coffee price

Brewing Insights: Highlights from our Indonesian Origin Trip

Setting the Stage: Towards Equal Entrepreneurship

When I set out for Indonesia, I had one clear objective: to sit together with our partners and figure out a way to work sustainably for the next decade. We’ve been working with Ontosoroh for many years, and been a steadily growing client for them and all the farmer communities as well. Starting out with 600 kilograms in 2017 from Pak Lodovikus from Asnikom in Flores, we’re now looking at more than 4 full containers, from partners from Java, Flores, Sulawesi and trials from Papua as well. Much of the coffee goes into “everyday blends” at offices, hospitals, hotel lobbies and small cafes: it’s the robusta component that gives that extra kick so many consumers are looking for. It’s in high demand, but comes at a price cap. But it can offer big volumes, long contract times, with steady return sales. It is the kind of coffee that can give stability to both farmer and roaster. 

On the other hand, the internal Indonesian specialty coffee scene is on the rise, and that gives some funky arabica fruitbombs, and unique experimental processes as well. Indonesia is one country in our portfolio, but it’s one with many faces, realities and above all: many, many flavors. Here the topics are about sublime control of all the processing steps, to create that award winning cup that can make farmers proud, and inspire the generation to come, because coffee is a cool product. And perhaps, one day, your picture will be hanging in that fancy café in Paris or Berlin.  

Maarten, Kerissa, Giancarlo, Dennis, and Steven with ASNIKOM members after a workshop on developing long-term partnerships for sustainable coffee trade during the origin trip

To the background of this, the global coffee market has been in flux, and in times of uncertainty, we have two choices—we can stare at numbers on a screen or look each other in the eyes and ask, what’s really happening on the ground? How do we take this new reality and navigate it as partners in a value chain that has proven its resilience time and time again? How do we prepare and commit to the future, together?

I wasn’t alone on this journey. I traveled with Kerissa from Wakuli, Giancarlo from Special Roast, Dennis from Koepoort, and Steven from Eight. Our collective goal was to explore what’s possible on both ends of the supply chain to ensure the continuity of our partnerships. The reality is often less daunting and far more human than one might expect. As a value chain, we hold our place because we add value—because what we do is worth paying for. When both sides approach the conversation as equal entrepreneurs, open about their realities, the response is empathy. A farmer doesn’t want a roaster to go bust, and a roaster doesn’t want a farmer to struggle. It really can be that simple.

Exploring the Realities on the Ground

Our first stop was Flores, where we met with our partners at Asnikom to discuss robusta production. Decreasing yields, aging plants, and the urgent need for rejuvenation were central themes. But the conversation wasn’t just about agronomy and technical fixes; it was also about culture. Some farmers shared their deep respect for their coffee plants, passed down from previous generations. Uprooting them wasn’t just a financial decision—it was a deeply personal one. Here, we were open about what the producers needed to have an income that would make them happy, and the roasters communicated what their budget was - and why. They showed videos, photos and packaging of where the coffee ends up, and what opportunities and limitations this provided. We got to ballpark financial figures, after hours of drawing on a whiteboard and opening all the books. 

On Java, we found a very different reality with the Kojoyo cooperative, which represents the Candiroto and Sindoro coffee regions. Here, young farmers are bringing fresh energy to coffee production, engaging in fermentation experiments and planting new varieties. The challenge was maintaining their momentum and ensuring they stay connected to European roasters. Strengthening these direct links would “feed the pride” of these young producers and keep their enthusiasm for high-quality coffee growing. Could this community also be an inspiration for other “aging coffee regions”? We asked about the reason for the success. Cahyo, the 32 year old robusta farmer, shared with a huge smile that he’s been making more than four times the minimum income last season: “and that with coffee!”. It was nice - and refreshing - to see the young farmers gathering together at their packing facility. Not to do anything - cause it was off season - but to be together, as friends, as a community. Drink a nice coffee, roast it, talk to the clients from far away. It was a relaxed though professional setting. 

In southern Sulawesi, we visited our partners in Gowa Malino, where we discussed their participation in the Cup of Excellence and strategies for consistently producing high-quality lots. A new generation of coffee growers is emerging here as well, and it was exciting to cup their latest trials. Further north, in the mountainous regions of Sesean and Buntu Ledo, we faced a more troubling reality. Just a few years ago, their coffee scored 88 points; this season, it dropped to 78. The culprit? Climate change. Shifting rainfall patterns disrupted drying processes, leading to taste defects and crop struggles. Together with Adri from Ontosoroh, we started planning an entirely new drying facility—raised drying beds, a solid roof, proper ventilation. By the end of the year, unexpected weather shifts won’t catch them off guard again.

