How much do US-based small batch coffee roasters pay for green coffee?

How much do US-based small batch coffee roasters pay for green coffee?

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  1. It varies by country of origin, cup quality, supply and demand, shipping and finance charges. The first piece of the final price paid is the “C” or Intercontinental exchange price. The ICE price is linked to the future supply and demand of all of the worlds coffees. The ICE price is volatile and can quickly move up if there is a natural disaster, weather/growing condition issues, political turmoil, shortage of supply, etc. The price can also move down if there is an oversupply of coffee, or shrinking world demand.
    The next item and more crucial piece of the final price is the “Differential” or “Diff”for each specific coffee the roaster chooses. The diff price is set by the quality and availability of each coffee the roaster wants to purchase. On top of the quality diff, the coffee may be Organic, Fair Trade certified, or have other stories behind it that will increase the price. Finally, the cost to finance the purchase and ship the coffee to the place of business can add quite a bit to the final price.
    Hypothetically the per pound costs add up like this:
    $ 1.20 for the “C” exchange price
    $ 1.00-$2.50 for the Diff
    $ .20-.30 cents per pound for shipping.
    $ .10-.15 cents per pound for finance charges.
    On top of these prices, when you roast coffee it loses 20% of its moisture content. So for every pound of green coffee you put in the roaster, you get 13 ounces of finished coffee.

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