Case Study: Brazilian Coffee Co-op Increases Profits by 40%

A Brazilian coffee cooperative has achieved a remarkable 40% increase in profits after implementing the Amerigo Ecosystem's integrated trading platform. This case study examines how technology-enabled direct trade transformed their business model and created sustainable growth.

Background

Cooperativa dos Produtores de Café do Sul de Minas (COOPROCASM) represents 340 small and medium-sized coffee farms in the Minas Gerais region of Brazil. Prior to joining the Amerigo platform, they sold primarily through traditional channels with multiple intermediaries between their farms and the end buyers.

"We were producing exceptional coffee, but we weren't capturing its true value," explains João Santos, President of COOPROCASM. "Too much of the profit was going to middlemen, and we had little direct connection with the roasters who were purchasing our beans."

Implementation Strategy

In January 2023, COOPROCASM joined the Amerigo Ecosystem with a three-phase approach:

1. Digital Producer Profiles: Each farm created a detailed profile on the United Farmer Platform, including cultivation methods, altitude, varietals, and processing techniques.
2. Certification Verification: COOPROCASM's existing certifications (Organic, Rainforest Alliance, Fair Trade) were digitally verified and made visible to potential buyers.
3. Direct Trade Relationships: The cooperative began establishing connections with specialty coffee roasters in North America, Europe, and Asia through the platform.

Results

Financial Impact

• 40% increase in average price received per pound of green coffee
• 28% increase in total sales volume
• 62% of production now sold through direct trade relationships

Operational Improvements

• Reduced payment processing time from 45-60 days to 5-7 days
• Improved production planning through advance contracts
• Enhanced quality control based on direct buyer feedback

Long-term Benefits

Beyond the immediate financial gains, COOPROCASM reports significant qualitative improvements. "The direct relationships we've built through Amerigo have transformed how we think about our coffee," says Santos. "We're not just selling a commodity anymore; we're crafting a product for specific customers who appreciate its unique qualities."

This shift in perspective has led to increased investment in quality improvements, sustainable farming practices, and worker conditions across the cooperative. COOPROCASM is now using a portion of its increased profits to fund a quality lab and training center for its members.

Conclusion

The COOPROCASM case demonstrates how technology-enabled direct trade can create value throughout the supply chain. By connecting producers directly with end users, the Amerigo Ecosystem has helped transform a traditional commodity business into a value-added specialty product with significant benefits for all participants.