MISSION The Coffee Quality

Institute® is a nonprofit

organization working

internationally to improve

all aspects of the quality of

coffee and the lives of the

people who produce it.

Letter from the Chairman

We founded CQI in 1996 to improve the

quality of coffee through scientific study and

research. But just as we began our work, the

coffee industry experienced an international

crisis that included low prices and a lack of

high quality coffee available to the market.

Our mission evolved, and we developed programs that provide

direct technical support to growers and build a market

mechanism for trading quality coffees. CQI launched Coffee

Corps in 2003 and organized the Q Auctions in 2004. This

report describes these programs and thanks the contributors,

partners and volunteers who invested in our success.

Today, although coffee prices are improving, CQI’s work

remains critical. Coffee is the world’s number one agricultural

commodity, and worldwide provides the livelihood for more

than 25 million producers and their families and enhances the

lives of 800 million consumers.

I am privileged to lead CQI through this period of growth

and commitment, and to work with Board colleagues who

collectively have more than 400 years experience in the coffee

industry. We ask for your collaboration and support to achieve

our goals as we go forward.

Dan Cox, President and Owner, Coffee Enterprises Inc.

March 2005

coffee corps©

Coffee Corps® is a unique private-publicpartnership working worldwide to providebusiness-to-business technical assistance to small-to-medium coffee farmers and enterprises. Begunin response to the coffee crisis, Coffee Corpsresponds to requests from coffee-producingcountries by matching them with volunteers, whodonate their time to help growers improveproduction methods, quality control processes ormarketing. The program was established in January2003 and by the end of 2004 had received over 100 requests for assistance. Men and women from27 countries have volunteered to participate in the program.

As of the end of 2004 over 60 volunteerscompleted assignments in more than 20 countries,and thousands of individuals in producingcountries have benefited. CQI thanks and salutesall those industry experts and their companies, forso generously volunteering more than 9,000 hoursof their time to help growers in origin countriesimprove the quality of their coffee and their lives.The volunteers are listed here with the companythey worked for at the time of their Coffee Corpsassignment.

When Coffee Corps needed an expert to lead a seminaron organic production methods in Guatemala, we turnedto Chuck Boerner, a 35-year industry veteran who runs a

30-acre organic farm on Maui. After visiting farms toobserve current farming methods, he shared best

practices for organic farming and outlined ways to raisehigher quality coffees, which claim higher prices. Boerner

says his volunteer experience was “rewarding beyondexpectations” and is proud of the direct impact his

assignment had on more than 200 Guatemalan farmers.

improving coffeechanging lives

Our partnersThe power 0f collaboration multiplies the

impact made by CQI staff and Coffee Corpsvolunteers working in coffee-producing

countries. Our partners in 2004 included:

David Beeman, CIRQUA Customized WaterChuck Boerner, Coffee Farmer–HawaiiLindsey Bolger, Green Mountain Coffee RoastersWillem J. Boot, Boot Coffee Consulting & TrainingGuy Burdett, InterAmerican CoffeeEd Canty, Green Mountain Coffee RoastersKaren Cebreros, Elan Organic CoffeesDiana Uy Chan, Swiss Water Decaffeinated Coffee Co., Inc.Jim Cleaves, Sara Lee Coffee & TeaColleen Crosby, Santa Cruz Coffee Roasting CompanyGlenn de Gruy, New Orleans Coffee WorksJohn DiRuocco, Mr. EspressoLuke Dunnington, Development Alternatives, Inc.Roger Ethier, Engineers Without BordersLaura Evans, Independent ConsultantKaren Fazzio, Millstone Coffee (Retired)Jorge Gallegos, Central American Partners Cristina Garces, Café Montes y ColinasJim Gilson, Partners Coffee Company, Inc.Peter Giuliano, Counter Culture CoffeeSteve Gluck, Independent ConsultantJohn Gozbekian, Diedrich CoffeeDanny Gutierrez, Java CityChristina Guzman, TeacherBud Hensley, Global InsightsCraig Holt, Atlas Coffee ImportersDanny Johns, Whole Cup Coffee ConsultingSherri Johns, Whole Cup Coffee ConsultingPhyllis Johnson, BD Imports, Inc.Adam Kline, Elan Organic CoffeesRicardo Koyner, Coffee Farmer–PanamaDan Kuhn, Agricultural ConsultantEd Lane, GranCoffee Roasting Co.Gerry LaRue, Partners Coffee Company, Inc.Steve Leach, Diedrich CoffeeDavid Ledgard, Dawson Taylor Coffee RoastersOscar Conseco Magro, Sustainable HarvestJulio Martinez-Paz, Mitsubishi Corporation, GuatemalaTim McCormack, Independent ConsultantBrian McCoy, Independent ConsultantDaniel Mulu, Kraft Foods Europe, Ethiopia office (Workbek)Mauricio Murrilo, Mr. Coffees Dr. Bob Osgood, Director–Hawaii Agricultural Research Corp. (Retired)Francisco Osuna, Elan Organic CoffeesKen Palmer, BJ's Coffee Co.Kelly Peltier, Canopy Coffee ConsultingHeather Perry, Coffee KlatchRick Peyser, Green Mountain Coffee RoastersJim Pines, Organizational Effectiveness ConsultantEllen Jordan Reidy, America’s Food Technologies, Inc.Ric Rhinehart, Groundwork Coffee Co.Volker Sachs, Panamerican Coffee Trading Co. S.A.Ricardo Safie, UnitradeEduardo Sampaio, Independent ConsultantChris Sanders, Java CityPaul Songer, Songer & Associates, Inc.Shawn Steinman, Graduate Student–University of HawaiiBob Stephenson, Kavanaugh CoffeeJeremy Torz, Union Coffee RoastersTimothy Tulloch, European Roasterie, Inc.Spencer Turer, Independent ConsultantChris Von Zastrow, San Cristobal Coffee ImportersAquiles Villalobos, Agroindustrias Unidas de MexicoGeoff Watts, Intelligentsia Coffee Roasters

ACDI/VOCA

Guatemalan Coffees (Guatemalan National CoffeeAssociation – Anacafé)

Asociación de Cafes Especiales de Nicaragua

Centro Agronomico Tropical de Investigacion y Enseñanza

Chemonics

Consejo Salvadoreño del Café

Development Alternatives, Inc.

Dominican Specialty Coffee Association

Eastern African Fine Coffees Association

Federación Nacional de Cafeteros de Colombia

Instituto del Café de Costa Rica

Instituto Hondureño del Café

Michigan State University

National Coffee Association

Specialty Coffee Association of America

Specialty Coffee Association of Costa Rica

Specialty Coffee Association of Panama

TechnoServe

Dan Cox, Coffee Enterprises Inc., President and Owner

Ellen Jordan Reidy, America’s Food Technologies, Inc.,President and Founder

Harry Kangis, Millstone Coffee, Inc. (President, retired)

David Boyd, Boyd Coffee Company, Co-CEO and President

Douglas Carpenter, Ronnoco Coffee Co., consultant

Paul Fisher, Member, New York Board of Trade

Salim Janna, Exportadora de Café Condor S.A., Partner and President

Ted Lingle, Specialty Coffee Association of America, Executive Director

Juan Esteban Orduz, Colombian Coffee Federation, Inc., President

Eduardo Esteve, Agroindustrias Unidas de Mexico S.A., President

Herbert de Sola, Unex Guatemala S.A., President

John Stiles, Integrated Coffee Technologies, Inc., Chief Scientific Officer, Director

George Vukasin Sr., Peerless Coffee Co., President and Owner

BOARD OF TRUSTEES

Chairman

Vice Chair

Vice Chair

Secretary

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality InstituteCoffee Quality Institute

“The ICO values the unique role that the Coffee Quality Institute plays in bringing togetherproducing and consuming nations to address the challenges facing the coffee community.CQI’s approach to projects in coffee-producing countries demonstrates the true spirit ofcollaboration.” —Nestor Osorio, Executive Director, International Coffee Organization

Chuck Boerner andan Anacafé farmer

share views onorganic farming in

the field.

CQI programs receive significant funding from USAID. The U.S. Agency for International Development,www.usaid.gov, administers U.S. foreign assistance programs, providing economic and humanitarianassistance in more than 80 countries worldwide.

MISSION The Coffee Quality

Institute® is a nonprofit

organization working

internationally to improve

all aspects of the quality of

coffee and the lives of the

people who produce it.

Letter from the Chairman

We founded CQI in 1996 to improve the

quality of coffee through scientific study and

research. But just as we began our work, the

coffee industry experienced an international

crisis that included low prices and a lack of

high quality coffee available to the market.

Our mission evolved, and we developed programs that provide

direct technical support to growers and build a market

mechanism for trading quality coffees. CQI launched Coffee

Corps in 2003 and organized the Q Auctions in 2004. This

report describes these programs and thanks the contributors,

partners and volunteers who invested in our success.

Today, although coffee prices are improving, CQI’s work

remains critical. Coffee is the world’s number one agricultural

commodity, and worldwide provides the livelihood for more

than 25 million producers and their families and enhances the

lives of 800 million consumers.

