More coffee shops make it harder to buy beans

Reading the article, coffee bean buyers are now offering both floor prices and competitive bidding.

The floor price means if the actual market price falls below the guaranteed minimum, I’ll still buy your product at the agreed-upon rate—for example, if we signed a floor price of $20 per kilogram but this year’s market rate is only $5 per kilogram, I’ll still pay $20 per kilogram.

The competitive bidding part means if the market price exceeds our signed rate of $20 per kilogram—for instance, if it’s now $38 per kilogram—I’ll pay based on the current market rate of $38 per kilogram.

Yunnan coffee currently has a market price of 37 yuan per kilogram with a floor price of 20 yuan per kilogram.

Yunnan Coffee