A practical, numbers-in-hand walkthrough showing how to translate a Sumatra Mandheling G1 differential (e.g., +45 c/lb vs ICE ‘C’) into a landed USD/kg price for 2025. Includes choosing the correct ICE month, c/lb to USD/kg conversion, Belawan/Jakarta freight ranges, insurance, MPF/HMF, financing, shrink, and common pitfalls.
Indonesian Coffee Differentials: 2025 Pricing Guide
If you buy Indonesian arabica on a differential to NY ‘C’, the math can feel opaque. The reality is it’s a workflow. Once you pick the correct futures month, convert c/lb to USD/kg, and layer in freight, finance, and shrink, your landed price becomes predictable. We’ve priced and shipped thousands of bags from Belawan and Jakarta, and here’s the exact playbook we use with quality‑focused roasters.
The 3 pillars of getting differentials right
- Pick the right ICE ‘C’ month. This limits basis risk and keeps you aligned with shipment timing.
- Convert precisely. c/lb to USD/kg trips up even experienced buyers. A small rounding error can swing cents per lb.
- Add the real‑world costs. Ocean freight, insurance, MPF/HMF, finance days, and shrink/outturn change your true cost.
Our experience shows these three steps prevent 80% of the surprises new Indonesian buyers run into. Now, let’s do the numbers.
Step-by-step: From +45 c/lb to a landed USD/kg
Assume you’re evaluating Sumatra Mandheling Green Coffee Beans, Grade 1, wet‑hulled, FOB Belawan, quoted at +45 c/lb vs Ice ‘C’ May ‘25.
- Choose the ICE ‘C’ price
- Example futures: May ‘25 settles at 185.00 c/lb. That’s $1.85/lb.
- Apply the differential
- Differential: +45 c/lb. Flat FOB price = $1.85 + $0.45 = $2.30/lb.
- Convert to USD/kg
- 1 lb = 0.453592 kg. Or multiply $/lb by 2.20462 to get $/kg.
- $2.30/lb × 2.20462 = $5.07/kg FOB.
Quick shortcut you’ll use often: every +10 c/lb adds about +$0.22/kg. So +45 c/lb adds roughly +$0.99/kg.
- Add ocean freight and insurance to reach CIF
- 2025 transpac from Belawan/Jakarta to US West Coast has been running about $0.07–0.11/lb for coffee in a 20’ container. East Coast usually adds $0.03–0.05/lb more. Example: Belawan to Los Angeles at $0.09/lb all‑in ocean + BAF/CAF.
- Marine insurance is typically ~0.3–0.5% of cargo value. On $2.30/lb, budget ~$0.01/lb.
- CIF estimate to LA: $2.30 + $0.09 + $0.01 = $2.40/lb. In USD/kg, $2.40 × 2.20462 ≈ $5.29/kg.
- Add US entry costs and destination handling
- US import duty: Green, unroasted coffee (not decaf) is zero duty in 2025. That’s good news.
- MPF (Merchandise Processing Fee): 0.3464% of customs value. On $2.40/lb, adds about $0.008/lb.
- HMF (Harbor Maintenance Fee): 0.125% for ocean imports. Adds about $0.003/lb.
- Destination terminal handling, customs brokerage, delivery to your warehouse: highly variable, but a realistic range for coffee is $0.08–0.15/lb to a West Coast warehouse. Say $0.10/lb for this example.
- Landed to warehouse estimate: $2.40 + $0.008 + $0.003 + $0.10 = $2.511/lb. In USD/kg, ≈ $5.54/kg.
- Finance days and shrink/outturn
- Finance: Many buyers carry 45–60 days of interest from shipment to receipt. At 8% annual, 60 days adds roughly 1.31%. On $2.51/lb, that’s ~$0.033/lb.
- Shrink/outturn: Between moisture loss, sampling, and reconditioning, 0.5–1.5% is typical. At 1%, multiply your cost by 1.01. $2.51 × 1.01 ≈ $2.535/lb. Then add financing $0.033 to reach ~$2.568/lb. In USD/kg, ≈ $5.66/kg.
Practical takeaway: For a +45 c/lb Mandheling G1 vs May ‘25 at 185.00 c/lb, a realistic landed warehouse price on the US West Coast sits around $2.55–$2.70/lb depending on route, finance days, and exact destination charges. East Coast tends to be a bit higher.
How do I turn a +45 c/lb Sumatra Mandheling differential into a per‑kg landed cost?
- Convert futures to $/lb. Add differential to get FOB $/lb.
- Multiply by 2.20462 to get FOB $/kg.
- Add ocean + insurance to reach CIF $/kg.
