The prospect of rising specialty coffee price
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What is the prospect of rising specialty coffee price? Coffee prices are always volatile. Have you ever thought that there is a close relationship between price and other factors such as growing region, country, purchasing volume, and quality score? There is a research paper that has shown the relationship between the above factors. Let’s find out with 43 Factory Coffee Roaster in this article.
Price of Arabica coffee in recent times
The price of arabica coffee – also known as the “C price” has had strong fluctuations in the past 4 years. In 2018, the price of C fell below $1/pound and today it stands at approximately $2.29/pound.
But if you put it in the specialty coffee trading guide, this volatility has gone against the trend. So how is the direction of the specialty coffee market reflected in this guide?
Specialty coffee transaction guide
The Specialty Coffee Trading Guide is an annual publication that deals with anonymous contract data from over 100 coffee roasters and traders from around the world. It was conducted by a team from Emory University’s Institute of Business & Society. The latest edition of the Specialty Coffee Trading Guide for 2021 was conducted based on an analysis of 58,000 green coffee contracts involving lots scoring 80 on the SCA scale or higher.
This guide demonstrates pricing standards based on factors such as country or world region of origin, purchase volume, and quality score. The main aim is to provide a more sensible reference point for the specialty market rather than just the fluctuating C price.
Looking at the above data table, we can see that depending on each region and the score according to the SCA scale, the coffee price will be different. Typically, coffee prices in Africa will be higher than in South America, Central America and Mexico. Besides, the varieties with high scores will have higher prices. This is also an inevitable development, because quality often matches the price.
Through the publication, the authors also hypothesize that coffee price volatility and historically low C price reference have contributed to pervasive economic sustainability problems in the global coffee industry.
Specifically, the author of Guide has shared about price volatility in the announcement of the 2021 release as follows: “It creates problems with climate change, politics and human rights, and contributes to the crisis. It’s also a distraction in specialty coffee markets, where retail prices are already high and rising.”
As soon as it was released, the specialty coffee trading guide has been well received by readers, specifically: 780 downloads from people in 77 different countries, including 108 times from manufacturers coffee, 19 times from production cooperatives and 53 times from farmer support organizations.
This level of acceptance has partly confirmed the attraction of the numbers as well as the hypothesis that the author offers.
In the face of this enthusiasm, Emory University professor and Co-author of specialty coffee trading guide Peter Roberts said: “With increasing attention from buyers and sellers, we have an opportunity. better to build a more fair pricing environment for green specialty coffees in the coming years”
Hopefully, everyone will be patient and have more complete research on the issue of specialty coffee trading.
Reference source: Daily Coffee News
Translator: 43 Factory Coffee Roaster