Agriculture

Coffee (Arabica)

Arabica coffee accounts for roughly 60% of global coffee production, grown at higher altitudes with a milder, more nuanced flavor profile. Brazil is the largest producer, with Colombian and Central American washed Arabicas commanding specialty premiums. ICE KC (New York) is the benchmark futures contract.

  • NY 2/3 (Brazil)
  • Excelso (Colombia)
  • SHB (Strictly Hard Bean)
  • Specialty (80+ score)
  • FOB
  • CIF
  • CFR
At a glance

Coffee (Arabica), in brief.

Common origins
  • Brazil
  • Colombia
  • Ethiopia
  • Honduras
  • Guatemala
Common destinations
  • United States
  • Germany
  • Japan
  • Italy
  • Belgium
Grades and specifications
  • NY 2/3 (Brazil)
  • Excelso (Colombia)
  • SHB (Strictly Hard Bean)
  • Specialty (80+ score)
Incoterms
  • FOB
  • CIF
  • CFR
Unit of measure
  • 60 kg Bags
Price drivers

What moves Coffee (Arabica) pricing

Arabica coffee prices off ICE Coffee 'C' futures (New York). Brazilian Cerrado, Sul de Minas, and Mogiana growing regions set the marginal supply. Frost events in Brazil (1975, 1994, 2021) caused historic price spikes. The Arabica-Robusta spread reflects relative supply tightness and roaster blending economics. Vietnam's coffee policy (mostly Robusta) affects the spread indirectly.

Contract structure

How Coffee (Arabica) cargoes are priced and settled

Standard cargo: 19,500 kg (250 bags of 60 kg + tare), or full container loads. Pricing is C-contract plus or minus a quality and origin differential. Differentials by origin and grade (Brazil Naturals 17/18, Colombian Excelso EP, Honduras HG, Kenya AA): the differentials matter as much as the C-price for actual cargo economics.

Quality and disputes

Coffee (Arabica) specifications and dispute practice

Specs cover screen size (17/18 standard for Brazil), defect count (max 8 per 300g for Specialty Grade), and cup score (84+ for Specialty Coffee Association classification). Disputes turn on cup quality assessment, with arbitration through the Green Coffee Association.

Trade flows

Where Coffee (Arabica) comes from and where it goes

Top exporters of Arabica: Brazil, Colombia, Ethiopia, Honduras, Peru, Guatemala, Mexico, Costa Rica, Kenya. Top importers: US, Germany, Italy, Japan, France, Belgium (Antwerp transhipment), Switzerland (Nestle home market). The specialty/third-wave segment commands $1-5/lb premiums above C-price for traceable single-origin lots.

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