Coffee (KC) - Real-Time Prices

Sub-Saharan Africa Coffee Production

Sub-Saharan Africa is a critical origin for premium arabica and robusta coffee, accounting for approximately 12% of global production. The region is known for unique flavor profiles, high-altitude arabica cultivation, and sustainable smallholder farming systems.

Major Producers (2024)

• Ethiopia: 450,000 tons/year - Birthplace of coffee, specialty arabica, diverse heirloom varieties
• Uganda: 290,000 tons/year - 60% robusta, 40% arabica, 2nd largest in Africa
• Tanzania: 60,000 tons/year - High-quality arabica from Mount Kilimanjaro and Southern Highlands
• Kenya: 50,000 tons/year - Premium arabica, renowned SL28/SL34 varieties, auction system
• Rwanda: 22,000 tons/year - Specialty arabica, post-conflict growth story, quality-focused
• Burundi: 18,000 tons/year - High-altitude arabica, bourbon varieties

Price Drivers

• Brazilian Production: Brazil dominates supply - droughts/frosts create price spikes
• Climate Volatility: Irregular rainfall patterns affecting African harvests
• Specialty Premium: African single-origin coffees command 20-40% price premium
• Currency Fluctuations: Strong USD pressures producer margins in local currency
• Frost Risk: Brazilian frost events historically drive prices up 30-50%
• Inventory Levels: ICE-monitored warehouse stocks indicate supply tightness

Volatility Profile

Exporting Coffee from Africa

Coffee exports require quality certification and phytosanitary compliance. Requirements by major origin:

Ethiopia

• ✓ Export license from Ethiopia Coffee and Tea Authority (ECTA)
• ✓ Quality grade certificate (Grade 1-9 scale, specialty 85+ cup score)
• ✓ Phytosanitary certificate
• ✓ Certificate of origin
• ✓ Export tax: 0.5% (specialty), 2% (commercial grade)
• ✓ Minimum price enforcement: $4.85/kg for specialty

Uganda

• ✓ Export license from Uganda Coffee Development Authority (UCDA)
• ✓ Quality inspection and cupping report
• ✓ Phytosanitary certificate from Ministry of Agriculture
• ✓ Export levy: $0.025/kg (arabica), $0.01/kg (robusta)
• ✓ Moisture content: Max 12.5%

Kenya

• ✓ Purchase at Nairobi Coffee Exchange auction or direct trade approval
• ✓ Export license from Agriculture and Food Authority (AFA)
• ✓ Quality certificate (AA, AB, C grades)
• ✓ Phytosanitary certificate
• ✓ Export cess: 1% of FOB value

Importing Coffee

• HS Code: 0901 (Coffee, whether or not roasted or decaffeinated)
• Import Duty: 0-20% depending on destination (EU: 7.5% green, 9% roasted; US: zero-rated)
• Standards: EU maximum ochratoxin A: 5 μg/kg, pesticide residue limits
• Certifications: Organic (EU/USDA), Fair Trade, Rainforest Alliance add 10-30% value

Coffee Transport Requirements

• Packaging: 60kg jute bags (standard) or GrainPro liners for specialty coffee
• Container Type: 20ft dry container (300 bags / 18 tons) or 40ft HC (600 bags / 36 tons)
• Ventilation: Adequate airflow to prevent moisture buildup and mold
• Temperature Control: Not required but avoid extreme heat (maintain under 30°C ideal)
• Documentation: Bill of lading, phyto certificate, quality report, certificate of origin

Typical Freight Costs

Note: Ocean freight costs exclude port handling ($150-300), customs clearance ($200-400), and inland transport to port. Specialty coffee often uses air freight for freshness despite 4-5x cost premium.