I am privileged to lead CQI through this period of growth

and commitment, and to work with Board colleagues who

collectively have more than 400 years experience in the coffee

industry. We ask for your collaboration and support to achieve

our goals as we go forward.

Dan Cox, President and Owner, Coffee Enterprises Inc.

March 2005

coffee corps©

Coffee Corps® is a unique private-publicpartnership working worldwide to providebusiness-to-business technical assistance to small-to-medium coffee farmers and enterprises. Begunin response to the coffee crisis, Coffee Corpsresponds to requests from coffee-producingcountries by matching them with volunteers, whodonate their time to help growers improveproduction methods, quality control processes ormarketing. The program was established in January2003 and by the end of 2004 had received over 100 requests for assistance. Men and women from27 countries have volunteered to participate in the program.

As of the end of 2004 over 60 volunteerscompleted assignments in more than 20 countries,and thousands of individuals in producingcountries have benefited. CQI thanks and salutesall those industry experts and their companies, forso generously volunteering more than 9,000 hoursof their time to help growers in origin countriesimprove the quality of their coffee and their lives.The volunteers are listed here with the companythey worked for at the time of their Coffee Corpsassignment.

When Coffee Corps needed an expert to lead a seminaron organic production methods in Guatemala, we turnedto Chuck Boerner, a 35-year industry veteran who runs a

30-acre organic farm on Maui. After visiting farms toobserve current farming methods, he shared best

practices for organic farming and outlined ways to raisehigher quality coffees, which claim higher prices. Boerner

says his volunteer experience was “rewarding beyondexpectations” and is proud of the direct impact his

assignment had on more than 200 Guatemalan farmers.

improving coffeechanging lives

Our partnersThe power 0f collaboration multiplies the

impact made by CQI staff and Coffee Corpsvolunteers working in coffee-producing

countries. Our partners in 2004 included:

David Beeman, CIRQUA Customized WaterChuck Boerner, Coffee Farmer–HawaiiLindsey Bolger, Green Mountain Coffee RoastersWillem J. Boot, Boot Coffee Consulting & TrainingGuy Burdett, InterAmerican CoffeeEd Canty, Green Mountain Coffee RoastersKaren Cebreros, Elan Organic CoffeesDiana Uy Chan, Swiss Water Decaffeinated Coffee Co., Inc.Jim Cleaves, Sara Lee Coffee & TeaColleen Crosby, Santa Cruz Coffee Roasting CompanyGlenn de Gruy, New Orleans Coffee WorksJohn DiRuocco, Mr. EspressoLuke Dunnington, Development Alternatives, Inc.Roger Ethier, Engineers Without BordersLaura Evans, Independent ConsultantKaren Fazzio, Millstone Coffee (Retired)Jorge Gallegos, Central American Partners Cristina Garces, Café Montes y ColinasJim Gilson, Partners Coffee Company, Inc.Peter Giuliano, Counter Culture CoffeeSteve Gluck, Independent ConsultantJohn Gozbekian, Diedrich CoffeeDanny Gutierrez, Java CityChristina Guzman, TeacherBud Hensley, Global InsightsCraig Holt, Atlas Coffee ImportersDanny Johns, Whole Cup Coffee ConsultingSherri Johns, Whole Cup Coffee ConsultingPhyllis Johnson, BD Imports, Inc.Adam Kline, Elan Organic CoffeesRicardo Koyner, Coffee Farmer–PanamaDan Kuhn, Agricultural ConsultantEd Lane, GranCoffee Roasting Co.Gerry LaRue, Partners Coffee Company, Inc.Steve Leach, Diedrich CoffeeDavid Ledgard, Dawson Taylor Coffee RoastersOscar Conseco Magro, Sustainable HarvestJulio Martinez-Paz, Mitsubishi Corporation, GuatemalaTim McCormack, Independent ConsultantBrian McCoy, Independent ConsultantDaniel Mulu, Kraft Foods Europe, Ethiopia office (Workbek)Mauricio Murrilo, Mr. Coffees Dr. Bob Osgood, Director–Hawaii Agricultural Research Corp. (Retired)Francisco Osuna, Elan Organic CoffeesKen Palmer, BJ's Coffee Co.Kelly Peltier, Canopy Coffee ConsultingHeather Perry, Coffee KlatchRick Peyser, Green Mountain Coffee RoastersJim Pines, Organizational Effectiveness ConsultantEllen Jordan Reidy, America’s Food Technologies, Inc.Ric Rhinehart, Groundwork Coffee Co.Volker Sachs, Panamerican Coffee Trading Co. S.A.Ricardo Safie, UnitradeEduardo Sampaio, Independent ConsultantChris Sanders, Java CityPaul Songer, Songer & Associates, Inc.Shawn Steinman, Graduate Student–University of HawaiiBob Stephenson, Kavanaugh CoffeeJeremy Torz, Union Coffee RoastersTimothy Tulloch, European Roasterie, Inc.Spencer Turer, Independent ConsultantChris Von Zastrow, San Cristobal Coffee ImportersAquiles Villalobos, Agroindustrias Unidas de MexicoGeoff Watts, Intelligentsia Coffee Roasters

ACDI/VOCA

Guatemalan Coffees (Guatemalan National CoffeeAssociation – Anacafé)

Asociación de Cafes Especiales de Nicaragua

Centro Agronomico Tropical de Investigacion y Enseñanza

Chemonics

Consejo Salvadoreño del Café

Development Alternatives, Inc.

Dominican Specialty Coffee Association

Eastern African Fine Coffees Association

Federación Nacional de Cafeteros de Colombia

Instituto del Café de Costa Rica

Instituto Hondureño del Café

Michigan State University

National Coffee Association

Specialty Coffee Association of America

Specialty Coffee Association of Costa Rica

Specialty Coffee Association of Panama

TechnoServe

Dan Cox, Coffee Enterprises Inc., President and Owner

Ellen Jordan Reidy, America’s Food Technologies, Inc.,President and Founder

Harry Kangis, Millstone Coffee, Inc. (President, retired)

David Boyd, Boyd Coffee Company, Co-CEO and President

Douglas Carpenter, Ronnoco Coffee Co., consultant

Paul Fisher, Member, New York Board of Trade

Salim Janna, Exportadora de Café Condor S.A., Partner and President

Ted Lingle, Specialty Coffee Association of America, Executive Director

Juan Esteban Orduz, Colombian Coffee Federation, Inc., President

Eduardo Esteve, Agroindustrias Unidas de Mexico S.A., President

Herbert de Sola, Unex Guatemala S.A., President

John Stiles, Integrated Coffee Technologies, Inc., Chief Scientific Officer, Director

George Vukasin Sr., Peerless Coffee Co., President and Owner

BOARD OF TRUSTEES

Chairman

Vice Chair

Vice Chair

Secretary

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality InstituteCoffee Quality Institute

“The ICO values the unique role that the Coffee Quality Institute plays in bringing togetherproducing and consuming nations to address the challenges facing the coffee community.CQI’s approach to projects in coffee-producing countries demonstrates the true spirit ofcollaboration.” —Nestor Osorio, Executive Director, International Coffee Organization

Chuck Boerner andan Anacafé farmer

share views onorganic farming in

the field.

CQI programs receive significant funding from USAID. The U.S. Agency for International Development,www.usaid.gov, administers U.S. foreign assistance programs, providing economic and humanitarianassistance in more than 80 countries worldwide.

MISSION The Coffee Quality

Institute® is a nonprofit

organization working

internationally to improve

all aspects of the quality of

coffee and the lives of the

people who produce it.

Letter from the Chairman

We founded CQI in 1996 to improve the

quality of coffee through scientific study and

research. But just as we began our work, the

coffee industry experienced an international

crisis that included low prices and a lack of

high quality coffee available to the market.

Our mission evolved, and we developed programs that provide

direct technical support to growers and build a market

mechanism for trading quality coffees. CQI launched Coffee

Corps in 2003 and organized the Q Auctions in 2004. This

report describes these programs and thanks the contributors,

partners and volunteers who invested in our success.

Today, although coffee prices are improving, CQI’s work

remains critical. Coffee is the world’s number one agricultural

commodity, and worldwide provides the livelihood for more

than 25 million producers and their families and enhances the

lives of 800 million consumers.

I am privileged to lead CQI through this period of growth

and commitment, and to work with Board colleagues who

collectively have more than 400 years experience in the coffee

industry. We ask for your collaboration and support to achieve

our goals as we go forward.

Dan Cox, President and Owner, Coffee Enterprises Inc.

March 2005

coffee corps©

Coffee Corps® is a unique private-publicpartnership working worldwide to providebusiness-to-business technical assistance to small-to-medium coffee farmers and enterprises. Begunin response to the coffee crisis, Coffee Corpsresponds to requests from coffee-producingcountries by matching them with volunteers, whodonate their time to help growers improveproduction methods, quality control processes ormarketing. The program was established in January2003 and by the end of 2004 had received over 100 requests for assistance. Men and women from27 countries have volunteered to participate in the program.

