If you have any connection to the outside world, it would be impossible to miss the fact that stuff is happening in the coffee world. Daily newspapers are laden with $12 per cup hysteria and it's in the news and your social feed too. What's going on?
Coffee is More Expensive Than It Has Ever Been
Green coffee prices (the C price - think of this as the stock market price for commodity grade coffee) have gone through the roof:
- January 2024: Approx $5 AUD per kg
- January 2025: Nearly $13 per kg
- February 2025: Near $16/kg
We don't buy any "C" price commodity coffee at all, and it's normal for us to pay anywhere between $8 and $15 per kilo over that for our everyday beans. For the really special stuff, it can be way, way more. As an example, we have a coffee on offer that leaves us with little margin when we sell it at $250/kg.
For everyday coffee we purchase, we're now seeing significant price increases: our favourite Brazil used in some blends and as a popular single origin has increased in price by 70% in the last 6 months.
Is This a Good Thing?
Yes and No.
In a sense it's a good thing. We all know that coffee growers frequently get the wrong end of the stick when it comes to living comfortably. There are many steps between the coffee cherry on a tree and the cup you like to drink. One of the good things about the increase in C price is that growers of commodity coffee are currently on a better deal than they might have been for quite some time.
In addition, climate change is hitting coffee production. We're seeing it at home with freak weather events, and the world's major coffee growing regions - Brazil, Colombia, Ethiopia, Vietnam - are all experiencing increasingly unpredictable weather patterns. Drought, flooding and temperature extremes are reducing yields and impacting quality.
What Does This Mean for Our Prices?
We have resisted price increases for as long as we responsibly can. At some point, the maths does not work. We will always be transparent about this. Our pricing reflects real costs, not arbitrary margin expansion.
The best protection against coffee price volatility? Buy direct from a roaster who is transparent about sourcing and pricing. You know what you're paying for, you know the roast date, and you get a better product than anything sitting in a warehouse for months.
We're here to talk coffee - literally. Call us.