Today's example for a Brazilian producer is as follows:
- Farmer quality "Bica" trades at a farm gate price of around BRL 500 per 60 kilo bag
- With BRL/USD at 5.7 this is $1.46/Kilo
- 1 Nespresso capsule contains 5-6 grams of roasted coffee
- During the roasting process the coffee loses around 15% of weight (mainly moisture)
=> Based on these facts the farmer gets around $0.01 per cup.
Where I live a Nespresso capsule costs around $0.50 each.
The WEF assumed that it takes 30 grams of roasted coffee to brew 1 cup...
The WEF also took the ICO indicator price, which is based on destination quotes.