Why Single-Origin Coffee Is So Expensive | So Expensive | Business Insider

Why Single-Origin Coffee Is So Expensive | So Expensive | Business Insider

The Journey of Coffee: From Harvest to Roast

To produce one pound of coffee, over 1,500 cherries must be harvested, each containing two seeds that will be sorted, processed, and roasted. The average US price for a pound of coffee is $5.89, but specialty single-origin coffee can cost over $30 per pound, with some exclusive harvests reaching $80 per pound.

Small-scale farmers, like Joseph in Kenya, who owns a 1-acre farm, contribute to the majority of the world’s coffee production, with coffee quality and price determined by factors such as altitude, climate, soil, and sun. High-altitude coffee takes a long time to mature, resulting in better quality and distinct flavors.

Coffee Types and Pricing

  • Commodity coffee, picked and processed in bulk, is destined for mass production and has a low, volatile price.
  • Specialty coffee, with unique attributes rated by expert tasters, is of higher quality and often more expensive.
  • Single-origin coffee, made from beans from one region, showcases unique flavors, but achieving quality is challenging due to uneven terrain, requiring hand-picking of coffee cherries.

The flavor and harvest size impact the price, with better flavor and smaller harvests resulting in higher costs. After harvesting, workers must quickly sort and remove defective cherries to maintain the coffee’s quality and price.

Coffee Processing and Roasting

Processing coffee soon after harvest is crucial to maintain its quality, and most farms in Kenya share centralized facilities due to the expensive infrastructure. The coffee processing involves five stages: red cherry, wet parchment, dry parchment, green coffee, and roasted coffee beans.

The washed process is the most common method in Kenya, which includes depulping, fermentation, and washing to separate the seed from the fruit, with several grading processes taking place to ensure high-quality beans. Roasting has a significant impact on the taste of coffee, and getting the best flavor out of single-origin coffee requires careful roasting.

The Economics of Coffee

The price of coffee, ranging from $21 to $26, reflects investments in important areas, such as the coffee supply chain, where companies like Metric play a crucial role. However, the price of coffee is volatile, making it difficult for farmers to operate sustainably, with many small-holder farmers living in poverty despite the premium price of specialty coffee.

Coffee farmers are not well compensated for their high-quality products, as growing coffee requires significant investments that don’t always pay off. To address this, some roasters are working towards direct trade partnerships that benefit the coffee producers, and a few are publishing the prices they pay for green coffee to promote transparency.

Comparing the prices paid to farmers and the cost of roasted coffee doesn’t tell the whole story, as there’s always a markup between coffee cherries and roasted coffee, and even when producers are paid a premium, there’s no definitive premium for single-origin coffee, highlighting the need for transparent and better pay for producers to ensure they can earn a living and cover production costs.


Key Vocabulary

Term Definition Example Usage
Commodity A raw material or primary product that can be bought or sold, such as coffee. Commodity coffee is often produced in large quantities and sold at a lower price.
Specialty High-quality products with unique characteristics, such as flavor or origin. Specialty coffee is known for its distinct flavors and is often more expensive than commodity coffee.
Single-origin Products that come from a single region or producer, often highlighting unique characteristics. Single-origin coffee showcases the unique flavors of a specific region, such as Kenya or Colombia.
Volatility The state of being subject to frequent or sudden changes, often used to describe prices or markets. The price of coffee is volatile, making it difficult for farmers to predict their income.
Altitude The height of an object or point above sea level, often affecting climate and growing conditions. High-altitude coffee is known for its better quality and distinct flavors due to the slower maturation process.
Depulping The process of removing the outer skin of the coffee cherry, often done through machinery or hand-processing. Depulping is an essential step in the coffee processing stage, helping to separate the seed from the fruit.
Fermentation A process in which microorganisms break down substances, often used in coffee processing to develop flavor and aroma. Fermentation plays a crucial role in the coffee processing stage, helping to develop the unique flavors and aromas of the coffee.
Grading The process of evaluating and sorting products based on quality, size, or other characteristics. Grading is an essential step in the coffee processing stage, helping to ensure high-quality beans and consistent flavor profiles.
Roasting The process of heating coffee beans to develop the desired flavor and aroma, often done to enhance the quality of the coffee. Roasting has a significant impact on the taste of coffee, and getting the best flavor out of single-origin coffee requires careful roasting techniques.
Supply chain The network of organizations, people, and activities involved in the production and delivery of a product, from raw materials to end customers. The coffee supply chain involves many stakeholders, from farmers to roasters, and plays a crucial role in determining the quality and price of the coffee.
Transparency The state of being open and honest in business practices, often used to describe pricing, sourcing, or production methods. Some roasters are working towards transparency in their pricing and sourcing, publishing the prices they pay for green coffee to promote fairness and accountability.
Markup The amount added to the cost of a product to determine its selling price, often used to describe the difference between the cost of production and the retail price. There is always a markup between the cost of coffee cherries and the price of roasted coffee, highlighting the need for fair pricing and transparency in the coffee industry.
Premium A higher price or value placed on a product due to its quality, uniqueness, or other desirable characteristics. Specialty coffee often commands a premium price due to its high quality and unique flavor profiles, but the price paid to farmers may not always reflect this premium.
Sustainability The ability to maintain or support a process or system over time, often used to describe environmental, social, or economic practices. Many small-holder farmers struggle to operate sustainably due to the volatile price of coffee and the challenges of producing high-quality coffee, highlighting the need for fair pricing and support for sustainable practices.

Why Single-Origin Coffee Is So Expensive | So Expensive | Business Insider 🎓

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Why Single-Origin Coffee Is So Expensive | So Expensive | Business Insider

Vocabulary Quiz


Grammar Focus

Grammar Focus: The Use of the Passive Voice in Descriptive Texts

The passive voice is used in the provided text to describe the process of coffee production, emphasizing the actions rather than the doers. For example, ‘The coffee processing involves five stages’ and ‘The washed process is the most common method in Kenya.’ This grammatical structure is suitable for CEFR C1 level learners, as it requires an understanding of how to use the passive voice to convey complex information in a clear and concise manner.

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