Author: David McKernan
Date: Thursday 09 October, 2008

I am a pretty good little capitalist (the point being I am not a socialist, anticapitalist or left wing nut) and bloody proud of my business but having spent twenty fantastic and exciting years in the coffee business, and having travelled to origin countries, and having children of my own - if I don't try and make radical changes - I don't deserve to be in the coffee trade!'

Just because you see an Ethical statement or badge along side your favourite food or coffee - don't ever assume that the company is ethical. Let's face it, unfortunately most of the time it's a marketing strategy to gilt the edges of our social awareness and give us that ‘feel good factor' comforting us that we have done our bit and contributed to some poor soul living in the middle of nowhere battling to put food on the table (often times they don't even own a table) for their children.

Early on, I made the decision that my company would make a difference to the lives of hundreds of coffee farmers who grow our coffee and only because I was lucky enough to have been allowed to join a group on a trip to India led by a fantastic woman Anne Lowen. At this stage, I had developed a serious passion for coffee but had never travelled to an origin country or anywhere in the third world (as it was known back then).

The poverty and hopelessness experienced within two hours of arriving in Bombay compounded by what I believed were historical illnesses such as leprosy (and travelling through Rajasthan, Jodhpur, Jaipur, Jaiseelmer, Agra, Varanasi and back through New Delhi) gave me a true understanding of just how ignorant I was to the living and working conditions outside of Europe and the States. India is by far the most wonderfully exciting and fun places in the world to visit - even with all its destitute street kids and the most disgusting of all racial programmes on the planet, the Caste system. As always, it is the people and cultures that make India so unique.

Now in a pretty bold step within the secretive coffee and food industry we have decided to be the first coffee company to openly declare the International ‘C' Commodity price of coffee per pound versus our minimum, average and the price of our fairtrade coffee per pound of green bean. Our competitors in Ireland, the UK and Europe will reel in horror at the potential that our transparency (along with help from the .org gang) could lead to more change and balance for the farmer.

As always, we are the first to admit we don't have it perfect yet, but we are trying genuinely hard. The true cost that the farmer could receive should be substantially higher than what they are currently receiving. We pay a fair price for our coffees and have traded successfully for 9 years.

The New York Coffee Exchange, NYBOT, or as we know it, the coffee ‘C', was originally set up in 1882 by real coffee merchants to bring some stability to what was then a chaotic and seriously high risk market with very frequent supply and demand issues resulting in either huge gains or losses without the option to hedge (either to reduce or cancel) your risk position of constant supply and price. The risk of bankruptcy in the States and Europe was extremely high for coffee traders. One hundred and twenty six years later, it is incredible that the NYBOT ‘C' futures coffee market has a complete monopoly position on all Arabica coffees traded throughout the world today. The Robusta Liffe London market is even more exploitive and disgustingly bent towards multinationals. The futures coffee market today has nothing to do with the consistent supply of real physical coffee. Traders have become perfectionists in speculating for investors and pension funds, and couldn't give a damn whether they are buying or selling coffee or cotton. On the 12 January 2007 NYBOT merged with ICE (the leading International US Electronic Energy and now soft commodities exchange for profit PLC. They paid around $1.8 billion (ref nyboy.com) Can you imagine how may thousands of farmers and their fore-fathers before them tolled for years and with little or nothing in return to help create this value...

The coffee market must be worth in excess of $65 billion in sales revenue world wide and is dominated by 4 major multinationals: Proctor and Gamble, Nestle, Sara Lee and Philip Morris (one of which happens to be the largest tobacco company in the world.

What is absolutely so unique about the billions in profits that are made from coffee by us all is the fact that millions of farmers, their families and workers are being bled to death with no regard or respect for their hard work, the quality of their coffee, their sustainable future or the education of their families....this is simply wrong! Have your say....

