#016 - Levelling the Field: Shared Infrastructure as a Tool for Quality Equity

During our market discovery process, we developed relationships with both coffee suppliers in Brazil and coffee buyers in Europe.

It quickly became clear that stability was key.

That is why post-harvest infrastructure forms a central part of our value proposition. And it is not only about the machinery itself—it is mostly about governance and availability.

Coffee harvesting machinery is quite specialized, with an annual cycle that results in very low utilization for most of the year. Then, right after harvest, demand surges, often creating waiting lists that favor larger producers. In other words, the lack of adequate infrastructure actively contributes to inequalities among growers.

We believe we can help solve some of these problems at a regional level…

But first: why is this machinery so important?

These machines are essential for delivering stable quality with minimal defects. This equipment controls critical variables early in the process, preserves delicate flavors, and prevents issues such as souring, mold, or physical damage—problems that later stages cannot fully correct.

Production systems differ sharply between flat, scalable, financed plains regions and isolated high-mountain niches.

The chain actually begins well before harvest, during land preparation. For example, Brazil’s Cerrado region features vast plains suited to mechanical harvesters that collect cherries efficiently (it even resembles Dutch-style agriculture in its scale and mechanization). These machines speed up operations and help limit over-ripening defects. In contrast, steep regions in Colombia or Ethiopia rely almost entirely on selective hand-picking. Brazil’s Sul de Minas is also mountainous, with small, fragmented lots—much like Colombia or Ethiopia. Here, topography limits scale, which in turn restricts access to financing and machinery. In these mountainous areas, quality therefore depends far more on human precision than on volume.

Post-harvest processing follows immediately—and cherries need time. Our experience shows that excessive reliance on accelerated technology can shorten time to market but often reduces the final SCA score of the beans. (We will elaborate on this in more detail another time.)

Next comes milling and grading infrastructure. Hullers remove the parchment or husk. Density tables and gravity separators isolate heavy, premium beans from lighter defects. Vibrating sieves grade beans by screen size for uniform roasting. Optical color sorters represent the decisive step: high-resolution cameras and precision air jets eject black, sour, immature, insect-damaged, or moldy beans at thousands per second—driving defect levels near zero for specialty grades.

This is precisely where we can add the most value. It is where we focus our efforts: carefully selecting the best available infrastructure and sharing access among our partners. We believe this role should ideally be fulfilled by cooperatives—but in many cases, it simply isn’t happening.

Only then does the real art begin…

Roasters invest in high-tech machines that amplify trial-and-error profiling and—once the sweet spot is found—deliver consistency. This is one key reason specialty coffee roasting has become such a regional business: local flavor profiles matter deeply.

Then comes the brewing phase, where the machines are true pieces of jewelry—even symbols of quiet luxury.

But our focus remains clear: we aim to deliver the best possible beans to those artists—the roasters—while creating real, tangible impact at origin.

Weekly Highlights:

• Coffee Futures KC Price in NY: +9.1% weekly, closing at approximately 311.15 cents/lb (from 285.15 cents/lb on March 13, 2026, driven by short-term Brazilian supply tightness, farmer holding, and geopolitical/logistics risks).

• Coffee Price in Brazil’s B3 in USD: +9.1% weekly (closely tracking NY futures), with the equivalent USD-per-60kg bag rising in line with the rally (specific B3 closing figures aligned directionally but varied slightly due to local differentials; exact bag price not uniformly quoted but followed the ~9% futures gain).

• BRL/USD fx rate: +1.04% weekly (USD/BRL closed at 5.2439 on March 13, 2026, and 5.2986 on March 20, 2026, reflecting modest weakening of the Brazilian real amid broader market dynamics).

• Proxy of 20’ container freight prices from Santos to Rotterdam: stable to slightly up weekly (global container indices like Drewry’s WCI rose ~2% overall in mid-March, with Europe-bound routes showing modest increases; no sharp ~7% decline observed—rates remained elevated due to ongoing geopolitical disruptions, though specific Santos-Rotterdam spot data showed limited weekly volatility in available benchmarks).

• Starbucks reported its best quarterly results in two years, highlighting strategic menu innovations and operational efficiencies amid shifting consumer preferences for premium coffee experiences.

• De’Longhi achieved record 2025 results, driven by strong demand for home coffee machines, reflecting a consumer shift toward at-home brewing for consistency and convenience.

• Nestlé’s new CEO revealed a personal habit of consuming 8 cups of coffee daily, underscoring executive-level endorsement of high coffee intake amid broader industry discussions on health and productivity.

• U.S. coffee consumption reached 66% daily among Americans in 2025, up 7% from 2020, but Starbucks’ market share fell to 48% as consumers favored rivals like Dunkin’ and drive-thru chains.

• Laird Superfood acquired Navitas for $39 million in December 2025, a strategic M&A move to expand in plant-based and health-focused coffee alternatives.

• Nueva Vizcaya, Philippines, allocated ₱5.7 million for coffee industry enhancements, a governmental initiative to boost local production through technology and climate resilience.

• Starbucks announced free coffee giveaways on February 9, 2026, as a strategic promotion to drive traffic and introduce new brews amid competitive pressures.

• India’s 2026 Budget withdrew duty concessions on imported coffee machines, potentially increasing costs for machine-brewed coffee in cafes under new governmental fiscal rules.

• U.S. tariffs on coffee-producing countries were discussed, with exemptions confirmed, providing strategic relief to importers and stabilizing supply chains for 2026.

• Home coffee routines in 2026 emphasized speed and consistency, with consumers prioritizing durable, easy-to-use equipment amid hybrid work schedules.

• Brazil’s Conab’s first official survey (released February 5-6, 2026) forecasts a record 66.2 million 60-kg bags (processed), up 17.1% from the 2025 cycle. If confirmed, it would exceed the prior record of 63.1 million bags in 2020; private estimates (e.g., Hedgepoint, Safras & Mercado, Itaú BBA, Sucden) range higher at 69-75 million bags for the 2026/27 cycle.