The rising cost of green coffee is impacting everyone in the industry, and we're no exception. This sparks a wider conversation on the value we place on specialty coffee, its producers and our beloved local businesses that serve it.
Alongside many likeminded roasters in the specialty coffee industry, this month we’ve increased the price of Climpsons across our wholesale, online shop and subscription services as well as at our cafe in Broadway Market. Why is the price of coffee going up? Here, we talk about the global and local conditions that affect the price of the coffees you love to drink. This is also a chance to remind ourselves of the value and social developmental ethos behind specialty coffee in somewhat strange and certainly economically challenging times.
So what’s happening globally?
Recent years have seen unprecedented challenges in the global coffee market. Coffee is an agricultural product and we’re seeing the real impact of climate change on coffee prices. Last year extreme weather events in major coffee-producing regions like Brazil severely impacted harvests. This combined with increased demand, has driven green coffee prices to multi-decade highs.
Alongside this we see global supply fears underpinning prices. In January, the Brazilian government’s crop forecasting agency predicted the country’s 2025 to 2026 crop would fall by 4.4%. As the world largest arabica producer, this predicted reduced yield means an increase in demand globally that is hitting home now.
We also see the costs of production skyrocketing. This includes the cost of fertilisers, equipment, maintenance and energy. With the cost of living increasing across the world, specialty producers now also pay more to ensure their employees continue to maintain a prosperous wage and good standard of living as well as invest in their own futures.
These changes in pricing impact everyone in the supply chain. From growers, to farm owners, importers, roasters and coffee consumers across the world.
And what’s happening here in the UK?
It’s not just the price of coffee that’s on the rise.
This month we have seen changes to rates relief on businesses as well as an increase in the National Living Wage from £11.44 to £12.21 and hikes in National Insurance Contributions for business owners. While this is necessary, it undoubtedly presents a challenge for hospitality and supplier businesses like us.
Consider a neighbourhood cafe that pays their team the National Living Wage. Say they hire a team of 8 front of house, baristas and kitchen staff who work an average of 32 hours a week. Assuming they increase their roles by the same 6.7% increase, they would be paying a minimum extra £197 a week in wages, or £10,841 a year. In line with this, they will also see a comparative increase in NI contributions.
Sharing the cost of these changes with consumers is an essential way to keep small businesses afloat. And although it’s a small sting on the daily cup of coffee, it's an investment to ensure your beloved small business can continue to open their doors for you in the future.
So where does the cost of your coffee go? Every £ you part with doesn’t just cover the beans and milk in your flat white, but it sustains us, supporting best business practice and investment in sustainability as well as community and charity support.
The difference between commodity and specialty coffee
Specialty coffee businesses pay more for higher quality beans in order to sustain the livelihoods, future growth and sustainable investment of producers. A small increase in the cost of your cup of coffee can go a long way to support this.
In the words of the Specialty Coffee Association (SCA):
‘This is not the work of only one person in the lifecycle of a coffee bean; specialty can only occur when all of those involved in the coffee value chain work in harmony and maintain a keen focus on standards and excellence from start to finish. This is no easy accomplishment, and yet because of these dedicated professionals, there are numerous specialty coffees available right now, across the globe, and likely right around the corner from you.’ (SCA ‘What is Specialty Coffee?’)
Commodity produced coffee has lower standards of production and lower traceability credentials. Typically, commodity coffees are machine picked, unlike specialty grade coffee which is most often hand picked and therefore meticulously sorted for ripeness as well as defects. Commodity is the grade of coffee that you will see in supermarkets and larger chain operators, who often charge more for a cup of coffee than independents and ethical chains that have chosen to invest in specialty.
What specialty coffee can offer is an experience. With skill and care in every step along its production, from planting and picking at source to the hands of our roasters and baristas, it’s a product of community, shared values and connection. For businesses like us and the people we partner with along the supply chain, coffee is more than just a commodity.
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As we all make difficult decisions about how to spend our earnings, the question we can ask is, what is ethically purchased and produced coffee worth to you? And how much do you value the community businesses you love?
