Coffee pricing "shenanigans"

the business of coffee houses

Coffee pricing "shenanigans"

Postby Luke Shaffer on Wed Sep 09, 2009 11:57 am

http://coffeehero.com/2009/09/coffee-co ... enanigans/

Anyone here care to chime in? Seattle and national roasters are being called out- your silence is acceptance!!! :wink:
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Re: Coffee pricing "shenanigans"

Postby IanClark on Wed Sep 09, 2009 6:34 pm

I'm not a Seattle or National roaster, but I'll chime in. Yes commodity prices were lower this Spring than they were last year, but here are just three influences that put upward pressure on the price of specialty coffees during the buying season earlier this year:

- Shortages on Centrals and Colombians due to weather
- While demand on the commodity side probably grew at slower rates than expected due to the macroeconomic situation, everything I've read indicates that the specialty market continued to grow strongly.
- Ethiopia. I'm not even going to attempt to intelligently elaborate further on that one, but they were priced high!

I think it's fair to say that there are a number of human or interpersonal forces (as opposed to more conventional market forces) and supply chain security related forces that behave as buoys on specialty coffee prices and keep contract prices from falling simply due to input costs dropping on the production side. As we all are aware, specialty coffee is very much different from a strict commodity trade.

To me it's perfectly reasonable to accept that Seattle specialty retailers' costs are up while commodities are down. That said, there's probably an ICO report I haven't seen that elaborates on this further.
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Re: Coffee pricing "shenanigans"

Postby Brett Hanson on Wed Sep 09, 2009 11:32 pm

Meh. I appreciate that Nick responded to the guy, but the logic of the argument (while good to have thought through should a consumer ask) and the meager audience commanded by this point of view/blogger should be of little interest to the folks here, imo.
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Re: Coffee pricing "shenanigans"

Postby Chris Kornman on Thu Sep 10, 2009 9:00 am

I think Intelli reduced our price for Kenya this year reflecting a savings at farm-gate.
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