About Single Origin Microlot Guatemala Coffee:

The Journey of Guatemalan Coffee:

From Farm to Coffee Shop

1. Coffee Harvesting & Processing in Guatemala

Guatemalan coffee is primarily cultivated by smallholder farmers and cooperatives, such as La Voz in San Juan La Laguna. The coffee is hand-picked at peak ripeness and processed using either the washed honey, or natural method.

Key Costs in Guatemala:

• Labor Costs: $0.50–$1 per pound (picking and processing)
• Mill Fees: $0.10–$0.30 per pound (hulling, sorting, grading)
• Local Transportation: $0.05–$0.10 per pound (farm to mill/export warehouse)
• Cooperative Fees (if applicable): 3-10% of final sale price

Farmers may sell their coffee at local prices to intermediaries, exporters, or specialty coffee buyers who negotiate purchase prices based on quality and market demand.

2. Export & Import Process

Once processed, coffee is prepared for export. This stage includes grading, packaging, and shipping to international buyers.

Key Players & Fees:

• Exporters: Responsible for arranging logistics, handling paperwork, and international sales. They charge 10-20% per pound ($0.30–$0.60 per pound).
• Brokers/Importers: Companies that purchase large volumes from exporters and resell to roasters. They add a markup of 15-40% ($0.50–$1.50 per pound).
• Shipping Costs (FOB – Freight on Board): $0.20–$0.50 per pound (ocean freight from Guatemala to the U.S. or Europe).
• Customs & Import Fees: 5-10% of coffee value, varying by country.

3. Roasting & Wholesale Distribution

Once imported, coffee roasters process green coffee into roasted beans for wholesale and retail distribution. Roasters purchase green coffee at $3–$6 per pound and sell it as roasted coffee at $12–$25 per pound.

Distribution Channels:

• Direct-to-Café Sales: Roasters sell roasted coffee directly to coffee shops at wholesale rates.
• Wholesalers & Distributors: Some roasters use intermediaries, adding another $1–$3 per pound markup.

4. Coffee Shops & End Consumer Pricing

Coffee shops purchase roasted beans at $12–$20 per pound and sell brewed coffee at $3–$6 per cup. Since each pound of roasted coffee yields 40-60 cups, the revenue per pound for coffee shops ranges from $100–$300.

Revenue Breakdown:

• Farm Gate Price (Paid to Farmers): $2–$4 per pound
• Export & Import Fees: $0.50–$2 per pound
• Shipping & Customs: $0.30–$1 per pound
• Roasting & Distribution: $3–$6 per pound
• Final Wholesale Price to Café: $12–$20 per pound
• Retail Revenue (per pound): $100–$300 (from brewed coffee sales)

Single Origin Microlot Coffee: Eliminating the Middlemen

Single Origin Microlot Coffee streamlines this entire process by cutting out intermediaries and ensuring that the coffee moves directly from farm to cup. By handling all the steps in-house—harvesting, processing, direct export, and roasting—farmers and cooperatives retain a greater share of the revenue, reducing unnecessary markups. This approach allows for:

• Higher profits for farmers by eliminating exporter and broker fees.
• Greater transparency in pricing and sourcing.
• Fresher, higher-quality coffee is reaching consumers more quickly.
• More sustainable and ethical trade practices, ensuring fair wages and direct support to coffee-growing communities.

Savings & Increased Profits for Growers

By eliminating intermediaries, farmers can dramatically increase their earnings per pound of coffee sold. Here’s a breakdown of how the savings translate into higher profits:

• Traditional Supply Chain: Farmers typically receive only $2–$4 per pound, while the coffee is eventually sold for $100–$300 per pound in brewed form.
• Direct Trade Microlot Model: Farmers can sell directly to consumers or specialty roasters for $8–$12 per pound, significantly increasing their profit margins.
• Savings Breakdown:
  • Eliminating Exporter Fees ($0.30–$0.60 per pound)
  • Eliminating Broker Fees ($0.50–$1.50 per pound)
  • Lowering Shipping & Customs Costs through direct relationships ($0.10–$0.50 per pound saved)

Impact on Growers

• Farmers can earn 2–3x more per pound than in a traditional supply chain.
• Retaining more revenue allows for investment in quality improvements (better processing equipment, organic certification, improved storage facilities).
• Direct relationships with buyers lead to long-term sustainability and better price stability.

Conclusion

The largest markups occur after roasting, with coffee shops earning 5–10x the farm price per pound of coffee. While Guatemalan farmers receive a modest percentage of the final retail price, specialty coffee sourcing, and direct trade models can help increase their earnings by reducing intermediary costs. Single Origin Microlot Coffee enhances this even further by keeping the entire supply chain under the control of farmers and cooperatives, ensuring quality and fair compensation. This results in higher profits, better quality control, and greater sustainability for coffee-growing communities.