Q: Why did Ataka Trading choose Malawi coffee?
A: Ataka Trading chose Malawi coffee as part of its business strategy. While coffee from Ethiopia, Brazil, Colombia, Indonesia, and other Central American countries has long been recognized and widely available in the market, Ataka Trading turned its attention to Africa.
Despite being relatively unknown in the coffee industry, Africa is home to many emerging coffee-producing countries that are working to develop their economies through coffee cultivation. Malawi, in particular, was one of the countries that had not yet been explored by major trading companies.
Ataka has developed a business strategy to engage with countries that larger trading companies have overlooked, which led to the decision to handle Malawi coffee. Below is a picture of the representative of Seibo, a non-profit organization, alongside the raw beans received from Ataka Trading.
Q: How do you communicate with the local community?
A: Fernandez, who previously served as the General Manager of the Coffee Industry Board (CIB) in Jamaica, acts as an agent for Ataka Trading in negotiations with the local government. The core of Ataka’s coffee business is Blue Mountain coffee from Jamaica. After leaving his position at the CIB, Fernandez became an agent for Ataka Trading to establish a new “Specialty Coffee” business. Specialty coffee refers to high-quality coffee that consumers value and are satisfied with, which is strictly controlled from production to consumption. Although the price is higher than that of regular coffee, it is carefully selected to be sustainable and includes mechanisms to trace where and who produced the ingredients.
The concept behind this coffee movement is “quality rather than quantity” in the American coffee market. The market was saturated with low-quality coffee from large farms, creating a vicious cycle where delicious coffee disappeared globally. Consequently, even if farmers produced high-quality coffee, it was not reflected in the prices they received. This led to the birth of specialty coffee, founded on the principle of “paying fair wages to those who produce high-quality coffee beans.”
Specialty coffee quickly gained popularity not only in America but also in Europe and Japan, leading to the establishment of the European Specialty Coffee Association and the Japan Specialty Coffee Association. As the coffee qualification system developed, educational initiatives were introduced, and specialty coffee gained global recognition. Additionally, this period saw an increase in home roasting.
Note: The Coffee Industry Board (CIB) is an institution established by the Jamaican government to revive and expand Jamaica’s coffee production. It holds all powers related to the coffee industry, and Jamaica’s Blue Mountain coffee is strictly regulated by the CIB.
(The photo below shows the logo of Ataka Trading Malawi bean brand, MZUZU ZEBRA, along with its products.)
Q: Are there any characteristics unique to Malawi coffee?
A: While coffee is widely loved, it can be challenging to distinguish Malawi coffee from other types based solely on taste. The flavor of coffee is influenced not only by the type of beans but also by how they are roasted, brewed, and the brewing temperature, making it a delicate beverage. Although it may be difficult to characterize coffee by taste alone, it can be defined by the “image” it evokes for consumers.
For instance, what comes to mind when you hear “Blue Mountain”? Most people likely envision a rich and delicious coffee. It’s essential for consumers not just to taste the coffee but to form a mental image of it over time.
Ataka Trading Co., Ltd. handles a raw bean known as “Sumatra Tiger,” which has received high praise for its branding strategy that creates a compelling image for consumers. About ten years ago, Ataka began marketing coffee from the Indonesian island of Sumatra under the name “Sumatra Tiger,” transitioning from its previous name, “Mandelin.” Typically, raw coffee beans are traded under the names of their producing countries, such as Brazil or Colombia. However, Ataka chose to borrow the name of the Sumatra tiger, complete with a cute character logo on the packaging. As a result, consumers who initially ordered “Mandelin” gradually shifted to ordering “Sumatra Tiger.” The well-known Sumatra Tiger has even been commercialized by Lawson and remains popular today.
Q: How does Ataka Trading deal with fair trade?
A: Fair trade refers to a trading system aimed at stabilizing the lives of producers in developing countries by ensuring they receive reasonable prices for their goods. The pricing of fair trade products is influenced by the market rates in New York and London, which can be subject to fluctuations. This makes fair trade coffee a high-risk product for trading companies like Ataka.
Despite these risks, Ataka Trading prioritizes the principles of fair trade by consistently purchasing goods at equitable prices. A core value of Ataka’s approach to fair trade is the concept of the “three-way street,” which means that everyone involved—producers, sellers, and buyers—should be satisfied with the transaction. This philosophy is rooted in the management principles passed down from the time of Omi merchants. Ataka believes it is essential not only to pursue one’s interests but also to consider the perspectives of others and to foster a spirit of goodwill towards the community. Ataka Trading aims to build trust not only in the fair trade sector but across all its business dealings, ensuring a balanced relationship with the people on the farms.
How did you find this information? Have you gained insights into Mr. Araki thoughts on coffee, his business strategy, and his cooperation with non-profits? For more details, please check out the video featuring student volunteers covering Ataka Trading here.
