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Coffee prices in 2025: how did we get here and what can we do about it?

As you may have been reading in the wider press, coffee prices are hitting new highs almost every day. We closed out on Tuesday, 5th February 2025 at 400c/lb. The highest price on record.

So, how did we get here? What’s the driver behind this and importantly, what are we going to do about it at BlendingRoom?

Well, the primary factor is the environment. We’re in a multi-year poor crop cycle associated with less than adequate climatic conditions both in Brazil and Vietnam - the two power houses of global coffee production. This is degrading the global coffee reserves whilst consumption rates are increasing and thus, increasing scarcity. Scarcity in cash crops drive prices.

The above issues are compounded by geo-politics, the long-tail effects of incorrectly balanced global haulage systems since 2020 amongst other scenarios.

The result? Higher raw product costs to us. Now, this video attempts to explain what I plan to do with our pricing to mitigate this. Namely to introduce a tiered target gross product margin across our product line while sourcing quality coffee (83 - 87 SCA points) from value origins and running a lean business that focusses on cash-flow.

We’ll see if the plan works.

I hope this video proves useful. Let me know in the comments should you have any further questions.

#coffee #specialitycoffee #2025coffeeprices #commoditiyprices #coffeeroastery