GROWING THE FUTURE 2017 ANNUAL REPORT A PROGRAM OF HANNS R. NEUMANN STIFTUNG NORTH AMERICA TABLE OF CONTENTS 2 Introduction 11 Jorge's Story Prisca's Story Partner in Focus: 3 12 Peet's Coffee & Tea The Coffee Kids International + National 4 Approach 13 Coffee Day Front cover: Young coffee farmers like the Tanzanian woman featured on the cover Outcomes of Rural Supporter are the future of coffee. 8 Business Workshops 14 Testimonials Above: An agronomist holding a seedling in Marsella, Colombia. Coffee Kids has been proudly operating as a Coffee Kids at a program of Hanns R. Spotlight on Neumann Stiftung, 10 Glance 15 Supporters Circle North America since 2015. 2 The future of coffee begins with young farmers What a year! The Coffee Kids community is To keep that idea front and center in people’s growing and thriving. This community includes our minds, we’ve also added several new team team in New York and the regional Hanns R. members (including me!) who are working to Neumann Stiftung staff across the globe, the spread the Coffee Kids message online, at the young farmers we work with, and the supporters major coffee and sustainability conferences, and who generously give their time and resources to through in-person conversations. These are just a make our work possible. Together we are creating few of the exciting things we have accomplished new opportunities to empower young coffee in the two years since we began operating as a farmers. There is a palpable energy at our new program of Hanns R. Neumann Stiftung, North office in Brooklyn, a sense of excitement that America. We hope you've noticed; we’d love to comes from knowing that we’re building hear from you! something powerful and purpose-driven. It’s impossible to capture in words and pictures all the This community is nothing without you. We are so exciting developments from the past year. This is grateful for your involvement in Coffee Kids (and an attempt to bring you a bit of the scale and the farmers we work with say the same!), because scope of our growth. There’s so much more to we know that there are plenty ways you could share when we meet next. spend your time and money. And we are hopeful that you will help us continue to grow, both by Coffee is so important, both culturally and maintaining your own involvement and by sharing economically. Across the world, people drink more our work with friends and loved ones who care than two billion cups of it per day, but it's easy to about the future of coffee. forget that there’s a farmer behind every cup. Whether through our work on International and After all, without young farmers there will be no National Coffee Day described later in this report, our new partnership with Airbnb to share our in- coffee! depth coffee knowledge with interested travelers Let’s grab a coffee soon, from around the world, or the young farmers who newly join our program every day, Coffee Kids is Joanna Furgiuele putting those farmers first. Fundraising & Program Manager Coffee Kids Fundraising & Program Manager, Joanna Furgiuele, HRNS NA General Manager, Jan von Enden, and Social Responsibility Manager of Peet's Coffee, Matt Broscio, with a group of young farmers in La Celia, Colombia. 3 MARUANGO VILLAGE, NORTHERN TANZANIA PRISCA'S STORY I LIKE TO SHARE MY KNOWLEDGE AND EXPERIENCES ON COFFEE PRODUCTION WITH MY CHILDREN THAT THEY WILL CONTINUE TO GROW COFFEE IN THE FUTURE. Prisca is a young Tanzanian farmer whose family has worked in coffee for generations. Before she became involved in Coffee Kids, she faced a gut-wrenching decision: stay in Maruango with her family and friends, tending a crop that is in her blood, or move to the country capital of Dar es Salaam, one of the largest cities in the world, and see where her intelligence and ambition could take her. When Coffee Kids came to her village, though, suddenly the choice became simple. Through our Rural Business Workshops, she has learned how to optimize her coffee production, and has also developed a business plan for a side business that gives her a steady year-round income to supplement her annual coffee income. Now, she is focusing her skills and determination on work that benefits her local community. Today, Prisca says, “Planting coffee is my priority for the future. Although people say that coffee is not good, I want to focus on my coffee plantation in the future...I like to share my knowledge and experiences on coffee production with my children that they Prisca Koinage, Age 27, will continue to grow coffee in the future." is from Maruango Village in Northern Tanzania. 