A Conversation with Pergamino on the Colombian Coffee Market

The world of specialty coffee is a delicate ecosystem, driven by meticulous care and the pursuit of excellence. It is a landscape where each bean tells a unique story, intricately linked to the people who grow it, the land it comes from, and the labour involved in its production. Few places exemplify this better than Colombia, a nation synonymous with coffee, where producers and buyers collaborate on an intimate scale to bring incredible coffees to the world stage.

Recently, we had the opportunity to engage with Pedro Miguel Echavarria of Pergamino, a key player working to reshape the Colombian coffee supply chain. Through steadfast dedication to quality and a commitment to producers, Pergamino is redefining the processes behind truly exceptional coffee. This piece explores the strategies they employ to improve quality and ensure financial premiums for producers, while offering a broader reflection on what “specialty coffee” really means.

Defining Specialty Coffee in Colombia

Pedro describes two layers within specialty coffee in Colombia. The first is what he calls ‘regional specialty.’ These coffees are produced en masse, often combining beans from various producers or regions. ‘Regional specialty’ blends tend to be put together by the larger players in the market that buy a wide range of lots at commercial prices but select the higher quality lots that feed into the perceived ‘higher quality regional specialty’ blend. While these coffees may have a decent cup profile, they are often inconsistent, lack traceability,  and the individual producer rarely benefits directly from premiums.

The second, and far more impactful model, involves building micro-lots or specialised community blends. These coffees are hand-selected through rigorous cupping processes, ensuring both the physical and sensory quality of the beans. For Pedro, this level of specialty coffee represents the heart of their philosophy. Not only does it ensure unparalleled quality for roasters and consumers, but it also provides producers with substantially higher earnings than the market price. Traceability is a non-negotiable in this model, giving deserved recognition to the producers behind the coffee.

“Our commitment is to pay premiums every single time we purchase coffee,” Pedro shared, emphasising the importance of fairness and consistency in developing intangibles like loyalty and trust within producer communities.

Putting Producers at the Heart of Specialty Coffee

What sets Pergamino apart is its unwavering focus on the producer. Working in regions such as Inza, Cauca and Santa Barbara, Antioquia, they dedicate resources to ensuring that producers are not only incentivised to produce high-quality coffee but are also fairly rewarded for their efforts. This direct and supportive relationship with producers is at the core of their business model.

Pedro notes that the foundation of Colombia’s coffee market remains complex and highly competitive. On a local level, towns are often brimming with buyers—from large cooperative exporters to local intermediaries, known colloquially as “coyotes.” Pricing shifts daily based on global market conditions, making it difficult to ensure stability and long-term planning for producers.

To address these challenges, Pergamino adopts a model that balances daily market realities with their commitment to paying premiums. Unlike many entities in the coffee trade, they ensure traceability and quality checks at every step. This is done through direct relationships with producers, with premiums for base-quality beans and additional rewards for micro-lots or standout lots scoring particularly high in quality metrics.

The Importance of Incentives

Pedro is quick to acknowledge a sobering reality about the intricacies of pricing and incentives in the specialty coffee space. While premiums are paid to producers, they represent a percentage above daily market rates, which are themselves highly volatile. Historically, low market prices left many producers struggling to break even, forcing some to adopt subsistence-level practices.

Today’s elevated market prices provide producers with greater profitability, but as Pedro explains, the incentive for producing high-quality coffee diminishes when base market prices soar. If producers can earn a healthy income through relatively unselective production methods, adopting meticulous techniques for specialty coffee requires a stronger financial draw.

“The higher the market goes, the tougher it becomes to maintain those incentives for quality,” Pedro shared. “We’ve been investing heavily to overcome this, ensuring that producers still feel valued and are appropriately rewarded for their hard work and expertise.”

Coffee Prices and Production Costs

– Historical prices: 700,000 to 1,000,000 COP per carga (10-15 years ago)
– Current prices: 3,400,000 COP per carga
– Production costs: 1,800,000 COP per carga (Pergamino’s farms), 1,200,000 to 1,400,000 COP per carga (small producers)

Premiums and Market Comparisons

– Historical premiums: 200,000 COP per carga (~20% over market price)
– Current premiums: 400,000 COP per carga (~12-13% over market price)

Tackling the Challenges on the Ground

Despite Pergamino’s successes, coffee farming in Colombia remains an arduous task, made all the more challenging by external factors like security concerns and adverse weather. Regions such as Inza have experienced increased volatility due to armed groups vying for control, making regular visits with producers impossible. However, Pergamino’s strategy of hiring trusted, community-based employees has ensured that technical support and operations continue uninterrupted, preserving relationships and maintaining quality standards during uncertain times.

Weather presents another layer of complexity. Erratic rains during traditionally dry months have delayed harvests and caused drying challenges, reducing yields in key areas. Despite these obstacles, Pergamino has doubled down on technology, investing in improvements such as advanced colour sorters that enable higher precision in milling. These updates ensure that the coffee they export maintains the consistency and physical quality that specialty buyers expect, even when faced with increased variability at the farm level.

Beyond Premiums: A Holistic Approach to Sustainability

While financial premiums are a vital part of the equation, Pergamino sees them as one piece of a much larger puzzle. For producers to thrive long-term, they need access to training, infrastructure, and resources. Pergamino supports these needs by embedding technical expertise directly within producer communities, with two full-time community employees in Inza providing ongoing training and troubleshooting. This integrated approach ensures that farmers can consistently deliver cup-winning coffees while maintaining sustainable farming practices.

Pergamino’s commitment to quality runs deeper than financial incentives. By helping farmers reinvest in their operations, be it through better drying facilities or higher-yielding coffee varieties, they create a system where specialty coffee is sustainable for generations to come.

Connecting Producers and Roasters through Storytelling

At the root of Pergamino’s mission lies a desire to bridge the gap between producers and the end consumer. This isn’t merely about selling exceptional coffee; it’s about celebrating the people, land, and culture behind every cup. By promoting transparency and creating traceable lots, Pergamino ensures that roasters and consumers alike gain a deeper appreciation for the work and dedication that go into specialty coffee. The result is a more connected, informed, and appreciative coffee community.

Pergamino are leading the charge in redefining how we think about specialty coffee, proving that collaboration and innovation can overcome even the toughest challenges. By putting producers at the heart of their operations, they’re not only elevating Colombian coffee but also setting a global standard for ethics, quality, and sustainability in the coffee trade.

If you’re a roaster looking for unparalleled quality with a story to tell, Pergamino provides a masterclass in how coffee can connect us all.