Coffee is one of the world’s most widely-traded commodities, but its highly speculative nature has traditionally been an obstacle to origin’s participation in the markets.

Now, through Global Commodity Trading, growers and exporters can manage effectively the risk involved in trading on the London and New York stock exchanges – and gain the advantages.

This new link in the coffee trading process uses Far Forward Sales to guarantee producers a price for at least part of their crop more than a year in advance.

By locking in attractive sales prices for one or more future crops, growers can focus on coffee production in the certainty that they will be paid for their efforts. It is also an attractive proposition for the buyer, who is assured that his
preferred coffee will be delivered in the future and at market prices.

Through GCT, approved producers can therefore hedge their business – a significant advantage for small and medium-sized concerns. In addition, they can benefit from performance guarantees provided by GCT partner organisations with an interest in supporting growers in developing countries.

These development agencies and socially-focused lenders recognise that assisting producers to secure healthy prices for their future crops is the most effective way to achieve their sustainability and empowerment.

Key to the whole process, and to GCT’s role, is the complete transparency provided in all transactions. This approach results in a fair and open system to the benefit of all stakeholders.