More Coffee Shops, Harder to Find Good Beans

In this article, coffee bean buyers are now guaranteeing minimum floor prices and bidding up the final price.

A “floor price” means that if the actual market price falls below the agreed floor price, I will still buy your beans at the floor price. For example, if we sign a floor price of 20 yuan per kilogram and the market price this year is only 5 yuan per kilogram, I will still purchase your coffee at 20 yuan per kilogram.

“Bidding up the price” means that if the market price exceeds our agreed 20 yuan per kilogram—for instance, rising to 38 yuan per kilogram—I will pay you the higher market rate of 38 yuan per kilogram.

Currently in Yunnan, coffee trades at a market price of 37 yuan per kilogram, with a floor price of 20 yuan per kilogram.

Yunnan Coffee