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Martina Hanna-Murphy -
Today.....I have experienced two new experiences......Since Java republic opened in Ballycoolin I have been a customer! What a truly prosperous place. Today I decided to treat myself and I ordered a cup of Kopi Luwak. My waitress was a liitle surprised, to be fair to this young lady, she felt compelled to ask me if I knew how much a cup cost. I told her that I did and then as only this team at java can do....she got very excited and said yeaaaaaa.....this is the first cup we have sold here. What I want to know is.......what is everybody waiting for??? It was fab... I loved the smell, the taste and above I all I believed that I was sooooooooo worth it! Being the competitive spirit that I am...Im delighted to be the first to purchase a cup of \\\"KOPI LUWAK\\\" This maybe my Blonde showing through, however my second new experience today is to....wait for it \\\"Blog\\\" Thank you David for introducing yourself to me today. And.. for thanking me for making my purchase and asking me to Blog..if I enjoyed it! Your Team at Java are Fantastic even at 7am in the morn! So positive, upbeat and like their leader very much into customer care. Continued success to you. Martina Hanna-Murphy
David Mc Kernan -
Declan,you made a huge effort to visit ,purchase and then Blog your support nearly a week ago.Sorry for my late reply and we hope to bring you in for a tasting over the next 2 weeks.When are you in Dublin next and your belief in our Brand and people is very grateful in our depressing Business climate ( at the moment).
David Mc Kernan -
Thank you all for your wonderful comments and the feedback from the Radio show with John Murray has really boosted our Team and Coffeehouse.Cant listen to it myself as i hate the sound of my own voice and my Wife has told me she would never sell the company( bloody liar).Kate,we will get some Tanznian coffee to cup ,32% of our coffee is from the Fairtrade Brand and the rest of our Coffee is purchased at a premium to FT and i personally believe it is the only ethical Brand worth fighting for.
jason conway -
Hi david great radio show on sunday well done to you and your staff,I came into the coffee house today and was really blown away by the Roastery,I would like to comment on a young girl who looked after myself and friend\\\'s during my visit,The girl(sorry i do not know her name but i will find aut) was very friendly with a really great personality and a beautiful smile,and during my time here today it was very busy and she still took the time aut to speak,and in this day and age it is very rare to get great service like that so well done and keep up the work and i will be back again and will recommend this place to others as its very amazing.
Gerry Murphy -
Dave McKiernan, Well done on RTE 1 Radio on Sunday morning. It all came accross very well and congratulations on your continued success. Gerry & Fionnuala
Dara Ó Maoildhia -
This is not an enquiry but a congratulations. Heard you on The Business this morning on RTE 1 and have browsed your website. Intend to visit you when I am next in Blanchardstown (I live on Aran Islands). I am so proud that an Irish company is not only producing good roasted coffee, but that it has a conscience both to the grower and to the environment. I am VERY impressed and intend to buy all my coffee, tea and whatever else you are selling from you direct. This is the way forward for the world. May you survive this recession and be successful in your expansion plans for Europe and the U.S.
katie kahn-carl -
I heard john murphy\\\'s i/v with David Mckernan this morning on radio and noted that of all the many coffees he mentioned , he never referred to the wonderful coffee grown on the slopes of mt. kilimanjaro in tanznia. The KNCU - kilmanjaro coffe growers association would I am sure love to export thier coffee to Ireland. Oxfam do a kilimanjaro coffee from the kncu ... try it !! I grew up on the slopes of the mountain as my family ran the Kibo Hotel from whence one climbed the mountain - that was many ears ago . I have come back to Ireland and lived here since 1952 , but did go out to tanzania in 2000 and the coffee growing is still going strong.
fidelma lipsett -
dear david. i listened to you on radio last sunday. i was very interested in your business. i teach business and enterprise skills and all that goes with it in sligo grammar school. i would be very interested in taking a group of students to visit the new roastery and get some feel for the philosophy behind your business idea. i would really appreciate if you could let me know of the possibility of my proposal. looking forward to hearing from you. fidelma lipsett.
Annie O\\\'Doherty -
I just heard the RTE business programme about Java Republic. I was listening to know where you stood regarding the fair trade issue. I wasn\\\'t clear on this at the end of the programme. You said that only 31% of the coffee is fair trade? And yet you appear to be concerned about the welfare of the coffee pickers? Perhaps the programme was edited badly, because I am still not clear where you are on this issue, and this would be the decider for me.
Anne Synnott -
Hi I heard your wonderful interview this morning, and would love to come & visit your place can you tell me if you open on Sat ?? thanks Anne
Máire Murphy -
