Enhancing Sourcing in Brazil & Colombia

How did you get into coffee?

Hugo Portes: I transitioned to coffee from soybean trading. As a soybean trader, I just felt like a cog in a machine, and coffee was a way to get myself motivated. Soybean trading is just staring at two screens. There’s no connection, no network and no relationships. When I saw an opportunity to work with farmers and be close to my hometown again with a specialty coffee company, I said “there’s a brave new world for me.” In that role, I was doing both sales and building partnerships with farmers. I’m excited for Sucafina to be my next step in coffee.

Sebastian Romero: I have been in coffee for 9 years. My first job was in the central quality lab of the National Federation of Coffee Growers in Colombia (FNC). From there, I went to work with another company that exports roasted coffee and had the opportunity to be the director of production. Next, I worked as a consultant for another cooperative and then I worked as the production and quality supervisor at a specialty coffee cooperative/importer. Now, I have the amazing challenge of being the Specialty Operations Officer here at Sucafina Colombia.

What is your role?

Hugo: My role is focused on sourcing great coffees. On a day-to-day basis, I might cup 40 to 60 different lots a day that range from offer samples to recently purchased and milled coffees to pre-shipment coffees. I’ll also visit farmers and warehouses and review inventory management and milling progress. I interface with our sales teams a lot about their specific needs from us.

Sebastian: My functions revolve around purchasing, receiving and exporting Colombian microlots. I ensure that the quality is up to necessary standards and that shipments meet the necessary national and international regulations. I also manage our quality control laboratory.

What are the biggest challenges to sourcing specialty coffee in your region?

Sebastian: In specialty in Colombia, Sucafina is a new brand. I have been with Sucafina for 8 months and I can already see that we are building our name recognition as a specialty buyer here. As we develop our infrastructure, we are being more efficient and finding solutions to any challenges that arise. Good prices, good coffee, added value, strong relationships and consistency will all bring us the opportunity to continue growing.

Hugo: It’s a similar situation here in Brazil. Here, we have companies that have been around for more than a century. Sucafina has been in Brazil since 2007 but we’ve only expanded to specialty in the last few years. The broader challenge is to communicate with the internal market that Sucafina Brasil has a specialty division. We’re working with our partners to spread the word that we are looking for higher qualities and to change the mindsets of farmers, cooperatives and consumers about the value that we bring to the table.

What are you seeing with the market this year?

Hugo: Quality is solid this year, but volume is down. A significant challenge we’re seeing is heightened prices on the internal market and a declining incentive for specialty production. Brazil is the largest producer of Arabica in the world and it’s the second-largest consumer as well. We produce about 60 million bags, and about half of that stays in the country for consumption. With NY prices going up and the fierce competition between the internal and external markets, commercial coffee is getting more expensive.

What’s happening right now is that the price incentive for specialty coffee is shrinking. As the price for commercial rises, specialty prices are not rising in stride. As a result, the difference between the price producers get for commercial and specialty coffee is smaller. Because of this, many producers are choosing to sell their coffee as commercial – and often as cherry – rather than spend the time and effort to process it as specialty coffee. The extra effort is just not worth it to them when they’re already getting a good price for commercial coffees. The challenge right now is to find the right incentives to ensure there’s enough specialty coffee being produced to meet demand.

Sebastian: Something similar is happening in Colombia, because we’ve had a significant reduction in overall production this year. The weather impacted the crop, and the total volume is projected to be about 20% lower than expected. Since supply is down, the market price for coffee has increased. Investing in specialty is just not as appealing to many producers as it would be if the commercial and internal market prices were lower.

What are you most looking forward to in your new role?

Hugo: I’m looking forward to being in our newly built specialty QC lab in our new warehouse and seeing that space packed with purchases from farmers all over the country. I also can’t wait to host Sucafina teams and our clients in our new offices and get the opportunity to show them all Brazil has to offer. I am motivated to help our team surpass last year’s volumes and continue sourcing amazing coffees.

Sebastian: I hope to contribute to the growth of specialty coffee sales as well as in the improvement of our quality assurance operations within our supply chains. My goal is to generate greater awareness about our operations and at the same time, promote a greater dynamism and culture around producing and consuming specialty coffees.

We’re thrilled to have Sebastian and Hugo add their expertise to our teams in Colombia and Brazil. We have fresh crop Colombian and Brazilian coffees in store and arriving soon. Now that you’ve met some of the new faces behind your coffees, this is a great time to get acquainted with the new coffees coming your way and book your next lots!

Have questions about sourcing in Brazil or Colombia? You can reach out to your trader for more info.