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From The Chief Coffee Fanatic
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Why Are Coffee Prices Rising?
In all my decades in the specialty coffee industry I have never seen anything like this. You see it everywhere you look and there will be more to come. Grocery stores, coffee shops, restaurants, etc. Green coffee prices measured by the C-Market index have increased over 144% in the last 12 months hitting new historic highs at the time of this letter. While price increases are never welcomed, we want to explain why this is happening.
The genesis was the pandemic. Post-pandemic overseas shipping rates surged, tripling or even quadrupling, partly due to industry consolidation. Meanwhile, long-standing challenges have tightened coffee supply: rising consumption in producing countries, crop losses from rust and disease, an aging farmer population, and a shift toward alternative crops. Drought conditions in both Vietnam and Brazil reduced yields, and the coffee market started to rise, but somewhat slowly at first.
However, speculation by coffee traders remains the biggest driver of market volatility, causing prices to rise too quickly. With climate change affecting production, long-term challenges will continue. Large national coffee brands are turning to low quality Robusta coffee species rather than high quality Arabica coffee.
Rather than cutting corners on quality, we’re choosing to maintain the exceptional specialty grade, Arabica coffee, you know and love. We remain committed to sourcing responsibly, roasting with care, and providing you with the best coffee experience possible.
We appreciate your support and understanding. Your continued loyalty allows us to keep bringing you great coffee while supporting the people who grow it.