![]() ![]() We are proud of our team and the way they are so thoroughly dedicated to excellence and to being the best at their respective roles across the industry. Shipping packages inevitably has waste associated and we’re working towards sustainability at each step. We want our coffee to arrive in a secure fashion, looking like it did when it left our roastery: with style and design but also keeping the environment in mind. These costs are separate from the green and roasted coffee but a part of the cost of producing coffee ready to ship and consume. (Read about our new retail packaging HERE). There’s the biodegradable bag, the recyclable box, the compostable mailer, different boxes for bulk shipping, the paper that pads the coffee, tape, and a few odds and ends. This is all the things that go into packaging the coffee from the roaster to your house. It was installed in 2020 and we are seeing a great return in terms of monthly costs of electricity. In 2019, we invested in a solar energy system for our roastery. We periodically look at these costs and try to reduce expenses, but work in this area are small moves of the needle as these are mostly the same and usually increase every year. For example, most commercial leases increase by 2% every year. Things like utilities of internet, natural gas, phones, rent, business licenses, fees, etc. These are costs associated with simply having a business. There are obviously many other aspects to running a business such as shrink, mistakes, new equipment and maintenance, but this works as an arbitrary cost associated with making one box of coffee. At this time we are listing our cost of production for each pound of coffee at around $4.85. While the following list isn’t exhaustive, hopefully it gives you a picture of the work, expense, and investment involved in executing coffee at the level that we do. We have always maintained transparency as a principle but have lumped these things under the label of “production costs” without going into detail. The following list includes many of the costs associated with producing our coffee. The price listed below is an average across the two coffees, reflecting what we pay for the green coffee in each pound of Monarch. We imported this coffee directly and paid $4.97/ lb FOB. We look for coffees to add that fruity characteristic as well as a pleasant winey profile, and this Gedeb Natural fits the profile. This is the natural component of Monarch. We paid 3.90 for this blend, EXW and it was imported via Royal Coffee NY. This allows Monarch to remain stable, and therefore, The Queen. At the peak of harvest in Narino, the team at Pergamino sends over micro-lots for us to cup through and approve or reject for this full container blend. This is a blend we create alongside Pergamino. ![]() Right now the blend is comprised of the following. Through the season these origins can vary, but we dependably source coffees that work in Souther Weather from Colombia, Ethiopia, Guatemala, Honduras, and Peru. Monarch is made up of two coffees at the moment. All of the cost is paid by the importer, and more often than not the FOB price as well as the transport costs are unknown. This is our most frequently listed green cost, as it is the most simple way to present what we pay a seller, but it does not reflect what the person growing the coffee was paid.ĮXW- This most often reflects the 'spot' price that we paid for a coffee. This means that the seller is responsible for any overland fees that happen before the coffee is on board the ship. Oftentimes in terms of our relationship coffees, FOB is fairly close to the farm gate price, except for countries like Ethiopia and Kenya, when it is very difficult to trace back all the way to the producer.įOB - Free on Board. There is a glossary of terms to be found below which will aid in your understanding of industry terms.įarm Gate - This reflects what is paid to the producer of the coffee at the farm level. Here we will dive into not only what was paid for the coffee, but how the coffee was purchased. Paying $5/lb of coffee can be a great price, but could be detrimental to a producer if the payment terms exceed that of their needs. While the amount paid is very important, the payment terms and type of contract negotiated during the purchase are also paramount. The subject of paying for green coffee is inherently complicated. ![]()
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