Currently, the cost of roasting coffee is between $5 and $6 per pound. This price range is made up of several important overheads, including the cost of setting up a roasting facility, administration fees, packaging, and the cost of water weight that gets lost during roasting.
This article will help you understand the numerous factors that make up this cost and other important facts related to roasting your own coffee beans.
The Cost Breakdown Of Roasting Coffee Beans
The coffee industry is a multibillion-dollar sector with at least 2.3 million cups of coffee being consumed worldwide every minute. In terms of volume sales, coffee is the 4th most-consumed drink globally!
The process of preparing a delightful cup of coffee starts right from the moment a coffee seedling is planted in the soil and ends when you pour the coffee into your cup. In between these phases, several other important processes take place, including roasting.
Before you start roasting your coffee, make sure you understand the difference between Italian and French roasts; if it’s unclear to you, check out the link for a detailed explanation.
Cost Of Importation And Storage
Coffee roasters have to import raw coffee beans from individual farmers or coffee millers, so they have to factor in the cost of purchasing the beans as well as the shipping cost. Currently, the cost of unroasted coffee beans ranges between $1 and $6 per pound.
This price depends on the type and quality of coffee beans you buy. Around the world, there are two main types of coffee: Arabica and Robusta. Arabica coffee beans are the most expensive, while Robusta beans sell for a bit less.
In some cases, roasters have to pay import taxes as well. If you are importing large amounts of raw coffee beans for roasting, you’ll need a warehouse to store your beans. So, you have to factor in the cost of storage too.
Cost Of Buying A Coffee Roaster And Roasting Facility
When you start roasting your coffee beans, you have to include the cost of running the roasting facility. This includes utility bills, wages, packaging, and other incidentals involved in the roasting process. You also have to buy a coffee roasting machine.
Thankfully, different brands of coffee roasting machines have different price tags, depending on their size, features, and performance. The current cost of a coffee roaster ranges between $20 and $59,900.
The cost and size of the roaster also determine the amount of coffee beans it can roast at once.
For instance, a roaster that costs $20 will only roast 0.19 pounds of coffee per batch, while a machine that costs $59,900 will roast up to 132 pounds of coffee per batch. So, make sure you buy the right coffee roaster for your needs.
Don’t forget to factor in the inevitable losses that are likely to occur along the way. Please note that these losses aren’t part of the overall business expenses that you are likely to incur when roasting your coffee.
During roasting, your coffee beans will lose a significant amount of weight. This loss is mainly caused by water evaporation. Depending on the type and quality of the coffee beans, the estimated weight loss ranges between 12% to 20%, so you’ll have to include this loss in your final price.
Certification, Licensing, And Taxes
Additionally, you may need to obtain the necessary coffee roasting licenses, permits, and certification from your local government. These documents come at a fee. If you are running a coffee roasting business, you are expected to pay taxes, including the Value Added Tax (VAT), when appropriate.
So, if you find your next cup of coffee too expensive, don’t be too quick to conclude that the coffee shop is trying to rip you off. Understand that a lot of expenses have contributed to the overall cost of roasted coffee beans.
Also, remember to consider all these factors if you are planning to start a coffee roasting business.