Carry Costs Definition
Carry costs refer to the expenses related to storing coffee that a roaster owns but has not yet taken delivery of. In certain situations, a coffee roaster may choose to purchase coffee but delay taking possession of it. These costs include storage fees at third-party warehouses used and are the responsibility of the roaster. These expenses apply whether the roaster owns the coffee outright or has a contractual obligation to pay for the coffee upon release. Understanding the concept of carry costs is important for coffee roasters and logistics management in the coffee industry.
Carry Costs explained in simple terms
Carry costs are the money that coffee roasters have to pay when they buy coffee but don't take it right away. They have to pay for someone else to keep it safe for them. It's like paying rent for a storage room. This applies whether the coffee roasters own the coffee or have a special agreement to pay for it later.