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Delivering Quality2008 A N N U A L R E P O R T
“With the knowledge you gave us, we promise to represent the farmers well and contribute to the development of our industry. We can bring change to our coffee farmers and we assure you, we will do good things.”
Sajji RyankunzeTechnoserve (Rwanda)Licensed Q Grader
A cupper is on the front line, identifying quality,
providing important feedback to the producer, and
helping determine the price a coffee ultimately earns.
Skilled cuppers are crucial to our mission of improving
the quality of coffee and the lives of the people who
produce it.
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It begins with a cupper...
TRAINER INSTRUCTORS Ted Lingle Manuel DiazKelly Peltier-Amoroso
TRAINERS Mane AlvesManuel Diaz Kelly Peltier-Amoroso Craig Holt Willem Boot Marty CurtisTrish Rothgeb APPRENTICE TRAINERS Joseph Rivera USA Michael Lone USA Rocky Rhodes USA Chris Davidson USA Jeremy Raths USA Adam McClellan USA Jamin Haddox USAAndrew Hetzel USA Diana Goretty Martinez COLOMBIA Hernando A. Tapasco COLOMBIA Manuel Fernando Pena COLOMBIAJose Gregory Sanchez COLOMBIA Jayson Galvis COLOMBIA Julian Morales Serna COLOMBIA Astrid Licet Bonilla COLOMBIA Valentina Osorio Perez COLOMBIA Diana Maria Ramirez COLOMBIA Claudia Rocio Gomez COLOMBIA Carlos Arevalo COLOMBIA Fernando A. Gomez COLOMBIA Diego Sanchez Gomez COLOMBIA Sandra Bolivar COLOMBIA Henry Martinez COLOMBIA Armando Cortez COLOMBIA Felipe Sierra COLOMBIA Rodrigo Alacon COLOMBIA Nicolas Rodriguez COLOMBIAHector Balcero COLOMBIALelly Espitia COLOMBIAFernando Osorio COLOMBIAIvan Javier Lamilla COLOMBIANatalia Ortiz COLOMBIAJhon Fredy Gonzalez COLOMBIAGloria Patricia Quintero COLOMBIAMaria Camila Morales COLOMBIAMaria Elena Cortes Sepulveda COLOMBIAMaritza Suarez COLOMBIAEdna Margarita Canon COLOMBIABlanca Bernal COLOMBIACristina Garces COLOMBIA Daniel Mulu ETHIOPIA Rolando Canas HONDURAS Peter Slack INDONESIA Hendarto Setyobudi INDONESIARyota Ito JAPAN Mario Fernandez Alduenda MEXICO K.C. O’Keefe PERU
Through our Q Grader
Program, the industry’s only
professional accreditation
for cuppers, we’ve trained
thousands of cuppers and
certified hundreds of
individuals worldwide.
In 2008, we added an
impressive 245 Q Graders
to the roster, ending the year
at 514 and by the time of
printing, in April 2009, that
number increased to 635.
Congratulations to all those
who have earned this
distinction.
And thank you to our trainers.
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We’ve trained thousands
Licensed Q Graders play an important role in implementing
coffee quality standards. Their services at origin help
producers better understand the quality of their coffee,
what markets are most appropriate to target, and how
their coffee should be valued.
We can never have an equitable system if half of the
system is kept in the dark.
Standards offer clarity and foster transparency.
The Q is based on standards developed by the Specialty Coffee Association of America.
Setting a standard
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“When I talk to a Q Grader at origin about what I taste in the cup, I can be confident she/he speaks the same language about that coffee’s attributes, and will understand what I’m saying. It makes buying and selling coffee easier for everybody in the chain.”
Craig HoltAtlas Coffee Importers
With a cadre of skilled cuppers and a growing number
of In-Country Partners, we have created an infrastructure
to offer independent, third party evaluations of green
coffee quality.
Through this service, we link quality producers with
quality buyers.
