Cultivating Opportunity | 2021 De La Gente Impact Report

2021 IMPACT REPORT

CULTIVATING OP POR T U N I T Y

Dear De La Gente Supporters, When farmers began harvesting the first coffee cherries at the end of 2021, international coffee prices were at a ten-year high. The small-scale producers with whom we work had the option to sell their product through other avenues and capitalize on this rare opportunity. Instead, they approached us before selling their coffee elsewhere to express their concern for DLG customers and desire to preserve those relationships.

DLG prides itself on paying small-scale producers more than the market value of coffee. Staying true to our mission, we took this news to our green coffee customers, and each roaster and café owner who purchases from our (now eight!) partner cooperatives resoundingly recommitted to another year of fairly compensating small-scale producers.

As I witnessed this dynamic during the 2021 harvest, it reminded me of what first drew me to De La Gente years ago and what rejuvenates my current commitment to this organization that has a mind for business and a heart for people. What makes us unique is having a network of customers and supporters who, too, value the livelihoods of coffee farmers in Guatemala.

Whether your allyship came in the form of purchasing a pound of roasted coffee to brew in your home to donating to sourcing DLG coffee in your café, thank you for joining us for another year of cultivating opportunities.

JULIO MARTÍNEZ Interim Executive Director

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TA B L E O F C O N T E N T S

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ABOUT DLG

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AREAS OF WORK

6

PARTNER COOPERATIVES

12

GREEN COFFEE

16

ROASTED COFFEE

20

COMMUNITY TOURISM

22

IMMERSION PROGRAM

26

COOPERATIVE ASSISTANCE

29

DONATIONS

30

FINANCIALS

32

DE LA GENTE TEAM

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ABOUT DE L A GENTE

MISSION Creating economic opportunities for coffee producing communities.

VISION We envision a coffee industry that is equitable and inclusive, that enables small-scale farmers to earn a dignified income and live prosperous lives, that facilitates authentic relationships between coffee producers and buyers, and that prioritizes economic, social, and environmental needs of everyone involved.

As a non-profit organization, we partner with coffee cooperatives to accompany smallscale producers through capacity-building and economic development. In addition to cooperative assistance, we market the final product of our partner cooperatives to both wholesale green coffee and individual roasted coffee customers. In the process, we live out our mission to create more market access for the eight cooperatives that we represent and advocate on their behalf so that the farmers who cultivate and process the final product are being fairly compensated for their labor and expertise as coffee professionals. Our efforts to cultivate conscientious coffee consumers extends to providing opportunities to visit the coffee growing communities with which we work and learn from and interact with the producers themselves.

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ARE A S OF WORK

COOPERATIVE ASSISTANCE We work to build the capacity of our partner cooperatives to be successful farmer-run organizations that deliver economic benefits for their members and invest in continued improvement of their individual and collective abilities.

COFFEE COMMERCIALIZATION We sell coffee from our partner cooperatives, providing improved market access for farmers while delivering a high quality product to roasters and consumers. DLG offers better and stable prices to farmers.

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COMMUNITY TOURISM We welcome visitors to the communities in which we work to authentically interact with and learn from coffee producers while providing an alternative income for farmers and their families.

AWARENESS RAISING We seek to cultivate conscientious coffee consumers by educating our supporters about the rise of the coffee industry in Guatemala and its impact on the communities with which we work.

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PA R T N E R C O O P E R AT I V E S

In 2021, the DLG partner cooperative network grew to include a total of eight cooperatives within five distinct coffee-growing communities. Ranging from eight to 150 members, the cooperatives are all made up of small-scale farmers, a demographic that has historically been susceptible to price volatility, climate change, and exploitative supply chains. We have established partnerships in efforts to combat these obstacles.

