Insights

Registered Transparent Trade Coffees – One Year Later

Posted on 9th Apr 2016 19:25:19 in Roasters

Transparent Trade Coffee (TTC) was launched roughly one year ago to provide a forum where "specialty coffee consumers and direct trade roasters come together to share information and insights about the economic treatment of coffee growers."
A critical element of this program allows registered roasters to provide specific information about how much growers are paid for their green coffee:
                                                       
In the last twelve months, 94 different coffees were listed by fifteen different roasters that sell coffee in several countries:
                                       
Among these transparently-traded coffees, the average price paid per green pound (FOB) was $3.87.[1]
                                       
The TTC platform also lets us see how these green prices compare with those paid on-line for the final roasted coffees. As such, we know that an average of 22% of the price paid by consumers of TTC coffees stays in the countries where the coffees are grown.[1]
 
As we argued in a previous TTC Insight, these averages should become important benchmarks in price negotiations at the upper end of the specialty coffee market. This is not to say that all, or even most, green coffees should be sold at these levels. However, growers with exceptional coffees should be aware of the prices that TTC roasters are paying for their direct trade coffees. They should also be supported in their attempts to push green price negotiations away from the universal emphasis on the "New York C" price, or the underlying cost of production, and toward what end consumers will be paying for their coffees.

 
In this respect, we wonder how many current green coffee negotiations are starting at $3.87, or at 22% of $22.20 (the average of the current Specialty Coffee Retail Price Index). In many cases, this is a more reasonable starting point than $1.26 (the New York C price on April 1, 2016), and one that would likely lead to better price outcomes for coffee growers.
 
Peter Roberts
Transparent Trade Coffee
team@transparenttradecoffee.org


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