As one of the many trustworthy players in the speciality coffee industry here in Queensland, we feel a responsibility to keep you informed about the continued rise in coffee prices and how that’s going to impact farmers, importers, roasters, and customers.
The price of Arabica coffee keeps rising, reaching $4.30 per pound, the highest since the 1970s. This is, in part, due to speculation buying, supply issues, and challenging climate conditions.
Our house-blend Gratitude is currently made up of a Brazilian bean and a Colombian bean and both regions face challenges.
It’s currently reported that there is a 4.4% drop in Brazilian coffee production to a three-year low of 51.81 million bags. (https://tradingeconomics.com/commodity/coffee)
There is no doubt that a reliable coffee supply is becoming an issue but it’s not all doom and gloom.
Roasteries like us, that have forged strong partnerships with green bean importers, stand the best chance of weathering this financial storm.
Nadia Moreira from Southland Merchants says “coffee prices hitting 430c is unprecedented and shaking up the entire industry. With unpredictable weather, ongoing supply chain disruptions since 2020, tight availability and ongoing logistic challenges, everyone is feeling the pressure. The key is adaptability – finding smart ways to navigate the market while maintaining quality and truly testing the strength of relationships.”
For café owners, partnering with a knowledgeable coffee roaster can be key to handling and explaining price changes to customers. Having the support and confident to navigate a tough financial situation is so important for business owners.
Customers who love their local café, can make a big difference by being supportive and understanding that price increases help businesses survive. Historically, cafes are reluctant to pass on cost increases in the fear that customers will stay away but ultimately cafes employ local people, they support community and sporting groups, they are a meeting place and a social outlet for many people. To see independent cafes closing is to see the takeover of large corporates, a loss of individuality and creativity and surely no one wants this.
For Extraction, quality of product, personalised service and a connection to our community is paramount to our mission but unfortunately, we are not able to weather the on-going price increases without raising our prices.
As of 28th February our coffee prices will be:
· 6oz cup $5.0
· 12oz cup $7.0
· 250gram retail bag $20
· 1kg retail bag $60
· 1kg wholesale bag $36
· 6kg tin wholesale $206
We thank our coffee partners and customers for their support in helping us stay a sustainable and thriving business for future generations of coffee lovers.
For full transparency, we last raised our wholesale bean price in May 2022 and increased cup and retail bag prices in June 2024.