Coffee makers in Granada give added value to the coffee bean and form an alliance with Pyme

CALI II Fellow, Gian Marco Palazio, emphasized the quality of the coffee that he grows.

Wendy Álvarez Hidalgo
economia@laprensa.com.ni

Besides taking advantage of two coffee property located in the vicinities of Mombacho volcano, in Granada, as a local destination to attract national and international tourists every year, the Palazio family also bets to take advantage of the market opportunities with the commerce of coffee, but with added value.

Gian Marco Palazio, owner of Café Las Flores company, tells the story of how four years ago, along with his two brothers, they decided to test their luck with the sale of processed and packaged coffee. Although Palazio recognizes that it has not been easy to adapt to the demands of the market, he expressed that the success achieved to date, not only in terms of sales but also in the quality of the product offered, has offered him and his family the opportunity to make way in the national and international market.

Now in hotels, restaurants and fast food centers, the Palazio coffee is commercialized. And it is also exported to the United States market.

"For more than three generations our family has been dedicated to growinf and selling coffee. But in 2004, next to my two brothers, we began a project to commercialize the coffee that is produced in the properties that we inherited from our father to part of the country", confessed Palazio to LA PRENSA.

INTEGRAL PROCESS
In the first phase of the project, according to Palazio, an investment to buy equipment for the roasting of the coffee and its post packing was carried out.

“We are a totally vertical integrated operation from the farms, both in the production, processing, roasting and final packing side”, he maintained.

Palazio pointed out that, in the last years, they had invested more than 100 thousand dollars in the acquisition of equipment to process coffee, including its roasting and packing.

In average, this business creates more than 15 direct jobs, both in the farms and in the offices in Managua.

Today, the coffee, already packed, is exported to the United States. For this reason, Palazio expects to begin exporting to other markets soon.

ALLIANCE WITH PYME
Palazio pointed out that one of the main characteristics of the coffee is that, during its preparation, it produces a great amount of foam and it tastes a lot like chocolate.

They are projecting a production of at least 1,800 hundred pound bags of coffee for the next harvest, from which more than 40 percent will be assigned to marketing.

Café Las Flores has established an alliance with small producers that manufacture candles, craftworks and cigars that are offered to tourists that visit the coffee farms located in the proximities of the Mombacho volcano, in Granada. The candles as well as the other craftworks are decorated with coffee seeds, a touch that captivates visitors that come to the zone.
“Our idea is that when tourist come and visit the farms and enjoy the view of Granada and the Mombacho volcano, they can take with them memories of those experiences; and what better way to do this than to buy products made with coffee” said Palazio.

Every year more than 35 thousand tourists arrive to these farms, between locals and foreigners, who enjoy the fauna and flora of the region.

SUPPORT OF THE ECONOMY
In spite of the highs and lows of the production of coffee, its title is kept as the number one exportation product of Nicaragua. Last year it contributed over 200 millions dollars to the economy, however this year the amount could be less, in the order of 160 millions of dollars, due to the reduction of the harvest 2006-2007 as a result of the biannual cultivation calendar that alternates good and bad years.

The cultivation of coffee represents one of the principal economic activities of the North, the Center and even the Meseta de Los Pueblos in the Pacific. The plantations are gradually becoming a new destination for tourists. Meanwhile the tourism industry, last year alone contributed 231 millions dollars to the economy, against the 183.5 millions that it reached just a year prior, according to figures from the Consejo Centroamericano de Turismo.