Specialty coffee vs commercial coffee. The biggest differences

Photo credits: The Coffee Quest

You've probably heard of specialty coffee and commercial or commodity coffee. But what are the differences between these two types of coffee?

Let's start with commercial or commodity coffee. This is the coffee you often see in supermarkets, in large bags and at a low price. It's often made from robusta beans and is produced and marketed on a large scale. It's a fine choice if you just want to make a quick cup of coffee, but if you're looking for a special coffee experience, commodity coffee might not be the best choice.

And then there's specialty coffee . This is coffee of the highest quality, made from Arabica beans grown, harvested, and roasted with the utmost care. The beans are often grown in small batches in specific locations, making each bean unique. Specialty coffee is often made and sold by independent roasters and is considered pure craftsmanship.

Did you know that every coffee roaster has their own roasting style and can therefore create their own unique flavor profile?

The difference between commodity and specialty coffee lies primarily in the quality of the coffee and, consequently, the price. The ethics of the coffee being traded also play a significant role.

Below, I'll explain how the price of commercial coffee is determined, versus how the price of specialty coffee is determined. I'll also discuss the rise of specialty coffee and how different coffees are marketed. And are certifications still a thing? Or has it been an outdated concept for a long time? Let's find out.

Commercial coffee and the C-price

Commercial coffee, also known as commodity coffee, is traded on the stock exchange using the c-price, the global benchmark for coffee prices. The c-price is determined by supply and demand and has a significant impact on coffee farmers' incomes.

Unfortunately, the c-price is often too low to provide coffee farmers with a decent income, forcing them to work in poor conditions and resulting in low-quality coffee.

This not only has negative consequences for farmers, but also for the environment and biodiversity. As a result, the focus is often on quantity rather than quality, which can lead to monocultures and the use of pesticides and artificial fertilizers.

Furthermore, the fact that the c-price is based on supply and demand means that the price is volatile and can fluctuate significantly. This creates uncertainty for coffee farmers and can significantly impact their income.

It's therefore crucial that alternatives are found. I've already explained in another article what Fairtrade and direct trade entail and why they're crucial for the coffee trade. By switching to these alternatives, we can contribute to a more sustainable future for the coffee industry and the people involved.

But luckily we have specialty coffee, which is making enormous progress.

The rise of specialty coffee

Specialty coffee is a term used to describe coffee of exceptional quality, grown and produced with meticulous attention to every detail of the process, from harvesting to roasting and serving. The concept of specialty coffee has become increasingly popular in recent decades, fostering a culture of coffee enthusiasts seeking the finest cup of coffee available.

One of the main reasons for the rise of specialty coffee is the growing demand for a high-quality, personalized coffee experience. Many people are no longer satisfied with the standard coffee available in the supermarket and are willing to pay more for a higher-quality coffee.

Also read: What is the difference between supermarket coffee and specialty coffee?

With the growing popularity of specialty coffee bars and cafes, consumers now have access to a wide variety of coffee varieties from different regions, roasted by passionate coffee roasters.

Specialty coffee also has a strong focus on sustainability and transparency in the supply chain. Consumers want to know where their coffee comes from and whether it was produced ethically and environmentally. This has led to a growing number of coffee producers focusing on sustainable agricultural practices and establishing fair trade relationships with farmers.

All in all, specialty coffee has revolutionized coffee culture, enabling consumers to enjoy coffee of exceptional quality while contributing to a sustainable and transparent coffee industry.

Specialty Coffee vs. Commercial Coffee: The Differences

So now we know how the price of commercial coffee is determined, and that this actually creates an uncertain and unsustainable situation for coffee farmers. Fortunately, we have specialty coffee, which continues to gain popularity every day. But what about the difference in quality? And how is the price calculated? And is this price justifiable? Read on.

Quality

The main difference between specialty coffee and commodity coffee is quality. Commodity coffee usually comes from large plantations and is often grown using aggressive agricultural practices to produce as much coffee as possible at a low cost.

The coffee beans are often mass-roasted and packaged for sale to supermarkets and wholesalers. This coffee is usually of mediocre quality and often has little flavor or aroma.

On the other hand, specialty coffee is often grown on smaller farms with more attention paid to growing and harvesting the beans. Farmers focus on producing the highest quality coffee, paying close attention to soil quality, the height of the coffee plants, and the way the coffee is harvested and processed.

Specialty coffee has a complex and rich flavor and aroma, with notes of fruit, chocolate, and nuts, depending on the region and type of coffee. The coffee is usually roasted to order and freshly packaged to preserve its flavor.

In short, commodity coffee is often produced with profit as the primary goal, while specialty coffee is all about creating an exceptional coffee experience. The difference in quality between the two is clearly noticeable, and it's no surprise that more and more consumers are turning to buying and enjoying specialty coffee.

Compensation and price

Another key difference between specialty coffee and commodity coffee is the price. Because specialty coffee is of higher quality and often produced using more sustainable and labor-intensive methods, it is generally more expensive than commodity coffee.

Consumers seeking the highest quality coffee are willing to pay more for specialty coffee, while others prefer the lower price of commodity coffee. Because specialty coffee production requires more attention and care, the price is often higher, but for many coffee lovers, the higher price is definitely worth it.

Ethics

Another key difference between specialty coffee and commodity coffee is the ethics of production. Specialty coffee often has a strong focus on sustainability and transparency in the supply chain, with producers focusing on sustainable agricultural practices and fair trade relationships with coffee farmers.

This leads to a higher standard of living for farmers and workers and more environmentally responsible production. On the other hand, commodity coffee often comes from large plantations where workers sometimes work under poor conditions and receive little pay.

