Distributing Value More Equitably Through Profit-Sharing | Panel Discussion | Re:co 2021
Coffee supply chains create a lot of value.
So when the people who grow great coffee can't cover their costs of production and support full, vibrant, healthful lives for themselves and their families, we have a big problem. Uneven distribution of profits not only perpetuates long-standing economic injustices and undermines sustainable development, but also compromises the resilience and vitality of the specialty coffee industry.
What can we do? Many initiatives aim to distribute more value to suppliers—such as solidarity trade, direct trade, and fair trade certifications—but they may not work well in some contexts and can present challenging tradeoffs.
In this panel, we introduce a new approach: profit-sharing. Join us for a conversation with two coffee entrepreneurs who both (independently!) stumbled upon this business model and use it to get as much profit as possible back to origin, while still making ends meet. We will discuss how profit-sharing works, where it is likely to be successful, and when it can be taken to scale. Evidence thus far suggests profit sharing may be an excellent solution to the persistent problem of poor profits for great farmers.
Special Thanks to Our Partners, Savor Brands
Re:co (Regarding: coffee) is a unique event designed for high-level discussion, leading innovation and strategy development for those passionate and influential in the world of specialty coffee. Understanding Specialty Coffee’s Value, the second session of Re:co 2021, was supported by Savor Brands.
About the Panelists
Dr. Elizabeth Bennett
Associate Professor of International Affairs and Director of Political Economy, Lewis and Clark College
Dr. Elizabeth A. Bennett is a fellow at the Harvard Kennedy School Carr Center for Human Rights Policy Research (Cambridge, MA, US) and the Joseph M. Ha Associate Professor of International Affairs at Lewis & Clark College (Portland, Oregon, US). Her research and advocacy focus on voluntary sustainability standards, the fair trade movement, worker empowerment, and economic justice. Bennett is the co-author of The Civic Imagination: Making a Difference in American Political Life and co-editor of The Handbook of Research on Fair Trade. Her research is published in numerous academic journals. She serves on the Academic Advisory Council for the United Nations Forum on Sustainability Standards. (www.ElizabethAnneBennett.com).
Dr. Janina Grabs
Postdoctoral Researcher, ETH Zurich
Janina Grabs holds a PhD in Political Science and is a postdoctoral researcher at ETH Zurich's Environmental Policy Lab. Her research focuses on sustainability governance in international value chains and the options of states, firms, NGOs and other actors to improve the environmental and social sustainability of commodity production. She is the author of the book "Selling Sustainability Short? The Private Governance of Labor and the Environment in the Coffee Sector" (2020, Cambridge University Press), which assesses the extent to which private sustainability standards have managed to change coffee markets and production practices on the ground.
Mayra Orellana-Powell
Founder, Catracha Coffee
In 2016, Mayra Orellana-Powell returned to live in Santa Elena, La Paz, Honduras, where she was born and raise. She continues to work remotely for Royal Coffee-California as the Marketing and Outreach Director, a position she has held since 2013. Mayra established Catracha Coffee in 2010 and currently works with a group of nearly 100 coffee producers in Santa Elena. She is most passionate about establishing community prosperity beyond coffee through a non-profit called Catracha Community, which focuses on supporting women and youth in Honduras. She was named one of Forbes Centroamerica’s 100 most powerful women in 2020. She spoke at the 2015 SCA symposium (now RE:CO) and participated as a fellow in 2017.
Kenneth Lander
Co-Founder and Chief Sustainability Officer, Thrive Farmers
As a trial lawyer from Georgia, Ken has experience in advocating client’s interests. In 2005, Ken decided to retire and move with the entire family to a coffee farm in Costa Rica. He began to understand the injustices that farmers face in the value chain of coffee. Ken decided to make the case for the coffee farmer. Thrive Farmers is the direct result of taking the case of the coffee farmer to the entire world. As a coffee farmer for 15 years and a member of the Thrive Farmers team, Ken seeks to amplify the voice of the farmer.
About this Session: Understanding Specialty Coffee’s Value
Once we understand what we value and how we assess it, it’s time to focus on how that value gets distributed both across the value chain and within companies. In this session, we’ll introduce new business models, explore the impact of collaboration, and trace all the different ways we can better build—and share—value along the chain.
Directly connect to the people and conversations driving coffee at Re:co, the industry stage for leadership and ideas. Addressing the most pressing topics facing our industry today, Re:co blends expert speakers, sensory experiences, live discussion, networking, and community engagement opportunities.
Re:co returns as an in-person event in 2022, hosted at the Westin Boston Seaport, MA, USA, from April 6-7. Learn more or register: recosymposium.org.