Components of the coffee marketing FOB cost

Abstract

The objective of this paper is to determine the major components of the coffee marketing FOB costs between the Minas Gerais South region and the port of Santos. Also, it is intended to check the price difference between that region and New York. The main components of the coffee marketing costs are the administrative, transportation, and storage. The results suggest that the main components of the coffee marketing cost are US$ 13.20/bag. It accounted for approximately 10% of the FOB sales price, US$ 132.00/bag in May, 2009. The average price difference between the Minas Gerais south region and New York was US$ 32.03/bag at that time.