Why we do it
Our reason to exist is found on the Mexican coffee field; in the people who work hard to harvest and process high quality coffee.
Although it is public knowledge, only those who are truly curious are aware of the problems that exist in the global coffee economy and its many deficiencies, something that has long been postponed and for which we work to promote a fairer coffee economy. It is as simple as realizing how the coffee industry has progressed in the world, while the people who originated that industry, keep living day by day and mostly in poverty.
Throughout a regular coffee value chain, each link decides its profit margins; it is only the small producers, the ones who do not earn what they want, but what they can. Is that fair or even logical? If you stop for a few seconds to reflect on this fact, you will understand Ombligo de Luna’s reason for being. It is about compensating a historical debt with the small coffee producers, which, thanks to an unconscious and greedy market, has remained constant. There is an imbalance in the industry that we are trying to restore. We are not the solution, we are just going on a different pat.
Why don't we use Price C?
The answer is quite simple, the Price C reference, in addition to being used for conventional coffee, has proven to be more than obsolete today. It has perpetuated a stagnated development in the producing communities and has maintained the status quo of the industry. It is not possible that a reference point has been normalized for the market price, where it does not exceed and, in many cases, does not equalize the production costs of small producers.
We do not undervalue its origin and good intentions, but it is currently a deficient system, not linked to the reality of the production costs of small farmers and at the mercy of speculation. Small producers are the truly vulnerable and unprotected actors within that system.
Why do we work with cooperatives of authentic origin?
Cooperativism has become a viable option within the capitalist system in which we find ourselves. In theory, all partners are owners of the cooperative while promoting a democratic administration and decision-making. However, within the cooperative movement itself, there are various sources of origin for the foundation of a coffee producer’s cooperative. We find mainly three:
On one hand, there are the ones that are founded by a small group of people; formed by a family or group of friends that are not farmers, but traders. These cooperatives don’t belong to the small producers, they are perceived just as workers, these are only cooperatives in name. On the other hand, there are the partial ones, those that are originated from political movements that promote various interests not only related with the production and commercialization of coffee, but they are still formed by small producers.
Finally, we have the authentic ones, those that were formed thanks to the union of small organized producers, with the clear objective of commercializing their product, without having any other objective or agenda. Finding these cooperatives is not easy, we started working with the Cooperative Rincón Toningo, as it is one of the few authentic, free and independent cooperatives that exist in Veracruz, Mexico.
Why is the profit dependent on the origin?
Ombligo de Luna promotes a social business model, designed to generate positive changes for everyone, in a win-win exchange in all relationships with those involved. It is another proposal to address this injustice and imbalance in the distribution of the current economic benefit. By assigning a profit and making it dependent on what happens in the producing country, a commitment of all those involved with the producing community is encouraged, if the profit of each party is to be increased, the profit of the small producer must be increased. Beyond buying coffee and paying for it, a commitment is acquired with the producing communities to maintain and improve the quality of their coffee and, at the same time, carry out projects that serve to promote development and well-being on the coffee producing communities.
It is all of us, helping those who have been left behind, to move forward and in the future reach a shared place.
Why is there a project fund?
As we have already shared, the profit depends on what happens in the country and communities of origin, specifically, in the farms, and the only thing that moves that value (farm-gate price) is an increase in the quality of the coffee. How is this increase promoted? With the implementation of sustainable projects focused on the development and well-being of the producing community, the cooperative and the coffee farms.
The project fund is divided into three boxes: social, environmental and economic. Within each one, different projects are developed with the purpose of improving the living situation of the community and the cooperative. If you are interested in knowing more in detail about how the project fund works, please feel free to contact us.
Why do we make everything transparent?
Greater awareness in consumption and in the consumer, a humanized perspective, hand in hand with a transparent and balanced business model, gives the guideline to make something different with a real, positive and direct impact on the coffee production. The key lies in transparency and in raising awareness of the current imbalance in the industry.
The model has always been designed to be freely replicated with the clear incentive of having a profit considered really fair and not disproportionate. Understanding that the imbalance caused by the current market has created and perpetuated minimum conditions for real development in the producing communities.
You can freely take it and improve it or you can work with us and be part of the community, you are completely free to do as you please.
