At Pachamama, we embrace transparency.
Our mission is to serve customers premium coffee in the most direct way possible and, in doing so, improve the lives of small-scale coffee farmers and their families.
2017 Financial Breakdown
Pachamama's farmers received an average price of $12.69 for every pound of roasted coffee sold last year. Here are the average costs to bring roasted coffee to customers in the USA:
- $2.95, Coffee – Price to farmer for coffee
- $0.19, Financing – Bank financing for raw coffee
- $0.36, Importing – Transport, customs, storage
- $0.69, Roasting – Labor, gas, rent, certification
- $0.71, Packaging – Bag, stickers, boxes, labor
- $1.08, Delivery – UPS, USPS or DSD
The total variable cost was $5.96 per pound, or 47% of the total. Gross profit earned for 1 pound was $6.73, or a 53% gross profit margin. This is the value created before overhead and fixed costs. The farmer owned portion of this supply chain accounts for $9.68 ($2.95 for coffee and $6.73 for brand), or 76% of the total price.
This is simple a snapshot of one pound of Pachamama coffee in 2017. This is not an illustration of net profits earned by farmers or roasters.
Net profits are paid to owners as determined by Pachamama's Board of Directors.
There are 5 member cooperatives, each with 1 director and 1 vote on the board. There are only 5 directors in total, all representing farmers. Profits are paid proportionally to members in relation to the coffee they sold via Pachamama. For example, if a member supplied 28% of the total coffee Pachamama sold last year, they would receive 28% of the net profit.