Coffee Trading Glossary

A processing method where coffee is fermented in oxygen-deprived sealed tanks for 4–5 days. Creates unique, vibrant flavor profiles with wine-like and tropical fruit characteristics. The controlled environment allows producers to manipulate pH, temperature, and microbial activity for targeted flavor development.

A dispute resolution process commonly used in international coffee trade, where disagreements over quality, weight, or contract terms are settled by a neutral third party. GCA arbitration is the standard mechanism for resolving disputes under Green Coffee Association contracts in the United States.

A measure of how available the water in green coffee is for chemical reactions and microbial growth. Optimal range: 0.45–0.55 aw. More predictive of shelf stability than moisture content alone. Low water activity inhibits mold growth and slows staling.

A document issued by a carrier confirming receipt of cargo for shipment. Serves three functions: receipt of goods, contract of carriage, and document of title. An original B/L is typically required to claim cargo at the destination port.

The benchmark Arabica coffee futures price on the ICE exchange, quoted in US cents per pound. Specialty coffee premiums are typically expressed as differentials above the C price. The C price reflects supply and demand for commodity-grade washed Arabica.

A variation of anaerobic processing borrowed from winemaking. Whole cherries are placed in a tank saturated with CO2, producing complex, aromatic cups. Intracellular fermentation occurs within the cherry, creating distinct flavor compounds not found in traditional processing methods.

An official document certifying the country of origin of exported goods. Required for customs clearance in the destination country. For Ethiopian coffee, the Certificate of Origin is issued by the Ethiopian government or authorized bodies and is mandatory for all coffee exports.

A facility for consolidating or deconsolidating less-than-container-load (LCL) shipments. At origin, CFS facilities combine multiple smaller shipments into a single container. At destination, they break down containers for distribution to individual consignees.

The seller pays for ocean freight and insurance to a named destination port. The buyer takes over upon arrival. CIF pricing is common when the seller has established freight contracts or when the buyer prefers a single landed price.

An annual international competition that identifies the highest quality coffees from participating countries through blind cupping by international judges. COE-winning lots are auctioned online and typically command prices many times higher than market rates, providing direct financial reward to quality-focused producers.

A standard unit of ocean freight. FCL (Full Container Load): 20ft container holds 250–300 bags of 60kg green coffee; 40ft container holds 375+ bags. LCL (Less than Container Load) is used for smaller shipments that share container space with other cargo.

A farmer-owned organization that aggregates coffee from smallholder members for collective processing, marketing, and export. Ethiopian cooperatives are often organized into unions (e.g., Oromia Coffee Farmers Cooperative Union). Cooperatives provide members with market access, technical support, and premium distribution that individual smallholders could not achieve alone.

The annual harvest cycle for a coffee-producing region. Ethiopian crop year runs from October to September (e.g., "2024/25 crop"). Crop year identifies freshness and vintage of green coffee. Current-crop coffee commands a premium over past-crop, as green coffee quality gradually degrades over 6–12 months of storage.

A numerical quality assessment on a 100-point scale established by the SCA. Coffee scoring 80+ is classified as specialty grade. Scores are based on 10 attributes including aroma, flavor, aftertaste, acidity, body, balance, uniformity, clean cup, sweetness, and overall impression.

A financial guarantee required by US Customs and Border Protection ensuring that import duties and fees will be paid. Continuous bonds cover all imports for a year; single-entry bonds cover one shipment. The bond amount is typically set at 10% of the total duties paid in the prior year.

The SCA's new cupping standard (adopted 2025), replacing the 2004 protocol. Includes SCA-102 (sample preparation), SCA-103 (descriptive assessment for identifying flavor attributes), and SCA-104 (affective assessment for scoring quality). CVA introduces more structured descriptive vocabulary and separates objective description from subjective preference.

The seller bears all costs and risk until the goods arrive at the buyer's specified location, including import duties and taxes. DDP places maximum responsibility on the seller and is the most comprehensive pricing term.

The number of physical defects found in a 300-gram sample of green coffee. Ethiopian grades: G1 (0–3 defects), G2 (4–12), G3 (13–25), G4 (26–46), G5 (47–86). Defects include black beans, sour beans, insect-damaged beans, broken beans, and foreign matter.

Charges incurred when a shipping container is not returned within the agreed free time period at the destination port or terminal. Free time is typically 3–7 days; demurrage rates escalate daily thereafter. Efficient logistics coordination is critical to avoid demurrage costs, which can add $100–300+ per day.

The mass per unit volume of green coffee beans (g/mL). Higher density typically indicates higher altitude growing and more complex flavor development potential. Dense beans absorb heat differently during roasting, often requiring adjusted roast profiles.