As of the end of 2004 over 60 volunteerscompleted assignments in more than 20 countries,and thousands of individuals in producingcountries have benefited. CQI thanks and salutesall those industry experts and their companies, forso generously volunteering more than 9,000 hoursof their time to help growers in origin countriesimprove the quality of their coffee and their lives.The volunteers are listed here with the companythey worked for at the time of their Coffee Corpsassignment.

When Coffee Corps needed an expert to lead a seminaron organic production methods in Guatemala, we turnedto Chuck Boerner, a 35-year industry veteran who runs a

30-acre organic farm on Maui. After visiting farms toobserve current farming methods, he shared best

practices for organic farming and outlined ways to raisehigher quality coffees, which claim higher prices. Boerner

says his volunteer experience was “rewarding beyondexpectations” and is proud of the direct impact his

assignment had on more than 200 Guatemalan farmers.

improving coffeechanging lives

Our partnersThe power 0f collaboration multiplies the

impact made by CQI staff and Coffee Corpsvolunteers working in coffee-producing

countries. Our partners in 2004 included:

David Beeman, CIRQUA Customized WaterChuck Boerner, Coffee Farmer–HawaiiLindsey Bolger, Green Mountain Coffee RoastersWillem J. Boot, Boot Coffee Consulting & TrainingGuy Burdett, InterAmerican CoffeeEd Canty, Green Mountain Coffee RoastersKaren Cebreros, Elan Organic CoffeesDiana Uy Chan, Swiss Water Decaffeinated Coffee Co., Inc.Jim Cleaves, Sara Lee Coffee & TeaColleen Crosby, Santa Cruz Coffee Roasting CompanyGlenn de Gruy, New Orleans Coffee WorksJohn DiRuocco, Mr. EspressoLuke Dunnington, Development Alternatives, Inc.Roger Ethier, Engineers Without BordersLaura Evans, Independent ConsultantKaren Fazzio, Millstone Coffee (Retired)Jorge Gallegos, Central American Partners Cristina Garces, Café Montes y ColinasJim Gilson, Partners Coffee Company, Inc.Peter Giuliano, Counter Culture CoffeeSteve Gluck, Independent ConsultantJohn Gozbekian, Diedrich CoffeeDanny Gutierrez, Java CityChristina Guzman, TeacherBud Hensley, Global InsightsCraig Holt, Atlas Coffee ImportersDanny Johns, Whole Cup Coffee ConsultingSherri Johns, Whole Cup Coffee ConsultingPhyllis Johnson, BD Imports, Inc.Adam Kline, Elan Organic CoffeesRicardo Koyner, Coffee Farmer–PanamaDan Kuhn, Agricultural ConsultantEd Lane, GranCoffee Roasting Co.Gerry LaRue, Partners Coffee Company, Inc.Steve Leach, Diedrich CoffeeDavid Ledgard, Dawson Taylor Coffee RoastersOscar Conseco Magro, Sustainable HarvestJulio Martinez-Paz, Mitsubishi Corporation, GuatemalaTim McCormack, Independent ConsultantBrian McCoy, Independent ConsultantDaniel Mulu, Kraft Foods Europe, Ethiopia office (Workbek)Mauricio Murrilo, Mr. Coffees Dr. Bob Osgood, Director–Hawaii Agricultural Research Corp. (Retired)Francisco Osuna, Elan Organic CoffeesKen Palmer, BJ's Coffee Co.Kelly Peltier, Canopy Coffee ConsultingHeather Perry, Coffee KlatchRick Peyser, Green Mountain Coffee RoastersJim Pines, Organizational Effectiveness ConsultantEllen Jordan Reidy, America’s Food Technologies, Inc.Ric Rhinehart, Groundwork Coffee Co.Volker Sachs, Panamerican Coffee Trading Co. S.A.Ricardo Safie, UnitradeEduardo Sampaio, Independent ConsultantChris Sanders, Java CityPaul Songer, Songer & Associates, Inc.Shawn Steinman, Graduate Student–University of HawaiiBob Stephenson, Kavanaugh CoffeeJeremy Torz, Union Coffee RoastersTimothy Tulloch, European Roasterie, Inc.Spencer Turer, Independent ConsultantChris Von Zastrow, San Cristobal Coffee ImportersAquiles Villalobos, Agroindustrias Unidas de MexicoGeoff Watts, Intelligentsia Coffee Roasters

ACDI/VOCA

Guatemalan Coffees (Guatemalan National CoffeeAssociation – Anacafé)

Asociación de Cafes Especiales de Nicaragua

Centro Agronomico Tropical de Investigacion y Enseñanza

Chemonics

Consejo Salvadoreño del Café

Development Alternatives, Inc.

Dominican Specialty Coffee Association

Eastern African Fine Coffees Association

Federación Nacional de Cafeteros de Colombia

Instituto del Café de Costa Rica

Instituto Hondureño del Café

Michigan State University

National Coffee Association

Specialty Coffee Association of America

Specialty Coffee Association of Costa Rica

Specialty Coffee Association of Panama

TechnoServe

Dan Cox, Coffee Enterprises Inc., President and Owner

Ellen Jordan Reidy, America’s Food Technologies, Inc.,President and Founder

Harry Kangis, Millstone Coffee, Inc. (President, retired)

David Boyd, Boyd Coffee Company, Co-CEO and President

Douglas Carpenter, Ronnoco Coffee Co., consultant

Paul Fisher, Member, New York Board of Trade

Salim Janna, Exportadora de Café Condor S.A., Partner and President

Ted Lingle, Specialty Coffee Association of America, Executive Director

Juan Esteban Orduz, Colombian Coffee Federation, Inc., President

Eduardo Esteve, Agroindustrias Unidas de Mexico S.A., President

Herbert de Sola, Unex Guatemala S.A., President

John Stiles, Integrated Coffee Technologies, Inc., Chief Scientific Officer, Director

George Vukasin Sr., Peerless Coffee Co., President and Owner

BOARD OF TRUSTEES

Chairman

Vice Chair

Vice Chair

Secretary

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality InstituteCoffee Quality Institute

“The ICO values the unique role that the Coffee Quality Institute plays in bringing togetherproducing and consuming nations to address the challenges facing the coffee community.CQI’s approach to projects in coffee-producing countries demonstrates the true spirit ofcollaboration.” —Nestor Osorio, Executive Director, International Coffee Organization

Chuck Boerner andan Anacafé farmer

share views onorganic farming in

the field.

CQI programs receive significant funding from USAID. The U.S. Agency for International Development,www.usaid.gov, administers U.S. foreign assistance programs, providing economic and humanitarianassistance in more than 80 countries worldwide.

MISSION The Coffee Quality

Institute® is a nonprofit

organization working

internationally to improve

all aspects of the quality of

coffee and the lives of the

people who produce it.

Letter from the Chairman

We founded CQI in 1996 to improve the

quality of coffee through scientific study and

research. But just as we began our work, the

coffee industry experienced an international

crisis that included low prices and a lack of

high quality coffee available to the market.

Our mission evolved, and we developed programs that provide

direct technical support to growers and build a market

mechanism for trading quality coffees. CQI launched Coffee

Corps in 2003 and organized the Q Auctions in 2004. This

report describes these programs and thanks the contributors,

partners and volunteers who invested in our success.

Today, although coffee prices are improving, CQI’s work

remains critical. Coffee is the world’s number one agricultural

commodity, and worldwide provides the livelihood for more

than 25 million producers and their families and enhances the

lives of 800 million consumers.

I am privileged to lead CQI through this period of growth

and commitment, and to work with Board colleagues who

collectively have more than 400 years experience in the coffee

industry. We ask for your collaboration and support to achieve

our goals as we go forward.

Dan Cox, President and Owner, Coffee Enterprises Inc.

March 2005

coffee corps©

Coffee Corps® is a unique private-publicpartnership working worldwide to providebusiness-to-business technical assistance to small-to-medium coffee farmers and enterprises. Begunin response to the coffee crisis, Coffee Corpsresponds to requests from coffee-producingcountries by matching them with volunteers, whodonate their time to help growers improveproduction methods, quality control processes ormarketing. The program was established in January2003 and by the end of 2004 had received over 100 requests for assistance. Men and women from27 countries have volunteered to participate in the program.

As of the end of 2004 over 60 volunteerscompleted assignments in more than 20 countries,and thousands of individuals in producingcountries have benefited. CQI thanks and salutesall those industry experts and their companies, forso generously volunteering more than 9,000 hoursof their time to help growers in origin countriesimprove the quality of their coffee and their lives.The volunteers are listed here with the companythey worked for at the time of their Coffee Corpsassignment.

