COFFEE PRICES — THE REALITY
What’s happening?
Global coffee prices have hit historic highs. The cost of raw coffee (known as the C-market price) has doubled — in some cases tripled — over the past few years. And it’s not just specialty. It’s the entire market.
Why?
A few reasons:
Climate disruption — Brazil, the world’s largest coffee producer, suffered a major drought followed by frost in 2024. Vietnam, a leading robusta producer, faced flooding. Crop yields are down globally.
Rising costs — Fuel, freight, fertiliser, labour, storage — every part of production and transport now costs more than it used to.
Market speculation — Coffee is a traded commodity. When traders see supply risks, prices spike — whether coffee is physically short or not.
Global demand — More countries now drink more coffee than ever before. Supply is struggling to keep up.
Isn’t higher price good for farmers?
It can be — but it’s not guaranteed.
A high global price doesn’t always mean higher earnings for producers.
Only direct, traceable buying and long-term relationships ensure the people growing coffee actually benefit. Also: when commodity prices rise, some producers move away from specialty and focus on volume — which can reduce quality and access in the long term.
What’s considered fair?
Historically, the coffee industry saw $2.00 USD/lb as a fair benchmark. Now, many argue $3.00–$4.00 USD/lb is the new sustainable base — especially for quality-focused producers dealing with climate volatility and rising production costs.
But most important is stability. Producers can’t plan for the future when the market jumps from $1.20 to $4.00 and back again in a year.
Where do we go from here? We believe in being open about the real cost of coffee.
That means:
Not chasing the lowest price
Buying from importers who prioritise producer stability
Paying fairly — and explaining why the price on the bag is what it is