Wondering why coffee prices are on the rise? Here’s the breakdown.

04 April 2025

Most coffee beans grow in countries that sit within the ‘Bean Belt’. These areas provide the perfect conditions for growing coffee plants due to temperature, altitude, and rainfall.

Unfortunately, these coffee-growing regions have been hit hard recently. Extreme weather, droughts, frosts, unpredictable rainfall, and rising temperatures have made coffee harder to grow, reducing yields. At the same time, global shipping delays, port congestion, higher fuel costs, and trade restrictions have slowed supply. Farmers and distributors are also facing rising costs for labour and equipment due to inflation. On top of that, coffee is traded in USD, meaning exchange rate fluctuations add to the impact for New Zealand roasters.

 

All this, alongside the consistently strong demand has lead to supply of green beans struggling to keep up, and coffee prices continuing to climb, tripling over the past 5 years to the highest they’ve been since the late 1970s. This means that even after absorbing much of the price increase, roasters have had to raise prices just to stay in business. Even with these increases, many are still sacrificing their margin to keep coffee affordable, whether for those buying beans or enjoying a café coffee.

 

Amid rising costs, our commitment remains the same – to source the highest quality beans, roast them to perfection, and deliver a cup that meets the highest standards of New Zealand coffee. Your continued support and understanding are what keeps the coffee industry thriving, and we’re dedicated to ensuring you can keep enjoying the coffee you love.

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