Annual report 2015

DE LA GENTE, OR “FROM THE PEOPLE”

GREAT DIRECT FROM

COFFEE FARMERS CULTURAL EXCHANGE TOURS CHANGING LIVES GENERATING ECONOMIC OPPORTUNITY 2015 ANNUAL REPORT

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LETTER FROM THE DIRECTOR Dear friends, For De la Gente, economic opportunity has always meant building systems that create amazing coffee and travel experiences for coffee lovers and globetrotters while building economic prosperity for coffee farmers and their families. We firmly believe that we can change the coffee industry, historically a source of poverty even as it produces one of the world’s most popular drinks, into a source of hope and prosperity, one coffee farmer and coffee drinker at a time.

In 2015 De la Gente continued to refine our capabilities while scaling up the scope of our work, always adhering to our values of respect, inclusion, collaboration, transparency, and relentless pursuit of effectiveness. As we look back on 2015, we have much to be thankful for and proud of.

All of our work is united around the goal of creating economic opportunity that enables farmers to invest in their families and communities and achieve a better life. As I hear stories about a farmer keeping her children in school, building a better house for his family, or investing in any other of the many areas that contribute to family well-being, I take heart that our work is indeed paying off in the form of very real impact on the lives of our partner farmers.

We wouldn’t be able to achieve this without everyone who makes up the wider DLG family. Whether you are a traveler, donor, coffee roaster, coffee drinker, or many of those at once, thank you for believing in our work and being part of De la Gente. Your participation makes all of DLG’s work possible.

I would be remiss if I didn’t mention the outstanding DLG team. These 6 people from 4 countries are the heart and soul of the organization and work tirelessly to ensure all of our programs are successful.

In 2016 De la Gente will be sourcing coffee from 5 partner cooperatives and exploring opportunities for new product development to create additional income-generating activities for farmers. We are also developing new travel programs, including trips that are longer with different thematic foci, that will offer students more in-depth opportunities for experiential learning and immersion.

All the while we are strengthening our relationships with our cooperatives and keeping the farmers at the center of our work.

I hope you stay engaged with De la Gente in 2016 and beyond, and please do not hesitate to contact us with any ideas about how we can work together.

Kind Regards, Andy Feldman De la Gente Visiting La Suiza, a DLG partner cooperative

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MISSION:

TO WORK WITH COFFEE FARMING COMMUNITIES TO CREATE ECONOMIC OPPORTUNITIES THAT IMPROVE THE QUALITY OF LIFE FOR THEIR FAMILIES AND THEIR COMMUNITIES.

We work towards our mission every day through our three core pillars of operations

Coffee Business & Commercialization, Cooperative Assistance and Community Tourism.

WHERE WE WORK Santa Anita - APCASA Region: Quetzaltenango 10 farmer members Petén

La Suiza - ACUPDIC

BELIZE

Region: San Marcos 116 farmer members

MEXICO Atlantic Ocean

San Miguel Escobar Region: Antigua 30 farmer members

Ija’tz

Region: Atitlan 50 farmer members

UPC

Huehuetenango UPC Coban San Marcos La Suiza Quetzaltenango MEXICO Ija’tz APCASA Atitlan Antigua Guatemala City De la Gente San Miguel

HONDURAS

Region: Huehuetenango 160 farmer members Pacific Ocean

EL SALVADOR

COOPERATIVE SPOTLIGHT - LA SUIZA

“Personally I would like to thank you all for your support this past year. Growing coffee has allowed me to support my children, in the buying of new clothes and shoes, as well as resources for school.

Working with De la Gente has helped us to grow and reach new markets and looking ahead into the future we hope to export more coffee. We hope that the increase in income will allow our community to have the necessary resources to improve the school in the community, and to build a health center.”

~MAXIMO VELASQUEZ, COOPERATIVE PRESIDENT –3–

COFFEE

The De la Gente brand stands for quality with social impact. Our coffee business delivers great beans to our customers while providing market access and improved income for our partner small-holder farmers.