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Providing market access
“In the name of the farmers and the coop I want to send you my deepest gratitude for all your help in making it possible for them to get a much better price for their efforts towards sustainable quality. The Q Coffee System has definitely proven to be a great tool in the promotion of quality and sustainable oriented coffees.”Steven DiazExpocafe (Colombia) Licensed Q Graderand Exporter of Q Certified Coffees
At the other side of these efforts is a growing number
of licensing partners, companies who are demonstrating
their commitment to quality through the Q.
While there are many variables in roasting and brewing
that affect the taste of coffee, the Q confirms the beans
used are among the highest quality in the world, are
milled well, and contain distinguishable characteristics
that separate them from other coffees. And a good bean
is the first step in achieving a perfect cup of coffee.
This is the industry’s only certification for green coffee quality.
Creating a symbol of quality
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LICENSING PARTNERSBJ’s Wholesale ClubBoyd Coffee Co.Coffee Bean InternationalS.Ishimitsu & Co. Ltd.Kanematsu CorporationUeshima Coffee Co. Ltd. (UCC)Wataru Co. Ltd. ECOM Japan Ltd. Volcafe (Japan), Ltd.Atlas Coffee ImportersSustainable Harvest Coffee ImportersWalker Coffee Trading
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“Coffee Bean International is excited to be a licensed CQI roaster because we believe in the direct benefit of using the “Q” logo on coffee packaging and marketing materials which help convey our coffees’ quality to consumers. We also recognize the indirect benefit to CBI– and the entire specialty coffee industry – from standardizing and elevating coffee cuppers’ skills around the world, while creating a compelling financial incentive in producing countries by transparently linking green coffee quality and price.”Bruce MullinsCoffee Bean International
The importance of our work
BECAUSE OF CQI…More people around the world, in both producing and consuming countries, know how to grade and cup coffee better.
Producers have a tool to better understand the quality of their coffee and where improvements can be made.
Buyers and sellers are communicating in a common language.
We are discovering new, high quality coffees.
Transactions are more efficient.
Quality has greater meaning, making it less of a marketing angle that anyone can claim, and more of a tangible, defendable competitive position.
We’re making it easier for companies to communicate quality to consumers and build loyal followings.
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“To me the real value of certifying graders from producing and consuming countries is the promise of having a common language and standards that will serve as an auditable value discovery tool for coffee. It shifts the power of price into the hands of producers, which I believe is the essential foundationsupporting sustainable high-quality coffee.”
Wendy DeJongTony’s Coffees & Teas
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Regional progress
NORTH AMERICA
UNITED STATESQ Graders | 73
CANADAQ Graders | 1
COSTA RICAQ Graders | 28
DOMINICAN REPUBLICQ Graders | 1MEXICO
Q Graders | 28
EL SALVADORQ Graders | 36
GUATEMALAQ Graders | 16 HONDURAS
Q Graders | 27
PANAMAQ Graders | 11
NICARAGUAQ Graders | 25
LICENSED Q GRADERS• Total of 248 Licensed Q Graders in North America
IN-COUNTRY PARTNERS (ICP)• Costa Rica | Specialty Coffee Association of Costa Rica (SCACR)
• El Salvador | El Consejo Salvadoreño del Café (CSC)
• Guatemala | Asociación Nacional del Café (ANACAFE)
• Honduras | Asociación de Exportadores de Cafe de Honduras
(ADECAFEH)
• Nicaragua | Asociación de Cafés Especiales de Nicaragua (ACEN)
FUTURE PROJECTS• Continuation of Q Grader Certification courses at Coffee Lab International, Coffee Solutions, RoZark Hills Coffee Roasterie, and SCAA Headquarters• ICP training and development in Central America• Additional Q Grader training in Central America• Q Grader training & ICP development in Mexico• Market development and support for Q Coffee System
