All Eyes on Trade: How We Buy and Sell Coffee – INSIDE NKG

In the spotlight

All Eyes on Trade: How We Buy and Sell Coffee

In the spotlight

All Eyes on Trade: How We Buy and Sell Coffee

Trading coffee today is way more than moving a physical product from A to B. In many ways, it has become a business of managing time, price and risk. Coffee is often sold months before it is bought, shipped long before it is consumed and priced at a different moment than when it changes hands. In between, markets move, exchange rates change and business environments shift.

At the same time, what defines us has not changed: bringing people together across the coffee world. Trade connects producers and customers, origins and destinations, and builds relationships that often last for many years. But behind these relationships sits a complex daily reality of decisions, trade-offs and constant adjustments.

This, amongst many other topics, is something we will have a special focus on in our second part of the MAG series along the coffee supply chain: All Eyes on Trade: How We Buy and Sell Coffee. In this issue, we want to talk about our core business. This means: We will dive deeper into what happens to the coffee after it is prepared for storage and export and what it takes to manage it along the way – from pricing and contracts to decisions made every day in a constantly changing market. It includes learning about different parts of trade, getting insights into what trade actually means, showing a small glimpse into trade reality here at NKG and making visible what is going on behind the scenes. So, we tried our best to make it clearer: how does our core business actually work?

Where Coffee Changes Hands: Trade at NKG

Once coffee is prepared for export and stored in the warehouse, its journey continues. It is not only about moving the product but also about connecting supply and demand, making decisions and managing the many steps in between. From origin to destination, coffee goes through a series of closely connected stages. They show how our core business works in practice – and how many different teams at NKG contribute along the way to make trade happen.

1. Origination & Contracting

At NKG, trading starts long before a contract is signed. Through our local presences at origin, we work closely with producers and suppliers, often over many years. This includes sourcing coffee, structuring supply, aligning on quality and, in many cases, providing financing. Contracts define more than volume and quality. They also determine how and when prices are fixed. In many cases, buyers and sellers first agree on a differential to the market price, while the buyer can choose a later date to fix the final price by applying this differential to the market price at that time. This commercial framework defines how risk is shared between partners.

2. Trade

Green coffee trading is a continuous process rather than a single transaction and way more than just negotiating contracts. Because coffee is often bought, sold and shipped at completely different points in time, traders operate in an environment that is constantly changing. Prices move, market conditions shift and decisions need to be made quickly. This requires close collaboration with suppliers, customers and colleagues across the business, aligning shipments, qualities and pricing. Relationships are thus at the heart of the business, but timing and market developments play an equally important role. It is also a lot of relationship management across the supply chain and an ongoing task before and after each contract.

3. Risk Management

This is where Risk Management comes in. Coffee prices are influenced by many factors, from weather conditions to harvest and changes in global demand. At the same time, coffee may spend weeks or months in transit or storage, while prices and exchange rates continue to move. Managing these uncertainties is part of the daily work. One key risk in our business is the so-called differential risk: the risk that the agreed price difference for a specific coffee develops differently than expected, for example due to changes in quality, availability or demand. This means that even when the global price is managed, the final price of a specific coffee can still change. Teams keep a close eye on market developments, exchange rates and other factors that could affect the business, helping NKG respond to change and continue operating reliably. Risk management is not a separate step; it is embedded in every trading decision and essential to operate in quickly changing markets.

4. Execution & Logistics

Once the contract is in place, the focus shifts to executing what has been agreed upon. Coffee has to be shipped across continents, over long distances and through complex routes. This involves multiple partners and documents to organizing transport and visibility of shipments along the way. Our logistics and maritime teams at NKG make sure that the physical movement of coffee runs smoothly. Working closely with the trading teams and logistics partners, they make sure that contracts are translated into physical movement and that coffee arrives as planned.

5. Import, Warehousing & Delivery

The journey continues when the coffee reaches its destination. At the import warehouse, it is unloaded, stored, managed and prepared for delivery to customers. Timing and reliability play an important role at this stage. After weeks or months in transit, quality control also plays an important role. Our quality labs make sure that the coffee meets the agreed specifications and that customers receive exactly the product they have bought. Together with our warehouse teams, they ensure that the coffee is handled with care and delivered as expected.

As you can see, coffee trading is not a simple step in our supply chain, but a complex process of different steps and departments involved. This is the daily reality at NKG, a fast-moving environment that requires experience, coordination and constant communication across the value chain, and this is why we want to take a closer look at it and make it more tangible.

NKG Trade Stories
and Beyond

So, in the following articles, let’s take a closer look at what coffee trade means in practice. You will find a first quick overview in Coffee on the Move: Facts in a Nutshell. From there, we dive deeper into different perspectives on trade: In Give Diverse Voices a Stage: Women in Trade, Agnieszka Thieleke and Victoria Kigo share their experiences and offer valuable insights into their daily work – from both import and export sides. Behind every trade, there are many steps and decisions. In this issue’s Three by Three Questions, we explore the many stages and challenges behind a single coffee trade from different angles. And in our Virtual Tour, Jonas and André take us behind the scenes of the busy trade and quality floors at our headquarters in Hamburg.

Of course, no issue would be complete without the people behind it all. In our interview section, get to know Linda Lin (NG USA), Lai Chau Thi Vi (NKG Vietnam) and Marten Sievers (Regional CEO EMEA), who all share their perspectives on trade and their roles within it. And what should definitely not be missed? You are absolutely right, it is our popular quiz! This time, Quiz #45: Trade & Transport Challenge puts your knowledge to the test – with the chance to win a tailored phone case designed just for you.

Explore the Articles from all around the (coffee) world

Where to next

One feature we are definitely continuing: our audio versions of the articles! We were very happy to hear many of you liked the idea. Right now, the voices might still sound quite AI-ish (which they obviously are), but we are teaching our digital colleagues (Synthesia) to sound a bit more natural and enjoyable to listen to with every new edition. Still, we hope it gives you more opportunities to engage with our content and use it when- and wherever suits you best.

You do not yet fully understand how the core business of our group really works? It is not only you, trust us. We tried to come up with at least some questions that you might ask yourself and feel uncomfortable asking trade experts in our Frequently (Un)Asked Questions again – but there surely are a lot more. In case you would like to know anything specific, a topic interests you or there is anything else you would like to know: please do reach out to us. If we don’t know ourselves, we will definitely find out. And do not miss out on our Wiki part as well. This time, it is obviously all about trade.

And this is just the second step in our journey – in the final part of the series, we will follow our coffee all the way to its destination and into warehouses and quality labs. So, start right away: jump into the articles and have a great time reading and/or hearing.

In the spotlight

In the spotlight

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Interview with Lai Chau

Interview with Marten Sievers

Interview with Linda Lin