If you’re working with coffee, it’s difficult not to notice headlines about rising green coffee prices and customers talking about the cost of a cup. Since reopening for business this year, it’s one of the most common questions we’ve been asked. It’s a tough issue to navigate—everyone has an opinion. But at the end of the day, we’re all just trying to run a business and serve the best possible coffee to our customers.
But here’s the thing—people talking about coffee isn’t a bad thing. It shows that they care about the product and are invested and connected to it, which is something we can all get behind.
So, Why Are Green Coffee Prices Climbing?
The global price of Arabica coffee (C-price) has more than doubled in the past year, reaching historic highs. The surge is driven by a combination of factors - adverse weather events in key producing countries like Brazil and Colombia have led to reduced yields, increased global demand from emerging markets like China and India, a weaker Australian dollar, rising transportation costs and supply chain disruptions from global unrest, stockpiling from proposed European deforestation regulations, and speculative trading in the the coffee futures market. So yeah, there are a lot of factors at play.
How Specialty Coffee Fits Into The Picture
Unlike commodity coffee, which follows the volatile C-price, specialty coffee is graded for quality, and commands a premium for traceability, consistency, cost of production, and scarcity. At Redbrick, our long-term partnerships with producers provide some protection against the volatility of the commodities market for both the grower and the buyer. However, when the C-price spikes for sustained periods, in turn, this affects all coffee pricing and pushes specialty coffee premiums even higher.
The Impact On The Industry
Beyond coffee itself, cafés and roasteries are facing rising costs across the board - wages, rent, utilities, and other overheads are all increasing. While the price of a cup of coffee has remained relatively stable over the years, the reality is that a pricing reset may be necessary for many businesses to maintain long-term sustainability.
What This Means For Coffee Producers
On the flip side, higher green coffee prices are beneficial for coffee producers. As the market shifts, producers have more financial resources to invest in farming and processing practices, which can help improve quality and makes coffee-growing a more viable livelihood for current and future generations.
What This Means For You
So, what does this mean for your daily coffee? If current trends continue, the cost of green coffee alone could add 5–15 cents per cup. But when you factor in the broader rising café costs - wages, rent, and utilities - many businesses may need to increase prices by 50 cents to $1 per cup in the near future.
Ultimately, a pricing reset is a positive shift that helps businesses maintain jobs within their teams, continue serving delicious coffee, and uphold quality. For both café operators and coffee producers, it allows sustainable long-term partnerships to remain at the forefront.
Pricing adjustments aren't just about costs - they're about sustaining the entire coffee supply chain, from producers to cafés to coffee drinkers like you. The best way to support sustainable coffee? Keep choosing high-quality, ethically sourced coffees!