COFFEE GROWERS OF SAN MIGUEL ESCOBAR This is where the De La Gente story begins. In the 1990s, a group of small-scale farmers who had acquired experience working in large coffee plantations began planting their own coffee plants and carving out a space for themselves in the coffee industry. When DLG was founded in 2014, we first partnered with this group of producers to improve the quality of their product and find markets in which to sell their coffee. The current 16 members renewed their values and collective commitments at the end of 2021, and in the process, renamed themselves The Coffee Growers of San Miguel Escobar.

LA FAMILIA COLLECTIVE La Familia Collective is made up of two families of coffee producers spanning two generations, who have been producing coffee in the community of San Miguel Escobar for nearly 20 years. With the vision of forming the third generation of coffee growers and continuing to advance as professionals within the industry, they came together at the end of 2021 to launch La Familia Collective, named in honor what unites them the most.

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IJA’TZ COOPERATIVE Ija’tz Cooperative is located on the shores of Lake Atitlan. In a community where Maya Kaqchikel and Maya Tz’utujil identities converge, the cooperative’s name means “seed” in Kaqchikel, chosen as a symbol of life and regeneration as well as to convey the group’s mission and vision of protecting the rich biodiversity on the shores of Lake Atitlán. Since its founding in 1995, the group has incorporated cultivating arabica coffee, grown under the shade of native plants and trees, which allows them to live out their commitment to environmental preservation. Currently, the cooperative consists of 35 members, and De La Gente has been assisting their mission and marketing their coffee since 2015.

SANTA ANITA COOPERATIVE The Santa Anita community was established in 1998 after Guatemala’s violent and destructive 36 year-long Civil War. A group of ex-guerrilla fighters, who had previously either sought refuge in the highlands or were actively fighting in the Civil War, decided to reintegrate into civilian society by purchasing an old coffee farm with a low-interest government loan offered as a part of the reparation process when the Peace Accords were signed in 1996. Since then, these ex-guerilla fighters have redefined themselves as coffeeprofessionals. De La Gente began partnering with Santa Anita Cooperative and its eight members in 2012.

SHIGUALOS COFFEE Shigualos (she-wah-lows) Coffee is a united group of ten members from the town of Ciudad Vieja. Launched in September of 2021 by a group of second-generation producers, they seek to carry on the coffee-farming legacy of the generation before them. Inhabitants of their town are referred to as “Shigualos,” so as a tribute to their roots and appreciation for cultural diversity, the co-op members chose to mix Spanish and English to officially name themselves Shigualos Coffee.

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LA SUIZA COOPERATIVE La Suiza is an old German coffee plantation located in the remote tropical highlands of western Guatemala.

The plantation was sold under a government loan program implemented after the Peace Accords formally ended the 36-year-long Civil War between the Guatemalan government and revolutionary guerrilla groups. Internally displaced families collectively purchased land in La Suiza and built a new life as small-scale coffee producers. Now, 45 members strong, La Suiza Cooperative has organized and grown substantially, a journey that De La Gente has been part of since 2012.

THE UNION OF SMALL-SCALE PRODUCERS (UPC) The Union of Small Scale Producers (UPC) is tucked into the remote, mountainous town of La Democracia in the Department of Huehuetenango. The Union was formed in 1998 and now has over 160 members, almost half of whom are women, an impressive figure considering Guatemala's male-dominated coffee sector. The cooperative is the most structured with which De La Gente works with a well-developed business model, full-time paid positions, and various international export contracts. De La Gente has been partnering with The Union since 2011.

YOUNG ENTREPRENEURS OF SAN MIGUEL ESCOBAR The Young Entrepreneurs of San Miguel Escobar is made up of twelve participants, all of whom are the children of the “founding generation” of coffee growers in San Miguel Escobar. This rising generation of coffee farmers formed in 2017 with the determination to deepen their understanding of coffee production. Some aspire to be coffee producers while some identify coffee as the vehicle to reach their long-term goals of pursuing other careers. Since their founding, De La Gente has been nurturing both their enthusiasm for coffee and professional growth beyond the industry.

