What is landed cost in green coffee buying?

Landed cost is the total cost of green coffee once it has arrived at your roastery or a local warehouse - including not just the purchase price of the coffee but every cost incurred to get it there. For UK roasters buying green coffee, landed cost typically includes: the green coffee price (usually quoted FOB), ocean freight, marine insurance, import duty, VAT (reclaimed if you're VAT registered), port handling charges, customs clearance fees, and UK domestic freight from port to warehouse or roastery.

Understanding landed cost is essential for accurate margin planning. A coffee quoted at £4.50/kg FOB Mombasa might land at £5.80/kg once freight, duty, and handling are added - and using the FOB price rather than the landed cost when calculating your roasted coffee price will produce seriously flawed margin calculations.

The simplest way to think about it: landed cost is the true unit cost of green coffee before any roasting or packaging costs are added. Everything above that is your roastery's contribution to value. Building a landed cost model - even a rough one that accounts for typical freight and duty rates for your main origins - is one of the most practically useful financial exercises a new roaster can do.