We have just released our first origin transparency report from Rwanda. In the coming months we’ll release reports for all of our origins.
These origin reports break down the FOB price and how it is distributed among the different players of the value chain in that country. There is a lot of information you need to absorb in order to contextualise these numbers, so for now we have kept the data to transactions that happen at origin.
Transparency is not a one way street
We also want to share Nordic Approach’s costs and value adds from FOB to the price you pay for your green coffee. We’re committed to showing you the costs involved with importing coffee. This pie chart represents a breakdown of all the costs associated with bringing the coffee to market. (Note: it does not include our margin. See the example personalised transparency report below for the full breakdown to the sales price.)
These are average costs we incurred in 2018, and the average FOB of all coffees purchased that year.
Average Nordic Approach Cost Breakdown
Expressed another way, here is the average cost (USD/kg) for each cost category in 2018. The total was $2.832 per KG
Personalised transparency reports:
This is something we offer all our customers. Don’t have one yet? Contact your sales person now and we’ll create one for you. This report includes all the coffees you have purchased from us in 2018 and 2019, the FOB we paid for that coffee, our (average) costs in bringing it to you, and the price you paid for that coffee.
Remember, the offer price is just a starting point. You might be getting a 7% or 12% discount, depending on how much commitment you make to Nordic Approach. (Not getting these discounts? Learn how in Alec’s blog post.) You might have also purchased the coffee on special offer, in which case the price could be much lower than the original offer list price. This is why we personalise these reports, so you can see the Nordic Approach costs and our estimated margin based on the price you paid.
Here is an example:
Transparency at Nordic Approach
It was part of our mission when Nordic Approach was first established to be fully transparent about pricing. Back in 2011, that meant publishing our price lists online. As Morten writes, at the time, that was revolutionary. We have always shared our FOB numbers and price structuring information, and now we are adding price data from origin. We will continue to push for more data, more context, and more efficiencies in the value chain in order to create a sustainable industry and secure a supply of high quality coffee well into the future.
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