For as long as I’ve been in the coffee business (not relatively long, only about 10 years) I’ve continually heard people talk about how the Hawaii coffee industry is committed to quality. I believe it to be true.

Coffee Berry Borer was officially discovered in Hawaii In 2010. This combined with significant HDOA budget cuts that followed the economic downturn of 2008 and triggered layoffs of HDOA commodity inspectors. The bottleneck caused by the lack of adequate inspectors tested the limits of warehouse space and cash flows. The steep learning curve in dealing with CBB, both on the farm and in the processing mills, made it so upper grades were largely unattainable.

The industry quickly came together with local, state and federal lawmakers, administrators and regulators to do primarily two things. First, we succeeded in making certification voluntary (at the same time we made coffee counterfeiting a felony to help thwart cheaters). Second, we slackened the minimum grade standards. Both of these moves were designed so that producers could move product. These changes likely saved the industry from collapse.

Hawaii’s farmers and mills have worked hard to adapt to a post-CBB environment. Government has played a vital role in responding to the needs of the industry. It has been especially hard in Hawaii due to relatively high labor costs and environmental regulations that make us less competitive with the rest of the coffee-producing world. Since these costs are so high, our coffee must command a high price in order for the industry to remain viable. To command the requisite high price, our quality must be exceptional.

As the storm passes, the industry is taking another hard look at voluntary certification and rules relating to grade standards. The first request is to extend the sunset date on the grade standard rules for three more years, taking us to 2020.

We’re committed to using that time to revisit both the the minimum grade standards and fully utilizing the best methods and technologies available to battle the beetle throughout the supply chain. If you have strong feelings about any of these issues, please get in touch. We need to hear from you. We’re committed to coffee quality to help protect Hawaii’s incredibly valuable origins. This is at the core of sustainability for the industry and all those who depend on it. It’s time to walk the talk.

Mahalo,

Chris Manfredi
President of the Hawaii Coffee Association

NEW FEDEX DISCOUNT

Aloha H.C.A. members,

Chris Manfredi has recently signed a new contract with FedEx which effectively lowers the cost of shipping products to international destinations for those members who use the HCA special rates from FedEx.
     
Historically there have been two primary issues that make FedEx less competitive than USPS shipping to international destinations for people in the e-commerce business in Hawaii.   These are:
 
·         General cost of shipping, and
·     The potential for charge backs related to duties charged to customers by their respective country’s customs agencies. 
 
FedEx has taken this seriously and responded with a general rate reduction by:
 
1.       Increasing the association discount by 10 percent, and
2.       Applying that discount to shipments up to 10 lbs. (current contract is only up to 5lbs).
 
This is a great change for our members who are in the e-commerce business.   
 
FedEx also makes the following recommendations for our members using this service:
 

• For international shipments to retails customers, the shipper should put on the outside of the package, “Not for Re-sale”.  This will greatly reduce the chances of being held up at customs.
• The new FedEx rates are available now for all users obtaining rates directly from FedEx.com.  However, if you use intermediary programs such as FedEx Ship Manager, the new rates will NOT be available until they are downloaded from FedEx.com (a practice that should be done often).