Green coffee prices are currently volatile, have been setting all time highs, and in 1 year have increased more than 100%.
Driven by global inflation, international political uncertainties, and exasperated by challenging growing conditions at origin. Brazil, the largest producer of green coffee has had a particularly bad year. Brazil sneezes and the world catches a cold.
These economic conditions will have ripple effects all across our industry. From low cost grocers and convenience stores, to national chains, and local specialty roasters.
We’ve never participated in the race to the bottom, have always paid premiums for quality, and built relationships on mutual success. While more insulated from this spike than our low cost competitors, it appears more and more likely that there is a new normal.
It is no secret that coffee producers have been underpaid historically. Unfortunately these spikes have not always related to an increase in the bottom line. They are subject to the same global economic factors we all are. Everything costs more.
We’ll leverage our experience and relationships, keep an eye on the horizon, and find a balance of quality, variety, and affordability. If this new reality holds, we may all need to get comfortable paying more for coffee. It may be long overdue.
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