“Using entrepreneurship on coffee’s journey”

Your morning cup of coffee is a matter of economic importance to farmers in Guatemala, writes Dilshan Jayasinghe, 18, a Correspondent from Mississauga, Canada, who says entrepreneurship can bring equity for producers.

My brother, Gihan Daniel Jayasinghe, went to Guatemala recently. He is an associate fellow of the Royal Commonwealth Society and traveled with a team from Canada’s University of Toronto. The reason for this journey, amongst others, was to learn about coffee growth, production and its eventual marketing.

Coffee is an important commodity among Guatemala’s exports.  What my brother found out was that most coffee growers and producers in Guatemala operate as small enterprises.  However, the distribution and eventual marketing is done by a few large enterprises or organisations.  This has resulted in the small enterprises – which are mainly the growers – not being able to procure the best prices for their product.  The pricing is governed by the few large enterprises in the supply chain and marketing.

Since his return to Canada, my brother has been deliberating on a process whereby the farmers and growers in Guatemala could get a more equitable price for their product.  A suggestion is that more competitive economies of scale be considered, starting with a more cohesive co-operative model enacted for the farmers in Guatemala.  This co-operative model would purchase the coffee at a sustainable and equitable price from the growers; a price which would be higher than the current prices fetched from the few large enterprises in the supply chain.  In other words, there is more equity by giving more of the margin to the growers.

E-commerce distribution and marketing channels are envisaged.  These include social media, where raising awareness could be done and processes set up to address more equity and value for producers.  The bedrock principle for this effort is that more equity leads to fairness and to social/economic uplift for the producers.

A win-win can be obtained for both the coffee growers in Guatemala and the consumers in Canada and elsewhere.  This social entrepreneurship would enable both consumers and producers to make an economic and social impact that is for the betterment of all parties.

Photo: courtesy of Dilshan Jayasinghe

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About me: I live in Mississauga, Ontario, Canada.  I currently attend John Cabot Catholic Secondary School. I hope to attend the University of Guelph Humber, Toronto, Ontario, Canada in September 2015 with the aim of being an Accountant as my career.

I am the Program Officer of the International Youth Council, Mississauga Chapter.  During my spare time I am very involved in community activities, be it local or global.

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Opinions expressed in this article are those of the author and do not necessarily represent the views of the Commonwealth Youth Programme. Articles are published in a spirit of dialogue, respect and understanding. If you disagree, why not submit a response?
To learn more about becoming a Commonwealth Correspondent please visit: http://www.yourcommonwealth.org/submit-articles/commonwealthcorrespondents/
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