News

You may have already heard or read recent news stories about coffee prices reaching a historical high. It is a development that we have been following closely for the past year or so, and it is time for us address the situation because it looks like we are in for a rough couple of years.

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Why are coffee prices going up?

Climate change and shifting weather patterns are hitting the coffee lands especially hard. Severe droughts in Brazil and Vietnam (the top two coffee producers) have shrunk harvests in 2024, which affects the global supply of coffee. At the same time, overall coffee consumption continues to grow in the U.S., Europe, and China. Less supply and higher demand equal rising prices.

The crop yield for 2025 is projected to be similarly low due to similar weather patterns as last year.

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How does this affect us--and you?

Since we started in 2015, coffee prices have gradually crept up with the most notable increases in the past year. Since last November, the price of fair trade organic (FTO) coffee has gone up 70%. Our suppliers have warned us that we can see further increases of 30 to 60% over the course of the next two months.

At the beginning of 2025, we increased our wholesale and retail prices--and we wholly expect to have to do this again later this year. Our price increase will not be as dramatic as the increases on the market: as an owner-operated small business, our overhead is relatively low and we are able to temporarily absorb some of the higher cost of green coffee beans. We are hopeful that any price increase may only be temporary, but much will depend on future crop yields.

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What about tariffs?

No tariffs are currently in effect and they are therefore not directly contributing to the rising cost of coffee beans--yet. As it stands now, only coffee from Mexico would be directly affected by tariffs once they go into effect. However, coffee is one of the most traded commodities on the market, second only to oil. The uncertainty and speculation surrounding trade with the US will likely further drive up the price of coffee beans from other regions as well.

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Does this affect availability?

Coffee is a seasonal crop and sometimes this results in limited availability or temporary unavailability of certain coffees. However, in recent years we have noticed reduced offerings of FTO coffee. This is in part due to increased demand, lower crops yields (see above), and farmers not renewing the certifications that were lost during the COVID-19 pandemic when inspectors were unable to visit farms. Currently, we are seeing that some producers are holding back inventory to drive up prices, but also to see what will happen if any tariffs are imposed. We may also be unable to restock some beans if they become too expensive.

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Coffee should be cheap and plentiful!

Or at least, that is what we have come to believe. We often forget that coffee is a tropical crop and that the supply chain is big and expensive; meanwhile, farmers often get paid less than what it costs them to grow the coffee, because they get locked into contracts with big companies that set the price. This is one of the reasons why we have committed to roasting FTO coffee: Mindi comes from a family that has farmed for generations, so we feel it is important that farmers get their fair share. It is time to stop taking coffee for granted.

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What will not change?

We remain committed to roasting and supplying you with great FTO coffee. Much like the many other food and beverage producers in the Finger Lakes, we prioritize quality and flavor. Our community and its many visitors deserve an excellent cup of coffee and an experience that is completely in line with the farm-to-table movement and the gastronomical tradition of our area. We aim to be an intrinsic part of a unique Finger Lakes experience.

We will also continue to offer our coffees in one-pound bags while some of our competitors continue to offer 10- or 12-ounce bags for the same or higher price.

We also aim to stick with our core business principle of promoting this area and its unique small businesses and organizations, not in the least those who have supported or collaborated with us.

And of course, you will always be welcome at our shop and roasting space in Watkins Glen for a coffee, a bag of freshly roasted beans, or any of the local products we carry.

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