When Coffee Corps needed an expert to lead a seminaron organic production methods in Guatemala, we turnedto Chuck Boerner, a 35-year industry veteran who runs a

30-acre organic farm on Maui. After visiting farms toobserve current farming methods, he shared best

practices for organic farming and outlined ways to raisehigher quality coffees, which claim higher prices. Boerner

says his volunteer experience was “rewarding beyondexpectations” and is proud of the direct impact his

assignment had on more than 200 Guatemalan farmers.

improving coffeechanging lives

Our partnersThe power 0f collaboration multiplies the

impact made by CQI staff and Coffee Corpsvolunteers working in coffee-producing

countries. Our partners in 2004 included:

David Beeman, CIRQUA Customized WaterChuck Boerner, Coffee Farmer–HawaiiLindsey Bolger, Green Mountain Coffee RoastersWillem J. Boot, Boot Coffee Consulting & TrainingGuy Burdett, InterAmerican CoffeeEd Canty, Green Mountain Coffee RoastersKaren Cebreros, Elan Organic CoffeesDiana Uy Chan, Swiss Water Decaffeinated Coffee Co., Inc.Jim Cleaves, Sara Lee Coffee & TeaColleen Crosby, Santa Cruz Coffee Roasting CompanyGlenn de Gruy, New Orleans Coffee WorksJohn DiRuocco, Mr. EspressoLuke Dunnington, Development Alternatives, Inc.Roger Ethier, Engineers Without BordersLaura Evans, Independent ConsultantKaren Fazzio, Millstone Coffee (Retired)Jorge Gallegos, Central American Partners Cristina Garces, Café Montes y ColinasJim Gilson, Partners Coffee Company, Inc.Peter Giuliano, Counter Culture CoffeeSteve Gluck, Independent ConsultantJohn Gozbekian, Diedrich CoffeeDanny Gutierrez, Java CityChristina Guzman, TeacherBud Hensley, Global InsightsCraig Holt, Atlas Coffee ImportersDanny Johns, Whole Cup Coffee ConsultingSherri Johns, Whole Cup Coffee ConsultingPhyllis Johnson, BD Imports, Inc.Adam Kline, Elan Organic CoffeesRicardo Koyner, Coffee Farmer–PanamaDan Kuhn, Agricultural ConsultantEd Lane, GranCoffee Roasting Co.Gerry LaRue, Partners Coffee Company, Inc.Steve Leach, Diedrich CoffeeDavid Ledgard, Dawson Taylor Coffee RoastersOscar Conseco Magro, Sustainable HarvestJulio Martinez-Paz, Mitsubishi Corporation, GuatemalaTim McCormack, Independent ConsultantBrian McCoy, Independent ConsultantDaniel Mulu, Kraft Foods Europe, Ethiopia office (Workbek)Mauricio Murrilo, Mr. Coffees Dr. Bob Osgood, Director–Hawaii Agricultural Research Corp. (Retired)Francisco Osuna, Elan Organic CoffeesKen Palmer, BJ's Coffee Co.Kelly Peltier, Canopy Coffee ConsultingHeather Perry, Coffee KlatchRick Peyser, Green Mountain Coffee RoastersJim Pines, Organizational Effectiveness ConsultantEllen Jordan Reidy, America’s Food Technologies, Inc.Ric Rhinehart, Groundwork Coffee Co.Volker Sachs, Panamerican Coffee Trading Co. S.A.Ricardo Safie, UnitradeEduardo Sampaio, Independent ConsultantChris Sanders, Java CityPaul Songer, Songer & Associates, Inc.Shawn Steinman, Graduate Student–University of HawaiiBob Stephenson, Kavanaugh CoffeeJeremy Torz, Union Coffee RoastersTimothy Tulloch, European Roasterie, Inc.Spencer Turer, Independent ConsultantChris Von Zastrow, San Cristobal Coffee ImportersAquiles Villalobos, Agroindustrias Unidas de MexicoGeoff Watts, Intelligentsia Coffee Roasters

ACDI/VOCA

Guatemalan Coffees (Guatemalan National CoffeeAssociation – Anacafé)

Asociación de Cafes Especiales de Nicaragua

Centro Agronomico Tropical de Investigacion y Enseñanza

Chemonics

Consejo Salvadoreño del Café

Development Alternatives, Inc.

Dominican Specialty Coffee Association

Eastern African Fine Coffees Association

Federación Nacional de Cafeteros de Colombia

Instituto del Café de Costa Rica

Instituto Hondureño del Café

Michigan State University

National Coffee Association

Specialty Coffee Association of America

Specialty Coffee Association of Costa Rica

Specialty Coffee Association of Panama

TechnoServe

Dan Cox, Coffee Enterprises Inc., President and Owner

Ellen Jordan Reidy, America’s Food Technologies, Inc.,President and Founder

Harry Kangis, Millstone Coffee, Inc. (President, retired)

David Boyd, Boyd Coffee Company, Co-CEO and President

Douglas Carpenter, Ronnoco Coffee Co., consultant

Paul Fisher, Member, New York Board of Trade

Salim Janna, Exportadora de Café Condor S.A., Partner and President

Ted Lingle, Specialty Coffee Association of America, Executive Director

Juan Esteban Orduz, Colombian Coffee Federation, Inc., President

Eduardo Esteve, Agroindustrias Unidas de Mexico S.A., President

Herbert de Sola, Unex Guatemala S.A., President

John Stiles, Integrated Coffee Technologies, Inc., Chief Scientific Officer, Director

George Vukasin Sr., Peerless Coffee Co., President and Owner

BOARD OF TRUSTEES

Chairman

Vice Chair

Vice Chair

Secretary

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality Institute 330 Golden Shore, Suite 50, Long Beach CA 90802

www.coffeeinstitute.org

CQI thanks Boyd Coffee Company for sponsoring our first annual report.Boyd Coffee Company is a purveyor of fine coffee and tea and related products.

www.boyds.com

Coffee Quality InstituteCoffee Quality Institute

“The ICO values the unique role that the Coffee Quality Institute plays in bringing togetherproducing and consuming nations to address the challenges facing the coffee community.CQI’s approach to projects in coffee-producing countries demonstrates the true spirit ofcollaboration.” —Nestor Osorio, Executive Director, International Coffee Organization

Chuck Boerner andan Anacafé farmer

share views onorganic farming in

the field.

CQI programs receive significant funding from USAID. The U.S. Agency for International Development,www.usaid.gov, administers U.S. foreign assistance programs, providing economic and humanitarianassistance in more than 80 countries worldwide.

United StatesColombia

PeruVenezuela

Papua New GuineaPhilippines

Costa RicaDominican Republic

El SalvadorGuatemalaHonduras

MexicoNicaragua

Panama

CameroonEthiopia

KenyaRwandaTanzaniaUgandaZambia

Madagascar

Our supportersA special thank you to our 2004 Luncheon sponsors:

GOLD Specialty Coffee Association of Japan/UCC Ueshima Coffee Co., Ltd.

SILVER Wilbur Curtis Company

BRONZE America’s Food Technologies, Inc.Coffee & Cocoa InternationalCoffee Enterprises Inc.Da Vinci Gourmet, Ltd. Fres-Co System USA, Inc. New York Board of Trade Procter & Gamble Starbucks Coffee Company

CQI salutes our founding contributorsCQI salutes our founding contributors, whose belief in the mission of the Specialty CoffeeInstitute (CQI’s original name) made the dream a reality.

Benefactors $75,000 and up

Supporters $15,000–$74,999America’s Food Technologies, Inc. • Guatemalan Coffees – Anacafé • Coffee Enterprises Inc. •Community Coffee • Green Mountain Coffee Roasters • Peerless Coffee Company • Peet’s Coffee and Tea, Inc. • Solberg & Hansen A/S • Specialty Coffee Association of America • Specialty Coffee Association of Japan • Wilbur Curtis Company

Auctions and the QThe Q Auction is a C-market alternative that guarantees quality throughindustry-accepted cupping procedures, verified by Q-Graders. It is thefirst Internet auction designed for the transaction of full-containerloads of specialty coffee.

In 2004 Q Auctions facilitated the sale of 24 container loads of qualitycoffee to buyers throughout the U.S. and Japan. The average sale pricewas approximately 50% above current C-market prices.

As part of the Q program, 2% of auction revenues are reinvested incommunity development projects. In 2004, these funds helped seniorcitizens in Costa Rica to build a new home, and working with CARENicaragua, helped landslide victims install potable water supplies.

Colombia programCQI’s Colombia program provides cupping training to Colombiancoffee professionals as part of a larger initiative to improve qualitycontrol capabilities at origin. In 2004 CQI trained 38 Colombians,who trained 61 more cuppers who then trained 461 small growers inColombia. We helped place Colombian cuppers in U.S. coffee labs forintensive internships, and developed a cupping manual designedspecifically for Colombian farmers, edited by Dr. Edgar Moreno,quality office director of the Colombian Coffee Federation.

Patrons $5,000–$14,999Alpen Sierra Coffee, Inc.

Aplica Consumer Products

Barnie’s Coffee & Tea Co., Inc.

Batdorf & Bronson Roasters

Berardi’s Fresh Roast

Brazil Specialty Coffee Assn.

Bucks County Coffee Co.

Bunn-O-Matic Corporation

Cadillac Coffee Company

Coffee & Cocoa International

Coffee Express Co.

