On Thursday, February 15, 2024, the third SME Breakfast took place. The SME Breakfast series was established to discuss the specific opportunities and challenges related to sustainability for SMEs.

This session focused on strategic partnerships. A common challenge for SMEs is finding suitable partners in the value chain, dealing with different objectives, and managing cultural differences. A diverse group of companies was present, representing local, European, and international value chains.

Harm Jansen, owner of Kinti Coffee, kicked off the session with a presentation on the sustainable partnerships within his company. Kinti Coffee supplies sustainable coffee, primarily to offices. Because Kinti Coffee buys directly from farmers rather than traders, they have more visibility into the value chain and can ensure real transparency. Kinti aims to change standards in the coffee industry and accelerate the shift to organic coffee production in Colombia. They partly do this by increasing knowledge about fair trade production, including through training with CLAC. Additionally, they make use of "coffee waste" by producing wooden planks from coffee cherries, as shown in this video from Woodpecker.

According to Harm, partnerships are the lifeblood of his company; learning and growing together is crucial. But who should you partner with? Kinti is selective when it comes to choosing partners, which sometimes makes the process complex. It takes time to convey the importance of sustainability to local farmers. Other breakfast participants noted that they face similar challenges in transitioning to new, more sustainable partners. This remains complex and costly for SMEs, and this is where the UN Global Compact might play a supportive role.

The role of a dedicated advocate at the partner organization, who provided Kinti with thorough analysis and convincing information, proved to be essential. Cultural differences also play a role. Finally, administration, grant projects, and reporting require a significant time investment for SMEs. Different systems and a lack of uniformity in documents increase administrative pressure.

CSRD and other upcoming legislation will certainly impact SME companies and their collaborations with suppliers. Because Kinti buys directly, it has better visibility into the value chain and can respond more easily. Kinti tries to shorten the chain where possible, for example, by training local producers to become coffee roasters. Collaboration with industry peers is particularly challenging in terms of transparency. A good example from the transport sector is the collaboration to consolidate containers so that air doesn't need to be shipped. This is a win-win-win: saving costs for both the customer and the company, and a win for the planet.

Despite the consensus that collaboration is more effective than working alone, partnering with industry peers remains complex. This is especially true outside of Europe, where parties are not always willing to share all information. This can lead to underutilized potentials.

The ambition for the future is to gradually increase sustainable impact and thus stimulate transformation step by step. We want to thank Harm and all participants for sharing their tips and experiences. Do you have any questions for Harm Jansen? You can reach him via email at harm.jansen@kinticoffee.nl.

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