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snwcmpr
10/18/2019 2:37 PM
Eth Nat Yirg Idido roasted yesterday. I dropped some off at a friends coffee shop. In a few days he will brew it and tell me what he thinks. We believe my roasts are better than what we buy.

snwcmpr
10/16/2019 2:52 PM
Thank you for all you guys do.

JackH
10/15/2019 2:02 AM
They seem to be after the shoutbox. They have been removed. I don't see anything in the forums.

snwcmpr
10/14/2019 3:27 PM
We have been hacked. A whole lot of posts that have filled up the whole forum.

snwcmpr
10/10/2019 4:49 AM
Honduras Royal Reserve today.

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Price Factors
BoldJava
For those of you whose family comes off the farm, you are well familiar with this time of year -- the need to often be advanced credit for the spring seed corn, etc. Coffee is no different and the credit isn't there this year.

Tight capital markets affect the smallest, most under-capitalized farmer for any inputs that are needed, be it fertilizer, planting new trees, expanding the farm, etc.

http://www.reuter...1920090320

B|Java
Edited by BoldJava on 03/21/2009 12:34 AM
http://sidewalkmy...
Dave Borton
Milwaukee, WI
 
http://sidewalkmystic.com
BoldJava
For those interested in an in-depth article on how arabica futures prices are established, here is a very thorough article. (Opens as a pdf file)

http://www.insign...Coffee.pdf Pricing information begins around page 8.

The price we pay for greens is affected by the price of the "C" on the futures exchanges. A very few coffee prices are locked in (Kenyas, Konas, Jamaica Blue Mntn) but most of the beans we buy fluctuate on a day-to-day price, based on the futures price a couple of months out.

B|Java
Edited by BoldJava on 03/21/2009 1:00 AM
http://sidewalkmy...
Dave Borton
Milwaukee, WI
 
http://sidewalkmystic.com
dBndbit
Very informative. I've bookmarked the pricing file. I do have some family still on the farms. Even in the land of plenty, farming is a gamble. When I add things up, people who work the coffee farms have earned their uncertain subsistence 10 times over. I serve a lot of coffee on Sunday mornings and behind the cart I have some coffee bags hanging. When someone complements me on the coffee I like to say that the people who filled those bags did the hard part. I get to do just the fun part. (giving credit where it's due)

But I have a question related to prices. When we buy the "big bags", should we ever expect to know what the importer actually paid? Kind of like asking to see the invoice on a car? And so then if the importer tells us his price, do we believe him? Are the new administration's financial policies for accountability and transparency likely to affect the coffee industry? It would sure be nice to know who, specifically, got how much, exactly.

I have too little faith in human nature. It's my worst fault. Well, one of the worst.
Jim
11 years old... forever!
ReeferDoor.com
>home-built roasters and fair trade
 
http://www.ReeferDoor.com
BoldJava
dBndbit wrote:
But I have a question related to prices. When we buy the "big bags", should we ever expect to know what the importer actually paid? Kind of like asking to see the invoice on a car? . . .
I have too little faith in human nature. It's my worst fault. Well, one of the worst.


Jim, there is an article I read. If I don't try too hard, where I saw it will come back to me. One company works for complete transparency (more for the farmer's benefit than ours). I think it was in an old article in Roast magazine.

Let me see if I can hunt it down. You particularly would appreciate it. Everything is spelled out in simple English for the farmer so s/he knows exactly who gets what to point of sale.

No, you won't know the price on greens that the importer paid but the margins are very weak. It is all in volume. To give you an example, I paid $8.28 net (without shipping, on the ground in St. Paul, MN) for the Rwanda Cup of Excellence. That went for $7.30 in Kigale, at auction. Add (air, I believe?) transportation to that from Africa/NYC/St Paul. Ouch! Margins aren't there.

http://www.cupofe...fault.aspx

ChadS, jump in here. You have a better handle on this, I believe.

B|Java
Edited by BoldJava on 03/23/2009 2:23 PM
http://sidewalkmy...
Dave Borton
Milwaukee, WI
 
http://sidewalkmystic.com
cfsheridan
Importers have little to no margin on the Auction lots, for sure. I paid about $0.50/lb more than the auction lot prices for El Salvador CoEs last year, and much of that was the transport and logistics costs the importer had to pay.

I don't push on the importers pricing transparency--especially when I find that the importers I deal with hover around the same levels. There are some small outfits that are paying premiums to the farmers, but that mainly comes from the folks who are paying for ripe cherry and are giving back some sharing to the mills and farms. Crop to Cup has some of that set up, and the Bagersh family in Ethiopia pays premium for ripe cherry from many farmers. That family also does well by its employees, from what I've gathered on the subject.

I don't think the importers are making dollars/lb. I'm not sure they're making $1/lb. Certainly not on the Auction lots, especially given the additional costs they incur for those lots (hosted events, CoE membership, jury participation, etc.).
 
dBndbit
I know the issue you're thinking of, Sept/Oct 2007. I have it here. By KC O'Keefe at Inteligentsia. Looks like the roaster/buyer in the article is Full City Coffee in Eugene, OR. (Roast only, no prices on their website.)

In the article they even provide a sample form to use for documenting all the details of the sale from both sides. A great challenge. A transparent contract like that would certainly answer all questions... if it were available.

I'm a dreamer trying to look at costs from the perspective of the people who picked 5 pounds of cherries to get 1 pound of beans and made 10 cents. So it seems like everybody else who wants to pull a dime out of the deal needs to have a good reason. I'm just never comfortable being an ignorant American consumer, but I know there's not much I can do about it. Does Wallmart sell green beans?
Edited by dBndbit on 03/23/2009 3:13 PM
Jim
11 years old... forever!
ReeferDoor.com
>home-built roasters and fair trade
 
http://www.ReeferDoor.com
BoldJava
Jim, betcha' dollars to donuts that if you expressed to him your interest because of transparency, he would sell you greens.

That is the article I had in mind and he is a man of passion.

B|Java
http://sidewalkmy...
Dave Borton
Milwaukee, WI
 
http://sidewalkmystic.com
dBndbit
Good idea. I'll give them a call when I'm ready to buy again.
Jim
11 years old... forever!
ReeferDoor.com
>home-built roasters and fair trade
 
http://www.ReeferDoor.com
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