Cooperativa Reg. de Cafeicultores

Costa Rican Coffee Institute

Daterra Atividades Rurais Ltda.

Deli Café

Deschis USA Corp.

Diedrich Coffee Roasters

Ditting USA

Ellis Coffee Company

Exportadora de Café Condor

Espresso Specialists

Fres-co System USA, Inc.

F. Gaviña & Sons, Inc.

Grindmaster

Hasfarm

Heritage Coffee Company

Illy Espresso of the Americas

InterAmerican Commodities

Keurig, Inc.

La Lucie Coffee Estates

List & Beisler

Moledina Commodities

New York Board of Trade

Paragon Coffee Trading Co.

Paul deLima Co., Inc.

Probat, Inc.

Procter & Gamble

Ronnoco Coffee Company

Rothfos Corporation

Royal Cup, Inc.

Scolari Engineering s.r.l.

Silocaf of New Orleans

Solo Cup Company

Starbucks Coffee Company

Sterns & Lehman, Inc.

Sugar Foods Corp.

Superior Coffee & Foods

Teichner Gourmet Coffee

Texpak, Inc.

UCC Ueshima Coffee Co.

Cornerstone Sustainers $1,000–$4,999Lucille Adelson

Alterra Coffee Roasters

American Coffee Corporation

Armenia Coffee Corp/Silver Spoon Gourmet

Atlantic Specialty

Bravilor Bonamat BV

Camara Peruana de Café

Douglas B. Carpenter

W.R. Carpenter & Co. Estates

Coffee Bean International

Coffee Board of Kenya

Coffee Fest

Coffee Holding Co., Inc.

Coffee Masters

Continental Coffee Products

Cotesco Plantations Guatemala

N.J. Douek & Sons, Inc. East India Tea & Coffee

EF Food Systems

Ethiopian Coffee Exporters

Excorp SA Guatemala

Faema Corporation

Flavor Dynamics, Inc.

Franja-Proizvodnja I Trgovina

John Gant

Gillies Coffee Company

The Gourmet Retailer Magazine

Hacienda La Esmeralda

Hudson Valley Coffee Roasters

International Coffee Organization

JBS & Associates

JBR/Fairwinds—Jon Rogers

Philip B. Jones

Kimo Bean Coffee Company

Trygve Klingenberg

Ted R. Lingle

Mr. Espresso

PTP Commodities

Rafael Espinose Hnos. Y Cia.

Raven’s Brew Coffee, Inc.

The Roasterie, Inc.

Royal Coffee New York, Inc.

Russell Furs—Stuart Adelson

JoAnne Shaw

Julius Shaw

Star Mountain Coffee

Susan’s Coffee & Tea

Suzanne J. Brown Associates

Thanksgiving Coffee Company

Torani Syrups

Uganda Coffee Dev. Authority

The Village Coffee Roaster

Coffee Quality Institute Financial Highlights

2004 2003

Support and revenues

In-kind and volunteer contributions $ 1,047,387 $ 276,258

Other contributions, grants, & support 1,769,479 842,727

Other income 814 62,972

Total support and revenues 2,817,680 1,181,957

Expenses

Program and project expenses 2,483,425 773,132

Administrative and general expenses 272,569 296,656

Total expenses 2,755,994 1,069,788

Summary of net assets

Net assets, beginning 252,575 140,406

Net assets, ending 314,261 252,575

Increase in net assets $ 61,686 $ 112,169

Portion of every dollar in support and

revenues directly supporting programs $ 0.88 $ 0.65

T H E V A L U E C H A I N » F I E L D » P L A N T » C H E R R Y » P I C K I N G » S O R T I N G » D R Y I N G » R O A S T I N G » C U P P I N G » C O N S U M I N G

Assets and liabilities

2004 AUCTIONS

Costa Rica April 14

Guatemala July 13

Nicaragua May 4

El Salvador May 18

2004 Q AUCTION BUYERS

Atlantic Specialty

Boyd Coffee Company

Café Capris, Costa Rica (VOLCAFE)

Café Imports

Caravan Coffee

Caribou Coffee

Green Mountain Coffee Roasters

Kato Coffee

Mr. Espresso

Royal Coffee

Ishimitsu & Co.

The Coffee Source

UCC Ueshima Coffee Company

VOLCAFE Specialty Coffee

Wataru & Co.

C Q I W O R K S W O R L DW I D E T O I M P R O V E T H E Q U A L I T Y O F C O F F E E A N D T H E L I V E S O F P R O D U C E R S .

collaboration

consistency

traceability

transparency

At the April 2004 luncheon, CQIhonored the three individuals whohad contributed the most to CoffeeCorps: each logged more than 300volunteer hours in 2004.

TOP Karen Fazzio is a retired mastercupper with over thirty years experiencein the coffee business

MIDDLE Willem Boot is president of BootCoffee Consulting & Training in MillValley, California, and an inveteratevolunteer.

BOTTOM Francisco Osuna, a native ofChiapas, Mexico, is an agronomist who isdedicated to organic coffee farming.

CQI STAFF

Margaret SwallowExecutive Director

Christine Franquemont Director of Philanthropy & Strategic Alliances

Gerry LaRue CADR Director of Operations

David RocheChief Technical Director

Gerardo Leon-YorkCADR Program Manager

Stuart AdelsonBusiness Affairs Director/Legal Counsel

Tracy GingDirector of Marketing & Communications

Michael PomerleauDirector of Finance & Accounting

Silvia Zelaya de GuerreroCADR Deputy Manager

Countries of operation

All CQI programs focus on quality. We believe that quality is the most important variable affecting the price of coffee and the livelihoods sustained by that price. We work from seed to cup, from quality separation at the mill level and right up through the steaming cup enjoyed by each consumer.

Gerry LaRue and Ricardo Quiñones in El Salvador.

“The most effective way to improve the coffee industry is to work together as agroup to initiate positive change. The best example of this is the Coffee QualityInstitute.” —Bob Stiller, CEO, Green Mountain Coffee Roasters

“When we in Guatemala asked for CQI help, CQI sent excellent volunteer experts andestablished Q auctions as a market alternative. We have benefited more than we ever imaginedfrom that response—thank you, CQI.” —José Ángel López, President, Guatemalan Coffees – ANACAFÉ

In addition to our core programs,we continue to explore ways toenhance coffee quality and benefit the lives of growers. Other initiatives include programsbringing leadership opportunities to women in the coffee industryand exploring new genomictechnology for improving coffeeplant breeding techniques.

“The Q Coffee Auction represents a great opportunity for coffee farmers and purveyorsalike. Q Coffees provide lucrative market access to smaller farmers who may otherwisestruggle to find it, while giving companies like ours another reliable venue to sourcetop quality coffee.” —David Boyd, Co-CEO & President, Boyd Coffee Company

© 2005 Coffee Quality InstituteDesign: Jeanne Criscola/Criscola DesignCover Photo: Coffee Farm in Costa Rica

United StatesColombia

PeruVenezuela

Papua New GuineaPhilippines

Costa RicaDominican Republic

El SalvadorGuatemalaHonduras

MexicoNicaragua

Panama

CameroonEthiopia

KenyaRwandaTanzaniaUgandaZambia

Madagascar

Our supportersA special thank you to our 2004 Luncheon sponsors:

GOLD Specialty Coffee Association of Japan/UCC Ueshima Coffee Co., Ltd.

SILVER Wilbur Curtis Company

BRONZE America’s Food Technologies, Inc.Coffee & Cocoa InternationalCoffee Enterprises Inc.Da Vinci Gourmet, Ltd. Fres-Co System USA, Inc. New York Board of Trade Procter & Gamble Starbucks Coffee Company

CQI salutes our founding contributorsCQI salutes our founding contributors, whose belief in the mission of the Specialty CoffeeInstitute (CQI’s original name) made the dream a reality.

Benefactors $75,000 and up

Supporters $15,000–$74,999America’s Food Technologies, Inc. • Guatemalan Coffees – Anacafé • Coffee Enterprises Inc. •Community Coffee • Green Mountain Coffee Roasters • Peerless Coffee Company • Peet’s Coffee and Tea, Inc. • Solberg & Hansen A/S • Specialty Coffee Association of America • Specialty Coffee Association of Japan • Wilbur Curtis Company

Auctions and the QThe Q Auction is a C-market alternative that guarantees quality throughindustry-accepted cupping procedures, verified by Q-Graders. It is thefirst Internet auction designed for the transaction of full-containerloads of specialty coffee.

In 2004 Q Auctions facilitated the sale of 24 container loads of qualitycoffee to buyers throughout the U.S. and Japan. The average sale pricewas approximately 50% above current C-market prices.

As part of the Q program, 2% of auction revenues are reinvested incommunity development projects. In 2004, these funds helped seniorcitizens in Costa Rica to build a new home, and working with CARENicaragua, helped landslide victims install potable water supplies.

