Coffee Supply Chain: The Economic Journey of Your Morning Coffee
If you’re like most Americans, you started your day with a cup of coffee — about 66% of U.S. adults drink coffee daily. Few take a moment during this morning ritual to consider the complex coffee bean supply chain that brought their coffee from farm to kitchen table.
Coffee is one of the largest food imports in the United States. Its economic impact starts with farmers from Brazil to Vietnam and ends with the barista at your local coffeehouse — involving hundreds of truckers, shippers, roasters, and retail workers along the way.
Understanding the Coffee Industry Supply Chain
The coffee production process involves far more hands than most people realize:
- More than 36 hands touch every coffee bean on its journey from bush to cup
- The original bean farmer can expect between 12 and 25 cents for every pound of gourmet coffee sold
Like many agricultural products, coffee is grown on both large plantations and small farms.
How Coffee Moves From Farm to Cup
The coffee farm to cup journey follows several key stages:
1. Harvesting and Purchasing
Harvests are purchased by coffee mills located near coffee-growing regions. This happens either:
- Directly from the plantation or farm cooperative, or
- Through a trader who buys from the farmer with the goal of reselling at a higher price
2. Milling
Mills take the harvested “cherries” — so called because the beans are red — and run them through a milling process that dries them and removes their husks, revealing the inner green bean.
3. Importing
Green beans are brought into the U.S. by importers and sold to roasters and major coffee brands. Roasting facilities are typically located in coastal cities with seaports capable of receiving coffee shipments.
4. Roasting and Distribution
Once roasted, coffee is either ground or left as whole beans, then packaged and shipped to distribution centers around the country for eventual delivery to retail outlets.
The Changing Coffee Distribution Process
Coffee’s journey to your table may follow a different, shorter path today given the rise of specialty roasters and a growing direct connection between coffee retailers and farmers — a shift that removes many of the traditional middlemen described above.
Frequently Asked Questions
What is the coffee supply chain?
The coffee supply chain is the full economic journey coffee takes from farm to cup — involving farmers, mills, traders, importers, roasters, distributors, and retailers, with more than 36 hands typically touching each bean along the way.
How much does a coffee farmer earn per pound of coffee?
The original bean farmer can expect between 12 and 25 cents for every pound of gourmet coffee sold, despite the much higher retail price consumers ultimately pay.
Why are coffee roasting facilities usually located in coastal cities?
Roasting facilities are typically located in coastal cities with seaports, since that’s where green coffee bean shipments are received after being imported into the U.S.
How is the coffee distribution process changing?
The rise of specialty roasters and direct relationships between coffee retailers and farmers is shortening the traditional coffee distribution process, reducing the number of middlemen involved.
What are coffee “cherries”?
Coffee cherries are the harvested coffee fruit — called cherries because of their red color — which mills process to remove the husk and reveal the green coffee bean inside.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice and may not be used for the purpose of avoiding any federal tax penalties. Please consult a legal or tax professional for specific information regarding your individual situation. The opinions expressed and material provided are for general information only and should not be considered a solicitation for the purchase or sale of any security.
