Supply Chain Canada Q4 2016 | Page 19

case study : coffee
Coffee stored in warehouse
FNC purchases the coffee from the cooperative and is then responsible for exporting the beans . The coffee moves by truck from the cooperative to a warehouse close to port and owned by FNC . When it is ready to be exported , FNC moves the coffee from its warehouse to port .
Whereas other origins may load coffee into containers at their warehouse then move it to port , all coffee exported from Colombia must be loaded into shipping containers at port due to the narcotics trade . Once in the container , the coffee is loaded onto a ship and the ship leaves for its destination port . It takes approximately 20 days for the ship to get from Colombia to Montreal . Once the ship arrives , the containers are offloaded and the coffee is moved into one of RGC ’ s warehouses . In most cases , the coffee will be stored until it is tendered to one of RGC ’ s clients . In some cases , the coffee may go directly from port to a roasting facility , bypassing RGC ’ s warehouse because it has been previously tendered to that client .
In total , the supply chain of Colombian coffee , from farmer to RGC warehouse , is between 2.5 to three month ’ s time .
THE ISSUE OF INCLEMENT WEATHER
Coffee production is heavily dependent on ideal weather and growing conditions . But given that Colombia is located within a region of the world that is prone to bad weather , it is understandable that the supply chain may encounter issues due to weather-damaged coffee crops . The weather phenomena of El Niño ( dry conditions with no rain and lots of sun ) and El Niña ( wet conditions with too much rain and not enough sun ) are common challenges for Colombian coffee growers at the farm level . At the time this article was being written , Hurricane Matthew was becoming a huge issue for the rest of the coffee supply chain , as it was carving a path directly in line with the export shipments coming from Colombia . Hurricane Matthew ’ s
Café Granja La Esperanza , Caicedonia Farm , Caicedonia , Valle de Cauca , Colombia
THE QUESTION OF ETHICAL COFFEE
Ethically sourced coffee is a buzz-worthy term . But what does it actually mean ?
According to Jeff Bernstein , it ’ s very subjective .
“ That term is defined different ways for different people . At RGC , we deal with reputable exporters in our origin countries and we ’ re not supporting or engaging in practices that we believe are unethical , such as forced labour or child labour .”
While it ’ s impossible to verify every single farmer , origins do their part for the fight against unethical coffee sourcing by creating lists of farmers or exporters who are known to engage in unethical practices . As well , RGC regularly visits their origin countries .
“ We do a lot of social work and projects with the people and families there ,” said Bernstein . “ We contribute added premiums to the coffee to help the local communities .”
Each individual section of the supply chain must do their part to make sure what they ’ re sourcing is ethical , as it is a team effort .
“ We rely on each other to uphold our own standards but also each other ’ s standard of ethics ,” said Bernstein . “ It is in all of our best interests to source coffee that is ethically produced .”
Bernstein says that finding a new supplier isn ’ t as quick and easy as one might think . Relationships play a huge part in the business of coffee .
“ Coffee is an old value , old family system . It ’ s not like you just run and find a new supplier and replace your old one . You ’ ve built a long-standing relationship with your grower that you hope will last many , many years . So it ’ s about that relationship , and about trust .”
SUPPLY CHAIN CANADA • QUARTER 4 2016 • 17