Colombia programCQI’s Colombia program provides cupping training to Colombiancoffee professionals as part of a larger initiative to improve qualitycontrol capabilities at origin. In 2004 CQI trained 38 Colombians,who trained 61 more cuppers who then trained 461 small growers inColombia. We helped place Colombian cuppers in U.S. coffee labs forintensive internships, and developed a cupping manual designedspecifically for Colombian farmers, edited by Dr. Edgar Moreno,quality office director of the Colombian Coffee Federation.

Patrons $5,000–$14,999Alpen Sierra Coffee, Inc.

Aplica Consumer Products

Barnie’s Coffee & Tea Co., Inc.

Batdorf & Bronson Roasters

Berardi’s Fresh Roast

Brazil Specialty Coffee Assn.

Bucks County Coffee Co.

Bunn-O-Matic Corporation

Cadillac Coffee Company

Coffee & Cocoa International

Coffee Express Co.

Cooperativa Reg. de Cafeicultores

Costa Rican Coffee Institute

Daterra Atividades Rurais Ltda.

Deli Café

Deschis USA Corp.

Diedrich Coffee Roasters

Ditting USA

Ellis Coffee Company

Exportadora de Café Condor

Espresso Specialists

Fres-co System USA, Inc.

F. Gaviña & Sons, Inc.

Grindmaster

Hasfarm

Heritage Coffee Company

Illy Espresso of the Americas

InterAmerican Commodities

Keurig, Inc.

La Lucie Coffee Estates

List & Beisler

Moledina Commodities

New York Board of Trade

Paragon Coffee Trading Co.

Paul deLima Co., Inc.

Probat, Inc.

Procter & Gamble

Ronnoco Coffee Company

Rothfos Corporation

Royal Cup, Inc.

Scolari Engineering s.r.l.

Silocaf of New Orleans

Solo Cup Company

Starbucks Coffee Company

Sterns & Lehman, Inc.

Sugar Foods Corp.

Superior Coffee & Foods

Teichner Gourmet Coffee

Texpak, Inc.

UCC Ueshima Coffee Co.

Cornerstone Sustainers $1,000–$4,999Lucille Adelson

Alterra Coffee Roasters

American Coffee Corporation

Armenia Coffee Corp/Silver Spoon Gourmet

Atlantic Specialty

Bravilor Bonamat BV

Camara Peruana de Café

Douglas B. Carpenter

W.R. Carpenter & Co. Estates

Coffee Bean International

Coffee Board of Kenya

Coffee Fest

Coffee Holding Co., Inc.

Coffee Masters

Continental Coffee Products

Cotesco Plantations Guatemala

N.J. Douek & Sons, Inc. East India Tea & Coffee

EF Food Systems

Ethiopian Coffee Exporters

Excorp SA Guatemala

Faema Corporation

Flavor Dynamics, Inc.

Franja-Proizvodnja I Trgovina

John Gant

Gillies Coffee Company

The Gourmet Retailer Magazine

Hacienda La Esmeralda

Hudson Valley Coffee Roasters

International Coffee Organization

JBS & Associates

JBR/Fairwinds—Jon Rogers

Philip B. Jones

Kimo Bean Coffee Company

Trygve Klingenberg

Ted R. Lingle

Mr. Espresso

PTP Commodities

Rafael Espinose Hnos. Y Cia.

Raven’s Brew Coffee, Inc.

The Roasterie, Inc.

Royal Coffee New York, Inc.

Russell Furs—Stuart Adelson

JoAnne Shaw

Julius Shaw

Star Mountain Coffee

Susan’s Coffee & Tea

Suzanne J. Brown Associates

Thanksgiving Coffee Company

Torani Syrups

Uganda Coffee Dev. Authority

The Village Coffee Roaster

Coffee Quality Institute Financial Highlights

2004 2003

Support and revenues

In-kind and volunteer contributions $ 1,047,387 $ 276,258

Other contributions, grants, & support 1,769,479 842,727

Other income 814 62,972

Total support and revenues 2,817,680 1,181,957

Expenses

Program and project expenses 2,483,425 773,132

Administrative and general expenses 272,569 296,656

Total expenses 2,755,994 1,069,788

Summary of net assets

Net assets, beginning 252,575 140,406

Net assets, ending 314,261 252,575

Increase in net assets $ 61,686 $ 112,169

Portion of every dollar in support and

revenues directly supporting programs $ 0.88 $ 0.65

T H E V A L U E C H A I N » F I E L D » P L A N T » C H E R R Y » P I C K I N G » S O R T I N G » D R Y I N G » R O A S T I N G » C U P P I N G » C O N S U M I N G

Assets and liabilities

2004 AUCTIONS

Costa Rica April 14

Guatemala July 13

Nicaragua May 4

El Salvador May 18

2004 Q AUCTION BUYERS

Atlantic Specialty

Boyd Coffee Company

Café Capris, Costa Rica (VOLCAFE)

Café Imports

Caravan Coffee

Caribou Coffee

Green Mountain Coffee Roasters

Kato Coffee

Mr. Espresso

Royal Coffee

Ishimitsu & Co.

The Coffee Source

UCC Ueshima Coffee Company

VOLCAFE Specialty Coffee

Wataru & Co.

C Q I W O R K S W O R L DW I D E T O I M P R O V E T H E Q U A L I T Y O F C O F F E E A N D T H E L I V E S O F P R O D U C E R S .

collaboration

consistency

traceability

transparency

At the April 2004 luncheon, CQIhonored the three individuals whohad contributed the most to CoffeeCorps: each logged more than 300volunteer hours in 2004.

TOP Karen Fazzio is a retired mastercupper with over thirty years experiencein the coffee business

MIDDLE Willem Boot is president of BootCoffee Consulting & Training in MillValley, California, and an inveteratevolunteer.

BOTTOM Francisco Osuna, a native ofChiapas, Mexico, is an agronomist who isdedicated to organic coffee farming.

CQI STAFF

Margaret SwallowExecutive Director

Christine Franquemont Director of Philanthropy & Strategic Alliances

Gerry LaRue CADR Director of Operations

David RocheChief Technical Director

Gerardo Leon-YorkCADR Program Manager

Stuart AdelsonBusiness Affairs Director/Legal Counsel

Tracy GingDirector of Marketing & Communications

Michael PomerleauDirector of Finance & Accounting

Silvia Zelaya de GuerreroCADR Deputy Manager

Countries of operation

All CQI programs focus on quality. We believe that quality is the most important variable affecting the price of coffee and the livelihoods sustained by that price. We work from seed to cup, from quality separation at the mill level and right up through the steaming cup enjoyed by each consumer.

Gerry LaRue and Ricardo Quiñones in El Salvador.

“The most effective way to improve the coffee industry is to work together as agroup to initiate positive change. The best example of this is the Coffee QualityInstitute.” —Bob Stiller, CEO, Green Mountain Coffee Roasters

“When we in Guatemala asked for CQI help, CQI sent excellent volunteer experts andestablished Q auctions as a market alternative. We have benefited more than we ever imaginedfrom that response—thank you, CQI.” —José Ángel López, President, Guatemalan Coffees – ANACAFÉ

In addition to our core programs,we continue to explore ways toenhance coffee quality and benefit the lives of growers. Other initiatives include programsbringing leadership opportunities to women in the coffee industryand exploring new genomictechnology for improving coffeeplant breeding techniques.

“The Q Coffee Auction represents a great opportunity for coffee farmers and purveyorsalike. Q Coffees provide lucrative market access to smaller farmers who may otherwisestruggle to find it, while giving companies like ours another reliable venue to sourcetop quality coffee.” —David Boyd, Co-CEO & President, Boyd Coffee Company

© 2005 Coffee Quality InstituteDesign: Jeanne Criscola/Criscola DesignCover Photo: Coffee Farm in Costa Rica

United StatesColombia

PeruVenezuela

Papua New GuineaPhilippines

Costa RicaDominican Republic

El SalvadorGuatemalaHonduras

MexicoNicaragua

Panama

CameroonEthiopia

KenyaRwandaTanzaniaUgandaZambia

Madagascar

Our supportersA special thank you to our 2004 Luncheon sponsors:

GOLD Specialty Coffee Association of Japan/UCC Ueshima Coffee Co., Ltd.

SILVER Wilbur Curtis Company

BRONZE America’s Food Technologies, Inc.Coffee & Cocoa InternationalCoffee Enterprises Inc.Da Vinci Gourmet, Ltd. Fres-Co System USA, Inc. New York Board of Trade Procter & Gamble Starbucks Coffee Company

CQI salutes our founding contributorsCQI salutes our founding contributors, whose belief in the mission of the Specialty CoffeeInstitute (CQI’s original name) made the dream a reality.

Benefactors $75,000 and up

Supporters $15,000–$74,999America’s Food Technologies, Inc. • Guatemalan Coffees – Anacafé • Coffee Enterprises Inc. •Community Coffee • Green Mountain Coffee Roasters • Peerless Coffee Company • Peet’s Coffee and Tea, Inc. • Solberg & Hansen A/S • Specialty Coffee Association of America • Specialty Coffee Association of Japan • Wilbur Curtis Company

Auctions and the QThe Q Auction is a C-market alternative that guarantees quality throughindustry-accepted cupping procedures, verified by Q-Graders. It is thefirst Internet auction designed for the transaction of full-containerloads of specialty coffee.

