Like a diamond, coffee comes in "quality" classes. There are 5 of them and they relate to the number of "defects" in a 350 gram sample. Each of these classes has a different price premium and are separated as follows:
CLASS 1 - Specialty coffee: 0-5 defects
CLASS 2 - Premium grade: 6-8 defects
CLASS 3 - Exchange grade: 9-23 defects
CLASS 4 - Below Standard grade: 24-86 defects
CLASS 5 - Off grade: More than 86 defects
Class 2 (along with class 1) demand premiums to class 3
Class 3 is the grade traded on the NYCE and bought for commodity price.
Class 4 & 5 is the typical coffee you purchase in your local grocery store and command a discount from grade3.
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