THE COST OF COFFEE

THE COST OF COFFEE

If you’ve noticed your favourite cafe has upped their pricing or your cup at home is costing you more these days, you’re not alone. The rising price of coffee has been a topic of conversation for many recently, and as roasters we feel it at every stage. Our industry is facing the highest costs of green coffee it’s seen in decades and the prices aren’t set to go down anytime soon. We’re here to break it down for you and discuss the reasons behind this shift.

Climate change

Coffee is a delicate crop and a significant factor that contributes to producing high quality beans is the climate. Arabica beans in particular are highly sensitive to changes in temperature and weather patterns. Coffee is typically grown in tropical regions, where extreme weather events and climate change have impacted crops and reduced yields. Brazil and Vietnam - some of the world’s largest coffee producers, have faced severe weather including frost and droughts and have struggled to produce as much as usual. Subsequently, supply has dropped and with demand remaining consistent and even increasing, prices rise.

Global Supply Chain

Even after the pandemics peak, the supply chain has struggled to recover, with delays at every level. Labor shortages, logistics and port congestion have made it difficult for coffee to be harvested, processed and shipped in a speedy manner. An increase in shipping costs from countries like Brazil, Colombia and Vietnam to roasters and distributers has pushed up overall prices.

Demand on the rise

As more and more of us turn to coffee as our drink of choice, demand for coffee beans has steadily risen around the world. The demand, particularly for high-quality and specialty coffee, is putting even more pressure on the supply side which is driving prices up.

The cost of doing business

From the farms to our roastery, costs are rising. Farmers are paying more for labor and supplies, shipping costs have gone up, and even the price of coffee bags and labels has jumped. Everything that goes into making a perfect cup has become more expensive.

Although times are a little tougher at the moment, ethically sourced beans, fair wages for farmers, sustainability and conservation remain our priorities at Genovese - along with continuing to supply the highest quality coffee we’re known for.
It’s a perfect time to support your local cafe or coffee roastery, armed with a little more knowledge about what really goes into your cup.