Coffee is an agricultural product, but also one of the most actively traded commodities in the world.

The price of coffee is influenced by a much wider system than what eventually reaches your cup. Global supply and demand, harvest volumes, weather conditions, production costs, exchange rates, logistics and international commodity markets can all affect the price paid for green coffee.

How coffee is priced

For much of the global coffee market, the C Market acts as an international reference point for Arabica coffee prices.

Specialty coffee, however, works differently.

Quality, origin, variety, processing method, availability and relationships with producers can create significant differences between the commodity reference price and the actual price paid for a specific coffee.

For KUDU, sourcing is therefore not simply about following a market price. It is about evaluating quality, consistency, seasonality and the long-term relationships behind every coffee we select.

Beyond the coffee price

The final cost of coffee is shaped by much more than the value of the green beans themselves.

Transportation, energy, storage, roasting, packaging, equipment, labour and the wider economic environment all become part of the journey from origin to cup.

Understanding these factors gives a better picture of how a specialty coffee company operates beyond what you see in the bag. Continue reading → Inside the Coffee Business