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G R E E N COF F EE

De La Gente exists to provide stability to small-scale producers. We recognize that the historical and current inequity, exploitation, and value volatility within the coffee industry hinders their growth and prosperity as coffee professionals. To better understand these dynamics and our impact, it's crucial to understand various aspects of the industry.

The C Price is the value of coffee as a commodity within the global market. This value is defined by supply and demand, so the back and forth flow of selling and buying informs the ever-fluctuating C price. This value, which is determined by the International Exchange in New York City, affects the livelihoods of coffee farmers around the world, including the small-scale farmers with whom we work. Their profession demands consistency, investment, and maintenance without knowing how their product and labor will be valued when the harvest comes.

By the end of 2021, due to a scarcity of coffee in the international market, the value of green coffee was higher than it had been in ten years, something worth celebrating for the global community of farmers. However, those who work in coffee production are acutely aware of the instability of the C Price. DLG sets out to disrupt this cycle of volatility and provide a stable income for farmers, year after year. We’re proud to say that we work with a network of coffee buyers who have joined us in this mission to forge relationships with the cooperatives from which they purchase and invest in economic growth and stability within the community. Alfredo, who was elected president of La Suiza Cooperative in 2021 explains, “We say no to other buyers because those buyers come and go. But with [DLG], we know they're steady, and a lot of people here are aware of this and our goal is to continue and maintain our market.”

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8

PARTNER COOPERATIVES

142

SMALL-SCALE COFFEE PRODUCERS

20

SMALL-SCALE ORGANIC COFFEE PRODUCERS

40

WOMEN PRODUCERS

132,153.30

POUNDS OF GREEN COFFEE SOLD

$401,042.35

PAID TO PRODUCERS FOR GREEN COFFEE (FOB CONTRACTS)

PRODUCERS WERE PAID

30% - 40%

MORE THAN THE AVERAGE MARKET OPTIONS AVAILABLE DE LA GENTE 2021 IMPACT REPORT

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When competing in the coffee industry, there are numerous certifications, (ex: Organic Certified or Fair Trade Certified), coffee justice movements (ex: Direct Trade), as well as a variety of assessments that open, close, or specify the various channels through which coffee can be traded and later retailed. A frequent question we receive at DLG, as well as one we ask ourselves internally, are what measurements and guiding principles define the DLG brand.

We strive to attain two core elements: produce highquality coffee and foster relationship-based trade.

As a result of years of trainings and capacity-building with the farmers with whom we work, it brings us great pride to say that they are producing high quality coffee that consistently receives top scores.

Coffee is graded on a scale of 1 to 100, and the widely accepted definition is that a score of 80 and above is considered specialty coffee. In 2021, the average score of the coffee from our partner cooperatives was 85.

In marketing specialty coffee from our partner cooperatives, we cultivate relationships between producers and customers, as well as generate awareness of the impact of their purchase.

“ As coffee producers, everyday we make an

effort to improve the quality of our product.

Many think that the quality of coffee is a reflection of the process, but quality begins with cultivating a seed and extends to planting, giving the coffee fields the attention they require...We have the great responsibility of making sure that [consumers] receive a quality final product.”

Rigoberto Ramírez, Santa Anita Cooperative

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D DE E L LA A G GE EN NT TE E 2 20 02 21 1 II M MP PA AC CT T R RE EP PO OR RT T

“ We love the excellent coffee produced by DLG co-ops, but we really value DLG’s commitment to confronting issues and injustices within the coffee supply chain and within the communities of coffee growers it has partnered with. A continued relationship with De La Gente is a natural fit with the values of our business focused on customers who appreciate the value of responsibly- sourced coffee. We are proud of our relationship with De La Gente.”

