Specialty premiums and quality tiers

Specialty Premiums

• Definition: Additional price paid above the NYC ‘C’ market plus differentials, reflecting exceptional quality, traceability, or sustainability.
• Negotiation: Premiums are often set directly between roasters/importers and producers/exporters.
• Rationale: Rewards producers for extra effort in selective picking, experimental processing, or maintaining certifications.

Quality Tiers in Coffee

1. Commercial Grade (Commodity Coffee):

• Follows NYC ‘C’ market closely.
• Usually 80 SCA points or below.
• Bulk blending, mass market.

2. Premium Grade:

• Slightly above commodity.
• More consistency, fewer defects, some differentiation.

3. Specialty Coffee:

• Defined by SCA as ≥80 points.
• Premiums negotiated based on cupping scores and market reputation.
• Price often detached from ‘C’ market.

4. Microlots / Nanolots:

• Extremely high-quality, traceable lots.
• Cupping scores 86+.
• Auctioned or direct-traded with very high premiums.

5. Competition-Level Coffees:

• Rare, experimental, often exceeding 90 points.
• Can reach $50–500+/lb at auctions.

Example Premiums

• Commodity: $2.00/lb (close to C).
• Specialty (84 points): $3.00–$4.00/lb.
• Microlot (87 points): $5.00–$10.00/lb.
• Competition: $50+/lb.

Risks & Considerations

• Premiums depend on roaster demand and brand positioning.
• Producers risk investing in costly quality practices without guaranteed buyers.
• Market transparency is crucial—premiums should translate into farmer income, not just trader margins.

Summary

Specialty premiums reward exceptional quality, traceability, and sustainability, creating a tiered market from commodity coffee to competition-level microlots. Understanding these tiers helps buyers design sourcing strategies and producers capture more value for their work.

• Tags:
• Specialty Coffee
• High Quality
• Cupping Scores
• Producers Exporters
• Commercial Grade
• Selective Picking
• Farmer Income