What are common costs associated with coffee production?

The correct answer highlights the primary costs involved in coffee production, which include green coffee costs and labor. Green coffee costs refer to the price of raw, unroasted coffee beans, which are a significant portion of total expenses since they form the backbone of any coffee roasting operation. Labor costs encompass wages and benefits for workers involved in the harvest, processing, and roasting of coffee, which are essential for production.

While marketing and branding costs, as well as consumer packaging costs and retail and distribution costs, are crucial for bringing coffee to market, they are generally not considered direct costs related to the production phase. These latter costs occur after the coffee has been produced and typically pertain more to the business side of selling coffee rather than the actual cultivation and processing of the beans. Thus, focusing on green coffee and labor provides a clearer understanding of the fundamental expenses tied to the production of coffee.