David Cumming, Snapping Turtle Coffee Roasters

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ROA S T E D COF F EE

While much of our work is defined by cooperative assistance and forging relationships with wholesale green coffee customers, roasted coffee sales is where we step out of both of these roles and market the De La Gente brand and mission to the general public. In 2021, roasted coffee sales generated more funds for DLG than any other revenue-generating department, making it financially possible for us to accompany our partner cooperatives and commercialize their coffee on a larger scale. Whether you purchased one pound of roasted coffee to brew in your home or are a loyal subscriber to one of our plans, our impact in 2021 was propelled by the robust network of conscientious coffee consumers and the horizon of our work relies on this continued support.

Roasted coffee sales are carried out in partnership with Deeper Roots Coffee, a roaster and coffee shop based in Cincinnati, Ohio in the US and Alternative Grounds, a roaster located in Toronto, Ontario in Canada, who both roast and ship roasted coffee sales within the US and Canada to individual customers and subscribers.

3,974

ORDERS FULFILLED

8,426.33 16

LBS OF ROASTED COFFEE SOLD

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COST BREAKDOWN PER 12 OZ BAG OF COFFEE:

6%

38%

IMPORTING AND TRANSPORT COST

PAID TO PRODUCER

20%

ROASTING AND PACKING

10%

MARKETING

8%

18%

PACKAGING

DE LA GENTE OPERATIONS

327 146

I LOVE ANTIGUA SUBSCRIBERS

COFFEE SUBSCRIBERS DISTRIBUTION

178

EXPLORE GUATEMALA SUBSCRIBERS

3

I LOVE TOLIMÁN SUBSCRIBERS

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COMMUNIT Y TOURISM

Incorporating a community tourism focus has played a significant role in our growth as an organization that serves as an additional channel through which we create awareness of the DLG brand and mission and provide economic opportunities for coffee growers. We are intentional to give the stage to the coffee producers themselves to share first-hand about their culture, livelihood, customs, and perspective to create the most transparent and authentic experience possible.

We prioritize keeping tourism opportunities concentrated in the communities with which we work. Our signature coffee tour, pepian cooking class, and peanut butter workshop are all taught and guided by coffee producers and their families. Beyond the facilitators, we incorporate a local network including drivers and translators from the community.

In 2021, after vaccinations became widely available in the communities with which we work and we felt confident in implementing measures to protect both our visitors and hosts, we resumed offering tourism activities. Upon doing so, we included transporting as a sanitary measure to limit unnecessary, untraceable exposure that would present additional risks if tourists were to use public transportation or shuttle services like they did before the pandemic.

Luis and Claudia, who are both producers in the Young Entrepreneurs of San Miguel Escobar, were part of the DLG tourism network in 2021 as a translator and driver respectively.

“ Something I like about the community tourism promoted

by De La Gente is that it is inclusive in San Miguel Escobar– there are opportunities for both men and women. I feel happy to be part of this program and for my job...I feel that in some way I am contributing to the economic growth of the families that DLG works with.”

Claudia Rodríguez, Young Entrepreneurs of San Miguel Escobar 20

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“ De La Gente has been a source through which I have been able to generate additional income and invest in my health.

I am diabetic and the income I receive from Pepian cooking classes not only helps me purchase my medicine, but also allows me to invest in my family, make purchases for my grandchildren…and have a better standard of living.”

Francisca Paredes, Pepián Cooking Class Instructor

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COFFEE TOURS HOSTED

405

VISITORS RECEIVED

$8,716.00

CHANNELED INTO RECEIVING COMMUNITIES

Coffee Tour, Pepián Cooking Class, and Peanut Butter Workshop

COFFEE TOUR COST BREAKDOWN

34%

19%

23%

14%

6%

4%

COFFEE PRODUCER

OPERATION COSTS

COMMISSION TO LOCAL COFFEE SHOP

ENGLISH - SPANISH INTERPRETER

TRANSPORTATION

CREDIT CARD FEES

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IMMER SION PROGR AM

The DLG Immersion Program is an integral pillar of our mission in which we facilitate authentic, impactful experiences that are beneficial for both the host communities and visiting groups. Whether welcoming coffee buyers, universities, a non-profit group, or coffee enthusiasts, DLG Immersion Program trips transparently and critically delve into the exploitative and complex coffee narrative in Guatemala, told by the producers themselves. The impact of these trips is rooted in interacting and building relationships with the coffee producers from our partner cooperatives.

