Bugkalot Coffee Co., a social enterprise hit hard by a major typhoon last year, is confident in its recovery thanks to its unique business model, which focuses on controlling the entire coffee supply chain and sharing revenue with its growers in the Sierra Madre mountains.
CEO Joseph Tanchi explained that the company’s approach sets it apart from others in the industry. “One of the things that sets us apart is that we are a producer, not just a trader or processor,” he said. “Since we produce our own coffee and process it ourselves, we have a high level of operational control and standardization.”
The company employs up to four layers of quality control throughout the post-harvest process, including centralized storage and sorting, all contributing to the consistent quality of its coffee.
Bugkalot Coffee also partners with indigenous communities in the Sierra Madre mountains. “We work with the local community to see what resources they have and start from there,” Tanchi said, emphasizing the importance of community development.
Despite the remote location of the Bugkalot community in the Sierra Madre, the conditions are ideal for coffee cultivation. “The altitude is perfect for growing Arabica coffee, and the water supply is sufficient year-round,” Tanchi added.
The company’s revenue-sharing model ensures that growers receive a fair share, providing them with “a bigger piece of the pie” and ensuring they aren’t just a small part of the supply chain.
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