Why Are Coffee Prices So High Right Now?
If you’ve noticed coffee prices creeping up, you’re not alone—it’s a question we get often at Tradition Coffee Roasters. The answer lies in a combination of factors impacting coffee production worldwide.
What's Going On With the Coffee Market?
If you’ve noticed coffee prices creeping up, you’re not alone—it’s a question we get often at Tradition Coffee Roasters. Why are coffee prices at an all-time high? The answer lies in a combination of factors impacting coffee production worldwide. Let’s break it down.
Brazil’s Drought: The Leading Cause
Brazil, the largest coffee-producing country in the world (about 38% in 2023), has been experiencing one of the worst droughts in decades. Coffee trees are particularly sensitive to their environment, requiring consistent rainfall to flower and produce cherries. When rainfall is disrupted, yields drop significantly. Even when cherries do grow during drought conditions, they often ripen unevenly, making harvesting a bigger challenge.
In Brazil, many large farms rely on mechanical harvesting, which works best when cherries ripen uniformly. Uneven ripening forces farmers to navigate added complexities, increasing both time and labor costs.
Rising Labor, Transportation, and Inflation Costs
You have heard this many industries already, but we will say it again for coffee…Beyond climate challenges, the coffee supply chain is also feeling pressure from rising labor costs, ongoing transportation challenges, and global inflation. These added expenses ripple across the market, contributing to higher prices for roasters, businesses, and, ultimately, consumers.
What’s the C Price, and Why Does It Matter?
The C price refers to the global benchmark price for commodity coffee traded on the futures market. Over the past year, the C price has doubled. While the C price directly reflects lower-quality commodity coffee, it also impacts specialty coffee. As commodity coffee prices rise, demand for higher-quality specialty coffee increases, driving prices up.
In short, when the base cost of coffee doubles, it doesn’t just “trickle down”—it trickles up, influencing specialty coffee pricing.
How Does Tradition Coffee Roasters Handle Price Fluctuations?
At Tradition Coffee Roasters, we take pride in our thoughtful forecasting and purchasing strategies. We work closely with farmers, suppliers, and importers to lock in prices where possible, helping us avoid major market fluctuations. These strong relationships allow us to provide consistent pricing to both our wholesale and retail customers.
More importantly, we prioritize relationships with partners who share our commitment to quality, sustainability, and transparency. By staying ahead of the market as best we can, we ensure that you receive a great cup of coffee, no matter the challenges.
Will Coffee Prices Continue to Rise?
Predicting the future of coffee prices is no easy task. The global coffee market is complex, shaped by weather, labor costs, logistics, and demand. What we do know is that behind every cup of coffee is a web of farmers, roasters, and suppliers working hard to navigate these challenges.
This is why transparency and sustainable practices matter so much. We’re committed to these values so that you always get a high-quality, responsibly sourced cup of coffee.
What About Tradition Coffee Roasters' Prices?
We’re proud to have maintained steady pricing over the past three years, even as industry costs have increased. While this hasn’t been without its challenges, we recognize the importance of balancing costs while supporting the people who rely on us—from our wholesale partners to our customers.
If prices do need to be adjusted in the future, we’ll approach the decision carefully and thoughtfully, keeping in mind its impact. Ultimately, our focus remains on providing high-quality coffee and maintaining the relationships that make this work possible.
Thank you for supporting the coffee community and wanting to learn more about pricing and impact!
