Horsham Coffee Roaster Transparency Report
Jean Paul far left, his brother and washing station manager far right
In 2016 we visited Kenya for the first time and were introduced to Kianderi washing station. They are a small operation of 500 farmers and this washing station is part of the larger Inoi co-operative. We were very impressed with the quality they were producing and have been buying their coffee every year since.
Farming challenges and the C Market
Coffee producers around the world are significantly affected by climate change and fluctuations in the C Market price. This price is affected by supply and demand, a great harvest in Vietnam and Brazil could flood the market. This means the C price drops and coffee farmers in Africa could suffer as a results. In 2018 the C price maximum was $1.24/lb. This is well below the cost of production and pushes coffee farmers into a downward cycle of poverty. Many give up and replace coffee with other crops or have been forced to abandon their farms. In late 2021 the C price rose peaking at $2.40/lb. While this might be good news if the producer receives the majority of this extra money but that often isn't the case. This is why we prefer to focus on fixed prices that are based on cost or production with stable prices year on year.
FOB and the price we pay
FOB is an industry term that means 'Free on board'. This is the price paid by us to the exporter in the origin country to cover costs of coffee, milling, grading, transportation, packing and loading into a container at the port ready for shipping to the UK. Typically a producer will receive about 70% of the FOB price with the remaining amount allocated to essential preparation costs in order to get the coffee ready to ship. We list the farm gate price for some of our coffees when the data is available. We are working on gathering acurate data for all of our coffees.
The table below lists our direct trade lots with full pricing transparency. Last updated March 2024.
The 'Horsham FOB Price' is the price we paid for the coffee but does not include the cost of transportation to the UK, financing and storage. The 'World Market Price' is the C market price during the month that we purchased the coffee.
Our fully transparent coffee makes up about 65% of our total yearly production volume. The remaining coffees we purchase through well respected importers who maintain direct links with exporters and producers in origins that we haven't yet visited.
A note about Brazil pricing
You might notice that the price we pay for our coffee from Brazil is significantly lower than the other coffees. The global coffee market is complex and the cost of production needs to be considered. In some countries the costs of production are fairly high, Costa Rica is a good example. The country is stable, minimum wages are in place, land is expensive and coffee is grown on steep mountains requiring only hand harvesting. These all contribute to a high cost base.
Brazil is very different, farms tend to be large, terrain is much easier to work on and producers can use a range of mechanical equipment to assist with harvesting and processing on much larger scales. This brings the cost of production down significantly and that combined with much larger volume sales means the operation is efficient making coffees from Brazil more affordable but still profitable for producers. The price we pay for our coffee from Brazil is set by the producers.