open to future trade with the farmers in Ileje, but expect our next purchase may not be possible until 2021. In the meantime, new relationships are being developed and we’re excited to learn how to support other AMCO coops and their social impact projects.

PRICE PA ID P ER P O U N D

N U M B E R O F FAR M E R S

Of the price we pay,

The

65% goes directly to the farmer

Tanzania

1% is invested into community

Management Services. The co-op

small-scale farmers in the Ileje

programs.

of coffee farmers, mill workers,

region of Tanzania.

$2.10

PO UN DS O F CO FFE E

675 coffee

we

comes

purchase from

507,936 in

Coffee

In 2018, we purchased 507,936 pounds

of

green

coffee

from

and their households represents In 2018, the average price we paid

675 people.

was $2.10USD/lb.

2018 was a year of disruption for coffee co-ops in Ta n z a n i a . T h e g o v e r n m e n t i n t r o d u c e d a c h a n g e w h i c h meant we could no longer purchase organic coffee directly from farmers in Ileje.


Tanzania

When you buy this coffee, you provide healthcare. Coffee is purchased from Coffee Management Services (CMS Tanzania) which operates the HOPE project in southern Tanzania. Small-scale farmers in the Ileje region sell their organic coffee to the HOPE project, which then sorts, mills, and prepares the coffee for export. Fair Trade premiums in Ileje fund healthcare for farmers, mill workers, and their households. The premiums are also used for training in organic farming methods and soil conservation practices.

In Tanzania, farmers and their families have access to healthcare.


ORIGIN

D.R. CONGO In North Kivu, farmers grow coffee with care and attention. In an area of intense conflict and health crisis, every coffee purchase has monumental impacts on this community’s health.

Jono Robinson, (Bean There Coffee Company) embraces a farmer in D.R. Congo.


D. R . Co n g o

When you buy this coffee, you create jobs. In the D.R. Congo, we work with Virunga Coffee to source coffee. They are focused on building relationships with coffee farmers through organic farming assistance, quality control and job creation at community coffee washing stations. In the D..R. Congo, conflict is often intense and jobs are scarce. With each purchase of coffee, you continue to support the flow of money and meaningful jobs into the country.

P R ICE PAI D P E R P O U N D

N UM B E R O F FAR M E R S

PO UN DS O F COFFEE

$2.63

2300

335,979

Of the price we pay,

Virunga Coffee in North Kivu

In 2018, we purchased 335,979

63% goes directly to the farmer

works with 2,300 farming families.

pounds

10% is invested into community

The co-op is focused on building

small-scale farmers in the North

programs.

relationships with farmers and

Kivu region of D.R. Congo.

of

green

coffee

educating on organic practices. In 2018, the average price we paid was $2.63USD/lb.

In D.R. Congo, funds are allocated to improve the quality of life for employees at coffee washing stations.

from


ORIGIN

BOLIVIA High in the mountains of Bolivia, you’ll find Pedro, Pedro Pablo, and Daniela Rodriguez. This family runs Agricafé and focuses on coffee quality and offering alternatives to coca production in the region.

P RICE PA ID P ER P OU N D

N U M B E R OF FAR M E R S

PO UN DS O F CO FFE E

Of the price we pay,

We

In 2018, we purchased 19,841

63% goes directly to the farmer

Agricafé,

6% is invested into community

organization

programs.

coffee cherries from a selection

$3.50

40

purchase a

coffee

through

specialty which

coffee

purchases

19,841 pounds

of

green

coffee

of small-scale farmers in La Paz, In 2018, the average price we paid

from

small-scale farmers in Bolivia.

Bolivia.

was $3.50USD/lb.

Thanks to the Sol de la Mañana program, farmers’ productivity and income has grown tremendously!


B o livi a

When you buy this coffee, you fund agricultural education. Agricafé, our partners in Bolivia, have started an educational program called ‘Sol de la Mañana’. This programs educates local producers by providing training and skills necessary to improve the quality of their coffee. Agricafé works with producers to start nurseries and educate on farm maintenence, disease prevention and harvesting techniques. When farmers produce better quality, they receive a higher price for their coffee, which allows them to provide a better life for their families.

Stacey (left) with Pedro and Daniela Rodriguez at Agricafé in La Paz.


ORIGIN

PERU In Pangoa, Peru, the Machiguenga Indigenous People grow organic coffee alongside other crops like cacao and honey. They work together, sharing knowledge and resources for coffee farming practices.

