Why the Rise in Coffee Prices Could Actually Be a Good Thing

The cost of coffee has risen significantly over the past year, and some say we should celebrate the shift.

BY EMILY JOY MENESES
ONLINE EDITOR

Featured photo courtesy of Getty Images

It’s no secret that, over the past several years, the cost of coffee has gone up significantly—and the reasons why are numerous. Tariffs, climate challenges, and high transportation costs, among other factors, are all driving the shift. And while the rapidly changing prices have been met with some hesitation throughout the coffee world, many are arguing that the rise in costs is actually a good thing.

Australian roaster Single O, for example, recently launched their Cups Up for Specialty campaign, through which they’re encouraging the industry to embrace the increase with open arms. As global coffee prices reach record highs, the Sydney-based company describes the current moment as “pivotal,” bringing a wake-up call to a sector that has needed it for decades.

The True Value of Coffee: A Shift in Perspective

Mike Brabant, CEO at Single O, shares his belief that coffee has, historically, been severely undervalued—and the price shift we’re seeing today is presenting an opportunity to correct that.
“For over 20 years, the price of specialty coffee in Australia has been artificially low, often comparable to mass-market chains,” he says. “But the meticulous work that goes into every cup—from the producer’s farm to the roaster’s craft, to the final pour at an independent café—deserves to be fairly valued.”

Wendy De Jong, head of coffee at Single O, echoes Mike’s sentiments, describing the shift as a way to secure higher wages for coffee producers, maintain coffee quality around the globe, and ensure the long-term viability of the industry.

“Higher prices are beneficial because they provide producers with more financial resources. This means they can invest in innovations and technologies that improve the quality of their coffee,” she says. “For example, they might use the additional income to plant more shade cover, invest in better processing equipment, or experiment with new coffee varieties. These investments can lead to higher-quality (coffee).”

“(The increase in prices will) also make coffee production a more viable business for current and future generations,” Wendy continues. “The current volatility and cash-flow challenges make it difficult for small producers to sustain their businesses and earn a living wage. If higher prices stabilize, coffee production would be more financially attractive to the next generation and keep producers in the game.” 

Determining a Fair Price

Currently, the C-market price of coffee—the global benchmark for coffee pricing—is just under $4 USD, marking a 103% increase over the past year. And according to Wendy, a $4 market price is necessary for protecting coffee and the producers who grow it.

“Currently, the specialty-coffee industry is making an argument for a $4.00 C-market price, which has the potential to benefit everyone in the supply chain,” she says. “This price helps ensure that producers can cover their (production) costs, invest in their products, and make a sustainable living.” 

In a press release, Single O shared their belief that, for the long-term sustainability of the industry, cup prices in Australia must increase to a minimum of $6—and they’ve already led the way by raising cup prices at their Surry Hills location to $6.50 for a regular-sized cup and $7.50 for a large.

“While higher prices bring challenges, they also bring opportunities,” the company wrote in a press release. “Producers will receive a more equitable share of the industry’s value, ensuring long-term sustainability and encouraging continued investment in quality.”

Knowledge Is Power

So where do we go from here? Wendy shares her hope that, equipped with the information shared through the Cups Up for Specialty campaign, consumers will show their support for rising coffee prices.

“That $6 or $7 cup of coffee is worth it,” Wendy says. “It’s an investment in the future of coffee—one where ethical sourcing, sustainable practices, and quality go hand in hand.” 

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