Green coffee prices

You may have been noticing a number of articles and news surrounding the conversation of coffee prices in the past year, especially the past few months. Coffee has become more expensive over the span of the last two years. However, the current situation is not a new phenomenon for the coffee industry, which has seen the highest price peaks in its history, most recently in 2011, and before that in 1997, 1985 and 1977. 

A higher price is not a bad thing in itself if your coffee package includes responsibly produced, high-quality specialty coffee whose producer has been fairly compensated for their work. However, many people don’t understand the true cost of coffee and expect it to be sold at a low price, even when the conditions wouldn’t really allow it.

“Finns are used to coffee being sold cheaply – well below the cost of sustainable production. This distorts the price image in the eyes of consumers, even now, when the world market price of coffee is high. It is time for coffee retailers to change their message to one that promotes sustainable consumption,” said Janne Sivonen, Executive Director of Fairtrade in their September 2024 press release.

According to the same Fairtrade report, Finnish coffee behaviour has been driven by cheap promotional prices and a filter coffee culture where half a pot easily ends up in the sewer. Such cheap prices and the partly deliberate waste of coffee are unsustainable.

But why are we facing these cost increases with coffee and how can you keep enjoying coffee, but also in a more sustainable way? And if you really think about it, is it only bad news that coffee is becoming more expensive or can there also be good things coming with it? First, let’s have a look at some of the many reasons that affect coffee prices.

Extreme weather conditions in the main cultivation areas

Climate change is already affecting coffee growing and certain regions in particular will face increasing problems and new weather conditions requiring adaptation measures in the future. This is also the case for other well-known “everyday luxury products” such as wine. Brazil is currently the biggest coffee producing country and the cultivation areas have been met with extreme drought in the past year. In practice, coffee is not artificially watered, but it is important for different growing stages that it rains at the right time of year and that it is also dry and sunny at the right time of year.

According to the article released in The Guardian in December 2024, it is not only Brazilian coffee plantations that have been hurt by bad weather. The supply of robusta is also set to shrink after plantations in Vietnam, the largest producer of this variety, faced drought and heavy rainfall. So it’s not only drought that can cause issues, also heavy rains have resulted in surges in coffee prices when coffee cherries have rotten in the bushes before collecting, like with robusta in Vietnam and arabica in Colombia in 2024.

Challenges and increasing costs in production and logistics

Global inflation, fuel prices, transportation and rising production costs are also contributing factors to the rise in coffee prices. Despite investments in automation, critical roles still require human expertise, leading to inefficiencies and further delays in the supply chain although it isn’t the worst thing that labor costs are getting higher since it would also mean, in an ideal situation, that people are being fairly compensated for their work. In addition, geopolitical factors, such as trade disputes between major coffee-exporting countries and importers can add uncertainty to the market, influencing price volatility. When global supply chains experience significant disruptions, it leads to increased costs and delays in the transportation of coffee beans. (Genuine Origin, 2025).

Brew better, not more – reconsider your own consumption

While rising coffee prices present challenges for consumers and businesses, there are several potential positive impacts. 

Coffee researcher and writer Tuija Saarinen-Härkönen mentioned in an article in Helsingin Sanomat back in December that “If a package of coffee costs more than seven euros, no extra is brewed.”

For specialty coffee enthusiasts, this statement may sound a bit weird. Why would you brew more than you’re going to drink, isn’t it obvious to only brew the needed amount? This statement also tells a worrying truth, at least about the coffee-drinking habits of Finns; when coffee is cheap, extra is often brewed without worry. Coffee waste in households and offices is an existing problem that can only be changed by changing the culture and mindset that takes coffee for granted.

The coffee travels a long way, all the way from planting the coffee trees, growing and producing its first cherries, being harvested by the hard working producers and processed, transported, roasted and in the end brewed to your cup – so why would it go through all this just to end up in someones sewer? If you open a nice bottle of wine, do you only drink one glass and pour the rest down the sewer? I don’t think so!

Fair pay can lead to more sustainable practises

Higher coffee prices can lead to increased income for coffee producers, especially smallholder farmers who often struggle with low wages. When prices rise, they may receive fairer compensation for their work, improving their livelihoods and allowing for reinvestment in their farms. Will Corby, a director of the subscription company Pact Coffee, countered in an article by Guardian last month that coffee beans had been “sold for far too cheap from its countries of origin to the west for far too long. Huge coffee companies might say that these market highs are bad news, but, in reality, farmers are finally being paid enough to live on,”

Most artisan and specialty coffee roasters buy their coffee directly or via specialty coffee importers which results in the producers receiving better pay and different quality premiums.

Certificates are one way to ensure that a product is responsible, but they are not the only solution and are far from perfect. Transparency in the production chain already says a lot about the sustainability of coffee: it is often safe to assume that if the roaster can tell you the name of the producer, farm or cooperative you are buying from, the producer has been paid a better price.

While price increases can be hard on roasters, retailers and consumers, they can also be a factor for positive change – especially if consumers choose specialty coffee and consume responsibly. Small roasters are committed to paying fair compensation to farmers and the additional revenue goes to the farmers themselves, allowing them to reinvest in sustainability, quality and community development.

So let’s support small roasters together and enjoy quality coffee – choose to brew better coffee, not more. 💛

Read these too!

Published 30.1.2025