In 2021, in the face of a prolonged pandemic, we pivoted towards offering a completely virtual curriculum including our first virtual immersion trip with the Academy for Global Citizenship (AGC) in May of 2021. By the end of the year, we were excited to resume in-person immersion program experiences and host an Open Trip in November, 2021 that included spending time with partner cooperatives in San Miguel Escobar and San Lucas Tolimán.

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4

Virtual Coffee Tours for a total of 50 participants

1

Virtual Coffee Tasting class for a total of 10 participants

1

Virtual Immersion Trip for a total of 49 students

1 $6,144.40

1 Open Trip for a total of 3 PARTICIPANTS

channeled into RECEIVING COMMUNITIES and DLG

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C O O P E R AT I V E A S S I S TA N C E

De La Gente’s history of impact is rooted in cooperative assistance and capacity building within coffee-growing communities. An integral element to this support is our microloan program that grants 0% interest loans to our partner cooperatives as well as individual members of those cooperatives.

We review loan proposals based on need, merit, and available funds as part of our commitment to continuing to accompany small-scale producers.

Through the support of 28 individual donors and our wholesale green coffee customer Nossa Familia, we manage the Young Entrepreneur Fund with the specific mission of providing professional opportunities, within the coffee industry and beyond, to the members of the Young Entrepreneurs of San Miguel Escobar. With the funds raised in 2021, we were able to approve loans for five members of this cooperative of young farmers.

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1

0% INTEREST LOAN ($26,600)

0%

INTEREST LOANS

were granted to

10

MEMBERS

of the YOUNG ENTREPRENEUR GROUP ($400 each)

1 $1,335

DONATION OF

was granted to the Ija’tz cooperative to invest in harvest expenses

2

DEPULPERS DONATED to La Suiza Cooperative

1 $1,335

DONATION OF granted to the COFFEE GROWERS OF SAN MIGUEL ESCOBAR for administrative support and capacity building

granted to the SHIGUALOS COFFEE to formally register as a legal entity and purchase a computer DE LA GENTE 2021 IMPACT REPORT

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Beyond the Young Farmer Fund, we also reserve funds to financially assist cooperatives. In 2021, we granted a 0% interest loan to Ija’tz Cooperative, who manages a structure distinct from the other cooperatives with which we partner. All cooperative members turn their ripened coffee cherries to the central wet mill where they are mixed together and then processed. Ija’tz Cooperative compensates its members at the moment the coffee cherries are turned in, meaning that they start incurring operation costs at the moment the harvest begins even though the cooperative will not be compensated for their product until DLG sells their green coffee to our wholesale customers.

Ija’tz Cooperative typically takes out a loan from the bank to be able to pay farmers upfront for their coffee cherries, however, during the pandemic, interest rates in Guatemala soared, exacerbating economic obstacles for small organizations and cooperatives. Directorship at Ija’tz Cooperative approached DLG concerning this situation and requested to take out a loan at the start of the 2021 harvest season. We granted the cooperative a loan, which they paid back in full. This unique situation has motivated us to reassess the guidelines under which we grant loans, so that this opportunity is more widely available to all our partner cooperatives.