This mass production can also have negative effects on the environment, increasing pressure to opt for sustainable and ethical production processes.

How is the coffee traded?

As mentioned at the beginning of this article, commercial coffee is traded on the market under the so-called C-price. Specialty coffee, on the other hand, is traded outside of this commodity market, and the focus is not on price performance, but on the quality of the coffee, its flavor profile, and the number of SCA points it scores.

All these factors ultimately influence the price the coffee farmer receives for their coffee. In all cases, this is significantly higher than the C-prise, meaning these coffee farmers are always better off trading this way.

This more ethical form of coffee sourcing can be divided into three types of trade. Below, I'll briefly explain what direct trade is, Fairtrade is, and relationship-based trade.

Direct trade coffee

Direct Trade coffee is a term used for coffee purchased directly from the farmer or cooperative. This is an alternative to Fair Trade, where farmers are members of a cooperative and a minimum price is guaranteed.

With Direct Trade, the buyer has direct contact with the farmer, resulting in a better price for the coffee bean and a more personal relationship between the farmer and the buyer. This creates greater transparency in the supply chain and can incentivize farmers to produce even higher-quality coffee.

Direct Trade is especially popular among specialty coffee roasters who focus on sustainability and transparency in the supply chain.

Fairtrade coffee

Fairtrade coffee is a type of coffee certified by the Fairtrade organization, and stands for fair trading practices and social responsibility in the supply chain.

The Fairtrade organization works with coffee farmers and cooperatives in developing countries to help them get a fair price for their products and to support them in improving their production processes and the quality of their coffee.

Fairtrade coffee has a minimum price that provides farmers with a stable income and works to promote sustainable agricultural practices and the protection of labor rights and the environment.

Buying Fairtrade coffee is a way for consumers to contribute to more just and sustainable coffee production.

Relationship-based trading

An even more profound form of direct trade is trade based on a relationship you establish with a coffee farmer. For example, you agree to harvest the farmer's coffee every year if it continues to meet the quality you agreed upon.

In such relationships, farmers are often given the opportunity to further experiment with processing methods and fermentation methods for the coffee beans. This also leads to increasingly exciting and complex coffees coming to market.

The more special the coffee, the better the price for the farmer. On the other hand, it's naturally great for the roaster to have unique coffees in their range that only they can offer.

Certificates

In coffee trade and production, certifications play a key role in promoting sustainability and ethical practices. Several certification bodies oversee coffee production and the supply chain, such as Rainforest Alliance, UTZ Certified, Organic, Fairtrade, and Direct Trade.

These certifications guarantee that the coffee has been produced sustainably, that environmental and working conditions have been taken into account, and that fair trade practices have been applied.

The choice of a particular certification depends on the values ​​and objectives of the coffee roasters and producers. Many specialty coffee roasters opt for direct trade or specialty certifications to emphasize their commitment to transparency and quality in the supply chain.

The use of certificates can ensure more ethical, sustainable and transparent coffee production, and can contribute to a better standard of living for farmers and workers in the coffee industry.

But precisely when you have a direct trading relationship with your producers and you can transparently demonstrate how the coffee was grown and what price the farmer received for the coffee, these certificates become redundant.

For example, "Organic" or "UTZ" says nothing about the quality of the coffee. Moreover, all links in the chain must pay for these certificates, which in some cases is impossible for small producers.

So, are certificates still relevant these days? Thanks to fair and transparent trade, I don't think they're necessary. Below, I'll explain what the most common coffee certificates entail and what they represent.

Fairtrade

The Fairtrade certification guarantees fair trading practices and social responsibility in the coffee industry. It sets a minimum price for coffee beans and promotes sustainable agricultural practices, labor rights, and environmental protection. It helps coffee farmers and cooperatives in developing countries earn a stable income and improve their production processes. Buying Fairtrade coffee contributes to more equitable and sustainable coffee production and supports farmers and workers in the coffee industry.

Organic

The Organic certification guarantees the organic cultivation of coffee beans without the use of harmful chemicals and pesticides. It ensures sustainable agricultural practices that respect the environment, biodiversity, and consumer health.

It considers the ecological footprint and promotes the conservation of natural resources. Buying organic coffee contributes to more sustainable and healthy coffee production and supports organic farming.

Rainforest Alliance

The Rainforest Alliance certification guarantees sustainable coffee production that takes environmental and social aspects into account. It ensures minimal environmental impact and protects biodiversity.

It supports farmers and communities in developing countries to improve their production and livelihoods. Buying Rainforest Alliance coffee contributes to more sustainable and ethical coffee production and supports farmers and workers in the coffee industry.

Advice for you as a consumer

As the end consumer, you're essentially the most important link in the coffee chain. Your purchasing behavior influences all the preceding processes. Next time you're holding a pack of coffee, don't be blinded by all the certificates displayed on it. These don't always say anything about the living conditions of the coffee farmers, let alone the quality. Unfortunately, certificates are often also seen as quality marks, which isn't justified in practice.

If you really want to make an impact with your purchasing behavior, you really shouldn't buy coffee in the supermarket at all. At least not yet. I expect that specialty coffees will also be sold in supermarkets in the not-too-distant future.

Focus on taste and quality. Chances are you'll end up with specialty coffee. Because specialty coffee roasters emphasize quality and better living conditions for coffee farmers, you always create a win-win situation.

You get the very best quality and therefore much more for your money. Even though specialty coffee is often a bit more expensive than commercial coffee, your purchasing decisions also help improve the lives of coffee producers and their families. It's not difficult at all. It's incredibly easy.

After reading this article, are you ready for freshly roasted coffee beans with unique stories? We've got you!