Coffee review

What's the difference between a coffee farm and a coffee cooperative?

Published: 2024-02-29 Author: World Gafei
Last Updated: 2024/02/29, At present, there are two most common planting patterns in the coffee industry, namely, manors and cooperatives. The cooperative has gathered a group of farmers who, as individuals, have limited funds, do not have enough capacity and resources to work independently, and may even be unable to negotiate with exporters or bean bakers because of insufficient production.

At present, there are two most common planting patterns in the coffee industry, namely, manors and cooperatives.

The cooperative has gathered a group of farmers who, as individuals, have limited funds, do not have enough capacity and resources to work independently, and may even be unable to negotiate with exporters or bean bakers because of insufficient production, so they join forces to jointly purchase equipment and facilities to form a small coffee processing facility.

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Farmers send their coffee fruits here, which are sorted, processed and sold in the name of the cooperative. After receiving the profit, the coffee selling cooperative will deduct the operating expenses and distribute the money to individual members. Cooperatives, as a collective, have more advantages in negotiating coffee prices, in which farmers share resources, take advantage of marketing and business opportunities, and gain sales opportunities.

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In cooperatives, although coffee is still the property of farmers, cooperative management makes most of the decisions on the processing and sale of coffee. Individual farmers may have a say, but they cannot independently decide how to process their own coffee, nor can they determine the sale price.

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The coffee farm is a larger private farm than the cooperative member farm, the producer has more dominance, and the farm only produces, processes and sells its own coffee. The establishment of the manor needs to invest a lot of production and processing equipment, at the same time need to rely on their own resources to solve materials, funds, planting methods and other problems, but also need to manage their own production and labor costs in the later stage.

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Some coffee-producing countries require permits to operate manors. The requirements for registration licenses vary from place to place, but they usually include a minimum number of coffee trees, acreage and total output.

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At present, many manors belong to the family business model, which is taken over by the younger generation, and the manor owners can completely control, study, improve and apply new methods of coffee production and processing, which brings value-added effect to their own coffee beans. Moreover, the owner of the manor can directly connect with the raw bean merchant of coffee, can understand the needs of customers more quickly and make changes, and can choose different prices for coffee, but the manor does not have as many members' support as the cooperative. The producers of the manor must handle all economic affairs on their own, "bear their own losses and profits", and bear more pressure while having autonomy.

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