Vietnam was one factor in the price of coffee falling in the early 2000s enough to drive many Latin American producers from the business. The clear business setting test mandates that there can … "Buying direct is a fraud," he said. Many African countries may no longer be able to produce coffee at all. Starbucks, though, said some beverage prices would rise by up to 40 cents. The coffee is taken to the ports and shipped to the consumer country. Over the years, various penny-pinching individuals have done the math on the subject, and the breakdown usually shows that K-Cups cost two or three times more per cup compared with traditionally brewed coffee. In the countries that produce coffee, such as Brazil (the single largest), Colombia or Indonesia, the beans are grown on mountain plantations. For investors, coffee will remain a wild ride. Another $1 goes into getting the coffee from a possibly remote farm to the point where it's exported, and one can add to that the $4 per pound for the raw beans. Specialty coffee is roasted in small batches, usually close to the retailer who is grinding and brewing these exceptional cups. While it might seem that a major user like Starbucks could affect the price, it turns out not to be the case. As each sale you make will be relatively low value, you need to ensure you buy your coffee beans from vendors that offer consistently low, competitive prices. Coffee beans (12 regular brands and five decaffeinated brands) – $6,000. In Ecuador, where the cost of production is US $1.91/lb, a farmer paid the C price would make a loss of -38.7%. The largest consumer is the U.S., with Europe in second place, but that's the EU taken as a bloc. 11 refers to a futures contract for 112,000 pounds of raw cane sugar. Starbucks or Peet's, which use a dark roast, will lose 20-22%, while a bulk user such as Kraft Foods Group (KRFT) will lose less, about 15%. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000. Product from Amazon, Publisher may get a commission. (In fact, while a number of European nations beat the U.S. in coffee consumed per capita, the U.S. is far and away the biggest single market.). We’re here to help! You have to make sure the coffee is the same product you paid for, for instance.". risks and opportunities. The roaster that "cooks" the coffee when it arrives in the U.S. takes in about $2. Cost of Preparing With the coffee itself the main component, other items necessary for it's creation are based on consumers preference and ingredients include: Bottled water - which can add $0.12 to $0.20 and more per cup based on the source.