Understanding the Coffee Industry’s Volatile Pricing: What It Means for Reverie and Our Customers
Green coffee pricing has been on a record-breaking trend the last year or so.
The coffee market is experiencing unprecedented volatility, creating challenges for roasters and the wider coffee industry. As a customer-focused business, Reverie Coffee Roasters is committed to transparency about how these changes affect us and what they mean for our pricing strategy. Here’s a closer look at the current state of the coffee market, the factors driving the instability, and how it impacts our approach to maintaining quality and sustainability.
The Current Market Landscape: Coffee prices have surged to levels not seen in decades. The market currently sits at $3.24 per pound, nearing its historic high of $3.30 in 1997. (follow along here). This rapid climb is driven by a combination of global factors:
Brazil’s Crop Concerns:
Brazil, the world’s largest coffee producer, faces potential crop damage and lower output projections for the upcoming year.
EUDR Deforestation Ordinance:
The European Union’s deforestation regulations impact global coffee supply chains, even for countries not directly exporting to the EU.
Robusta Market Trends:
Robusta coffee prices have reached record highs, affecting overall market dynamics.
Additional Pressures:
Rising shipping costs, growing global coffee consumption, speculative investments, and potential tariff changes contribute to the uncertainty.
Implications for Coffee Producers: Producers are adapting to the volatile market by limiting long-term contracts and selling at high market rates. While these elevated prices might align with sustainable profitability for some farmers, there’s no consensus on how long they will hold. For roasters like Reverie, this necessitates a flexible approach to sourcing coffee while prioritizing strong relationships with importers and producers to ensure quality and sustainability.
How Reverie is Navigating the Market: Reverie’s purchasing strategies have mitigated some of the immediate impacts of these price hikes. For instance, we’ve secured much of our 2025 coffee position, protecting against further price surges. However, the unpredictable nature of the market means we must remain vigilant.
Commitment to Stable Pricing: At Reverie, we have only raised prices twice in the last seven years, with the most recent adjustment in June 2023. It is always our goal to limit the fluctuations in pricing changes to minimize the impact on our customers while ensuring the sustainability of our operations. Our thoughtful approach reflects our dedication to balancing market realities with customer expectations.
Potential Tariff Effects: Proposed tariffs, especially on imports from Mexico, add another layer of uncertainty. While these tariffs appear to be a negotiation tactic, they could lead to broader inflation if implemented. As of now, these measures haven’t affected other coffee-producing nations, but we continue to monitor the situation closely.
The Path Forward for Reverie: The coffee industry’s evolving pricing landscape may necessitate adjustments to our pricing model. Our commitment to delivering exceptional quality and fostering sustainable practices means balancing these challenges with the needs of our customers and producers. By working with Reverie more closely on your future needs, you may be able to help us plan for future purchases and reduce the chances for price changes.
We aim to:
Ensure access to premium coffee through proactive purchasing strategies.
Maintain transparent communication about pricing changes and their underlying causes.
Support our producer partners during this challenging period.
As we navigate this turbulent period in the coffee industry, Reverie remains dedicated to our mission of precipitating positivity within our community. By understanding the factors at play and staying adaptable, we strive to continue delivering the exceptional coffee experience our customers expect. We appreciate your understanding and support as we adjust to these market realities.
Stay tuned for further updates as we continue to monitor the market and adapt our strategies to meet the evolving landscape. If you have any questions about the coffee pricing market and how it may impact your business profitability, please reach out to me directly by email.
Thank you for your continued partnership!
Andrew Gough, Owner
Reverie Coffee Roasters