A good cup of coffee begins with quality beans. Managing the production of quality green coffee translates to more consumers, more flexibility and better prices. This manual will assist in achieving these goals through better preparation of the green coffee. The manual describes the different types of imperfections or defects and the effect they have on the roast, cup and deliverability to the New York Board of Trade.

The New York Board of Trade [NYBOT] is the holding company of the New York Coffee, Sugar and Cocoa Exchange, which is the world forum for coffee futures and option trading. Through the use of futures, there will always be a buyer for specific origins that meet the quality standards as defined by the exchange rules and regulations. Most people unfamiliar with the Exchange believe that they are the buyer of all coffee delivered. The exchange, however, solely matches buyers and sellers. All certified coffee is owned by someone other than the Coffee Exchange.

The Coffee Quality Guide is a useful tool for all green coffee exporters and importers as a guide for physical delivery to the NYBOT. It also serves as a reference to small and large roasters aiding them in the purchase of quality coffee. One of the deciding factors for both buyer and seller is price. For Arabica coffee worldwide, the basis used is the futures price on the NYBOT. This price is negotiated on the floor of the Coffee Exchange via an open out cry between buyer and seller. The contract that is negotiated is for coffee that meets the Exchange standards. This base price is used as a reference point for the sale of all Arabic coffee. Using this base price, coffee is sold either at flat price [set price] or differentially, where price is to be determined at a later date. This price can be over the base price, under the base price or equal to the base price.

This quality guide will assist a seller in determining the exact differential he will receive for his coffee at all times as long as Exchange standards are met. In addition, you are able to set the price by selling one lot of futures for each log of physical coffee sold. By using this tool, the seller knows he will always have a buyer and the minimum price he will receive.

The use of the exchange is an effective alternative to commercial sales. Exporters and producers using this will ensure that the best possible price is obtained. Similarly, roasters will be assured of quality deliveries of commercial coffee. The knowledge of coffee bean imperfections and how they apply to the Exchange delivery is a useful tool that is available to both buyer and seller and benefits all. Once you have evaluated this Guide, we ask for your suggestions and comments in order to improve future editions.