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Episode Description
This is part 2 of a new 5-part series on The Daily Coffee Pro Podcast by Map It Forward, hosted by Lee Safar. Our guest on the podcast for this series is Bram de Hoog, co-owner of Paso Paso Coffee, a farmer-owned coffee roastery based in Hanover, Germany.
The theme of this series is alternative trade models and farmer engagement in the consuming market.
In this episode, Lee and Bram explore what it actually takes to manage direct relationships with coffee producers and import coffee into the consuming market.
Paso Paso is owned by Bram and five coffee farming families based across Ethiopia, Costa Rica, Nicaragua, and El Salvador. Unlike conventional direct trade arrangements, the farmers are both suppliers and shareholders in the German roasting business.
Bram explains how they established this ownership structure, the legal processes involved, and why their operating agreements require transactions to deliver economic benefits to both the farms and the roastery.
The intention isn't to pay unsustainably inflated prices for green coffee. Instead, Paso Paso's producers aim to benefit twice: first by selling coffee profitably to the roastery, and again through the growth and potential profits of the business they collectively own.
A particularly important part of the conversation focuses on communication between origin and the consuming market.
Bram explains why direct feedback about how coffees perform commercially is essential for building lasting relationships. Rather than simply replacing a coffee or switching suppliers when something doesn't sell, Paso Paso works with its producer partners to understand the problem and identify alternatives.
But direct relationships also create financial and operational challenges.
Bram shares the reality of managing excess green coffee inventory, including Paso Paso's approach to selling surplus stock through its 'After Party' offering.
He also explains why financing and storage have historically represented approximately 20% of Paso Paso's green coffee costs, and how importing their first container independently from Costa Rica allowed them to reduce costs by approximately 16%.
The discussion explores how Paso Paso is beginning to use internally generated funds and shareholder loans to finance coffee purchases, potentially reducing its dependence on external financing.
This is a practical examination of direct coffee trade, from legal ownership and producer feedback to inventory management, capital requirements, and international logistics.
It also raises an important question for the coffee industry: how much of the difficulty associated with direct importing comes from the physical movement of coffee, and how much comes from financing the transaction?
Connect with Bram de Hoog and Paso Paso Coffee:
Paso Paso Instagram: https://www.instagram.com/paso_paso_coffee/
Bram Instagram: https://www.instagram.com/bram_dehoog/
Bram LinkedIn: https://www.linkedin.com/in/bramdehoog/
If you found this episode valuable, make sure you’re subscribed to the podcast and follow along for the rest of this 5-part series.
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