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The Economic Journey of Your Morning Coffee

If you’re like 62% of Americans, you started your day with a cup of coffee. Few, if any, took a moment during this morning ritual to contemplate or marvel at the complex journey that brought their coffee from farm to their kitchen table.1

Coffee is one of the U.S.’s largest food imports. It wields an economic impact that 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 in between.2

More than 36 hands touch every coffee bean in the journey from bush to cup. And the original bean farmer can expect between 12 and 25 cents for every pound of gourmet coffee sold.3

Like many agricultural enterprises, coffee is grown on large plantations and small farms alike. Harvests are purchased by coffee mills located proximate to coffee growing regions, either directly from the plantation and farm cooperative, or via a trader who buys from the farmer in the hopes of re-selling at a higher price.

The mills take these “cherries”—so called because the beans are red—and brings them through a milling process that dries them and removes their husks to reveal the inner green bean.

The green beans are brought into the U.S. by importers and sold to roasters and major coffee brands whose roasting facilities are typically located in coastal cities with seaports that can receive the coffee shipments.

Once roasted, coffee will be ground (or left as whole beans), packaged and shipped to distribution centers around the country for eventual delivery to retail outlets.

Coffee’s journey to your table may travel a different path given the rise of specialty roasters and a growing connection between coffee retailers and farmers that removes many of these middlemen.

1. NCAUSA.org, March 26,2020
2. USDA.gov, 2020
3. GroundworkCoffee, 2020

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. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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