Differential Description
Differential refers to the difference in cost between a specific green coffee and the floor price for green coffee on the C-Market. For example, if the C-Market price for green coffee is $2.25 per pound and a Nicaraguan coffee is priced at $3.72 per pound, the differential would be $1.47. It's important to note that the differential remains constant regardless of the fluctuations in the C-Market. As the C-Market price increases or decreases, the price of the specific green coffee will also change accordingly. Understanding the concept of differential and its impact on the pricing of green coffee is important for coffee industry professionals, buyers, and investors.Explained in simple terms so everyone can understand
Differential is the difference in price between one type of coffee and the price of all coffee. Imagine you have a bag of coffee that costs $3.72 and the usual price for all coffee is $2.25, the difference is $1.47. That difference stays the same even if the price of all coffee goes up or down. It's like if you have a toy that you want to buy, the toy's price won't change but the price of all the toys in the store might.