WORLDWIDE COFFEE COST 2025
Over the past year, the price of green coffee - unroasted coffee beans has surged. The last quarter of 2024, prices hit a 47-year high and they have since climbed another 20%. The coffee industry operates on a global pricing system, often referred to as the C Market, which determines the cost of most of the world’s coffee. The C Market has risen for several reasons.
*Dynamics of supply and demand.
*Two of the worlds largest coffee producers Brazil and Vietnam had reduced harvests due to low production yields & poor harvests resulting in reduction of global supply with more buyers purchasing from other countries with less yield looking for available inventory creating a worldwide shortage.
*Market speculators have capitalized on the volatility, further exacerbating price fluctuations.
*Other costs increases:
Packaging: Biotré packaging & high-quality packaging materials have increased significantly.
Shipping: Import costs fluctuate with fuel prices & global trade conditions.
Supply chain issues: Disruptions in the supply chain in the Red Sea are impacting availability and transportation shipping costs in African coffee-primarily Ethiopian origined coffee.
Labor & Tariffs: Economic shifts, inflation, currency fluctuations (coffee producing countries), and tariff regulations are impacting the cost of bringing coffee to the shelf and shop.
About Coffee Shipments
We wanted to update you on Ethiopian coffee shipments impacted by the turmoil in the Red Sea due to the Houthi situation in Yemen.
There have been at least 15 separate missile attacks on large carrier ships causing damage and even sinking several smaller vessels that were utilizing the red sea as transit, originating from Djibouti. Djibouti is the only port for all outgoing Ethiopian shipments of coffee. One of the main shipping companies, Maersk, suspended shipping service in March. They have since resumed in a very limited capacity. ( two port calls a month- originally 2 per week). As of last week, the main cargo ship “MSC” operating form the port is working with feeder vessels to Saudi Arabia in an effort to circumvent hostility & expedite Ethiopian coffee exports. Though it may seem now is the time to abandon or cut back on purchasing coffee from the Ethiopian region to ease demand and create efficiency, the opposite is in fact true. Ethiopia and its coffee exports need our continual support and financial commitment to help create stability through the current pandemonium.
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