How to buy Belco coffee
The value of Arabica coffees is based on a New York futures market quotation. This quotation is expressed in US cents per pound (1 pound = 454 g) and corresponds to the price of an “ordinary” quality (i.e. a fully-washed coffee with 15 defects per 300 g, no major cup defects, sourced from various harvests, etc.), sold on a FOB basis (Free on Board, which means the coffee is delivered onto the ship in the port of origin).
The value of Robusta coffees is based on a London futures market quotation. This quotation is expressed in US dollars per tonne (1,000 kg) and corresponds to the price of an “ordinary” quality (i.e. 225 defects per 300 g, etc.), sold on a FOB basis (Free on Board, which means the coffee is delivered onto the ship in the port of origin). But it is impossible to choose and buy a coffee through futures markets! To say nothing about quality and traceability...
These base quotations serve only to negotiate prices with producers. A “differential” premium is applied to this base price, according to quality and preparation requirements and the reputation of its origin, plantation and/or producer, to determine the final purchase price.
The purchase price of our more exceptional coffees (Terroir, Estate, Microlot ranges) generally varies very little, according to fluctuations in futures market prices. But we can transform the fixed prices of the coffees that we buy in larger volumes (mainly the Label range) into variable prices by using “arbitrage” operations. This is why the prices of some of our coffees vary according to futures market prices, and others do not.
Finally, the euro price of all our coffees canalso vary depending on the exchange rate against the dollar.
If you would like to find out more about how futures markets work, click on the following link or contact our sales team.
Incoterms is an abbreviation of International Commercial Terms.
In international commercial contracts, Incoterms define the responsibilities and obligations of a seller and a buyer in relation to the loading, transport and delivery of goods and to the formalities and costs (including insurance) associated with these operations. They specify at which point risks are transferred from the seller to the buyer, in other words who must bear any costs incurred as a result of the coffee being damaged during transport.
The coffee prices that we give in our offers and price lists are generally Le Havre or Bordeaux FCA prices (in France), in other words the price includes preparation of the coffee at our warehouses on Euro pallets (10 bags max. per pallet) and loading into the truck.
We can also provide transport and delivery services to the destination of your choice at additional cost. In this case, we insurethe coffee against risk of damage during transport between our warehouses and the destination of your choice. All you are required to do is check the goods upon receipt and report any possible damage in the form of a reservation on the shipping note. We will need this if we are to submit a claim with our insurance company, without it we cannot compensate you for any loss incurred during the transport of your coffee.
On request, we also accept the following commonly used coffee Incoterms for appropriate quantities of coffee:
FOB: The goods sold are loaded onto the ship at the port of origin. Costs associated with freight, insurance and import formalities are paid by the buyer.
CIF: The goods are delivered to the port of destination of your choice and Belco manages freight, insurance and transport to this destination. Costs incurred by import formalities in the country of destination are paid by the buyer.
IIn Store: The goods are delivered duty paid to the logistics warehouse of your choice (approved by Belco), provided that it is authorised to handle green coffee and has the necessary approvals and infrastructure.
Our team is therefore capable of providing an à la carte coffee transport and logistics service to suit your needs. Simply contact us beforehand so that we can study feasibility and prepare a quote.
We may also be able to make a stock of coffee available to you at a nearby warehouse of your choice (approved by Belco), under the sole condition that this stock is covered by a forward sale contract (see link below).
This is a purchase with immediate delivery, i.e. within 15 days of sale.
These purchases can be made only on a Le Havre or Bordeaux FCA basis (in France) from our warehouses, according to stock availability and at the current price.
It is the simplest and most flexible solution, and requires no prior commitment on your part. It also means you benefit if there is a positive downward trend in prices.
However, with this solution there is a risk of prices increasingdue to market or currency movements. And we cannot guarantee that the coffee you want will be available when you place your order, if for example stock levels fallpending new arrivals or new harvests.
This is a purchase with one or more forward deliveries. First, a contract is drawn up between Belco and your company to define the coffee:
• price + Incoterms
• delivery period
We fix a price for a specific amount of coffee of a particular quality and for a given delivery period.
By signing the contract, Belco makes a firm commitment to deliver the coffees in question according to the terms of the contract.
With your signature, you make a firm commitment to accept delivery of the coffees in question according to the terms of the contract. You can have this coffee delivered in several instalments and you pay only at the time of delivery, just like a spot purchase.
Such contracts can be concluded for both fixed-price and variable-price coffees.
As mentioned above, the price takes into account the delivery period. The further away the delivery, the higher the price, due to storage and financing costs.
Belco is not a speculative company, so we offer distant delivery periods “if and only if” it is possible for us to buy the actual coffee during these periods. If not, we will inform you of the limits.
If the contract is not fulfilled by the end of the delivery period, Belco reserves the right to charge you additional costs (see CGV) to cover the expense of storing and financing the coffees.
The other terms and conditions of futures contracts are dictated by the European Coffee Contract.
This solution can serve as a hedge against the risk of acoffeeprice increase. It is also a means of ensuring that the coffee you have chosen is available at the moment when you need it.
We adopt what we believe to be a healthy and fair approach in our dealings with the coffee markets. We cannot predict the future of these markets, so we recommend that you purchase coffee responsibly and in a manner that is safe for your company. We suggest that you consider forward purchasing as an effective hedge against the risk of a price increase, notas an obstacle preventing you from benefiting from a possible drop in price. It is best to make regular purchases spread over a period of time in order to mitigate the risk and not suffer from a sudden surge in market price. This way you can focus on what you do best, which is roasting and selling high quality coffee, rather than taking speculative risks and venturing too far away from your core business.
What is Brazilian cupping?
We are happy to provide samples of our coffees, within reason, so that you can check they are of a quality that meets your expectations and to help you reach a decision.
Our quality team can prepare green coffee (150 grams) or roasted (80 grams) coffee samples. Please note that they will be roasted for a “Brazilian” cupping, so quality will suffer if you use a different cupping technique.
As mentioned above, your coffees will be prepared on a European pallet (10 bags max. per pallet). These pallets are wrapped carefully with a suitably resistant high-quality film. We can strap the pallets before filming them on request.
Under certain conditions, we may also offer half-bag packaging, reconditioning services and mixing services for different green coffees. Contact our sales department for more information, they will be happy to prepare a quote.