Hi, I heard you on the radio this morning and I looked over your blog and of course I applaud your efforts to deal fairly with growers and so on. However, nowhere on your site is any mention of the quality -- and especially the freshness -- of your coffee. The standard of coffee in Ireland is generally abysmal. It\\\'s almost impossible to buy coffee beans and those that are in shops are mostly stale. (Whenever I make it all the way to Dublin to Charbucks the sell-by dates on those unvented packets horrify me.) After hearing you talk this morning about your passion for good coffee, I had great hopes that I could at last find coffee beans that a) were good quality, b) were packaged properly to preserve freshness, c) show the roast date so that I can decide whether to buy them or continue to order beans from the small roaster in the US who is flourishing because he knows that customers (OK, he probably doesn\\\'t have any Irish customers besides myself!) care about those things. My question for you then is, can you ship (retail -- I\\\'m just one little person, and in remote south Kerry too!) coffee beans that have been roasted relatively recently (like 2-3 days ago) and are packed properly? Thank you. Máire Murphy
Eugene O\\\'Brien -
Hi, Heard you on \\\"The Business\\\" this morning -Congratulations and continued success!
Richard FitzGerald -
Hi David, just heard you on Radio 1. It\\\'s great to see a company close to home built on such ethical core values. In this days of age, consumers are genuinly choosing ethically produced products. On account of this many big brands are tailoring their marketing as a result, rather that being ethical from the core. Well done!
Declan Cox -
Hi David, I am the painter/decorator that met you in the coffee shop last friday. Firstly, I would like to again congratulate you on a fantastic achievement. I greatly admire your vision, your values and how you go about doing what you do. I purpsosely drove over on friday to experience all that you had done. I wanted to see what passion, drive and determination could achieve. I wanted to be inspired. I wasn\\\'t dissapointed in any way. The staff, the food and especially the coffee were wonderful. A real treat! To meet you personally was a bonus. Take the compliments they are well deserved. To follow on from our conversation I would be really interested in a tour of the roastery and possibly a tasting session if that can be organised. Wishing you continued success. Regards Declan
patricia donnelly -
I Would like to say ur company and staff is very nice.. lovely manners and a pleasure too talk too i had a lovely talk with your receptionist..really nice well thank you...
David McKernan -
Thanks Ruth, we are so bloody proud of our Roasterty after 3 years hard work.
David McKernan -
To David/Greg Once you start questioning the average price that a roaster is paying for all his coffee, not just the spin exotics, all coffee roasters should be made transparent. As for encouraging better sustainable practices and quality initiatives at origin, don’t underestimate the farmer’s willingness and incredible ability, once given fair price. Yet again the tide is turning on the Farmers and the value of Coffee per LB in New York is dropping fast. Please keep questioning!
David McKernan -
Hi TomB, Over 64 % of our company smoke and this is a subject that sickens me and only because I have seen people around me battle for their lives just to’ get off them ‘outside the fact that they will kill you in the most agonizingly sickening way for the smoker and their families. When Altria was set up ,I believe its main aim was to protect Shareholders from being targeted for unethical shareholdings and the long association of ‘Philip Morris’ with the millions of ongoing claims and dreadful press around their Cancerous products.Altrias ( Philip Morris) shareholders were the main beneficiaries of the spin off of Kraft-General foods ,so nothing has changed. Have a look at www.altria.com under ‘Our Values’ and their bullshit about ‘operating with integrity, trust and respect’. By the way TomB in the past year I pulled our Training people from the Irish Chapter of the Specialty Association of Ireland because of the use of Kraft’s (Kenco) head office in Dublin and also threatened my favorite brother –in-law that if he took a job with Gallagher’s Ireland (Ireland largest Cigarette Company) he would not be welcome in my house. All this from a Man who single handedly ate a Terry’s Chocolate orange (one of the Philip Morris / Altria) babies over the weekend. You should buy Ashes to Ashes by Richard Kluger (fantastic read) and subscribe to www.corp-watch.com Ps What I have observed over the past 8 years around smokers is that the weight gain from successfully giving the ‘Fags’ up negates the fact that your Body and life-style improvement increases dramatically in time .This is a huge issue with Women and the younger, the more self conscious.
TomB -
David, Altria (who own Philip Morris) spun off Kraft Foods (which manufacture Maxwell House) back in Jan 2007 (http://www.altria.com/about_altria/1_7_2_spinoffempinfo.asp)
David -
I think JR should be applauded for their efforts in giving a fair price to their farmers. However, I would like to hear of efforts to not only pay out more for the same coffee, but to pay out even more for better coffee. This would involve developing better practices for the farmers, ensuring a better product, that will free itself completely of the commodity coffee market, and instead become true \\\"speciality\\\" coffee.
Greg -
OK, I dont get it - you pay around 2$/lb and coffee \\\'c\\\' future is $116.9/lb. Why the difference and who pays 116.9 a lb?? Maybe I am missing a decimal place
ruth -
The javarepublic in Ballycoolin is nothing short of amazing!