BY THE NUMBERS

5

cooperatives working with De la Gente

3

cooperatives exported specialty grade coffee

7,351 POUNDS

100

OF ROASTED COFFEE SOLD IN 3 COUNTRIES

farmers exporting coffee

339

farmers in cooperatives

1,800+ people impacted in total

55,172 POUNDS

COFFEE 18 GREEN PARTNERS

OF GREEN COFFEE SOLD IN FIVE COUNTRIES

$233,409 PAYOUT TO PRODUCERS

A 33.38% HIGHLIGHT increase over 2014

OUR TAKE ON DIRECT TRADE We believe that the best kind of trade is built on respect and strong relationships, recognizing the value of all participants’ work. De la Gente has built a coffee supply chain that is transparent and weighs equally the

needs of buyers and producers. Creating a shared objective for coffee to be a high quality product which delivers a high quality of life for producers leads us to build a more sustainable way of doing business.

Join our Coffee Club and have freshly roasted coffee delivered to your door every month or pick up a bag of De la Gente today in our online store

W W W. D LG C O F F E E . O R G –4–

COFFEE

JOHN GOSSETT

EDUARDO HERNÁNDEZ

“I have worked in coffee for over 20 years. Before coffee I grew sweet potatoes and carrots. I started with just one plot of coffee because I didn’t know much about it but little by little I converted more and more and now all I grow is coffee. I just have 8 cuerdas of coffee, not much, but we focus on growing the best coffee we can.

“Partnering with De la Gente has given me and my customers an important and meaningful connection to coffee farmers and the fruit of their labors.

It’s been a very fulfilling experience visiting with the farmers and the DLG staff in Guatemala. I’ve learned more about coffee than I ever thought possible and feel I am creating relationships that form the foundation of a truly sustainable way of doing business. ”

De la Gente has taught us the importance of growing and processing quality coffee. In the past I sold my coffee to an intermediary for a low price but now, my whole family works together to process and select the best coffee we can so that we can sell it into international markets and earn a better price. It’s a lot of work but it is worth it.

John Gossett Roastery Owner & Green Coffee Buyer Mt. Maxwell Coffee Roasters Salt Spring Island, Canada

To me coffee is an opportunity, to provide better for my wife and children, to learn, and to meet new people.”

Eduardo Hernández Coffee Farmer, San Miguel Cooperative

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COOPERATIVE

ASSISTANCE

De la Gente works with cooperatives to build their capacity to be successful farmer-run organizations that deliver economic benefits for their members and invest in continued improvement of their individual and collective abilities. Through training and financing we provide access to the knowledge and resources they need for success.

COFFEE CONGRESS

Every year, DLG brings together the leaders of our partner cooperatives for a day of learning and idea sharing.

We believe that this type of peer exchange and development is important for building cooperatives’ leaders confidence and experience. Following our event, DLG sponsored leaders to attend the Guatemalan national coffee congress, where they learned about current coffee trends and furthered their professional development.

COOPERATIVES 2nd Annual 6REPRESENTED

11 LEADERS IN ATTENDANCE

ACCESS TO CREDIT

Access to affordable financing (credit) allows cooperatives and their members to meet their short term needs and invest in future growth. Financing for the purchase of machinery and land enables coffee farmers to invest in the infrastructure needed to improve their yield and quality. Harvest financing allows cooperatives to have a steady cash flow during the harvest season, enabling them to access international markets while still meeting their household needs.

LONG TERM FINANACING

$73,474

HARVEST LOANS

$15,394

ROASTER FINANCING PAID IN-FULL BY UPC De la Gente financed 75% of a new 25-lb roaster, with the remaining cost paid by the UPC cooperative in April of 2013. In June-2015 UPC made their final payment on the roaster which has opened up new markets and income generating opportunities for the cooperative and it’s members as they can now sell roasted coffee in the local markets and lease the equipment to other coffee producers in their community through contract roasting.

WOMEN’S FUND

In 2014, De la Gente established the Women’s Fund to support female coffee farmers, and in 2015 we continued to build on our commitment to women. We supported job-specific training, access to credit and access to new markets for women through our community tourism program and local shop so they can grow their businesses and compete in the local markets. De la Gente understands that gender norms create barriers for women, and we plan to build this program over the coming years to ensure women have equal access to the resources and knowledge they need to thrive.

3

Female Farmers have received land loans to grow coffee

10

Women earn additional income through teaching Pepian Cooking Workshops –6–

9

Female Artisans have partnered with De la Gente’s Community Tourism Program

COOPERATIVE ASSISTANCE COMBATING ROYA & IMPROVING PLANT STOCK

With funding from the Latin America Travel Association Foundation (LATA) , De la Gente provided training and subsidies for agricultural inputs for 2 of our member cooperatives to provide farmers with continued educaiton and financial relief in their efforts to combat the roya (coffee leaf rust). This program allowed farmers to see a decrease in the prevalence of roya contributing to a better harvest in the future.