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Regional progress
SOUTH AMERICA
BRAZILQ Graders | 10
COLOMBIAQ Graders | 174
PERUQ Graders | 19
LICENSED Q GRADERS
• Total of 203 Licensed Q Graders in South America
IN-COUNTRY PARTNERS (ICP)
• Colombia | National Federation of Coffee Growers of Colombia
FUTURE PROJECTS
• Continuation of Train-the-Trainer Program in Colombia
• Barista and roaster training courses offered through the
Specialty Coffee Association of Colombia
• Web education modules developed in partnership with the
Juan Mejia Foundation of the Colombian Coffee Federation
• Origin verification program implemented in partnership with
the Colombian Coffee Federation
• Additional Q Grader training in Peru
• Continuation of Q Grader training in Colombia
• ICP development in Brazil and Peru
• Barista and roaster training in Peru
• Market development and support for Q Coffee System
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EAST AFRICA
UGANDAQ Graders | 18
KENYAQ Graders | 18
ETHIOPIAQ Graders | 36
RWANDAQ Graders | 16
TANZANIAQ Graders | 1
Regional progress
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LICENSED Q GRADERS
• Total of 89 Licensed Q Graders in East Africa
IN-COUNTRY PARTNERS (ICP)
• Kenya | Kenya Coffee Traders Association (KCTA)
• Uganda | Uganda Coffee Development Authority (UCDA)
• Rwanda | Rwanda Coffee Development Authority (OCIR Café)
FUTURE PROJECTS
• Additional Q Grader training in Tanzania, Malawi,
Ethiopia, Uganda, Kenya, and Zambia
• Development of an East African specialty coffee
expansion program through Eastern Africa Fine Coffee
Association (EAFCA)
• Creation of a Gourmet Robusta cupping and grading
protocol
• ICP training and development in Uganda, Rwanda,
Ethiopia, Tanzania, Malawi, Kenya, and Zambia
• Barista and roaster training in Tanzania and other
East African countries
• Market development and support for Q Coffee System
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EAST ASIA
INDONESIAQ Graders | 24
JAPANQ Graders | 68
TAIWANQ Graders | 1
SOUTH KOREAQ Graders | 2
Regional progress
LICENSED Q GRADERS
• Total of 95 Licensed Q Graders in East Asia
FUTURE PROJECTS
• Additional Q Grader training in Indonesia
• ICP training and development in Indonesia
• ICP training and development in Japan
• Market development and support for Q Coffee System
• Promotional support for licensing partners
OTHER PROJECTS
• Q Grader training programs to be offered in Europe for
the first time
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An investment in CQI helps create a more economically
viable future for farmers and ensures there is a lasting
supply of quality coffee for our industry. It’s a win-win
solution that benefits the entire value chain. We have
consistently outpaced the standard for percentage of
revenue applied directly to programs and have more
than ten years experience delivering positive results.
A worthy investment
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2008 $657,355 567,165 21,029 1,245,549
1,107,878 293,878 1,401,756
185,790 29,584 (156,206)
$0.89
SUPPORT AND REVENUESIn-kind and volunteers contributions
Other contributions, grants & supportOther income
Total support and revenues
EXPENSESProgram and project expenses
Administrative and general expensesTotal expenses
SUMMARY OF NET ASSETSNet assets, beginning
Net assets, endingIncrease in net assets
Portion of every dollar in support and revenues directly supporting programs
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2007 2006 2005 2004 $1,104,629 $2,916,310 656,471 1,047,387562,797 1,231,598 2,026,441 1,769,479 108,818 23 308 8141,776,244 4,147,931 2,683,220 2,817,680
1,502,754 3,958,882 2,389,838 2,483,425391,730 206,389 286,273 272,5691,894,484 4,165,271 2,676,111 2,755,994
304,030 321,370 314,261 252,575185,790 304,030 321,270 314,261(118,240) (17,340) 7,109 61,686
$0.85 $0.95 $0.89 $0.88
The Coffee Quality Institute is a non-profit 501(c)3 organization. All contributions are tax deductible to the extent allowable by law.
