The coffee market is facing unprecedented challenges, with prices hitting record highs due to a combination of severe weather conditions and new tariffs. Luke Damiani, co-founder of Damiani Coffee Roasters, highlights the volatility in the market, which has become more pronounced than during the COVID-19 pandemic. Ground roast coffee prices in the U.S. have surged to $8.41 per pound, a significant increase from last year. World coffee prices also reached their highest levels in over 13 years.
• The 50% tariff on Brazilian coffee imports is forcing roasters to seek alternatives from countries like Mexico and Honduras.
• Coffee producers are hesitant to commit to contracts due to market instability, leading to potential shortages in the U.S.
• Local coffee businesses are struggling to maintain customer satisfaction while managing rising costs.
• Some roasters are forming direct relationships with coffee farmers to mitigate price fluctuations.
This situation matters because it affects not only coffee prices but also the livelihoods of farmers and local businesses. Consumers may face higher prices, while roasters must navigate a delicate balance between costs and customer loyalty. The ongoing volatility in the coffee market could lead to long-term changes in sourcing and pricing strategies.
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