Coffee Commodity Chain

3. Exporters

The middlemen and large coffee plantations then package their coffee and send off to importers for it then to be sold in retail. Specialty coffee is often imported at a negotiated price over the market, which is considered a "quality premium". Most of them never reach the coffee farmer, but rather stay in the hands of the exporter. This creates a disincentive for farmers to increase their quality, as they do not receive the benefits of increased investment in producing better coffee.

2. Middlemen

After the coffee has been grown, many farmers typically have to go through what they call a middleman, someone who will upgrade the quality and value of the coffee before selling it to someone else. There has been debate to try and eliminate the middleman, due to the fact that the middleman vastly underpays the farmer for their coffee, resulting in a loss of money for the farmer and eventually going under the poverty line. Larger plantations would process and export their own coffee at a price determined by the New York Coffee Exchange.

4. Importers

While the largest coffee producer and exporter is Brazil, the largest importer of coffee is the U.S.. Coffee is the US's largest food import second most valuable commodity after only oil. The US primarily purchases coffee from Brazil, Colombia, Mexico, Guatemala, and Vietnam, totaling 2.72 billion pounds of coffee imported in a year. There also is an estimated 10,000 coffee cafes and 2,500 specialty stores selling coffee in the U.S.. China also is a big importer of coffee representing 30% of all coffee retail stores. Although, most coffee remains with independent owners and small family businesses.

1. Producers

Coffee first must be produced before people can enjoy it. Coffee is a vital source of export for many developing countries, that account for 20 million families working in 50 different countries that work directly in farming and cultivating coffee. Brazil is the leading producer of coffee, followed by Ethiopia, then Indonesia. Coffee has to be grown under certain conditions, specifically at temperatures of around 20 degrees centigrade and in very rich porous soil. After the coffee is grown, it is then sent off to the "middlemen".

The Coffee Commodity Chain

How coffee moves around the world from

factories to you.

Coffee then goes through a process of roasting, which transforms the original green coffee bean into a roasted bean coffee product. The roasting process is what produces the flavor of coffee by causing the green coffee beans to expand and to change in color, taste, smell, and density. A green coffee bean is more stable than when it is roasted, so the roasting typically occurs close to where it is going to be consumed. Companies such as Starbucks, New England Coffee, and Alterra Coffee Roasters roast their own coffee and own their own coffeehouses to sell their coffee.

Retailers are the ones who you get your coffee from! Companies like Starbucks and Dunkin' Donuts are two of the biggest retailers in the coffee company today. Recently though, record bean production means costs are down and profits could be looking up, which is good news for retailers like Starbucks and Dunkin' Donuts. With these record results, Starbucks will start to decrease prices of some of their drinks by the start of this September, which is good news for the many coffee drinkers in America!

5. Roasters

6. Retailers