The mechanical removal of the outer cherry skin (exocarp) from the coffee seed, typically performed within hours of harvest at a washing station. Depulping is the first processing step in washed and honey methods. The quality of depulping affects fermentation uniformity and final cup quality.

The premium or discount applied to the C price based on origin, quality, and certifications. Example: "+40 cents" means 40 cents per pound above the current C price. Ethiopian specialty coffees typically carry positive differentials reflecting their quality premium.

A sourcing model where roasters or importers buy directly from producers or cooperatives, bypassing traditional commodity channels. Direct trade relationships emphasize transparency, quality premiums above market rates, and long-term partnerships. Unlike Fair Trade, there is no universal certification standard for direct trade claims.

A processing facility where dried parchment or natural coffee is hulled, sorted by size and density, graded, and prepared for export. The dry mill is the final processing step before coffee is bagged for shipment. Operations include hulling, polishing, density sorting, color sorting, and hand-picking.

The government regulatory body for Ethiopia's coffee and tea sectors. As of May 2025, ECTA registers export contracts (previously handled by the National Bank of Ethiopia). ECTA oversees quality standards, export licensing, and the regulatory framework for Ethiopian coffee trade.

The national trading platform for Ethiopian agricultural commodities, including coffee. Mandates standardized grading, warehousing, and trading for most export coffee. Recent reforms allow direct trade for some specialty lots, bypassing the exchange for traceable, single-origin coffees.

Controlled fermentation periods longer than traditional methods (sometimes 48–120 hours), used to develop specific flavor attributes. Extended fermentation can enhance sweetness, complexity, and fruit-forward characteristics when carefully managed, but risks over-fermentation defects if not monitored.

Price quoted at the warehouse door; the buyer arranges and pays for all freight from that point forward. This is the simplest pricing term for the seller, as all logistics responsibility falls on the buyer.

A certification system that guarantees producers a minimum floor price and a social premium for community investments. Fair Trade Certified coffee must meet environmental, labor, and trading standards set by Fair Trade USA or Fairtrade International. The current Fair Trade minimum for washed Arabica is $1.80/lb, with an additional $0.20/lb social premium.

The price paid to the farmer or cooperative at the point of first sale, before any transport, milling, or export costs are added. Farmgate price is a key indicator of how much value reaches producers. In Ethiopian specialty coffee, farmgate prices typically represent 60–75% of the FOB price.

Advance notification to the US Food and Drug Administration required before importing food products, including green coffee. Must be submitted electronically at least 15 days before arrival (by ocean) or 2 hours before arrival (by air). Failure to file results in refusal of entry.

The microbial breakdown of sugars in the mucilage layer surrounding the coffee bean. Duration and conditions (aerobic vs. anaerobic, temperature, pH) significantly affect the final flavor profile. Fermentation is a critical quality control point in coffee processing, distinguishing specialty from commercial grade.

A visual tool developed by the SCA and World Coffee Research that organizes coffee flavors into a hierarchical taxonomy. The wheel moves from general categories (fruity, sweet, nutty) at the center to specific descriptors (blueberry, caramel, hazelnut) at the outer ring. Used by Q-Graders and cuppers to standardize flavor description.

The seller delivers the goods to a named port of origin and covers export clearance. The buyer assumes all costs and risk once the coffee is loaded on the vessel. FOB is the most common pricing basis for green coffee in international trade.

An agreement to buy or sell coffee at a fixed price at a future date. Used by roasters to lock in pricing and by producers to guarantee revenue. Forward contracts carry counterparty risk if either party cannot fulfill the obligation.

A designated area at or near a port where goods can be imported, stored, and re-exported without payment of customs duties until goods enter the domestic market. FTZs provide cash flow advantages for importers who re-export or need time before paying duties.

Ethiopian coffee grades based on defect count per 300g sample and cup quality. G1 (0–3 defects, specialty) through G5 (47–86 defects, commercial). G1 and G2 are specialty grade. Grading is performed at the ECX or by licensed grading agencies. Both washed and natural coffees are graded on the same scale.

The primary US trade body for green coffee contracts. GCA contract terms are the industry standard for arbitration and dispute resolution in North American green coffee trade. GCA contracts specify quality standards, delivery terms, and procedures for resolving disputes.

A brand of hermetic storage bags widely used for green coffee transport and storage. Creates an airtight barrier that maintains moisture content and prevents quality degradation from humidity, oxygen, and odors. GrainPro-lined bags extend the shelf life of specialty green coffee by several months compared to standard jute bags.

Unroasted coffee beans that have been processed (depulped, fermented, washed or dried, hulled) and are ready for export and roasting. Green coffee can be stored for 6–12 months under proper conditions without significant quality loss. All commodity trading occurs in the green coffee stage.

