The Coffee Market: Navigating Uncharted Territory
As you may have heard, the world coffee market has been in uncharted territory in the last few months. Prices are now at all-time highs, breaking through the US$4.00 mark on the New York C Market at the beginning of February 2025 and currently sitting just below US$4.00.

So, what exactly does this mean, and why is it important?
The C Market sets the benchmark for the global price of coffee. All Arabica coffee is linked to this market, so when the market rises, the price roasters pay for coffee increases; conversely, when the price falls, we get a reprieve.
The US$4.39 mark of mid-February was a historical high, meaning the price on the exchange is US$4.39 per pound of Arabica coffee.
This chart shows the market rise in this calendar year alone!
This FOB price excludes additional costs, such as shipping, port fees, customs fees, delivery costs at the destination, brokers' margins, and the 20% loss during roasting. Importantly, it does not reflect any premiums or levies we pay for Organic / Fair Trade / Rain Forest Alliance certifications.
Australian roasters are also affected by the US$ exchange rate, which, while better today, has been dire for much of this year.
This situation affects margins for all roasters, so we must increase our efficiencies and prices to remain competitive in this hugely competitive market.
So why such dramatic increases?
- Adverse weather in key growing areas (Brazil/Vietnam) and predicted lower crops in Brazil.
- Rising production costs (fertiliser/labour/transport).
- Record low green bean stock holdings worldwide, leading to speculators pushing the market up.
- Supply chain issues (shipping delays, global tensions, weather).
- The rise of China as a massive coffee importer. (Luckin Chain reaches over 24,000 stores!).
- Producers are demanding higher prices due to increased market awareness and global connectivity.
- Consumers are becoming far more discerning.
How Does This Affect You?
We understand that price increases are challenging. However, we are committed to maintaining transparency and providing high quality, sustainably grown certified speciality coffees.