At Kaveri Coffee, we are committed to sourcing the finest Indian coffee and delivering it to you with a focus on quality, authenticity, and transparency. Thus we want to discuss an important issue affecting not just us, but the entire global coffee industry: the rising cost of coffee.
Over the past year, coffee prices have reached record highs - Arabica coffee futures have more than doubled, climbing from $2/lb for green coffee at the beginning of last year to $4.30/lb in February 2025. This has been reported as the highest C-market price (global market for commodity coffee) in the history of coffee trading, beating the last record high set in 1977.
This price surge is caused by several factors, with the biggest being extreme weather in key coffee-growing regions. In Brazil, a historic drought has drastically reduced yields. Other coffee-producing countries, like Colombia and Vietnam, are also struggling due to political instability and rising shipping costs, making it harder to maintain supply. These three countries constitute 70% of the world’s coffee production, thus being key drivers for coffee pricing. At the same time, demand for specialty coffee continues to grow worldwide, intensifying competition for high-quality beans and driving the cost upward.
Another major factor affecting coffee producers worldwide is climate change - fluctuations in weather patterns throughout the year directly impact yield. Our coffee partners have reported a 25-30% decrease in their harvest this year. Even with the increase in coffee prices, coffee farmers receive only about 10% of the total value of the coffee supply chain, making them especially vulnerable to these fluctuations.
As a specialty roaster, we prioritize ethical sourcing and fair compensation for the hardworking farmers behind every cup of Kaveri Coffee. While the C-market price is a useful benchmark, we pay well above the market price for our coffee and work directly with farmers to better understand the true cost of coffee production and transportation. To continue supporting sustainable farming practices and maintaining the quality you expect, we’ve had to adjust our pricing to reflect these increased costs.
The ever changing landscape of foreign trade policies coupled with the climate crisis brings about an air of uncertainty and skepticism. However, our commitment to quality, sustainability, and fair trade remains unwavering. We will continue working tirelessly to bring you the best Indian coffee possible and stay true to our philosophy of honesty and transparency. We deeply appreciate your loyalty and understanding during this time, and have faith that we are building a better future together.
If you have any questions or concerns, please don't hesitate to reach out. Thank you for being part of the Kaveri Coffee community.