Transparency
Here you will find an example of a price breakdown, starting at the price paid to the producer, also known as the Farmgate price. Next, you have all the costs associated with the local movement of the coffee, as well as the preparation of the parchment into exportable green, any packaging (Grainpro, jute, vac packs), and finally the in-country taxes (in this case, to Anacafe, Guatemala’s national coffee board). Taken all together, this brings us to the ‘FOB’ price, or ‘Free on Board’, which is the coffee’s exportable price including all costs incurred until it is quite literally ‘on board’ the cargo ship, ready to disembark.
From there, the costs associated with the transport, customs clearance, and financing of the coffee during its journey are added. Ocean freight rates and overland transportation can be highly variable; we always aim for a combination of reliable delivery and good value, and pass on only the costs necessary to get the coffee safely to your destination. Lastly, we add our own margin, which covers operating costs, financing, and profit. The final price paid by the roaster is referred to as the ‘Ex-Warehouse Price’ and it includes all expenses up until the point the coffee leaves the warehouse for its final destination: the customer.
If you are interested in the price breakdown of your own coffee, please get in touch with your sales representative and we’ll be happy to provide you with more information.
We are proud participants in the transparent pricing movement, participating in the most recent 2024 Specialty Coffee Transaction Guide, which is now available to download at www.transactionguide.coffee
Find more about Transparency in our Sustainability report.
FOB Price US$/ Lbs. |
$3.20 |
Farmgate price |
$ 2.70 |
Local warehousing & logistics |
$ 0.08 |
Export Prep: Dry milling, Sorting & Bagging |
$ 0.24 |
Export Taxes |
$ 0.18 |
Total Delivered Costs |
$3.55 |
Logistics (Ocean freight, insurance, etc.) |
$0.13 |
Customs fees and container delivery |
$0.06 |
Finance & Warehouse |
$0.16 |
Price of the coffee |
$4.25 |
Primavera Overhead Costs and Margin (20%) |
$0.70 |