- Add MPF/HMF, destination charges, finance, and shrink. That’s your landed $/kg.
Which ICE ‘C’ month should I use for a March/April Indonesian shipment?
Use the first futures month that covers the shipment window. For March/April shipments, May is standard. We’ll write the contract as “+45 c/lb vs NY ‘C’ May ‘25, FOB Belawan” to make it explicit. If shipment rolls into later months, be sure the contract specifies how the fixation month is handled.
Are there any US import duties on green Sumatra coffee in 2025?
Green, unroasted, not‑decaf coffee remains duty‑free. You’ll still pay MPF and HMF, and your local handling and trucking. Decaf classifications can vary, but most roasters buying caffeinated green will see 0% duty.
What’s a realistic ocean freight add‑on from Belawan/Jakarta to the US per lb in 2025?
- Belawan/Jakarta to Los Angeles/Seattle: roughly $0.07–$0.11/lb for coffee in a 20’ container as of early 2025.
- To the US East Coast: add $0.03–$0.05/lb depending on routing and congestion.
- Freight is still volatile. We’ve seen spot spikes around holidays and blank sailings. Get a firm quote before fixing.
How do I compare an FOB offer to a CIF offer for Sumatra Mandheling?
- FOB: You add ocean freight and insurance. More control and sometimes cheaper if you have good rates, but more admin.
- CIF: Seller arranges freight and insurance to your port. Simpler comparison, but check what’s included and your Incoterms definitions.
- Apples to apples: normalize everything to warehouse‑delivered $/lb or $/kg, including MPF/HMF and domestic drayage.
Do wet‑hulled beans change how I pick the differential or just the quality premium?
Wet‑hulling doesn’t change the math. It influences the differential because it’s part of origin character and risk, and it guides QC specs. Mandheling G1 wet‑hulled often trades in the +35 to +60 c/lb range to NY ‘C’ depending on screen size, cupping score, and defect count. Larger screen and higher cup scores push the premium up. For instance, Jumbo Eighteen Plus Green Coffee Beans or Sumatra Super Peaberry Green Coffee Beans typically carry higher differentials than standard G1.
Should I factor shrink/outturn loss when calculating my landed price for Sumatra G1?
Yes. Wet‑hulled lots can show small moisture shifts over long transits. We budget 0.5–1.5% between FOB and warehouse outturn. If you’re tight on margins, add 1% by default and adjust based on your historical QC.
Common mistakes that move your price by 10–20 cents a pound
- Using the wrong ICE month. If you price on March but ship in April without a clear fixation clause, you’re taking unintended basis risk.
- Forgetting the c/lb to $/kg conversion. A +45 c/lb premium is almost +$1.00/kg. That single step changes your per‑kg comparisons dramatically.
- Ignoring MPF/HMF and finance. These look small on paper but add up to 3–4 cents per pound.
- Not normalizing to warehouse‑delivered. FOB vs CIF vs DDP can’t be compared without a common endpoint.
Quick formulas you’ll actually reuse
- Flat FOB $/lb = ICE ‘C’ $/lb + differential $/lb.
- $/kg = $/lb × 2.20462.
- CIF $/lb = FOB + ocean + insurance.
- Landed $/lb ≈ CIF + MPF + HMF + destination charges + finance.
- Outturn adjustment = Landed × (1 + shrink%).
If you’d like a one‑page calculator with these inputs, we’re happy to share what we use with customers. Need help with your specific shipment month or Belawan routing? You can Contact us on whatsapp and we’ll run your numbers in minutes.
Where quality and calculation meet
Differentials follow the cup. If you need classic chocolate, brown sugar, and subtle spice at a dependable G1 spec, start with Sumatra Mandheling Green Coffee Beans and benchmark a +40–50 c/lb spread. Want a brighter, cleaner northern Sumatra cup at similar math? Compare Sumatra Lintong Green Coffee Beans. For semi‑washed character with herbal/spice lift, cup Blue Batak Green Coffee Beans.
We recommend evaluating screen size, moisture, and cup score at the same time you lock your ICE month. That one small habit has saved more misunderstandings than any other process tweak.
Resources and next steps
- Check current spreads on your broker screen, then run two scenarios: West Coast and East Coast routing, with 45 and 60 finance days.
- Validate an all‑in ocean quote out of Belawan and Jakarta. If you need reference product specs while you model, you can quickly View our products for screen size and processing details.
We’ve learned that buyers who document this workflow once usually shave 2–3 weeks off their next purchase cycle. And their landed price ends up exactly where they expected. If you want a second set of eyes on your calculation, send us your quote and we’ll sanity‑check the math and month selection.