John Barnes - LPL Financial Planner

(323) 306-7024

Money Read Time: 3 min

The Economic Journey of Your Morning Coffee

If you’re like 49% of Americans, you drink coffee every day. Few, if any, take a moment during their morning coffee ritual to contemplate or marvel at the complex journey that brought their coffee from farm to their kitchen table.1

Coffee is one of the U.S.’s largest food imports. It wields an economic impact that starts with farmers from Brazil to Vietnam and ends with the barista at your local coffeehouse, involving hundreds of truckers, shippers, roasters, and retail workers in between.²

Like many agricultural enterprises, coffee is grown on large plantations and small farms alike. Harvests are purchased by coffee mills located proximate to coffee growing regions, either directly from the plantation and farm cooperative or via a trader who buys from the farmer in the hopes of re-selling at a higher price.

The mills take these “cherries”—so-called because the beans are red—and bring them through a milling process that dries them and removes their husks to reveal the inner green bean.

The green beans are brought into the U.S. by importers and sold to roasters and major coffee brands whose roasting facilities are typically located in coastal cities with seaports that can receive the coffee shipments.

Once roasted, coffee will be ground (or left as whole beans), packaged, and shipped to distribution centers around the country for eventual delivery to retail outlets.

Coffee’s journey to your table may travel a different path, given the rise of specialty roasters and a growing connection between coffee retailers and farmers that removes many of these middlemen.

1. MedicalNewsToday.com, 2023
2. USDA.gov, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Inflation & Your Money

Inflation & Your Money

It's important to understand how inflation is reported and how it can affect investments.

The Cost of Procrastination

The Cost of Procrastination

Don't let procrastination keep you from pursuing your financial dreams and goals.

Risk Perspective

Risk Perspective

Is it possible to avoid loss? Not entirely, but you can attempt to manage risk.

 

Have A Question About This Topic?







Thank you! Oops!

Estate Management Checklist

Is your estate in order? This short quiz may help you assess your overall strategy.

Don’t Be Your Own Worst Enemy

Emotional biases can adversely impact financial decision making. Here’s a few to be mindful of.

Understanding the Alternate Valuation Date

Executors can value the estate on the date of death, or on its six-month anniversary —the “Alternate Valuation Date."

View all articles

Comparing Investments

Compare two different scenarios side by side to see how they stack up over time.

Estimate Your RMD

Calculate your required minimum distribution amount based on your account balance and age.

How Long Will My Savings Last If I Become Disabled?

See how long your current savings might last if a disability interrupted your income.

View all calculators

Keeping Up with the Joneses

Lifestyle inflation can be the enemy of wealth building. What could happen if you invested instead of buying more stuff?

Leaving Your Lasting Legacy

Want to do more with your wealth? You might want to consider creating a charitable foundation.

Inflation and Your Portfolio

Even low inflation rates can pose a threat to investment returns.

View all videos