Sourcing green coffee can often feel like walking into a minefield. From suppliers to logistics, pricing, warehousing and quality control there is a lot to organise and it usually falls into the hands of one person (maybe a few people, if you’re lucky). How do you reach out to farmers? Who do you reach out to? Then what? What is the difference between FCA and FAS? Will I be insured? These are some of the questions faced by roasters when they start their journey.
As resources on how to source coffee are not widely spread, this journey usually starts with buying coffee from a spot position (landed in the destination country and stored in a warehouse ready to release). It’s the easiest option, with little to no planning required. But is it the best option? And is it the most sustainable one? As your volumes and demands grow, planning ahead is essential to keep a steady supply without falling short on orders. It also allows for more financial stability for all involved in the supply chain.
To help new roasters avoid common sourcing pitfalls, we turned to two experienced roasters for advice. Dario Stoop is the Head of Coffee at Henauer Kaffee in Switzerland and Matthew Orchard is the Green Buyer & SCA Educator at Plot Roasting in the UK. According to them, the buying process can be straightforward - and fun! - when you follow the following principles:
1. Start small
1. Start small
Most roasters who source directly says there is more effort involved in the process than buying spot but that what you get in return is worth it. “If you are new to forecasting and have been used to buying spot, then start slow. Just forecast one coffee at a time until you get used to it”, suggests Dario. Testing the waters helps you find out what can happen along the way without compromising your immediate need for supply.
2. Build a dynamic offer with variable prices
For better or worse, price fluctuations are a part of buying coffee. “It’s important to be aware that you don’t always know the final cost of the coffee until it ships. There are also fluctuations in exchange rates to consider”, warns Matthew. The roaster explains that Plot keeps their house espressos at a fixed price but also works with “a dynamic pricing scale which allows for fluidity in costs” for their filter offers. “This allows us to communicate to customers why the price of a coffee may be more expensive from one origin over another.” It’s like training your customers to expect price variations.