In 2004 Q Auctions facilitated the sale of 24 container loads of qualitycoffee to buyers throughout the U.S. and Japan. The average sale pricewas approximately 50% above current C-market prices.

As part of the Q program, 2% of auction revenues are reinvested incommunity development projects. In 2004, these funds helped seniorcitizens in Costa Rica to build a new home, and working with CARENicaragua, helped landslide victims install potable water supplies.

Colombia programCQI’s Colombia program provides cupping training to Colombiancoffee professionals as part of a larger initiative to improve qualitycontrol capabilities at origin. In 2004 CQI trained 38 Colombians,who trained 61 more cuppers who then trained 461 small growers inColombia. We helped place Colombian cuppers in U.S. coffee labs forintensive internships, and developed a cupping manual designedspecifically for Colombian farmers, edited by Dr. Edgar Moreno,quality office director of the Colombian Coffee Federation.

Patrons $5,000–$14,999Alpen Sierra Coffee, Inc.

Aplica Consumer Products

Barnie’s Coffee & Tea Co., Inc.

Batdorf & Bronson Roasters

Berardi’s Fresh Roast

Brazil Specialty Coffee Assn.

Bucks County Coffee Co.

Bunn-O-Matic Corporation

Cadillac Coffee Company

Coffee & Cocoa International

Coffee Express Co.

Cooperativa Reg. de Cafeicultores

Costa Rican Coffee Institute

Daterra Atividades Rurais Ltda.

Deli Café

Deschis USA Corp.

Diedrich Coffee Roasters

Ditting USA

Ellis Coffee Company

Exportadora de Café Condor

Espresso Specialists

Fres-co System USA, Inc.

F. Gaviña & Sons, Inc.

Grindmaster

Hasfarm

Heritage Coffee Company

Illy Espresso of the Americas

InterAmerican Commodities

Keurig, Inc.

La Lucie Coffee Estates

List & Beisler

Moledina Commodities

New York Board of Trade

Paragon Coffee Trading Co.

Paul deLima Co., Inc.

Probat, Inc.

Procter & Gamble

Ronnoco Coffee Company

Rothfos Corporation

Royal Cup, Inc.

Scolari Engineering s.r.l.

Silocaf of New Orleans

Solo Cup Company

Starbucks Coffee Company

Sterns & Lehman, Inc.

Sugar Foods Corp.

Superior Coffee & Foods

Teichner Gourmet Coffee

Texpak, Inc.

UCC Ueshima Coffee Co.

Cornerstone Sustainers $1,000–$4,999Lucille Adelson

Alterra Coffee Roasters

American Coffee Corporation

Armenia Coffee Corp/Silver Spoon Gourmet

Atlantic Specialty

Bravilor Bonamat BV

Camara Peruana de Café

Douglas B. Carpenter

W.R. Carpenter & Co. Estates

Coffee Bean International

Coffee Board of Kenya

Coffee Fest

Coffee Holding Co., Inc.

Coffee Masters

Continental Coffee Products

Cotesco Plantations Guatemala

N.J. Douek & Sons, Inc. East India Tea & Coffee

EF Food Systems

Ethiopian Coffee Exporters

Excorp SA Guatemala

Faema Corporation

Flavor Dynamics, Inc.

Franja-Proizvodnja I Trgovina

John Gant

Gillies Coffee Company

The Gourmet Retailer Magazine

Hacienda La Esmeralda

Hudson Valley Coffee Roasters

International Coffee Organization

JBS & Associates

JBR/Fairwinds—Jon Rogers

Philip B. Jones

Kimo Bean Coffee Company

Trygve Klingenberg

Ted R. Lingle

Mr. Espresso

PTP Commodities

Rafael Espinose Hnos. Y Cia.

Raven’s Brew Coffee, Inc.

The Roasterie, Inc.

Royal Coffee New York, Inc.

Russell Furs—Stuart Adelson

JoAnne Shaw

Julius Shaw

Star Mountain Coffee

Susan’s Coffee & Tea

Suzanne J. Brown Associates

Thanksgiving Coffee Company

Torani Syrups

Uganda Coffee Dev. Authority

The Village Coffee Roaster

Coffee Quality Institute Financial Highlights

2004 2003

Support and revenues

In-kind and volunteer contributions $ 1,047,387 $ 276,258

Other contributions, grants, & support 1,769,479 842,727

Other income 814 62,972

Total support and revenues 2,817,680 1,181,957

Expenses

Program and project expenses 2,483,425 773,132

Administrative and general expenses 272,569 296,656

Total expenses 2,755,994 1,069,788

Summary of net assets

Net assets, beginning 252,575 140,406

Net assets, ending 314,261 252,575

Increase in net assets $ 61,686 $ 112,169

Portion of every dollar in support and

revenues directly supporting programs $ 0.88 $ 0.65

T H E V A L U E C H A I N » F I E L D » P L A N T » C H E R R Y » P I C K I N G » S O R T I N G » D R Y I N G » R O A S T I N G » C U P P I N G » C O N S U M I N G

Assets and liabilities

2004 AUCTIONS

Costa Rica April 14

Guatemala July 13

Nicaragua May 4

El Salvador May 18

2004 Q AUCTION BUYERS

Atlantic Specialty

Boyd Coffee Company

Café Capris, Costa Rica (VOLCAFE)

Café Imports

Caravan Coffee

Caribou Coffee

Green Mountain Coffee Roasters

Kato Coffee

Mr. Espresso

Royal Coffee

Ishimitsu & Co.

The Coffee Source

UCC Ueshima Coffee Company

VOLCAFE Specialty Coffee

Wataru & Co.

C Q I W O R K S W O R L DW I D E T O I M P R O V E T H E Q U A L I T Y O F C O F F E E A N D T H E L I V E S O F P R O D U C E R S .

collaboration

consistency

traceability

transparency

At the April 2004 luncheon, CQIhonored the three individuals whohad contributed the most to CoffeeCorps: each logged more than 300volunteer hours in 2004.

TOP Karen Fazzio is a retired mastercupper with over thirty years experiencein the coffee business

MIDDLE Willem Boot is president of BootCoffee Consulting & Training in MillValley, California, and an inveteratevolunteer.

BOTTOM Francisco Osuna, a native ofChiapas, Mexico, is an agronomist who isdedicated to organic coffee farming.

CQI STAFF

Margaret SwallowExecutive Director

Christine Franquemont Director of Philanthropy & Strategic Alliances

Gerry LaRue CADR Director of Operations

David RocheChief Technical Director

Gerardo Leon-YorkCADR Program Manager

Stuart AdelsonBusiness Affairs Director/Legal Counsel

Tracy GingDirector of Marketing & Communications

Michael PomerleauDirector of Finance & Accounting

Silvia Zelaya de GuerreroCADR Deputy Manager

Countries of operation

All CQI programs focus on quality. We believe that quality is the most important variable affecting the price of coffee and the livelihoods sustained by that price. We work from seed to cup, from quality separation at the mill level and right up through the steaming cup enjoyed by each consumer.

Gerry LaRue and Ricardo Quiñones in El Salvador.

“The most effective way to improve the coffee industry is to work together as agroup to initiate positive change. The best example of this is the Coffee QualityInstitute.” —Bob Stiller, CEO, Green Mountain Coffee Roasters

“When we in Guatemala asked for CQI help, CQI sent excellent volunteer experts andestablished Q auctions as a market alternative. We have benefited more than we ever imaginedfrom that response—thank you, CQI.” —José Ángel López, President, Guatemalan Coffees – ANACAFÉ

In addition to our core programs,we continue to explore ways toenhance coffee quality and benefit the lives of growers. Other initiatives include programsbringing leadership opportunities to women in the coffee industryand exploring new genomictechnology for improving coffeeplant breeding techniques.

“The Q Coffee Auction represents a great opportunity for coffee farmers and purveyorsalike. Q Coffees provide lucrative market access to smaller farmers who may otherwisestruggle to find it, while giving companies like ours another reliable venue to sourcetop quality coffee.” —David Boyd, Co-CEO & President, Boyd Coffee Company

© 2005 Coffee Quality InstituteDesign: Jeanne Criscola/Criscola DesignCover Photo: Coffee Farm in Costa Rica

United StatesColombia

PeruVenezuela

Papua New GuineaPhilippines

Costa RicaDominican Republic

El SalvadorGuatemalaHonduras

MexicoNicaragua

Panama

CameroonEthiopia

KenyaRwandaTanzaniaUgandaZambia

Madagascar

Our supportersA special thank you to our 2004 Luncheon sponsors:

GOLD Specialty Coffee Association of Japan/UCC Ueshima Coffee Co., Ltd.

SILVER Wilbur Curtis Company

BRONZE America’s Food Technologies, Inc.Coffee & Cocoa InternationalCoffee Enterprises Inc.Da Vinci Gourmet, Ltd. Fres-Co System USA, Inc. New York Board of Trade Procter & Gamble Starbucks Coffee Company

CQI salutes our founding contributorsCQI salutes our founding contributors, whose belief in the mission of the Specialty CoffeeInstitute (CQI’s original name) made the dream a reality.

