Arabica Coffee Prices Are Rising – Here’s Why We Have to Adjust Our Prices
If you love coffee, you may have noticed that prices are going up. As a specialty coffee roaster, we want to be transparent about why this is happening and how it affects us, but also the entire coffee industry. We’re committed to providing you with the best coffee possible, but due to rising costs, we will need to adjust our prices. Here’s what’s going on.
Why Are Arabica Prices Increasing?
Based on our conversations with industry specialists, farmers, and other coffee professionals, several global factors have made Arabica coffee more expensive than ever:
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Climate Change & Poor Harvests – Extreme weather events, like droughts and frosts in Brazil (the world’s largest Arabica producer), have damaged crops, leading to lower yields and higher prices.
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Rising Demand for Specialty Coffee – More consumers are shifting towards high-quality Arabica, increasing demand while supply struggles to keep up.
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Global Supply Chain Issues – Shipping delays, freight costs, and political instability have made it more expensive to transport coffee from farms to roasters.
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Market Speculation – Investors betting on future coffee shortages have driven up commodity prices, adding another layer of cost pressure.
How Does This Affect the Coffee Supply Chain?
While higher prices might seem like a win for farmers, the reality is different across the supply chain:
Farmers: Mixed Impact
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Higher prices mean better earnings per kilo of coffee.
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However, increased costs for fertilizers, labor, and transportation eat into profits.
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Small-scale farmers often struggle to secure fair prices due to middlemen.
Exporters: Balancing Act
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They benefit from selling at higher prices but face competition from other origins and market fluctuations.
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Unstable demand and price swings make long-term planning difficult.
Roasters: The Biggest Burden
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Roasters, like us, are hit the hardest because we buy green coffee in bulk, and price spikes immediately impact our costs.
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Unlike exporters, we can’t always pass the cost to customers without risking sales loss. And we can never pass on the entire cost.
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Many small and specialty roasters operate on thin margins, and these price hikes threaten our survival.
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From our experience, being a D2C brand and available on multiple platforms, we still have to offer discounts and pay high commissions, further squeezing our margins.
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As a B2B seller, it becomes extremely difficult to increase prices by the same amount, as businesses expect stable pricing.
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While our costs have increased by 150% - 300%, we can only increase prices by 5% - 10%, making it incredibly tough to maintain sustainability.
Cafés: Feeling the Squeeze
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Higher bean prices force cafés to either raise their prices or absorb the costs.
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Customers might resist price increases, leading to lower sales and tighter margins.
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Larger café chains may adjust their sourcing, opting for blends with cheaper robusta coffee.
Why We’re Increasing Our Prices
As a specialty coffee roaster, we always strive to balance affordability with quality. However, with green coffee prices continuing to rise, we have no choice but to adjust our pricing. This allows us to:
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Continue sourcing high-quality coffee without compromising on taste or ethical sourcing.
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Support farmers fairly by ensuring they receive a sustainable income.
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Maintain our roasting standards so you can continue to enjoy fresh, well-crafted coffee.
The Future of Coffee Prices
While prices may fluctuate, several factors will determine what happens next:
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If weather conditions improve, supply could stabilize, easing prices.
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If climate issues persist, prices will likely stay high or increase further.
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The growing demand for specialty coffee means high-quality Arabica will remain expensive in the long run.
We understand that price increases aren’t ideal, but we hope you see the value in supporting high-quality coffee. Here’s how you can help:
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Understand and share the reasons and concerns behind these price changes – The more awareness we create, the more sustainable the coffee industry becomes.
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Support independent roasters – Unlike big chains, we are deeply invested in ethical sourcing and quality.
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Choose quality over quantity – A great cup of coffee is an experience worth savoring.
Final Thoughts
The coffee industry is facing challenges, but we remain committed to delivering the best coffee possible. We appreciate your continued support and understanding as we navigate these changes. Your love for great coffee helps sustain farmers, roasters, and the entire specialty coffee community.
Thank you for being part of this journey with us!