AGREQUIMA TRAINING

De la Gente partnered with a local organization, Agrequima, to provide a 2-day training and certification program titled “Responsible Use and Management of Pesticides, Good Agricultural Practices, and Clean Farm/Recycling Program” for the cooperative members of San Miguel Escobar. This training resulted in over 20 members of the cooperative becoming certified applicators of agro-chemical products.

PROCESSING & QUALITY CONTROL TRAINING

Through funding from the Sanibel-Captiva Rotary Club, De la Gente provided training to over 30 members of the community of La Suiza to ensure coffee produced met specialty coffee standards that allow it to be sold in the international specialty coffee market.

This funding also provided Quality Assurance testing by Guatemala’s National Coffee Association.

MOISTURE METERS IMPROVE QUALITY

Utopian Coffee Co donated portable moisture meters for the cooperative members to test their coffee and improve quality throughout procesing. Quality control is an integral piece of the specialty coffee business as well as a key element to De la Gente’s cooperative assistance programs. Access to this sort of technology is key for farmers to be able to learn how to improve their processing techniques.

Partering with a new cooperative

IJA’TZ

(pronounced ee-HAH-tz)

Ija’tz is De la Gente’s newest partner coffee cooperative. The name Ija’tz means ‘seed’ in the local indigenous language of Kaqchikel. A fitting name as the cooperative holds a deep appreciation for the environment, with the goal of producing exceptional coffee in harmony with nature.

Located in the town of San Lucas Toliman on the shores of Lake Atitlan, the 50 members who make up this cooperative are very in tune with local environmental issues, particularly deforestation, erosion, soil quality degradation, and flooding. They are working together to learn about and combat the effects of global climate change and drought.

We are excited about this new partnership and the coffee that Ija’tz will be producing. They represent a new region of Guatemalan coffee and their values fit perfectly with those of De la Gente.

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COMMUNITY TOURISM

1,842 551

Our tours and trips welcome visitors to local communities and open up a world of adventure, immersion, and exchange. Through spending time with local Guatemalans and hearing their stories, guests learn the human side of the often faceless coffee industry, and create connections that span cultural, linguistic, and national barriers.

Coffee tours participants Artisan workshops participants

$28,218

TOURS OFFERED:

COFFEE, PEANUT BUTTER, TEXTILES, BURLAP BAGS, PEPIAN, NATURAL LOTIONS, IRONWORK, WOODWORK

ADDITIONAL INCOME GENERATED FOR FARMERS & ARTISANS FROM TOURS & VOLUNTEERS

TRIPADVISOR TESTIMONIAL “This was an amazing, life-influencing experience.

We did the huipil bag class and the coffee tour.

The bags we made are beautiful, strong, useful and something we will treasure for a lifetime. The (coffee) tour was enlightening - I learned so much about the culture, economics and science of coffee farming in a cooperative that truly benefits it’s members.” ~ August 2015

Winner of the 2015 Certificate of Excellence

by TripAdvisor and ranked #1 for Things to do in Antigua. The award is given to outstanding hospitality businesses that have received praise and recognition in reviews by travelers. Winners of the award represent the upper echelon of businesses listed, with only the top 10% receiving the prestigious award.

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SERVICE LEARNING TRIPS

Service learning trips (SLT) create opportunities for authentic exchanges of culture, immersive learning experiences, and adventure that give back to local communities. Students spend a week or more in Guatemala learning firsthand about the lives of coffee farmers & their families, Guatemala’s rich culture & history, the advantages of direct trade & value added supply chains while working on community driven projects. The experience embeds a lasting impact on the students, the farmers, and the community as a whole.

13 Groups

8

Projects Constructed

234 Total Participants

$27,830 TOTAL PAYOUT TO FARMERS & FAMILIES

Every year SLT students spend time working on a construction project with the farmers. Projects are proposed by the coffee cooperative members and are focused on improving their livelihoods or quality of life.

