Overview Of Coffee Bean Prices
A cup of coffee costs more than just the small amount of money we pay for it. To make a perfect cup of coffee, a number of factors have to come into play. This includes the seed selection, processing and roasting. One of the most expensive parts of any cup of coffee is the bean itself, and the cost of the beans themselves can range from as little as a few cents to over $100!
Starbucks Coffee Prices
Coffee is an important part of the day for many people and its price reflects that importance. Starbucks is one of the biggest coffee chains globally, and their coffee prices vary. A basic cup of coffee at Starbucks can cost anywhere from $2 – $5, this will depend on the coffee you select and the exact Starbucks location.
When it comes to sourcing the coffee beans, Starbucks takes great pride in the quality of their coffee beans. They source their beans from all over the world, and they have a set of standards and criteria that must be met before they purchase the beans.
Cost of Starbucks Coffee Beans
The cost of Starbucks coffee beans is generally higher than other brands. Starbucks states that they pay $2.25 per pound of coffee beans, however the price may vary depending on the quantity purchased, the type of beans and the region they are sourced from.
In terms of the world’s top ten best selling coffee brands, Starbucks appears in third place, with over 2.1 million pounds of beans being used annually. This is higher than any of the other big name coffee brands, such as Nestle, Folgers, and Maxwell.
Factors Influencing Coffee Prices
The cost of coffee mostly comes down to supply and demand. A shortage in the crop can lead to a spike in the cost of coffee beans, as the demand is higher than the supply. Weather and pests also play a major part in the cost of coffee beans. Extreme weather can ultimately lead to lower crop yields and a decrease in quality of the beans, resulting in an increase in prices.
Economics of Starbucks Coffee Beans
Coffee beans are an essential part of the global economy and account for billions of dollars in trade each year. According to reports, coffee farmers earn an average of only 3-15 percent of the cost of the coffee beans when they are sold. Starbucks’ coffee beans cost between $8 – $12 per pound and are purchased from farmers for $2.25. This means that coffee farmers are only receiving less than 25 percent of the true cost of the coffee beans, leaving a huge gap between what they are paid and what the coffee is ultimately sold for.
Ethical Sourcing of Coffee Beans
Starbucks puts a great deal of emphasis on its ethical sourcing policies, and they clearly state that they adhere to the highest standards. They have implemented a system called C.A.F.E. (Coffee and Farmer Equity) Practices, which is designed to ensure fair wages and working conditions for farmers, and also promote environmentally responsible farming practices.
C.A.F.E examine three main elements when determining the costs of coffee beans for Starbucks. These are quality of the beans, economic responsibility, and Social Responsibility. This is to help farmers from low-income countries to make sure they are getting a fair compensation for their beans.
Environmental Impact Of Coffee Consumption
Coffee is not just a cup of energizing morning drink. The production of coffee impacts the local and global environment and will likely increase as demand for it continues to grow. It’s estimated that over 2 billion cups of coffee are consumed each day, and the environmental impact can be significant.
The vast majority of coffee is produced using the sun-dried and wet-processing techniques which require large amounts of energy and water. The beans also need to be roasted, adding to the energy consumption. The packaging used to store the beans can also be detrimental to the environment, as it usually requires large amounts of energy to produce and results in more non-biodegradable packaging waste.
Organic Coffee
Organic coffee production is becoming more and more popular due to its numerous benefits. It’s estimated that organic coffee produces 30-40 percent less carbon than conventional coffee production. Organic coffee production also involves the use of fewer fertilizers and less water, making it a more sustainable option.
The price of organic coffee is usually higher than conventional coffee due to the extra care and attention required for the beans to grow. Starbucks offers a selection of organic coffees, however at a higher cost. A 12-oz bag of organic coffee for example, could cost anywhere from $11 – $15, whereas a similar size of conventional coffee could cost around $5.
Fair Trade Coffee
Fair trade coffee is an alternative to organic coffee that is becoming increasingly popular due to its sustainability and ethical standards. Fair trade coffees ensure farmers and producers in developing countries are paid a fair wage for their beans.
Starbucks supports fair-trade coffee beans and claims to source 25 percent of its coffee through the program. However, Starbucks’ fair-trade coffee is also more expensive than their regular coffee with a 12oz bag of beans costing around $14 compared to the $11 that an organic 12oz bag could cost.
Coffee Price Indexes
Given the complexity of the coffee market, retailers and traders alike have come up with their own coffee price indexes which allow them to keep track of the market and make better decisions. The New York Exchange Coffee Price Index and the International Coffee Price Index are just a couple of examples, providing detailed information on the prices and trends of different types of coffee from all over the world.
Coffee Roasting Costs
Once the beans are sourced, they must then be roasted. The cost of roasting depends on the type of roaster being used, the region and the quality of the beans. Coffee roasters will typically charge anywhere from $1.50 – $2.50 per pound of coffee beans.
Starbucks roasts in-house at their corporate operations, using specialized machinery and techniques. They are renowned for having some of the best tasting and highest quality coffees available.
Conclusion
Starbucks may be renowned for its high quality coffees, but the cost of the beans and the roasting process are just a few of the factors that go into making a cup of coffee. While their prices may be significantly higher than other brands, Starbucks does have a set of ethical and environmental standards, working to ensure fair wages and sustainable harvest techniques.
