Pricing Updates & Our Commitment
We wanted to take a moment to address the recent, unprecedented shifts in the coffee market and what they mean for us—and for you. Our goal has always been to be transparent, thoughtful, and strategic in how we navigate volatility while maintaining strong relationships with producers and providing you with the highest quality coffee possible.
Market Factors Driving Price Increases
The coffee market is experiencing extreme price fluctuations due to several compounding factors. Brazil, the world’s largest coffee producer, has faced extreme weather patterns—heat waves, irregular rainfall, and prolonged drought—leading to lower yields and significant price spikes. Vietnam, a major robusta producer, has been hit by similar climate challenges, further pressuring supply chains. On top of this, potential tariffs on Mexican agricultural imports add uncertainty and volatility, impacting logistics and pricing across the board.
These market conditions are not unique to coffee; many agricultural commodities are seeing similar disruptions. However, coffee has reached a historic price point, making this moment particularly challenging.
Specialty Coffee Trades Above Commodity Prices
While the base commodity price for coffee has surged, it’s important to remember that specialty coffee trades at a premium above this price. The coffees we source often cost $2–$4 more per pound than the commodity price, with some far exceeding that. These premiums are driven by quality, sustainability, and direct partnerships with producers who invest heavily in cultivation and processing.
The specialty market remains distinct from the commodity market, but when base prices skyrocket, so do premiums for higher-quality coffee. This means that while the market price increases, our costs are affected at an even greater rate.
How Contracting Impacts Pricing
We purchase coffee through contracts, meaning pricing varies depending on when we secured a particular lot. Some of our coffees reflect pricing we locked in months ago—contracts from November, for example, remain stable for now. However, coffees we planned to contract post-delivery tasting have increased dramatically. Some have gone up 130% since last year and 28% just in the last month alone.
This creates a situation where some of our coffees will hold steady in price, while others must be adjusted due to these extreme shifts.
Our Pricing Approach & Commitment
We are committed to maintaining pricing where we can, trimming our margins where feasible, and only increasing prices on select coffees when absolutely necessary. When market spikes like this occur—and this one is particularly unprecedented—we reduce our profit per pound to ensure we can continue honoring contracts with producers and keeping prices as reasonable as possible for you.
What This Means for Producers
It’s natural to assume that higher prices benefit coffee producers, but the reality is more complicated. Much of this price surge is driven by speculation and exchange trading rather than actual increases reaching farmers. Additionally, as prices rise, some roasters shift away from specialty coffee in favor of lower-grade options to maintain their pricing. This ultimately reduces demand for high-quality coffee, potentially harming producers in the long run.
The most important factor for coffee farmers is consistent, value-added contracts at fair market prices. Stability and long-term relationships ensure sustainable growth, even in volatile times.
We appreciate your trust and partnership as we navigate this together. If you have any questions or concerns, please don’t hesitate to reach out.
Best,
Michael Shipley
Conscious Cup Coffee Roasters