Summary of At This Coffee Startup, Farmers Share Profits From Roasting

  • forbes.com
  • Article
  • Summarized Content

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    A New Model for Coffee Shops and Farmers

    Paso Paso is a unique company that empowers coffee farmers by giving them ownership in the roasting and selling of their beans. This innovative approach aims to create a more ethical and profitable model for the coffee industry.

    • Founded by Bram de Hoog, a coffee buyer who witnessed the disparity in profits between roasters and producers.
    • Paso Paso is a joint venture owned by coffee farmers in Africa and Central America.
    • The company roasts and sells coffee beans directly to coffee shops, allowing farmers to share in the profits.

    The Structure of Paso Paso

    Paso Paso has a complex structure that ensures fair and equitable ownership for its farmer-partners.

    • A Hanover-based roastery is owned by coffee farmers in Ethiopia, Costa Rica, Nicaragua, and El Salvador.
    • Farmers are involved in strategic decisions, marketing, and operations, participating in monthly meetings.
    • The company's LLC structure facilitates collaboration and profit sharing among geographically dispersed owners.

    Building a Network of Ethical Coffee Farms

    Paso Paso actively seeks out partners who share their commitment to ethical coffee farming and direct relationships with coffee shops.

    • De Hoog prioritizes farmers with high levels of integrity and shared values.
    • The company carefully selects farmers, taking into account their commitment to sustainability and quality.
    • Paso Paso's model aims to empower farmers and ensure a fair share of profits throughout the coffee supply chain.

    The Importance of Feedback from Coffee Shops

    Paso Paso actively involves coffee shops in the coffee production process, seeking their feedback on taste profiles and preferences.

    • Farmers participate in calls with coffee shops to receive direct feedback on their coffee.
    • This collaborative approach ensures that the coffee produced meets the specific needs and preferences of coffee shops.
    • Coffee shops play a crucial role in shaping the coffee production process, ensuring quality and customer satisfaction.

    Expanding the Reach of Ethical Coffee

    Paso Paso has ambitious plans to expand its operations and reach more coffee shops, promoting ethical coffee production and fair trade practices.

    • The company aims to expand to the Netherlands, Czechia, Denmark, Malta, Spain, and the U.K.
    • Paso Paso is exploring new ways to enhance efficiency and build a circular system for sustainable coffee production.
    • The company envisions opening a second roastery in the U.S., further extending its reach and impact.

    Paso Paso: A Model for Sustainable Coffee Farming

    Paso Paso exemplifies a new model for sustainable coffee farming, empowering farmers and fostering ethical relationships with coffee shops. By giving farmers a stake in the roasting and selling process, the company promotes fair trade practices and ensures a more equitable distribution of profits. This innovative approach offers a glimpse into the future of the coffee industry, where ethical sourcing and sustainable practices become the norm, benefiting farmers, coffee shops, and consumers alike.

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