Coffee is one of the most popular beverages in the world, and its consumption has been on the rise in recent years. However, coffee price inflation has been a growing concern for both consumers and producers. In this blog, we will explore what causes coffee price inflation and its potential impact on the industry and consumers.

What is Coffee Price Inflation?

Coffee price inflation refers to the increase in the cost of coffee over time. This can be due to various factors, such as supply and demand, production costs, and currency fluctuations. When the price of coffee increases, it can impact both coffee farmers and consumers.

Causes of Coffee Price Inflation

One of the primary causes of coffee price inflation is the supply and demand of coffee beans. Coffee is grown in various regions worldwide, and when there is a shortage of coffee beans due to poor weather conditions, diseases or pests, or low yields, the price of coffee can increase. Conversely, if there is an oversupply of coffee beans, the price may decrease.

Another factor that can impact coffee prices is production costs. Coffee farming requires a considerable amount of labor and resources, including land, water, and fertilizers. When the cost of these inputs increases, coffee farmers may need to charge higher prices to cover their expenses.

Currency fluctuations can also affect coffee prices. Coffee is primarily traded in US dollars, and when the value of the dollar decreases, it can increase the price of coffee. This is because coffee-producing countries may need to charge more to make up for the decline in the dollar's value.

Impact of Coffee Price Inflation

Coffee price inflation can have a significant impact on both coffee farmers and consumers. When coffee prices increase, farmers may benefit from higher revenues. However, if production costs increase, they may not see a significant increase in profits. This can make it challenging for farmers to invest in their farms, and they may struggle to maintain their livelihoods.

Consumers may also feel the impact of coffee price inflation. When the price of coffee increases, coffee shops and cafes may need to raise their prices, making it more expensive for consumers to enjoy their favourite coffee drinks. This can impact demand for coffee, as consumers may seek out cheaper alternatives.

Conclusion

Coffee price inflation is a complex issue that can be influenced by various factors, such as supply and demand, production costs, and currency fluctuations. Unfortunately, record high prices of green coffee around the world, which affect every coffee roaster, mean that we are facing two choices. Cut the quality of our coffee or increase our prices. That leaves us with only one choice because we have not touched the quality of our coffee since day one.

Our drinks at the cafe and Whole Bean coffees, including Decafs, blends and Limited Editions prices will increase. You should expect to see prices going up across all brands on March 20th.

If you are a current subscription holder, your subscription will automatically reflect these changes on that date. If you'd like, you can always edit your subscription through your aves account. As always, we appreciate your continued support and business.