Raising the Bar: How ElevaFinca is Reshaping its Commercial Strategy

As the 2025 harvest cycle nears its end, ElevaFinca has implemented a series of internal updates to strengthen commercial operations, reduce risk, and build long-term value across the coffee supply chain. Martin Pépin, our Commercial and Partnerships Director, shared an overview of the most significant changes and what they mean for producers, cooperatives, and buyers.

Left to right: Martin Pepin Commercial Director - Étienne Desmarais CEO - María José Rodriguez International Sales Executive

Stronger Foundations Through New Internal Policies

Several key policies have been introduced this year:

• Fixation Policy Update: Contracts can now only be fixed once 60 percent of the coffee is physically present at the dry mill. This measure significantly reduces the risk of default in a highly volatile market and brings greater clarity to all parties involved.

• Revised Financing Approach: Pre-financing is now disbursed based on delivery milestones. For example, 70 percent of the container value is released when 70 percent of the coffee is at the dry mill. This ensures that funding is directly tied to actual coffee purchases and improves operational control.

• Limited Off-Season Contracting: To mitigate the risks associated with late-harvest cherry stripping (known as "raspa" in Peru, "repela" in Honduras, and "arrase" in Colombia), ElevaFinca is minimizing contract bookings at the very end of the season. These final batches often present inconsistent quality and can create fulfillment issues.

Expanded Access to Finance for Cooperatives

Through collaboration with our local entity (Dry Mill), such as Café Selva Norte in Peru, ElevaFinca has helped secure better access to working capital. In previous years, banks often maintained credit ceilings based on historical market prices. With rising market costs, the same loan amounts now purchase less coffee. Introducing new financing channels helps cooperatives and producers adapt to the new price environment.

Lia Josabet Montalvo Mel, Operations Coordinator & Juan Jesús Rimaycuna, Responsible for Export Logistics

A Smarter Approach to Pre-Financing

Compared to earlier models, the current financing policy emphasizes traceability and accountability. By tying support to verified milestones, we help ensure that funds are used specifically for coffee procurement. This shift from a flexible model to one focused on physical delivery has improved transparency across the supply chain.

Minimizing Fixation Risk in a Volatile Market

One of the most impactful changes has been the new fixation policy. Many past issues stemmed from fixing contracts too early, before producers secured enough volume. When prices increased afterward, some cooperatives were unable to fulfill the contract terms. By requiring 60 percent of the physical coffee to be in stock, ElevaFinca is reducing this risk significantly.

Evolving Our Contracting Model

More than half of ElevaFinca’s contracts are now executed through our local entities rather than directly with producer cooperatives. This structure allows for a second layer of contracting between the local entity and the coop, which provides more flexibility in the event of unforeseen challenges. If a cooperative cannot fulfill its obligation, we can shift to another local partner without affecting the client contract. This model has been well received by buyers for the added reliability it offers.

Members of the ElevaFinca team with members of Café Selva Norte at the Ficafé event

Commercial Intelligence and Tools for the Future

Two major tools are being implemented to further reduce risk and improve efficiency:

• Exporter Evaluation System: Developed based on years of field experience, this tool assesses and ranks exporters by performance and compliance. While it is currently being used in Peru, it may be adopted in other countries as the strategy evolves.

• New Digital Management System: Designed to monitor contracts, pricing, and logistics in real time, this tool enhances operational transparency and supports faster decision-making across teams.

Positive Results in the Field

Thanks to these changes, the current season has experienced far fewer issues than previous years. Even while resolving challenges from the past, operations across Peru, Honduras, and Colombia have shown greater stability and consistency. This progress sets a strong foundation for long-term improvement.

Looking Ahead

As we refine our commercial strategy, our goal is to build long-term relationships with both producers and buyers who share our values. These adjustments are not just operational, they are cultural. By focusing on trust, reliability, and transparency, we hope to attract partners who are committed to sustainable sourcing. The improvements made this year reflect ElevaFinca’s core mission: to elevate the sourcing experience for everyone involved.