Coffee prices have been rising sharply in 2025, and even the steep drops in June and July did not bring prices down to the level of the prior-year period. Despite a better harvest predicted for 2025, coffee farmers remain perilously exposed to climate and weather risks, input prices such as fertilisers and energy continue to rise, and consumer demand is both growing and shifting, with more demand in emerging markets, and more consumers turning to speciality beans.
On top of this volatility, geopolitical and regulatory risks are adding further complexity to coffee supply chains. As seems to be the case with every commodity this year, US tariffs are being felt in the market, with a 50% tariff currently applied to Brazil, which accounts for upwards of a third of global coffee supplies. And sustainability legislation, particularly in the EU, is reinforcing the need for supply chain transparency, with companies facing upcoming new reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) and EU Deforestation Regulation (EUDR).
Increasing market volatility, price risks, geopolitical risk, better traceability – any of these factors alone would be a strong argument for ensuring a well-managed and integrated coffee supply chain, but when taken together they highlight the urgency of the problem. It is no longer enough for coffee merchants to manage their financial and price risks in a CTRM, whilst leaving their operational risk exposed in spreadsheets. And even managing operations in a dedicated system can present a significant risk if this system creates its own data silo away from CTRM and accounting systems – particularly when the alternatives are so much more accessible than you may expect.
Data silos leave your business exposed
Copying information manually between systems is a slow and risk prone process. There are delays between when actions are taken versus when they are reported on, and the act of copying the information diverts expert man-hours to unproductive activities. As well as the inevitable errors that come from copying the data, these delays hold up critical processes and therefore increase the risk of errors elsewhere, particularly when timely data is essential for trading and hedging decisions.
This inefficiency isn’t just a productivity issue—it translates directly into lost revenue. Time spent reconciling data, fixing mistakes, or waiting for updates wastes valuable resources, impacting your bottom line. And when disruptions occur, whether due to tariff changes or logistics issues, disconnected systems make it harder to respond quickly and effectively.
Siloed data environments also undermine your ability to hedge effectively. Without a complete, up-to-date view of all positions, traders and risk managers may find their exposure is higher than anticipated, leaving the business vulnerable in volatile markets.
As the volume and complexity of data increases, with the growing demands for traceability and speciality coffee, the risks associated with fragmented operations only grow. Operational risks are magnified, with errors, version control issues, and process control failures all more likely due to the increased volume of data.
Sustainability legislation is also raising the bar in terms of what’s needed in traceability and data controls. It’s no longer sufficient to simply collect data; you need to demonstrate that your systems for managing and processing this data are robust, reliable, and capable of supporting the traceability and transparency now required by law.
Ultimately, siloed systems mean less control and increased risks. They create risk management that is disconnected from day-to-day operations and reduce confidence in the timeliness and reliability of reporting.
Integrating coffee supply chains and CTRM
Having seen how a disconnected supply chain exposes you to increased costs, risks and inefficiencies, let’s explore the benefits of integrating coffee logistics into a CTRM.
Integrating your supply chain can be more straightforward than you might expect. For example, with Gen10’s CommOS you can either use CommOS itself to manage every aspect of your cocoa trading and logistics, or integrate your existing supply chain software to create a seamless, real-time commodity management environment. And a good Commodity Management System should include all the features you need to manage coffee specifically, including micro-lots for speciality coffee and cupping management.
Live position visibility
With an integrated supply chain and CTRM solution, traders gain complete, live position visibility—enabling them to hedge accurately and respond to real-time market movements. This visibility also supports scenario planning, providing the flexibility needed to navigate volatile conditions with confidence.
Having access to the full picture empowers better trading and logistics decisions. Teams can align their actions more effectively, from contract execution to delivery, and traders are better positioned to realise the full value of every contract.
Quality and sustainability data can be tracked down to the micro-lot, with automatic calculations ensuring accurate valuations, and clear insight into contracts and allocations so that each lot’s full value can be realised through the allocation strategy.
Because logistics and contracts are fully integrated, any updates to quality data after inspections instantly trigger pricing recalculations. This ensures that risk and trading teams understand the true value of all shipments and can make decisions accordingly.
Efficient logistics
With all relevant data readily available, allocation decisions become more efficient and strategic. Operators can optimise sourcing and delivery, making the most of available inventory, transportation, and quality data, whilst considering the effect on wider business positions.
Integrated systems also support faster, more effective responses to logistics interruptions. Whether dealing with port delays, weather events, or incoming tariffs, access to live, connected data allows traders to make informed decisions under pressure and gives operators the information they need to respond to disruptive events.
And the other players in your supply chain are better integrated with your systems too. This can mean better responsiveness and faster updates in both directions when there are disruptions, as well as the type of smooth communication and continuity in everyday operations that leads to strong customer service and your organisation becoming a preferred supply chain partner.
Embedding geographic insights within the CTRM not only enable more informed allocation decisions, they also help manage exposure to climate-related risks, including extreme weather events, crop failures, and reduced yields. By understanding where and how their current inventory is both sourced and stored, traders can proactively mitigate against these risks.
End-to-end traceability is another major advantage of an integrated supply chain. With a single system managing all data—from the farm to the roaster—nothing is lost in transfer, and all activity is fully auditable. This simplifies compliance with regulations such as the EU Deforestation Regulation (EUDR), as well as other emerging standards around traceability, saves administration time and errors, and allows your business to capture sustainability price premiums with ease.
Sustainability certificates should also be managed within this integrated system, attached to each counterparty, lot or micro-lot. This capability not only streamlines document handling but also supports regulatory compliance at every stage of the supply chain. For example, in CommOS, traders can manage mass balance certifications or provide a physical chain of custody (COC), ensuring transparency and compliance with minimal manual effort.
Conclusion
In a year marked by rising prices, shifting demand, and intensifying regulatory and geopolitical pressures, the challenges facing the coffee industry are only becoming more complex. Siloed systems and manual processes are no longer adequate in such an environment—they increase exposure to risk, reduce operational efficiency, and undermine a company’s ability to make informed decisions in real time.
An integrated approach is now a necessity. By unifying supply chain operations with commodity trading and risk management, businesses can gain the visibility, accuracy, and responsiveness needed to stay competitive. Gen10’s CommOS provides this integration—bringing together trading, logistics, sustainability, and risk into a single, streamlined system. The result is improved risk control, faster and smarter decision-making, more efficient logistics, and full traceability from origin to destination.
With CommOS, coffee traders and supply chain professionals gain the tools to manage complexity, reduce risk, and unlock new opportunities—creating a truly integrated CTRM and supply chain solution fit for the future.
To find out what this could look like in practice for your business, book a demo today.
