A sadly misspelled version of the word "Derogatory". The word obviously didn't sound foreign and intellectual enough as it was, so the adding of a syllable might be necessary to really impress with ones verbal prestige, given that the crowd is right (read: dull, foreign, uninterested or a cat, mayhaps a pirate who will enjoy the adding of an extra ARRRRRR in the word).
"Kaffe is a derogoratory term for a negro!"
"Derogoratory? First of all, it's derogatory, you dimwit. Second of all, dimwit is a derogatory term for a stupid person. Third or all, making the statement you just did derogates your own intelligence as you're wrong in a double sense. Bounce off."