Sweet Maria's Coffee Warehouse

Q: Good Morning Folks, What effect is the plunging world market price for coffee beans is having on your pricing and how you are handling the whole thing? Was just reading an article on how Starbucks is dealing with the issue. Thanks, Mike Sandiland

A: Our pricing is set directly with farmers and exporters so it isn't impacted by the global coffee exchange price when it is down, as it has been for some time. For example our prices in key origins we buy from, like Guatemala, Colombia, Ethiopia, Kenya, Sumatra, Rwanda and Burundi has not dipped lower with the global market. But also we pay a stable price that is considerably higher, in the general range of + 2.00 usd or more over the current 1.00 USD market. So a premium like that for quality isn't really about the issues that change the global exchange level, like what the Indexed Funds are doing. It's concerned with longer term supplier / farmer relationships that result in us getting the quality of coffee we can sell! -Tom.

Answered by: Sweet Maria's Coffee Warehouse (Owner) ( 5 years ago)