4 THE COFFEE KIDS APPROACH RURAL BUSINESS WORKSHOPS Coffee Kids collaborates with the up-and-coming generation of coffee farmers to help them realize their full potential as part of the global coffee community. Our Rural Business Workshops use training, mentorship, and micro-financing to help young farmers see themselves as entrepreneurs, develop the skills to launch their own businesses, and connect to the global coffee industry. The workshops are offered in Tanzania, Colombia, and Trifinio (the tri-border area of Guatemala, Honduras, and El Salvador). In Maruango Village in Northern Tanzania, Rural Business Workshops take place like "a business school under the trees." 5 TRAINING Coffee Kids training sessions help young men and women apply their creativity and ideas to develop productive enterprises in coffee within their communities. Topics include a broad business focus, such as managing the financial side of the operation and writing a business plan, 1 to coffee-specific information, such as how to implement techniques to adapt Above: A local trainer demonstrates agricultural to climate change and increase yield practices in Trifinio during a Rural Business and coffee quality. Workshop training session. 6 MENTORSHIP We are linking young coffee farmers to successful local and international coffee entrepreneurs, exposing them to the breadth of opportunities that exist within the sector and helping them understand how to reach those positions. The exchange increases farmers’ understanding of different 2 players in the supply chain, and helps professionals understand how new Above: Somi Nanyaro, age 25, fine-tunes his dynamics within the industry are business plan with his trainer and mentor in playing out on the ground. Maruango Village, Tanzania. 7 MICRO- FINANCING By providing micro-financing, Coffee Kids simultaneously helps get community businesses off the ground and gives young farmers collaborative decision making power over financial investments.The revolving fund is 3 replenished as businesses grow, Above: Two brothers pose with their mother giving young farmers a sense of how after a ceremony awarding financing to thriving businesses can lift up the Rural Business Workshop graduates in La Celia, entire community. Colombia. 8 OUTCOMES OF Alejandro Antonio García Aguillón, age 21, a graduate of the Rural RURAL BUSINESS Business Workshops stands in the doorway of the cafe he was able to open with the help of Coffee Kids' micro- WORKSHOPS financing. 1. KEEPING COFFEE CLOSE TO HOME 2. ADAPTING TO CLIMATE CHANGE In Iowa, corn on the cob is on the table all summer Global agriculture, and coffee in particular, are at long. In India, nearly every meal is served with rice. grave risk of climate change effects like extreme Most Spanish meals begin with olives, and are shifts in rainfall patterns, increasing prevalence of cooked in a healthy splash of extra virgin olive oil. pests and diseases, and a decrease in suitable These crops never leave the area--they are farmland. According to the Costa Rican Coffee served, fresh and flavorful, right where they were Institute, phenomena such as El Niño have already grown. And yet, in many coffee-growing resulted in global coffee production losses of 2-3% communities, very few people actually drink coffee. in some years, with research suggesting that climate change will halve the area suitable for This doesn’t just mean that people miss out on a coffee production in the coming decades. Leaf rust, morning pick-me-up, though. It also means that for example, is a fungal disease that is exploding these communities miss out on one more benefit of as a result of warmer climates, and it cost farmers the global coffee chain: the economic and social and the industry nearly $2.5 billion from 2011 to value of coffee shops and other coffee-focused 2016. businesses. Climate change has the potential to endanger the Through rural business workshops, Coffee Kids livelihood of hundreds of millions of people helps young farmers realize their full potential as worldwide who earn a living from coffee. The part of the global coffee community, including already thin profit margins become thinner each starting small businesses. The training sessions season, as the techniques that farmers learned provide a space where young men and women from their families become increasingly outdated. learn how to apply their creativity and ideas to develop productive enterprises, learning everything At Coffee Kids, we teach young farmers a set of from life skills to financial management. The result simple agricultural techniques that simultaneously is that many of our participants start their own improve their crops’ resilience, and reduce their coffee shops and bars, making coffee a crop that is carbon footprint. As a result of this work, they feel not simply from the community, but also of the confident that they will be able to earn a living in community. coffee not only next year and the year after that, but throughout their lives. 9 3. IMPROVING FOOD SECURITY In coffee farming, nothing is certain except uncertainty.