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D O N AT I O N S

YOUNG ENTREPRENEURS FUND

7

GENERAL FUND

44 DONORS $11,859.95 RAISED FUNDS

DONORS

$2,683

RAISED FUNDS

Recurring Donations for the DLG General Fund

6

ACTIVE DONORS COFFEE EXPO CAMPAIGN

46

80

TRANSACTIONS WERE PROCESSED

DONORS

$1,198.25 RAISED FUNDS

$1,607.40 RAISED FUNDS

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FINANCIALS

INCOME COFFEE SALES (93.8%) $524,076.82 DONATIONS AND GRANTS (2.7%) $15,293.60 TOURS, WORKSHOPS, & CLASSES (2%) $11,431.00 IMMERSION PROGRAM (1.5%) $8,202.00

TOTAL INCOME $559,003.42

EXPENSES COFFEE PURCHASES (83%) $428,905.03 COOPERATIVE ASSISTANCE (0.7%) $3,700.00 TOURS AND WORKSHOP COSTS (1.7%) $8,716.00 IMMERSION PROGRAM COSTS (1.2%) $6,144.40 SALARIES AND BENEFITS (10.2%) $52,536.80 OCCUPANCY AND OPERATING (3.3%) $16,865.06

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TOTAL EXPENSES $516,867.29 TOTAL SURPLUS $42,136.13

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DE L A GENTE TEAM

JULIO MARTÍNEZ Interim Executive Director

RONALD VEGA Immersion Program Manager

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AXEL ZABALETA Tour Coordinator

DANILO RODRÍGUEZ Director of Operations

SILVIA MÉNDEZ Financial Administrator

MOISES HERNÁNDEZ Marketing and Sales Associate

SARA RITCHIE Communications Associate

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BOARD OF DIREC TOR S

BRANDI STEWART-WOOD President Brandi has more than twenty-five years of experience in strategically identifying and designing solutions to align people, process, technology, and financial resources for successful outcomes. She has worked with leaders in the public, non-profit, and private sectors including healthcare, apparel and footwear, workforce, economic and community development, transportation, education, and the utilities sectors. She has a demonstrated track record of successfully leading, managing, and working with diverse and multi-organizational teams and public/ private partnerships. She is currently a management consultant at the employee-owned company Point B.

CATRIONA FORRESTER Treasurer Catriona has ample years of international equities experience as both an analyst and portfolio manager has provided her with expertise in financial modeling and analysis, portfolio management, building relationships with investors, and contributing to capital raising efforts. She has a BA from University of New South Wales and postgraduate degrees in finance, accounting and commercial law from Macquarie University, Deakin University and University of Technology, Sydney.

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LES STONEHAM Member Les is an experienced and accomplished coffee professional. His constant drive to learn and develop others’ passions and talents shapes the culture of his company, Deeper Roots Coffee. He has been involved in all aspects of the coffee industry from roasting, technical work, training, and sourcing. In 2009, Les founded Deeper Roots Development to sustain his continued work with coffee farmers in Guatemala and further development work with coffee growers worldwide.

RUPESH SHAH Member Rupesh an experienced business and product leader with leadership and management experience in a variety of domains including corporate, social enterprise, nonprofit, and as a CSR leader. Most recently he was Executive Director of LAUNCH, an innovation platform and start-up accelerator.

Previously, Rupesh led Simpa Energy’s end-to-end customer experience including the product, technology, marketing, and customer service.

Rupesh has consulted for AmeriCorps, the Presidio Leadership Center, the Corporation for National Service, Gorbachev Foundation, the United Nations and various social impact organizations around the world. He has a MBA from the Kellogg Graduate School of Management, Northwestern University, and a BA from the University of California, San Diego.

DAVID WILSON Member David began his professional life as an architect. The busy days in front of a computer screen were made better by his morning cup of coffee, and thus his love for coffee grew. He decided to take a leap of faith and leave the architecture life to become a barista. Not long after that, David accepted a job as Head Roaster at a specialty coffee shop in Reno before starting his own business, Vertical Coffee Roasters where he began traveling to coffee producing countries looking for a more equitable coffee chain. David is now settled in Reno and continues to connect the dots between farmer to cup in the city’s growing coffee community.

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