Extreme price volatility in the C-market due to dry weather in Brazil among other factors threatens the survival and success of coffee producers. In an effort to protect producers from price volatility, Sustainable Harvest® will be hosting an advanced risk management training for coffee producers in Lima, Peru in July. Thirty commercial managers of cooperatives from the Peruvian coffee supply chain will attend the three day training.
The idea to hold origin-based risk management trainings came about at the second Let’s Talk Coffee® in Oaxaca, Mexico in 2003. In keeping with the Relationship Coffee Model, Sustainable Harvest® is now in its fifth year hosting such trainings.
However, the upcoming risk management training is different from past trainings in that the content and focus is more advanced. All attendees have attended previous, more basic training events that will serve as a foundation for the upcoming event.
The training will begin with a macro consideration of the supply chain and end with a micro, situation-specific focus. During the macro portion of the training, the focus will be three-fold; the focus will be on a fundamental analysis of supply and demand and weather patterns in Brazil, a technical analysis to identify price patterns and market trends, and a consideration of the upcoming harvest. The training is scheduled strategically prior to the Peruvian coffee harvest. Towards the end of the training, training facilitators will help producers identify personal market strategies to protect their businesses against market volatility. Throughout the training, the C-market will be projected live, to give producers a sense of green coffee price volatility.
Sustainable Harvest aims to increase growers’ understanding of the complexities of the C-market. Hosting origin-based risk management training is just one way in which Sustainable Harvest® invests in coffee producers to ensure that they are able to not only survive, but thrive, in the complex global coffee supply chain.