empire green coffee sourcing
Proper coffee sourcing is about protecting customers from volatility in the commodities market and finding the best-tasting coffee. This is the foundation of Empire’s business philosophy.
Empire coffee sources its green coffee through an integrated supply chain network with the U.S. portion consisting of importers who have direct support and presence at the countries of origin. Our primary source is the largest green coffee miller in the world ensuring that all coffees meet and exceed our quality and cupping standards. Additionally, a secondary safeguard to quality is the fact that all green coffee is purchased on a SAS (subject to approval of sample) basis.
Green coffee calendar versus delivery months are as follows; Jan, Feb. March is against March, April, May is against May, June, July is against July, August, September is against September and October, November, December is against December. The minimum contract amount that can be secured is 37,500 lbs.
Green coffee futures pricing can be fixed or secured seven business days prior to first notice day within the last month before the delivery month. Differential pricing needs to be established a minimum of 60 days before the first day of the delivery month. Our commodity risk management team will utilize fundamental and technical data, supplied by our green coffee importers to determine pricing levels and timing to fix portions of our needs during contract periods. Through our importers we utilize various pricing options, such as GTC’s (Good Till Cancel), buying and selling puts and calls, collars, which set strike points at levels above and below the current market which limits the risk of unanticipated market moves. Green coffee pricing, including differentials can be fixed and secured on a monthly, twelve, twenty four or thirty six month period (based on mutual agreement for the differential portion and using switches to extend coverage beyond an 18 month period).