Visiting Onsotoroh’s operations and meeting the incredible community behind the process—from post-harvest work to creating sustainable bag inks with leftover coffee. These are the people who help bring this coffee to life

The Common Thread: Anticipation

Despite the diverse challenges in each region—whether agronomy, climate change, generational shifts, or market access—one issue kept resurfacing: prefinancing. If farmers struggle to cover basic costs like harvesting and labor, all the momentum we build together collapses. Many times, prefinancing means paying in advance—often covering 50% of the crop’s value—so farmers can invest in their harvest and pay their pickers. This Side Up has long collaborated with organizations like Progreso and Rabo Foundation to facilitate these financial structures, but perhaps more needs to be done. More options, more opportunities.

After all, in a value chain built on strong relationships, coffee is often sold before it even leaves the tree. It’s prebooked during its growing cycle with the expectation that quality will meet expectations. The real question is, how do we tighten these connections even further? How do we ensure producers can confidently grow what’s ordered, backed by financial security?

This is the puzzle we’re determined to solve in the coming months. Stabilizing a turbulent market requires commitment—and skin in the game—from both sides. Coffee remains a complex product, but by standing close, being transparent about what’s possible and what’s not, we can go much further together.

Pricing what has never been valued

Being married to a Brazilian, I’ve grown to understand (and like!) the country and the culture in the last few years.  At first glance, farmers seem to be smiling as they talk with me, but on a deeper look, I’ve learnt to recognize it as a nervous smile…

Yes, the current market prices are high, and this might be good for many farmers. But prices can be very volatile, as we have seen in the past. Farmers I met remember the market lows too well, after the happy times of having peak prices. Nowadays, it only gets more complex: the effects of climate change, high input prices due to the war in Ukraine, expensive logistics, and a volatile market… the nervousness under that smile is becoming clearer and clearer to me.

Instead of waiting for the gloomy clouds of storm to gather, or wait for the storm to pass, we decided to take a step forward and strengthen our  connection with the farmers even more. Together with our friends from Capricornio, we saw a simple answer: let’s create a market independent from the world market. Let’s do this together. We’ve already proven that this is possible  in different markets, but Brazil… Well, let’s just say  it’s definitely a different caliber in the coffee industry. Together with our roasters friends we’ve consolidated a volume that can create a stable parallel market. On the basis of what, precisely? Well… on the basis of production costs. 

What does it cost to produce a kilogram of coffee and what do you want to earn as a farmer on top of that?
— Maarten van Keulen

Donizete Soares at Fazenda Palmeiras, São Jerônimo da Serra, Paraná, Brazil.

Put those numbers transparently on the table – and it will show a figure that the European market does or does not want to swallow…

Is it too high? Then together you can look at exactly the costs that made it so high. Or is it perceived to be too high, then it can serve as an explanation of why people “on the other side” need exactly this price. It’s a simple approach that comes with a lot of extra benefits.

Let’s take a  look at expenses – is there a way to minimize these? Fertilizers are expensive. Could you produce your own on-farm organic fertilizer? Or should you join forces for certain investments with your neighbors?

You’re looking at stability – it’s a relationship built on trust. Both sides of the value chain benefit a lot of a stable product, and intensified collaborations based on quality and tailor made products.

You look at a sales price – it’s about mutual entrepreneurship and acknowledging that as a value chain, we’re dependent on each other: squeezing someone will damage us all, and so will negotiating for extremely high prices. “Finally,  we don’t have to sell under cost price anymore and somebody actually cares,” a smallholder farmer of Mulheres do Café Matão told me.

And, last but not least, human connection. This is a product we created together. Farmers become sales agents for their roasters, and roasters become advisors on funky processing techniques.

In practical terms, this deepened approach has consequences for the coffees we offer. We will now be working with four “sources”. Two state of the art estates that are at the forefront of intercropping, reforestation, microbial research and coffee processing experimentation; and two cooperatives of smallholder farmers that have joint forces to create a better livelihood for their families. It is absolutely a different face of Brazilian coffee farmers, and one we can all be very proud of. These four sources will be delivering the coffees for the blends based on flavor stability, the single estate (or cooperative) coffees with their unique story and the experimental microlots with funky pallets.

On the basis of these relationships, Capricornio will provide free agronomical training to improve and stabilize quality. Next to this, we will expand the experiments done on regenerative agriculture. Like this, we will alleviate the lives of smallholder farmers, whilst showing that “doing good” can be done on a big scale. The coffees will be a true homage to the work of both This Side Up and Capricornio: showing what specialty coffee relationships really can do.