#006 - Coffee is not a commodity. How can it be so different from soybeans, wheat or corn?

What makes coffee so special compared to other agricultural products? 

Unlike soybeans, wheat, corn or sugar - those powerhouse soft commodities shipped in massive bulk quantities - coffee is really special. It's not about volume; it's about flavor, origin, and story. There are regional quirks, growing demand for traceability, and the fascinating history of how it's been transported. These methods have evolved to improve your cup tasting. 

Let's clarify what sets coffee apart from bulk soft commodities. Soybeans, wheat, corn and sugar are often treated as interchangeable staples. They're grown on vast farms, harvested in enormous quantities, and exported in huge silos or tanker ships without much fuss about where exactly they came from. A bushel of corn from Iowa might mix seamlessly with one from Argentina in global markets. These are commodities: priced primarily on quantity, quality grades, and supply-demand dynamics. 

What about coffee? It is a different game!

Coffee thrives on diversity. Each growing region has unique characteristics to the beans, influenced by soil, altitude, climate, and farming traditions. Ethiopian beans tend to present floral and citrus notes. Colombian washed beans offer a balanced, nutty profile with hints of chocolate. Brazilian naturals from Minas Gerais tend to deliver a smooth, low-acidity body with caramel and chocolate undertones. These aren't just labels; they're signatures of terroir, much like in wine. If you swap beans from different origins, the taste changes - that is a job for the artists, the roasters.

This is why consumers demand more knowledge and traceability. They are not just buying a product. They want to know who grew these beans. If they were farmed sustainably. And if the supply chain is ethical. Traceability means being able to track the journey. Technology is necessary. It creates the demand for quality into the entire supply chain. It tends to address ethical and environmental concerns - such as child labor, fair price for farmers, deforestation and protection to biodiversity. 

Unlike bulk commodities where anonymity is the norm, coffee's premium market rewards transparency. Specialty coffee shops and roasters build loyalty by sharing origin stories and adventures.

Transportation methods play a key role here. There is a rich history. Back in the late 1800s, beans were packed in iconic 60 kg jute bags—sturdy, woven sacks made from natural fibers. Jute was breathable to prevent mold, durable for handling and allowed for easy stacking in warehouses and ships.

Today, while jute bags remain a staple, the market has become more demanding. Unroasted coffee beans could absorb odors, moisture, or contaminants, which would ruin the flavor profile. So, modern methods layer protections: Beans are first sealed in impermeable high-density polyethylene or GrainPro bags. These are barriers against humidity, oxygen, and pests, extending shelf life and maintaining freshness. Then, these plastic-encased beans go into the traditional jute bags for outer protection and easy handling. Finally, stacks of these are loaded into shipping containers.

This multi layer process safeguards quality at every step and boosts traceability: each bag can be labeled with batch numbers, origin details, and even GPS data from farms. Containers are tracked via digital logs, ensuring no mix-ups in the supply chain. For Brazil, which exports over 30 million bags annually, this means beans from specific cooperatives in Cerrado or Mogiana regions arrive intact, ready for roasters to highlight their unique traits.

Coffee's transportation evolution mirrors its shift from commodity to specialty. It preserves the regional magic, while meeting our demands for ethical, transparent sourcing. 

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Coffee Market Weekly: 

NY ICE Coffee C Futures +0.1% weekly, at 357.65 cents/lb

Brazil B3 Coffee Futures + 0.66% weekly, at $433.55/bag

BRL/USD FX: +0.93% weekly

Santos-Rotterdam 20' freight proxy (FBX11) +0.8% weekly

Key News:

1. Certified Arabica stocks declined to 455,727 bags.

2. Orchestra PE acquired Mammoth Coffee Lab for ₩100B.

3. Touton sold to Hartree Partners, impacting coffee trade.

4. Compass Coffee agreed to sell assets to global buyer.

5. India's 2025-26 coffee output estimated at record 4.03 lakh tonnes.

6. Starbucks closed 400 urban stores in restructuring.

7. High prices persist due to weather issues in Brazil/Vietnam.