A coffee-growing zone in the Oromia region of southern Ethiopia, within the broader Sidama/Borena area. Guji coffees are known for complex flavor profiles with blueberry, stone fruit, and floral notes, particularly in natural-processed G1 lots. Key sub-regions include Shakiso, Uraga, and Hambela. Altitude ranges from 1,800 to 2,200 meters.

A financial position taken to offset potential price movements in physical coffee. Typically involves buying or selling futures contracts on the ICE exchange. Roasters hedge by buying futures to protect against price increases; traders hedge by selling futures against their physical inventory.

A catchall term for the thousands of distinct Arabica cultivars native to Ethiopia's forests. Ethiopia has an estimated 6,000–10,000 genetic varieties, most of which haven't been individually cataloged. The Jimma Agricultural Research Center (JARC) has identified and released some varieties, but the vast majority remain unnamed "heirloom" or "landrace" types.

A hybrid between natural and washed processing. The cherry skin is removed but some or all of the mucilage is left on during drying. Named for the sticky, honey-like texture during processing. Subcategories include white honey (least mucilage), yellow, red, and black honey (most mucilage), each producing different flavor profiles.

The global commodity exchange where Arabica coffee futures (KC contracts) are traded. The ICE "C price" is the benchmark for Arabica pricing worldwide. Robusta futures trade on ICE Europe (formerly LIFFE).

An intergovernmental body that monitors the global coffee market, publishes statistics, and promotes coffee consumption. The ICO's composite indicator price is a widely referenced benchmark for global coffee prices across different origins and grades.

A certificate issued under the International Coffee Agreement, required for coffee exports between member countries. The ICO certificate tracks the origin, grade, and quantity of exported coffee and is used for statistical monitoring of global coffee trade flows.

A set of international commercial terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade. The most recent edition is Incoterms 2020. Common terms in coffee trade include EXW, FOB, CIF, and DDP, each specifying who pays for freight, insurance, and customs at each stage.

The total cost of coffee delivered to the buyer's warehouse, including FOB price, ocean freight, insurance, customs duties, and inland transport. Landed cost is the true acquisition cost and the basis for margin calculations.

A bank-issued guarantee that the buyer's payment will be received on time and for the correct amount. Common in international coffee trade, especially for first-time trading relationships or large shipments. The bank pays the seller upon presentation of conforming documents.

A specific, identifiable quantity of green coffee that shares common characteristics such as origin, producer, process, and harvest date. Lots are the fundamental unit of trade in specialty coffee. A lot may range from a few bags (micro-lot) to hundreds of bags, but each lot is treated as a distinct unit for quality assessment and pricing.

A small, specially selected lot of coffee (typically 5–30 bags) from a single farm, cooperative, or specific area within a farm, prized for exceptional quality and unique character. Micro-lots often score 86+ on the SCA cupping scale and command significant premiums over standard offerings.

The percentage of water in green coffee beans by weight. Optimal range is 10–12.5%. Too high (above 12.5%) leads to mold and quality degradation; too low (below 9%) causes flavor loss and brittleness. Measured with a grain moisture meter at the dry mill.

The sticky, sugar-rich layer surrounding the coffee bean beneath the cherry skin. Mucilage composition varies by variety and ripeness. In washed processing, mucilage is removed through fermentation and washing. In honey processing, some or all is left on during drying. Mucilage sugars are a primary substrate for fermentation.

Also called dry process. Coffee cherries are dried whole on raised beds or patios for 15–21 days, allowing the fruit to ferment around the bean before hulling. Produces fruity, full-bodied cups with notes of blueberry, strawberry, and tropical fruit. The traditional processing method for Ethiopian coffees, especially in the Guji and Harrar regions.

Coffee that has been depulped and dried but still has the parchment layer (endocarp) intact. Must be hulled at a dry mill before export. Parchment is the standard form for coffee storage in producing countries, as the parchment layer provides natural protection.

A government-issued document certifying that coffee has been inspected and is free from quarantine pests and plant diseases. Required for import into the US and EU. Issued by the plant quarantine authority in the country of origin after physical inspection of the export lot.

A breakdown of all cost components from farmgate to landed cost, including processing, logistics, premiums, and platform fees. Price waterfall transparency is a core principle of specialty and direct trade, allowing buyers to see exactly how their money is distributed across the supply chain.

A certified professional trained in sensory evaluation of green coffee under the Coffee Quality Institute (CQI) program. Q-Graders evaluate and score coffees using standardized SCA protocols. Certification requires passing 22 tests covering sensory skills, coffee knowledge, and grading accuracy.

Elevated drying surfaces (also called African beds) that allow airflow around coffee cherries or parchment during drying, promoting even drying and higher quality. Typically constructed from wood frames with mesh screens, raised 0.5–1 meter off the ground. The standard for specialty-grade natural and washed coffees in East Africa.

