The price of coffee
March 7, 2022 by DarcieIf I ask you the question “how much does a cup of coffee cost?”, you can probably rattle off an answer in seconds. Of course the cost varies on whether you are making it at home, buying it at a gas station, or purchasing from an upscale coffee shop. There are a lot of factors that go into the price, including the type and quality of the bean, how it’s brewed, and what is added to the resulting brew. But those are not the only issues that come into play, says Jenn Rugolo writing for Vittles. Rugolo explores the many variables – tangible and intangible – that play a role in calculating the price of coffee.
As she dives into the various economic factors, Rugolo notes that “coffee drips with socio-cultural significance. It phases, not just from solid to liquid, but from an agricultural product to an object of social, emotional, and aesthetic value. Because of this, only a fraction of the price paid at a café till for a flat white is allocated to coffee in its raw form.”
Rugulo investigates the costs from the growing, tending, and harvesting of the coffee beans all the way to the types of containers in which coffee is served, offering up a startlingly complicated graph called the Coffee Systems Map. This map shows the many parties that you might not think about who are involved with getting the beans from the ground to your cup, including futures traders, brokers, and transportation companies. Rugolo thoughtfully explores the topic of who gets to determine what value is added at the various stages, and asks us to rethink our understanding about a simple cuppa joe.
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