Transparency Report 2024
Click here to view our coffee purchasing transparency table
Welcome to our first annual transparency report! In this report, we share insights into the green coffee we source, including the volumes we purchase and the prices we pay. However, numbers alone don’t capture the full picture. To truly understand what these figures mean, it’s essential to delve deeper into how our coffees are sourced and managed at their origins. Before we dive into the details, let’s take a step back and explain why we decided to publish transparency reports and the values driving this commitment.
This year, we proudly applied to join The Pledge, a collaborative initiative designed to establish a shared standard for transparency reporting within the coffee industry. We believe this effort is crucial, as resistance to transparency—whether from small or large roasters—still persists. While many embrace the concept of transparency in theory, only a small number of roasters worldwide openly share the prices they pay for green coffee. Statements like “we pay more for quality,” “we only buy Fairtrade” or “we support farmers” lose their weight without tangible data to back them up. If you truly pay more and support farmers, there’s no reason not to show it. Transparency should be the foundation, not just a buzzword.
But How Much Is More, and Is It Enough?
Roasters often reference the C-market price when discussing the "market price" for coffee. However, paying above the C-market price doesn’t necessarily mean you’re supporting farmers or ensuring a fair price for coffee.
The C-market price reflects the value of commodity coffee—essentially supermarket-grade coffee—not the high-quality or specialty coffee many roasters aim to source. In 2024, the C-market price ranged from approximately $1.77 to $3.47 USD per pound. In contrast, 2024 was an unusual year with higher-than-average prices due to climate conditions disrupting coffee production, as well as increased speculation in the commodity and futures market.
Over the long term, the reality for most producers in the commodity market is stark: many struggle to cover production costs, let alone make a sustainable living. This focus on quantity and cost efficiency often comes at the expense of quality.
For roasters committed to quality, the C-market price is not an appropriate benchmark. It’s a measure of commodity coffee, not the nuanced and careful work behind specialty-grade beans. To truly support farmers and pay fair prices, roasters must look beyond this outdated metric and engage with pricing models that reflect the real value of quality coffee.
A New Standard
We’re fortunate to now have a clear benchmark for what high-quality coffee should cost, thanks to the Specialty Coffee Transaction Guide. Developed by a team of experts at Emory University, this guide compiles data from over 100 contributors, including roasters, importers, exporters, and farmers. It provides a comprehensive overview of real market prices for specialty coffee, accounting for variations in volume, quality, and origin.
This guide is a valuable resource for everyone in the coffee supply chain—farmers, exporters, importers, roasters, and even consumers—offering a clearer picture of fair pricing for quality coffee. For roasters like us, it means our claims of paying fair prices can now be measured against a reliable standard. According to the latest 2023 Transaction Guide, the median price for a container of 83 point coffee fell from $2.74 to $2.20 per pound. This 54 cent decline roughly matched the 52 cent decline in the 2023 C price. However, the median price for a 1,000 pound lot of 87 point coffee rose 21 cents to $4.91 per green pound. In comparison, Neon’s weighted average price for 2024 had been $5.91 per green pound. This transparency helps set an industry-wide expectation for fairness and accountability.
Our Sourcing Philosophy
Neon Coffee Roasters believes in working primarily with direct trade. We don’t negotiate prices down or haggle over cents; our approach is to pay farmers and cooperatives a fair price based on the quality of the coffee, with a focus on long-term relationships. The only exception to this is our Nicaraguan coffees, which are sourced through our trusted partner, La Finca Distribution.
Why Direct Trade?
Direct trade means we deal directly with coffee producers and cooperatives, which allows us to establish stronger relationships and ensure that producers receive a fair price for their coffee. We don’t believe in haggling because we respect the value of the coffee and the hard work it takes to grow and produce it. We’re committed to paying prices that are fair and reflective of the true quality of the coffee.
What We Look for in Coffee
- Quality: Coffees that showcase unique flavours from their origin.
- Sustainability: Producers using environmentally responsible farming practices.
- Fairness: Transparent pricing and long-term, equitable partnerships.
Environmental and Social Impact
Sustainability Commitments
- EUDR Compliance: We’re committed to complying with the European Union Deforestation Regulation (EUDR) to ensure our coffee doesn’t contribute to deforestation, and to ensure that our coffee meets the standards that let us send our coffee to EU countries. Our goal is full compliance by May 2025.
- Carbon Reduction: We aim to reduce our carbon footprint and are working toward carbon neutrality across our roasting and shipping operations by 2030.
Social Responsibility
As a neurodivergent-owned business, we emphasize inclusivity in everything we do. We actively seek out producers who share our values of fairness, transparency, and sustainability. This commitment goes beyond our coffee sourcing and extends to how we operate and engage with communities.
Challenges We Face
Building a transparent supply chain comes with its own set of challenges:
- Access to Data: We are committed to ensuring full traceability, which can sometimes be difficult due to gaps in the supply chain.
- Economic Pressures: The global coffee market is highly competitive, which can make it difficult to maintain fair prices across the board.
- Sustainability Costs: Transitioning to more sustainable and environmentally friendly practices requires time, resources, and investment.
These challenges are part of the ongoing work needed to create a more equitable coffee industry, and we’re dedicated to addressing them head-on.
Goals for 2025 and Beyond
- Broaden Sourcing Partnerships: We plan to expand our relationships with new farmers, cooperatives, and importers who share our values.
- Reduce Carbon Footprint: Our goal is to achieve carbon neutrality in all aspects of our operations by 2030.
- Enhanced Reporting: We will continue to refine our reporting, adding environmental and social metrics to complement the financial transparency we already provide.
Closing Thoughts
Transparency is a journey, not a destination. We’re committed to improving our practices, learning from our challenges, and sharing our progress along the way. By providing this transparency report, we’re offering a window into how we do business and how we aim to make a positive impact through every cup of coffee.
Thank you for your continued support of Neon. Your choice to drink with us is a step toward a more transparent, fair, and sustainable coffee industry.
If you have any questions or would like to learn more, feel free to reach out to us.
Thank you for supporting quality coffee, sustainably sourced.