Benefactors $75,000 and up

Supporters $15,000–$74,999America’s Food Technologies, Inc. • Guatemalan Coffees – Anacafé • Coffee Enterprises Inc. •Community Coffee • Green Mountain Coffee Roasters • Peerless Coffee Company • Peet’s Coffee and Tea, Inc. • Solberg & Hansen A/S • Specialty Coffee Association of America • Specialty Coffee Association of Japan • Wilbur Curtis Company

Auctions and the QThe Q Auction is a C-market alternative that guarantees quality throughindustry-accepted cupping procedures, verified by Q-Graders. It is thefirst Internet auction designed for the transaction of full-containerloads of specialty coffee.

In 2004 Q Auctions facilitated the sale of 24 container loads of qualitycoffee to buyers throughout the U.S. and Japan. The average sale pricewas approximately 50% above current C-market prices.

As part of the Q program, 2% of auction revenues are reinvested incommunity development projects. In 2004, these funds helped seniorcitizens in Costa Rica to build a new home, and working with CARENicaragua, helped landslide victims install potable water supplies.

Colombia programCQI’s Colombia program provides cupping training to Colombiancoffee professionals as part of a larger initiative to improve qualitycontrol capabilities at origin. In 2004 CQI trained 38 Colombians,who trained 61 more cuppers who then trained 461 small growers inColombia. We helped place Colombian cuppers in U.S. coffee labs forintensive internships, and developed a cupping manual designedspecifically for Colombian farmers, edited by Dr. Edgar Moreno,quality office director of the Colombian Coffee Federation.

Patrons $5,000–$14,999Alpen Sierra Coffee, Inc.

Aplica Consumer Products

Barnie’s Coffee & Tea Co., Inc.

Batdorf & Bronson Roasters

Berardi’s Fresh Roast

Brazil Specialty Coffee Assn.

Bucks County Coffee Co.

Bunn-O-Matic Corporation

Cadillac Coffee Company

Coffee & Cocoa International

Coffee Express Co.

Cooperativa Reg. de Cafeicultores

Costa Rican Coffee Institute

Daterra Atividades Rurais Ltda.

Deli Café

Deschis USA Corp.

Diedrich Coffee Roasters

Ditting USA

Ellis Coffee Company

Exportadora de Café Condor

Espresso Specialists

Fres-co System USA, Inc.

F. Gaviña & Sons, Inc.

Grindmaster

Hasfarm

Heritage Coffee Company

Illy Espresso of the Americas

InterAmerican Commodities

Keurig, Inc.

La Lucie Coffee Estates

List & Beisler

Moledina Commodities

New York Board of Trade

Paragon Coffee Trading Co.

Paul deLima Co., Inc.

Probat, Inc.

Procter & Gamble

Ronnoco Coffee Company

Rothfos Corporation

Royal Cup, Inc.

Scolari Engineering s.r.l.

Silocaf of New Orleans

Solo Cup Company

Starbucks Coffee Company

Sterns & Lehman, Inc.

Sugar Foods Corp.

Superior Coffee & Foods

Teichner Gourmet Coffee

Texpak, Inc.

UCC Ueshima Coffee Co.

Cornerstone Sustainers $1,000–$4,999Lucille Adelson

Alterra Coffee Roasters

American Coffee Corporation

Armenia Coffee Corp/Silver Spoon Gourmet

Atlantic Specialty

Bravilor Bonamat BV

Camara Peruana de Café

Douglas B. Carpenter

W.R. Carpenter & Co. Estates

Coffee Bean International

Coffee Board of Kenya

Coffee Fest

Coffee Holding Co., Inc.

Coffee Masters

Continental Coffee Products

Cotesco Plantations Guatemala

N.J. Douek & Sons, Inc. East India Tea & Coffee

EF Food Systems

Ethiopian Coffee Exporters

Excorp SA Guatemala

Faema Corporation

Flavor Dynamics, Inc.

Franja-Proizvodnja I Trgovina

John Gant

Gillies Coffee Company

The Gourmet Retailer Magazine

Hacienda La Esmeralda

Hudson Valley Coffee Roasters

International Coffee Organization

JBS & Associates

JBR/Fairwinds—Jon Rogers

Philip B. Jones

Kimo Bean Coffee Company

Trygve Klingenberg

Ted R. Lingle

Mr. Espresso

PTP Commodities

Rafael Espinose Hnos. Y Cia.

Raven’s Brew Coffee, Inc.

The Roasterie, Inc.

Royal Coffee New York, Inc.

Russell Furs—Stuart Adelson

JoAnne Shaw

Julius Shaw

Star Mountain Coffee

Susan’s Coffee & Tea

Suzanne J. Brown Associates

Thanksgiving Coffee Company

Torani Syrups

Uganda Coffee Dev. Authority

The Village Coffee Roaster

Coffee Quality Institute Financial Highlights

2004 2003

Support and revenues

In-kind and volunteer contributions $ 1,047,387 $ 276,258

Other contributions, grants, & support 1,769,479 842,727

Other income 814 62,972

Total support and revenues 2,817,680 1,181,957

Expenses

Program and project expenses 2,483,425 773,132

Administrative and general expenses 272,569 296,656

Total expenses 2,755,994 1,069,788

Summary of net assets

Net assets, beginning 252,575 140,406

Net assets, ending 314,261 252,575

Increase in net assets $ 61,686 $ 112,169

Portion of every dollar in support and

revenues directly supporting programs $ 0.88 $ 0.65

T H E V A L U E C H A I N » F I E L D » P L A N T » C H E R R Y » P I C K I N G » S O R T I N G » D R Y I N G » R O A S T I N G » C U P P I N G » C O N S U M I N G

Assets and liabilities

2004 AUCTIONS

Costa Rica April 14

Guatemala July 13

Nicaragua May 4

El Salvador May 18

2004 Q AUCTION BUYERS

Atlantic Specialty

Boyd Coffee Company

Café Capris, Costa Rica (VOLCAFE)

Café Imports

Caravan Coffee

Caribou Coffee

Green Mountain Coffee Roasters

Kato Coffee

Mr. Espresso

Royal Coffee

Ishimitsu & Co.

The Coffee Source

UCC Ueshima Coffee Company

VOLCAFE Specialty Coffee

Wataru & Co.

C Q I W O R K S W O R L DW I D E T O I M P R O V E T H E Q U A L I T Y O F C O F F E E A N D T H E L I V E S O F P R O D U C E R S .

collaboration

consistency

traceability

transparency

At the April 2004 luncheon, CQIhonored the three individuals whohad contributed the most to CoffeeCorps: each logged more than 300volunteer hours in 2004.

TOP Karen Fazzio is a retired mastercupper with over thirty years experiencein the coffee business

MIDDLE Willem Boot is president of BootCoffee Consulting & Training in MillValley, California, and an inveteratevolunteer.

BOTTOM Francisco Osuna, a native ofChiapas, Mexico, is an agronomist who isdedicated to organic coffee farming.

CQI STAFF

Margaret SwallowExecutive Director

Christine Franquemont Director of Philanthropy & Strategic Alliances

Gerry LaRue CADR Director of Operations

David RocheChief Technical Director

Gerardo Leon-YorkCADR Program Manager

Stuart AdelsonBusiness Affairs Director/Legal Counsel

Tracy GingDirector of Marketing & Communications

Michael PomerleauDirector of Finance & Accounting

Silvia Zelaya de GuerreroCADR Deputy Manager

Countries of operation

All CQI programs focus on quality. We believe that quality is the most important variable affecting the price of coffee and the livelihoods sustained by that price. We work from seed to cup, from quality separation at the mill level and right up through the steaming cup enjoyed by each consumer.

Gerry LaRue and Ricardo Quiñones in El Salvador.

“The most effective way to improve the coffee industry is to work together as agroup to initiate positive change. The best example of this is the Coffee QualityInstitute.” —Bob Stiller, CEO, Green Mountain Coffee Roasters

“When we in Guatemala asked for CQI help, CQI sent excellent volunteer experts andestablished Q auctions as a market alternative. We have benefited more than we ever imaginedfrom that response—thank you, CQI.” —José Ángel López, President, Guatemalan Coffees – ANACAFÉ

In addition to our core programs,we continue to explore ways toenhance coffee quality and benefit the lives of growers. Other initiatives include programsbringing leadership opportunities to women in the coffee industryand exploring new genomictechnology for improving coffeeplant breeding techniques.

“The Q Coffee Auction represents a great opportunity for coffee farmers and purveyorsalike. Q Coffees provide lucrative market access to smaller farmers who may otherwisestruggle to find it, while giving companies like ours another reliable venue to sourcetop quality coffee.” —David Boyd, Co-CEO & President, Boyd Coffee Company

© 2005 Coffee Quality InstituteDesign: Jeanne Criscola/Criscola DesignCover Photo: Coffee Farm in Costa Rica