A refrigerated shipping container used for temperature-sensitive cargo. Rarely needed for standard green coffee shipments but used for some high-value specialty lots to maintain optimal temperature (15–20°C) and humidity during ocean transit, especially on longer routes.

A small batch of green coffee roasted specifically for cupping and quality evaluation, typically to a light-medium development to allow the intrinsic characteristics of the bean to be assessed without roast-derived flavors dominating. SCA sample roast protocols specify 55% Agtron for whole bean and 63% Agtron for ground.

Standard green coffee contract term where the buyer must approve a pre-shipment sample before the sale is finalized. If the sample does not meet the agreed-upon quality standards, the buyer can reject the lot without penalty.

The global trade organization that sets standards for specialty coffee quality, education, and sustainability. SCA protocols define cupping procedures, green grading standards, and brewing guidelines used worldwide.

A measurement of bean size using calibrated mesh screens. Expressed as a number (e.g., Screen 15 = 15/64 of an inch). Larger beans generally correlate with higher quality and more uniform roasting. Most specialty Arabica falls in the Screen 15–18 range.

Altitude-based classification used in Central America. SHG = grown above 1,200 meters, indicating denser beans with more complex flavor. The slower maturation at higher altitudes allows more time for flavor compound development. Ethiopian coffees are typically grown at 1,400–2,200 meters but use a different classification system.

A major coffee-producing region in southern Ethiopia, now an autonomous regional state (separated from SNNPR in 2020). Sidama coffees bridge the flavor profiles of Yirgacheffe (floral, citrus) and Guji (fruity, complex). Both washed and natural lots are produced, with altitudes ranging from 1,500 to 2,200 meters.

Coffee sourced from one country, region, or specific farm/cooperative. Valued in specialty markets for its distinctive, traceable flavor characteristics. Single origin designation enables consumers to appreciate regional flavor differences and supports price premiums for producers.

The Ethiopian administrative region that includes the Yirgacheffe and Sidama growing zones. SNNPR is one of Ethiopia's most important coffee-producing regions, known for distinctive floral and citrus flavor profiles from its washed coffees and complex fruit notes from its naturals.

The market for immediate delivery of physical coffee, as opposed to futures or forward contracts. Spot coffee is typically available from US-based importers with inventory at domestic warehouses, ready for prompt shipment.

The process of loading bags of green coffee into a shipping container at the origin warehouse or dry mill. Proper stuffing includes placing dunnage (moisture-absorbing material), lining the container with kraft paper or foil, and stacking bags to maximize space while preventing shifting during transit.

The combination of soil, climate, altitude, and local growing practices that gives coffee from a specific region its distinctive character. Ethiopian terroir varies dramatically between growing zones: Guji (complex, fruity), Yirgacheffe (floral, citrus), Sidama (balanced, sweet), Harrar (wild, berry-forward), and Limu (mild, wine-toned).

The ability to track a coffee lot from its origin (farm or washing station) through every step of the supply chain to the final buyer. Full traceability enables quality verification, fair pricing, and transparency. Traceability data typically includes origin coordinates, producer identity, processing method, transport records, and quality assessments.

The transfer of cargo between vessels at an intermediate port during ocean transit. Ethiopian coffee exported from Djibouti often transships through Salalah (Oman) or Jeddah (Saudi Arabia) before continuing to its final destination port. Transshipment adds transit time but is often necessary for routing efficiency.

A document issued by a licensed warehouse confirming receipt and storage of goods. Serves as proof of inventory and can be used as collateral for trade finance. In the US, major green coffee warehouses (Pacorini, Dupuy, GreenStar) issue standardized warehouse receipts recognized by banks and trading houses.

Also called wet process. Cherries are depulped immediately after harvest, fermented 24–72 hours to remove mucilage, then washed with clean water and dried on raised beds. Produces clean, bright, acidic cups that highlight the intrinsic qualities of the bean and its terroir.

A facility where freshly harvested coffee cherries are received, sorted, depulped, fermented, and washed. The first stage of wet/washed processing. In Ethiopia, washing stations serve as collection points for smallholder farmers, who deliver cherries daily during harvest season.

A document issued by an independent surveyor at origin confirming the weight and quality characteristics of a coffee lot. Serves as an unbiased third-party verification of what is being shipped, protecting both buyer and seller in the transaction.

One of Ethiopia's most celebrated coffee-growing regions, located within the SNNPR zone. Yirgacheffe coffees are renowned for their intense floral aromatics (jasmine, bergamot), bright citrus acidity, and tea-like body. Washed Yirgacheffe is considered the benchmark for Ethiopian washed coffee quality.