Esperanza (left), General Manager of CAC Pangoa and a pioneer in Fair Trade coffee in Peru.


Pe ru

When you buy this coffee, you fund economic stability. CAC Pangoa is a Fair Trade co-operative in the Pangoa region. This co-op is a leader in promoting crop diversification and women’s equity in their community. Coffee is the primary source of income for most farmers. Fair Trade in Pangoa means support for economic and social programs such as cacao and honey production, ecotourism to supplement coffee production, and an educational fund for members to borrow money so their children can attend university.

P R ICE PAI D P E R P O U N D

N UM B E R O F FAR M E R S

PO UN DS O F C OFFEE

$2.27

70

Of the price we pay,

In

63% goes directly to the farmer

from a co-op called CAC Pangoa.

pounds

6% is invested into community

Approximately

small-scale farmers in the Pangoa

programs.

farmers are

Peru,

we

purchase

selling

Indigenous;

15% to

coffee

of the

Level

119,049 the

co-op

purchases exclusively from those

was $2.27USD/lb.

70

coffee

of

green

region of Peru.

Ground

In 2018, the average price we paid

Indigenous

In 2018, we purchased 119,049

farming

families.

In Peru, fair trade premiums are used to support crop diversity in Indigenous communities.

coffee

from


ORIGIN

ETHIOPIA In the birthplace of coffee, some of the world’s best coffee is grown. Farmers in the Sidama region grow, harvest, and sort with extreme care. The result? An incredible cup of coffee.

P RICE PAID P ER P OUN D

N U M B E R O F FAR M E R S

PO UN DS O F CO FFE E

Of the price we pay,

We purchase coffee from Fero

In 2018, we purchased 253,968

57% goes directly to the farmer

Co-op in the Sidama region near

pounds

11% is invested into community

Yrgalem.

small-scale farmers in the Sidama

programs.

certified. While numbers fluctuate,

$2.77

1000 This

co-op

is

FLO-

253,968 of

green

coffee

from

region of Ethiopia.

there are consistently over 4000 In 2018, the average price we paid

members in this co-op!

was $2.77USD/lb.

“ T h e [ c o - o p ] s e r v e s u s w e l l . We c a n e i t h e r s e l l o u r c o f f e e t o c o l l e c t t h e m o n e y r i g h t a w a y, o r w e c a n s e l l t h e c o f f e e a n d k e e p our money stored in the cooperative. This works like a kind of s a v i n g s a c c o u n t f o r u s .” - F e r o C o - o p m e m b e r


Et hi o p i a

When you buy this coffeee, you build capacity. Level Ground purchases coffee from the Fero Co-op of the Sidama Coffee Farmers’ Union. Coffee is the primary source of income for the people in Yrgalem. Fero Co-op farmers receive great prices for their coffee because it is considered among the best in the world. Fero co-op was started in 1976, and we’re proud to partner with them as they continue to increase capacity and provide stable income for coffee farmers in Ethiopia.

Joshua, Level Ground’s Roastmaster and QC, embraces a member of the co-op.


We pay farmers for the use of their photo. Julio receives payment in exchange for his photo on the Bolivia coffee package.

We ’ r e f o c u s e d o n b u i l d i n g c o n n e c t i o n s a t h o m e a n d a t o r i g i n .


T R A N S PA R E N C Y

APPENDIX LE VE L PRODUCER

PART NE R S

G R O UN D

PART N E R

S INCE

PR ICE

‘ C’ M AR K E T PR ICE

S CA C UP S C ORE

PAID

COLOMBIA

Co-op Andes

1997

$2.09

$1.60

84

TANZANIA

CMS Tanzania

2007

$2.10

$1.90

83

D.R. CONGO

Virunga Coffee

2011

$2.63

$1.90

85

BOLIVIA

Agricafé

2002

$3.50

$1.90

85

PERU

CAC Pangoa

2005

$2.27

$1.90

83

ETHIOPIA

Fero Co-op

2006

$2.77

$1.90

86

This report represents 100% of our coffee purchases in 2018.


2018 Transparency R ep or t Level Grou nd Trad i ng Prepared Au gus t 2 0 1 9

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Level Ground 2018 Transparency Report  

Transparency report for coffee transactions and connections in 2018. This year was one of transition, growth, and deepening of relationships...

Level Ground 2018 Transparency Report  

Transparency report for coffee transactions and connections in 2018. This year was one of transition, growth, and deepening of relationships...

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