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BSA Member
          Professional Spotlight
         WHAT IS                                                             Coffee grades are evaluated at
                                                                            cupping tables, both at farms
         THE FUTURE                                                         in origin countries and in the

                                                                            cupping labs of numerous

         of Coffee?                                                         green importers and thousands
                                                                            of roasters worldwide.

          Tim Sturk, Head of Coffee & Tea at
         Aimers, looks at the challenges ahead with                          Generally, the farmer knows
         the big increases in Arabica and Robusta                           what quality they are
         coffee prices.                                                     producing, but if there is a
                                                                            whiff of a higher price to be
          If I am completely honest with myself, I                          gained through grading, then it
         am no where near qualified enough to                               is in the farmer's interest to
         answer this question. But like most coffee                         pursue it. However, as with
         industry professionals, I am certainly                             certifications, there is a cost to
         curious. This is THE topic currently at the                        the farmer, so this might then
         forefront for most of us in the coffee                             be passed on to the importers.
         industry. Where are these price rises going,

         and how long will they last?                                        There are many myths and
                                                                            misunderstandings
          It is widely acknowledged, and this is what                       surrounding coffee sourcing
         we teach in our SCA (Specialty Coffee                              that the major coffee players
         Association) courses, that coffee has two                          may be pleased to maintain, as
         distinct markets; the Specialty Coffee                             it boosts sales. However, I
         Market and the Commercial Coffee Market,                           strongly encourage consumers
         both are driven by the New York Stock                              and coffee enthusiasts to do
         Exchange Commodities market (C-Price)                              their homework.
         for Arabica ($/lb) and the London Stock
         Exchange Commodities market (R-Price)
         for Robusta ($/ton).


          Specialty uses the NYSE C Price as a
         benchmark and is often 20-50% (or more)                          This is THE topic
         higher. Specialty importers and roasters
         will then tout their direct trade or sourcing                     currently at the
         relationships as differentiators. However,                 forefront for most of us
         here, the water gets muddy for me and my                    in the coffee industry.
         understanding because many of the large,
         global commercial brands also have direct                    Where are these price
         relationships with growing regions, to the
         point of owning farms themselves.                         rises going, and how long
                                                                             will they last?
          So, direct trade does not necessarily mean
         Specialty grade, nor do certifications such
         as Fairtrade, Rainforest Alliance, Soil
         Association, UTZ, etc, equate to higher
         quality…yet they all command a higher
         price.



                                                                         MARCH/APRIL. 2025 | ISSUE 41
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