Thank you to our annual luncheon sponsors,
without whom, our work would not be possible.
With heartfelt appreciation…
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SILVER SPONSORS
BRONZE SPONSORS
TABLE SPONSORSAnacafé • Silver Spoon Gourmet division, Armenia Coffee CorporationAtlas Coffee Importers, LLC • Boot Coffee Consulting & Training Boyd Coffee Company • Bunn-O-Matic Corporation • Café Imports Coffee Enterprises • CoffeeNetwork • Deli-Café • Harry Kangis Illy Caffe USA • Keffa Coffee • List & Beisler, GMBH • Mercon Coffee GroupNational Federation of Coffee Growers of Colombia • NuCoffee Paragon Coffee Trading Company • Specialty Coffee Association of America Sustainable Harvest • Unex Guatemala S.A.
BOARD of TRUSTEESEllen Jordan Reidy, Chairperson, America’s Food Technologies, Inc.Harry Kangis, Vice Chairman, Millstone Coffee, Inc. (Retired) Herbert De Sola, Vice Chairman, Unex Guatemala, S.A.David Boyd, Secretary, Boyd Coffee CompanySalim Janna, Exportadora de Café Condor, S.A.Juan Esteban Orduz, Colombian Coffee Federation, Inc.Eduardo Esteve, Agroindustrias Unidas de Mexico, S.A. John Stiles, Integrated Coffee Technologies, Inc.Ellen Rogers, Dunkin’ Brands, Inc.James ‘Roy’ Davis, Jr., S & D Coffee, Inc.Colman Cuff, Starbucks Coffee Trading CompanyBruce Mullins, Coffee Bean InternationalPhilip Schluter, Schluter S.A.
Q ADVISORY COUNCILBruce Mullins, Chair, Coffee Bean InternationalWendy DeJong, Tony’s Coffees & TeasRafael Hernandez, Café TerrunoCraig Holt, Atlas Coffee Importers, LLCYoshikatsu Ideguchi, Kanematsu CorporationHiroshi Ideriha, S. Ishimitsu & Co.Adam Kline, Atlantic Specialty CoffeeRandy Layton, Boyd Coffee CompanyStephen Leach, Maranatha Import Export Pty. Ltd.Jason Long, Café ImportsWillem Boot, Boot Coffee ConsultingManuel Alves, Coffee Lab International, Technical Advisor
STAFFTed R. Lingle, Executive Director David Roche, Chief Technical DirectorMike Pomerleau, CPA, Director of FinanceJoan Uphoff, Coffee Corps Volunteer Coordinator
with project support from:Kelly Peltier-Amoroso, Q Program CoordinatorDaniel Mulu, Technical Advisor – Ethiopia
and marketing and communications support from the SCAA:Tracy Ging, Director of Marketing and CommunicationsAlexandra Katona, Marketing ManagerLily Kubota, Project Manager
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(as of March 2009)
“I found the Q Grader testing week intense, friendly, yet rewarding. It takes my passion for coffee and anchors it in a worldwide standard but best of all it help others.”
Paul AllenCaravan CoffeeLicensed Q Grader
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“From the beginning, it has been clear to me that CQI is having a tremendously positive impact at origin. Now, seeing that work come to fruition in the marketplace through our licensing partners, I am elated and further inspired by the success of our efforts. We’ve truly created a market based solution, offering a win-win for both the producing and consuming sides of the industry. This is what sustainability is all about and I am extremely proud to continue my involvement with the organization and their initiatives, which are so vital to the future of our industry.”
Ellen Jordan ReidyAmerica’s Food Technologies, Inc.
330 Golden Shore, Suite 50Long Beach, CA 90802Phone 562.624.4190 | Fax 562.624.4191www.coffeeinstitute.org
™
CQI thanks America’s Food Technologies, Inc. (AMFOTEK®) for sponsoring this annual report. AMFOTEK specializes in coffee and tea based beverage product development and manufacturing. For more information, please call 800-824-9092.