HOW MUCH IS A CHEAP JAVA ARABICA SPECIALTY COFFEE BEANS?
It is a debatable issue. Let’s discuss about this.
Java Arabica Specialty Coffee Bean is expensive.
Probably you are wondering that Arabica Specialty Green Bean Coffee price is too expensive then it is correct. Our website is a study and case of coffee price market willingness to pay. It seems that the price increasing in general.
We run this website with the intention to have a trial for a direct market from supplier with a cost reduction in shipping. We take a very narrow margin actually.
While we could provide buyers with low affordable price of green beans directly from Indonesia Green Bean Arabica Coffee Specialty Supplier & Farmer. We are actually trying to know its price further.
Yes, it is correct, we have an export query with a high price couple month ago and just now we are receiving a lower price. Even for us the farmer and marketing too, we don’t know the exact coffee bean price. LOL.
The price of coffee if it is connected with your cup of coffee then it will be more complicated case. A lots of thing to be considered.
If you are having a cup a coffee in a fancy place mid-town then easily to know that most of the price is needed to maintain or rent the building. We are also organizing a café (as a study case of downstream of coffee business) and most likely of about 40% – 30% of the price goes for the building. About 30%-40% may be for service and management (marketing and administration at receiving side are included here too) of the café and about 30% may be the coffee sources and (mostly) for handling at the receiving point (importer side).
Coffee farmers only have small chance from the fair trade of probably maximum at about 5% – 10% (from that 30% cost of coffee source cost).
If you have a kilogram of green bean coffee with 12 USD/kg at end user price. The farmer may have of about 0.5 USD/kg – 1.2 USD/kg. This end price also is a result from a long journey of a green bean coffee supply agreement with its own chain relation of some fees.
Couple months ago, I had an export opportunity, The green bean coffee which is a java Arabica specialty green bean under wet process was approve for the export. The deal was made a bit more then 4 USD/kg and total is of 10 metric tonnes and under CIF (Cost, Insurance and Freight) shipment agreement for another 1200 USD.
Total cost is of about 40 000 and 1200 (42 000 USD) so it is of about 4.2 USD/kg. I bet the price in the destination is of about more than 10 USD/kg (you may google green bean specialty coffee price is higher or equal to 10 USD/kg even in eBay.com and Aliexpress.com). Please take a note that inflation is always occurred as a reference to gold from money is not really made so the coffee price is also sort of inflated as always increasing almost like a gold price, perhaps organic black gold is coffee actually (our best product is at about 9 usd/kg including delivery cost to any major city in the world).
If coffee supply chain may be reduced and coffee supplier has a direct contact not only with a wholesale but also with small and retail needs, then it is a real better condition for farmer.
Summarizing the above issues,
How much the cheap coffee price is actually? It depends.
If you ask farmer, he will reply that it depends on the weather, harvest condition, coffee type, process type.
If you ask the café owner he will reply that it depends on the location, coffee type and the service for the coffee beverages.
So it depends on many thing.
But if you ask me (as farmer and downstream coffee business people), I will answer it will depend on marketing fee and market chain.
Please also consider, Arabica coffee is far ways different compare to Robusta.
Arabica coffee shall be above beyond sea level, it is usually on or more than 1000 meters above sea water level. The contour is undulated to make it almost or really impossible to use machine in harvesting (or maintain it after the harvest period). The delivery cost from harvesting to fermentation pool and later to drying and storage area are quite a cost.
The basic price itself is different as the main reason that Arabica Coffee is (more) expensive.
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