Buying coffee beans can mean more than free coffee
In other words, regardless of what is happening on the commodity market to the price of coffee beans, the amount of coffee consumed does not change! If the price of coffee rises, people do not necessarily consume less coffee.
Likewise if the price of coffee falls, people do not suddenly double their coffee consumption. Price fluctuations in the price of beans are more a product of supply than of demand.
Last year the global coffee production amounted to 188 million bags of coffee. For the uninitiated a bag of coffee weighs approximately 60 kilograms.
Given that in April 2009 a bag of coffee was gong for $134 a bag, the global coffee production is valued at just over 25 billion dollars. It follows that being a coffee supplier is big business.
Obviously the price varies whether you are dealing in green beans, espresso beans, organic coffee or roasted coffee. All have coffee beans as a base and these are traded on the commodity market. If one were to buy “low” and sell “high”, money could be made – which in a way translates into free coffee. Trading in coffee beans is very serious business, primarily because of the price inelastic nature of the demand and consumption of coffee. Too complicated to get free this way? click on the link for an easier way...
Another way to increase profits would be to purchase green coffee and invest in a coffee roasting business. This would add value to the beans and increase the profit margin.
An additional way to add value would be not only to roast green coffee beans but also add flavour to make flavoured coffee. This would justify an even higher mark up and there by an increased profit margin.
The “buy low sell high” strategy can only work if you are able to store the green beans for a lengthy period of time, albeit weeks or even months. Green beans need to be able to breathe.
Any form of air tight container is bad. Since green beans have moisture in them an air tight container can and will lead to condensation and your beans will foul.
Beans need to be stored in a dark cool, dry place in a container that can breathe such as a sack or bag. If you are storing different types of beans it is highly advisable to clearly mark which bag contains which beans so that you do not sell the wrong beans at the wrong price!