I've always known coffee was a huge commodity, but...
- weebit_nutty
- Posts: 1495
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Did a little math today.. I've always known coffee was a huge commodity, but when you look at the numbers it's pretty astonishing.
I found out that coffee beans trade anywhere between $1500-1600/ton (green). The mark up for the home roaster is $5-6/pound (plus whatever you pay in shipping). That's ~$12,000 per ton of green coffee sold. And obviously in roasted form, we're looking at anywhere between $16-25/lb. @ ~ $18/lb (typical), that's $36k per ton sold here in the US, from a $1500 lot of coffee.
Some other interesting factoids: Vietnam is now #2 producer of coffee, almost producing as much this year as Brazil produced last year. And as a matter of course, at the rate of growth here, it's set to be #1 in a matter of a few years. Plus, Vietnam has tapped the Chinese market (it's 5th biggest market), and we all know anyone who taps that market will come out on top for pretty much anything.
I found out that coffee beans trade anywhere between $1500-1600/ton (green). The mark up for the home roaster is $5-6/pound (plus whatever you pay in shipping). That's ~$12,000 per ton of green coffee sold. And obviously in roasted form, we're looking at anywhere between $16-25/lb. @ ~ $18/lb (typical), that's $36k per ton sold here in the US, from a $1500 lot of coffee.
Some other interesting factoids: Vietnam is now #2 producer of coffee, almost producing as much this year as Brazil produced last year. And as a matter of course, at the rate of growth here, it's set to be #1 in a matter of a few years. Plus, Vietnam has tapped the Chinese market (it's 5th biggest market), and we all know anyone who taps that market will come out on top for pretty much anything.
You're not always right, but when you're right, you're right, right?
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- Sponsor
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I'd be careful about using the commodity market in your analysis. Nobody is selling roasted commodity beans in the $20/lb range.
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Is this off topic to insert a question here? In the $1500-1600$ per ton range, does that range mean coffee as a whole, including specialty and bottom end stuff? Is that an average of all?weebit_nutty wrote:Did a little math today.. I've always known coffee was a huge commodity, but when you look at the numbers it's pretty astonishing.
I found out that coffee beans trade anywhere between $1500-1600/ton (green). The mark up for the home roaster is $5-6/pound (plus whatever you pay in shipping). That's ~$12,000 per ton of green coffee sold. And obviously in roasted form, we're looking at anywhere between $16-25/lb. @ ~ $18/lb (typical), that's $36k per ton sold here in the US, from a $1500 lot of coffee.
Some other interesting factoids: Vietnam is now #2 producer of coffee, almost producing as much this year as Brazil produced last year. And as a matter of course, at the rate of growth here, it's set to be #1 in a matter of a few years. Plus, Vietnam has tapped the Chinese market (it's 5th biggest market), and we all know anyone who taps that market will come out on top for pretty much anything.
- Compass Coffee
- Posts: 2844
- Joined: 19 years ago
Appears lack of research and/or understanding of the coffee market especially Specialty Coffees which aren't traded on the Commodity Exchange. Coffee Futures (commodity) closed 12/24 @ $1.197 = $2394/Ton. OTOH a couple coffees I have contract to end of December a Mexico Chiapas and Ethiopia Natural come to $6020 & $9860 per Ton respectively.
Don't believe coffee futures have been sub $1/lb (less than $2k Ton) in recent history.
Don't believe coffee futures have been sub $1/lb (less than $2k Ton) in recent history.
Mike McGinness
- baldheadracing
- Team HB
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