Global Coffee Prices Rising

Global Coffee Prices Rising

1st Jan 2025

Why Are Coffee Prices Rising, and What Does It Mean for Your Local Café?

If you’re a regular at your local café, you may have heard about rising costs of your favourite cup of coffee. For many of us, coffee is more than a drink—it’s part of our daily ritual and a comforting constant in our lives. But lately, there’s been talk about coffee prices climbing higher than ever before. So, what’s behind these increases, and how is it affecting your local café?


What’s Driving the Rise in Coffee Prices?

The cost of coffee is influenced by a mix of global and local factors, many of which are beyond the control of cafés or even roasters. Here’s a deeper dive into the main reasons why prices are climbing:

 

Climate Change and Weather Disruptions

Coffee-growing regions are increasingly impacted by the harsh realities of climate change. Brazil, the largest producer of coffee worldwide, has faced unprecedented adverse weather conditions, devastating coffee crops and reducing yields significantly. Additionally, other key growing regions have experienced similar negative weather impacts, further impacting global supplies.

Supply Chain Challenges

Global supply chains are under pressure due to several factors, including:

  • Increased Shipping Costs: Rising fuel prices and global demand for freight services have significantly increased the cost of transporting coffee from farms to roasters.
  • Logistical Bottlenecks: Delays at ports, container shortages, and labour shortages in transportation industries contribute to the complexity and expense of moving coffee around the world.

Rising Costs for Coffee Farmers

Smallholder farmers, who produce most of the world’s coffee, are facing increasing expenses for essential resources that are integral to the coffee production process.

Economic Pressures

Global economic trends have added further strain:

  • Currency Fluctuations: The weakening of the Australian dollar against the US dollar has made importing coffee beans more expensive. This is particularly significant as coffee is traded globally in US dollars.
  • Inflation: The rising cost of goods and services worldwide has increased expenses across the board, from farming inputs to packaging and transportation.
  • Market Volatility: Coffee prices on the global commodities market have experienced volatility, with prices reaching their highest levels in over a decade due to tight supplies and high demand.

How Is Toby’s Estate Responding?

We understand how important quality coffee is to your daily routine. That’s why we’re committed to navigating these challenges while ensuring the coffee you enjoy remains exceptional. Here’s how we’re responding to rising costs in the coffee world:

 

Supporting Producers

We have long standing relationships with producers we’ve been working with for many years. This is why we feel so strongly about direct trade and the relationships that come with it. We always work with our partners at origin to ensure our partnerships can flourish even in times of need.

Maintaining Quality

Our commitment to quality is unwavering. We will continue to test and challenge all of our processes to make sure the coffee that we produce and purchase is at the highest level.

Supply Chain

We have Toby’s people dedicated to working with logistics teams around the word. This team works around the clock to ensure our fingers are on the pulse in the world of coffee both here in Australia and abroad.

 

While these efforts come with rising costs, we believe in delivering exceptional value to our customers and ensuring that every cup reflects the care and commitment behind it.


What Does This Mean for Your Daily Coffee?

For cafés across Australia and the rest of the world, the rising cost of coffee means your favourite café will be paying more for the beans you’ve come to love and enjoy on the daily. This only leaves them with limited options, reluctantly resulting in the increase in the cost of a cup.

By supporting your local Toby’s café, you are supporting the value and effort that goes into the entire coffee supply chain, from farmers and pickers to our café owners and baristas. The hospitality industry, especially cafés, are experiencing one of the most difficult times in recent history and need your support now more than ever.


Will Coffee Prices Keep Rising?

While it’s difficult to predict exactly how prices will evolve, experts agree that coffee costs will likely remain higher than they were in previous years. Factors such as climate change, global economic pressures, and ongoing demand will continue to play a role. However, the idea of a $10 flat white is still an unlikely scenario. Instead, customers should expect moderate increases to reflect the realities of the current market.


Supporting Coffee’s Future Together

Coffee is a shared experience that connects us in many ways. By understanding the challenges facing the industry, we can help ensure coffee remains an important part of the daily Australian experience.

At Toby’s Estate, we’re proud to work alongside farmers, café owners, and coffee lovers to navigate these challenges. Together, we can continue to celebrate the exceptional coffee moments— even as we adapt to a changing world.


Last Drops

The rising cost of coffee reflects complex global issues, from climate change to economic pressures. Whilst we can’t control these factors, we are committed to maintaining the highest quality from seed to cup.


So how do we get hold of those beautiful little beans that become your delicious go-to cup? Follow along on our trip to origin! Beantrotters