Advocating for Fair Relationships with Prosperity Pricing

Our Prosperity Prices model raises awareness across the industry and serves as a decision-making tool promoting equitable value distribution across the supply chain.

We are deeply committed to assessing the impact of coffee relationships on producing communities in Latin America. Our Prosperity Price model advocates that producers receive fair compensation and prices that recognize their coffee farms as family businesses. This model sets a Minimum Prosperity Price that covers the real costs of a coffee farm and rises 20% above the living income standard for rural communities in Latin America. The Prosperity Price model is more than just a pricing strategy; it's a commitment to fairness across the supply chain, a tool that raises awareness by contextualizing gaps to prosperity across coffee communities in Latin America.
At Caravela, we are deeply committed to providing our partners with unique, valuable data. Caravela Coffee has developed unmatched full transparency systems to report the farm-gate price impact to all our partners. This level of transparency and traceability is only possible through our direct relationships approach model with our producer partners. Our Prosperity Price model ensures that every cup of coffee contributes to the well-being of the people who grow it. By choosing prosperous prices, roasters support a responsible sourcing system that values people over profits.

During we 2023 we achieve different levels of impact across the region with only two origins achieving minimum prosperity prices and two origins, Peru and Mexico, under the national poverty prices line

peru

The Impact of Responsible
Sourcing Model

Our impact at origin results from the support of our PECA program in lowering production costs and our buying practices offers higher prices.

We are aware that our impact goes beyond listing traded volumes and coffee bags. We want to estimate and better understand the profound impact our Responsible Sourcing model has on coffee-producing communities. By comparing the total farm costs and the total income reported by coffee producers attended by our PECA team and within Caravela Coffee's supply chain with coffee producers outside our supply chain, usually selling coffee on the local market, we can visualize the effect our PECA program has on specialty coffee producers within our Responsible Sourcing Model.

CARAVELA'S SUPPLY CHAIN IMPACT (USD/LB)

FARM NET PROFIT (%)

AVG PRODUCTIVITY (lb/ha)

*Caravela's Prosperity Compass Data

Coffee producer assessments

UNWRAPPING ROASTERS IMPACT