Is coffee a commodity?

The majority of coffee that is consumed around the world is treated as a commodity – as a uniform product like oil or gold. Commodity coffee is traded on the New York Coffee Exchange and its value as a product is determined by market factors, so the origin and quality of the coffee do not affect what it is worth.

What is the C-Price of coffee?

The price for coffee as a commodity is known as the C-price, which is influenced by principles of supply and demand rather than quality considerations. This means that commodity coffee is treated as a uniform product and has neither negative or positive quality attributes.

What makes a coffee a specialty?

And for the coffee beans to be included as a specialty, they should be graded in altitude, visual inspection, and cupping and receive a high score. For example, according to the Specialty Coffee Association (SCA), Arabica beans have been considered specialty coffee because they’ve been cupped with a cup score of 80+ points out of 100.

Does the quality of coffee affect the world market price?

However, the coffee beans themselves, including their taste and quality, do not affect the world market price. Tip: It isn’t always the case, but you’ll often find that instant coffee products rely on commodity coffee to achieve profits. Certain supermarkets and large coffee chains may also sell commodity coffee to consumers.