For 15 years, we at Coffee Circle have been convinced that coffee can be both exceptional in taste and fair for everyone involved. Our mission is to source the highest quality coffee from around the world, support sustainable farming methods, and ensure that our partner farmers receive fair compensation. Through fresh roasting and direct shipping, our flexible subscription model, or direct sales in our cafés, we aim to provide you with a coffee experience that combines pure enjoyment with true responsibility.
The global market price for green coffee (unroasted coffee) is at an all-time high – it has more than doubled within a year. For comparison: in January 2024, the global market price for Arabica coffee was still at $ 1.78 per pound (lb), but now it exceeds $ 4.00 per pound (lb) – an increase of more than 100% in just one year.
In response, headlines in the press are talking about a „coffee world in shock.“ We see things a bit differently – not just negatively. Coffee cultivation, harvesting, processing, global logistics, and roasting require enormous effort, and in the past, the price per kilogram of green coffee often didn’t even cover farmers‘ production costs. If prices remain high – which we currently expect – then for the first time ever, the hard work of the 12.5 million coffee farmers worldwide may finally be reflected in fair prices.
Many experts are already speaking of a new era in the coffee industry. Even though we don’t purchase coffee via coffee exchanges, we are still affected by rising procurement costs. Therefore, we will have to adjust our prices starting March 17, 2025. It is important for us to be transparent about why this decision is necessary.
Development of the Global Market Price
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What is the Global Market Price?
Simply put, the global market price for coffee is an average price at which coffee is traded on international exchanges. Arabica coffee is traded on the New York exchange, while Robusta is traded in London.
At these coffee exchanges, large coffee roasters and traders primarily conduct transactions. The global market reacts to various factors affecting supply and demand, with key influences being harvest yield forecasts and worldwide coffee consumption trends. Over 90 % of the world’s coffee is traded in this way.
What is Different about Direct Trade?
Coffee that is not traded on the coffee exchange is sold directly – meaning coffee producers or exporters in origin countries sell directly to coffee traders or roasters. This method is particularly common in the specialty coffee sector. It carries a higher risk because, in some cases, intermediaries are bypassed, and they usually play a stabilizing role in the trade process. They handle tasks such as logistics, financing, quality control, and cushioning price fluctuations. However, this is balanced by long-term relationship building and trust. Direct trade also allows for direct price negotiations, enabling a more considerate approach to both parties‘ needs. The global market price still serves as a reference, meaning price fluctuations also impact direct trade relationships.
Historically, direct trade has meant paying farmers significantly higher prices than those available on the stock market. Movements promoting fair trade – along with companies like Coffee Circle – were founded with the goal of creating sustainable improvements in coffee farmers‘ living conditions worldwide.
Why Have Prices Risen so Sharply?
Coffee prices have always been volatile, but recent developments suggest a lasting shift. These are the main factors:
- Increasing demand: In countries like India and China, where tea has traditionally been preferred, coffee consumption is rising rapidly. This creates an imbalance between supply and demand.
- Climate change effects: Extreme weather events such as droughts, floods, and frost threaten harvests – especially in Brazil, the world’s largest coffee producer. Shifts in rainy seasons, severe drought, and sudden cold spells increasingly affect yields.
- Global crises and rising costs: Higher interest rates increase financing costs. Disruptions in global supply chains since COVID-19, combined with geopolitical tensions, drive up logistics costs. For example, the missile attacks on ships near the Horn of Africa have forced container ships to avoid the Suez Canal and take the longer route around Africa.
- Empty coffee stockpiles: Years of stagnant harvests, growing uncertainty, and steadily increasing coffee consumption have led to a lower global supply of green coffee. Less supply inevitably means higher prices.
Our direct trade relationships help us navigate this situation. So far, we have had no trouble securing our desired green coffee quality. However, we still feel the impact of rising prices.
What Does this Mean for Coffee Farmers?
It remains to be seen at what level prices will stabilize in the long run. In general, higher prices are good news for farmers, as they receive more for their coffee.
At the same time, climate change presents enormous challenges: extreme weather conditions increase cultivation risks and raise production costs. While higher earnings can help farmers better adapt to changing conditions, the rapid pace of change puts additional pressure on them.
This is one reason why Coffee Circle supports World Coffee Research, an organization that develops climate-resistant coffee plants to secure the future of coffee farming.
Our Price Adjustments in Detail
We remain committed to delivering the highest coffee quality and treating all stakeholders in the supply chain with respect. To maintain our standards, we will adjust our prices as of March 17, 2025:
| Package Size | Type | Increase |
|---|---|---|
| 250 g | Limu, Yirga Santos, Yirga Santos Decaf, Espresso House Blend, Toleyo, Tiga Terra, Buna Dimaa, Buna Dimaa Decaf, Sierra Nevada, Yirgacheffe, Sidamo, Grano Gayo, Cerrado, Karibu, Rungeto, EQ. Espresso 60, EQ. Espresso 75, and EQ. Cafe Crema 100 | 1 € (9,6 %) |
| 1 kg | Limu, Yirga Santos, Yirga Santos Decaf, Espresso House Blend, Toleyo, and Tiga Terra | 3 € (8,5 %) |
| 1 kg | Buna Dimaa, Buna Dimaa Decaf, Sierra Nevada, Yirgacheffe, Sidamo, Grano Gayo, Cerrado, Karibu, Rungeto, EQ. Espresso 60, EQ. Espresso 75, and EQ. Cafe Crema 100 | 4 € (11,2 %) |
What will not change:
- Bulk discounts: When purchasing a 1 kg package, you will continue to save an average of 14 %.
- Subscription discount: Your 10 % discount in our fully flexible subscription remains unchanged. Now, more than ever, a subscription is worth considering.
- Membership: In our cafés, you will continue to receive a 10 % discount on all coffee packages.
We hope this explanation provides clarity regarding the current price developments. If you have any questions or want to learn more about our direct partnerships with coffee farmers, feel free to reach out!
Thank you for being part of our journey and supporting us. Your trust means a lot to us, and we look forward to continuing to offer you exceptional coffee.
Best regards,
Martin & the entire Coffee Circle Team