STUDENT REFLECTIONS “The highlight of the trip was definitely getting to know the farmers through dinners and our coffee day. Not many people are able to say they know their coffee farmers on as deep of a level as we do now and knowing where your coffee comes from is so important. Not just for coffee but anything you buy, really” - Student Participant from UW Oshkosh “This was one of the most life-changing experiences I’ve had thus far. It opened my eyes to how other people live and made me want to help others and travel even more. My main highlight was just experiencing new things. I learned about a new culture and got to experience it firsthand. I loved participating in the activities, eating the food, and being with all the farmers and DLG Staff.” - Student Participant from UW Oshkosh

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FINANCIALS INCOME

Coffee Sales $307,925 Donations & Grants $25,449 Tours & Workshops $48,810 Service Learning Trips $135,361 Other (merchandise, volunteer fees, etc) $7,716 Total income $525,261

EXPENSES

Coffee purchases and COGS $312,824 Cooperative Assistance & Fundraising $16,440 Tour Costs $35,945 Service Learning Trip Costs $73,853 Other (merch, volunteers, other) $6,393 Org Administration $67,260 Total expenses $512,715

TOTAL SURPLUS/DEFICIT $12,546

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THANK YOU TO EVERYONE WHO MADE 2015 A SUCCESS We, at De la Gente, truly appreciate the support that we receive from all of our friends, family, supporters, partners, donors and clients. We could not have had the incredible year that we did if it weren’t for you.

BOARD OF DIRECTORS

COFFEE BUYERS

PROFESSIONAL SERVICES

Les Stoneham Deborah Feldman Catriona Forrester Ira Silver

Badger Brothers Coffee Burgies Coffee and Tea Deeper Roots Coffee Flayva’s Fresh Roast Coffee Gryphon Coffee Co. Happy Life Coffee Milano Coffee Roasters Mols Kafferisteri Moonbean Coffee Mt. Maxwell Coffee Roasters Nossa Familia Coffee Ridge Runner Coffee River Trail Roasters Rust Belt Roastery St. Michael’s Church Utopian Coffee Co. Wings and Roots Zion Coffee Co. Zona Coffee Roasters

Melina Lew Nick Kozel

SERVICE LEARNING PARTNERS Allina Health Community Collaboration International Dunbarton High School Epiphany School of Global Studies Franklin College Georgia Tech University Ivy Tech Community College Rutgers University University of San Diego University of Wisconsin-Eau Claire University of Wisconsin-Oshkosh Vanderbilt University Yale University

VOLCÁN PACAYA DONORS

Carol Grantham Avery M Aston Gurtrude HawleyKathaLaurie Devore Tomas Batista rine Hawley Pamela Dickson Kevin A Brennan Brandon Drugan Brett Irons Shira Brenman Donald Jacobs Jennifer Dudley Mary Burd Aleksandar Dzeletovic Janet L Jacobs Jessica Burget Denisse Espino Barros Mitch Jensen Katie Butler Dave Karabag Judith Fasani Heidi Childers Mr. & Mrs. Michael Krug Cindi & Jared Gellert Monique Comeau Patricia Gleason-Wynn Channing & Laura Lipson Joseph Conway Courtney Livingston Emmy Grace

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VOLCÁN AGUA DONORS ($1,000+) BFB Foundation Gary and Mary Doten Rotary Club of Sanibel-Captiva Latin America Travel Association Foundation (LATA) Zion Coffee Co.

VOLCÁN ACATENANGO DONORS

($400-$999)

Centro, Inc. Dunbarton School Steven & Deborah Feldman Diane Feldman Jeffry & Sharon Rosenblum Utopian Coffee Co.

Erica Lockerbie Maureen Mack Dan & Susan Maxson Tyler McNamara Elizabeth Nistler Ryan L Nugent Perduco Education LLC Jeff Poteracki Barbara H. Robertson Kevin D Simon Emily & Roy Smith

Stacy Subject Jean K Warneke Wayne Wilson Cyrus Witthaus Erin Write Michael Zureich

VOLCÁN FUEGO

MONTHLY DONORS Arael Hardy Christine Liu George Mickley

YOUR CONTINUED SUPPORT

IS IMPORTANT TO DE LA GENTE!

For us to continue to offer financing, resources, training and other services, we need your support. Whether it’s a monthly financial gift, a bequest, or a gift of time, it’s all vitally important to our success.

TO FIND OUT HOW YOU CAN MAKE A LASTING IMPACT, VISIT WWW.DLGCOFFEE.ORG/DONATE-TODAY 617-963-0962 502-4189-1657 info@dlgcoffee.org