Lot Traceability and Quality Differentiation
Presented by Carl CervoneTechnoServe EthiopiaEmail: [email protected]
IN ETHIOPIA, LOT TRACEABILITY BEGINS AT THE WET MILL (FOR WASHED COFFEE)
Exhibit A: No lot separation
-Parchment stored in piles / LIFO system
-Benefits: low cost / easy to manage
-Drawbacks: no quality differentiation, risk of theft, no tracking of ratios during the season
Exhibit B: Simple lot separation
-Parchment stored in labeled bags / FIFO system
-Benefits: quality can be differentiated, reduced risk of theft, ability to track ratios during the season
-Drawbacks: higher cost / more difficult to manage
“LOT SEPARATION” SHOULD BE PRACTICAL FOR THE PRODUCER
Metric Unit Small Med Large
Avg output number of trucks (150 bags parchment) per coffee harvest <3 3-10 10+
Avg output number of bags parchment (60kg) per coffee harvest <450 450 to
1050 1050+
Standard lot size bags parchment (60kg) 75 150 450
Standard lot size
minimum export bags green (60kg), milled to zero defects and screen size 15-18 50 100 300
Standard lot size
number of lots per shipping container (300 bags green) 6 3 1
Avg output number of lots per coffee harvest <6 3-10 3+
Should aim for at least 3 different lots and up to 10… of high grades only!
THIS “LOT SEPARATION” METHOD MEANS THAT SOME LOTS WILL BE FILLED VERY QUICKLY AND OTHERS WILL TAKE LONGER
Week of harvest
Lot 1
Lot 2
Lot 3
Lot 4
Lot 5
Lot 6
Lot 7Lot 8
Lot 9
Lot 10(Low Grades)
THEN COMES THE CUPPING / QUALITY EVALUATION OF EACH LOT
Week of harvest
Lot 1
Lot 2
Lot 3
Lot 4
Lot 5
Lot 6
Lot 7Lot 8
Lot 9
Lot 10(Low Grades)
82
Thin, insect-
damage86
Clean, bright
88
Clean, bright, floral
89
Clean, bright, floral 80
Sour, ferment, baggy
90
Wow!! Taste of Harvest
88
Clean, bright, fruity
87
Clean, good body
84
Fruity, some
over-ripe
n/a
Yuck!
FINALLY, YOU CAN MAKE MARKETING / BLENDING DECISIONS
Week of harvest
Lot 1
Lot 2
Lot 3
Lot 4
Lot 5
Lot 6
Lot 7Lot 8
Lot 9
Lot 10(Low Grades)
82
3rd Blend
86
2nd Blend
88
Top Blend
89
Top Blend
80
3rd Blend
90
DST or special buyer
88
Top Blend
87
2nd Blend
84
3rd Blend
n/a
Local Market
OFTEN TIMES, THE EXTRA EFFORT WILL RESULT IN ADDED VALUE
Base price(all coffee blended together)
Top lot (10%)
Top blend (30%)
2nd blend (20%)
3rd blend (30%)
New avg price
EVEN WITHOUT A HIGHER AVERAGE PRICE, THERE ARE OTHER BENEFITS OF LOT SEPARATION
Quality problems can be identified and hopefully rectified in the future, e.g., first pickings usually have a lower ratio and poor cup profile, so cherry price should be lower
You can prevent theft – ensures coffee is weighed / quantified in storage, and missing coffee can be spotted from open bags
Monitoring ratios and qualities during the season will give you a much better understanding of the interaction of natural and operational (man-made) variables, allowing you to better manage your business
FIFO (First In, First Out) system is generally a better warehouse management system (than Last In, First Out – LIFO), since it ensures more consistent freshness / moisture content / quality levels
IT IS IMPORTANT TO FIND AN ECONOMICAL BALANCE BETWEEN QUALITY DIFFERENTIATION AND COST-EFFICIENCY
Cost-efficiency
Quality differentiation
Coops in prime high
altitude growing
areas
Big traders of unwashed
Djimma 5 types
THANK YOU!