Coffee prices are changing

Kristine Wiess
May 30, '25

Here's what's going on

Behind every roast is a long chain of people, places, and processes. Over the past year, that chain has come under increasing pressure. From extreme weather to currency shifts to growing global demand, the cost of producing and sourcing coffee is rising across the industry.

 

How coffee is priced

Coffee is a global commodity, and most of the world’s Arabica is traded through futures contracts on the International Exchange in New York — known as the Coffee C market, or C Price.

This benchmark sets the base price per pound of green coffee and is influenced by supply and demand, weather events, currency fluctuations, and market speculation.
Right now, green coffee is trading at its highest price in decades and still climbing.

At Dimattina, we believe that good coffee starts with understanding what goes into it. The more we understand the value of coffee — and the work behind it — the better we can support its future.

 

 

Here’s a look at what’s happening behind the scenes:

 

1. Extreme weather is lowering yields

Coffee loves a stable climate. In recent years, major producing countries like Brazil and Vietnam have been hit hard by droughts, heat waves, frosts, and floods. These events have reduced both the volume and quality of harvests.

Lower yields mean less coffee entering the global market. And when supply drops, prices climb.

 

2. A weaker Australian dollar means less buying power

Coffee is traded globally in US dollars. When the Australian dollar weakens, as it has over the past year, it costs more for local roasters to buy the same amount of green coffee.

That’s before roasting, shipping, packing, or delivering it.

 

3. Global demand keeps rising

At the same time, global coffee consumption continues to grow — especially in markets across Asia, where coffee culture is expanding rapidly.

More demand and less supply means a tighter, more competitive market for everyone — from farmers to exporters to roasters.

 

4. Speculation is adding to price swings

Traders and investment firms buy and sell coffee contracts to turn a profit. In recent times, speculative moves have driven up prices and made the market more unpredictable.

 

What does this mean for the future of coffee?

It means we need to think differently about value.

For decades, coffee has been undervalued. That’s led to underpaid producers, cost-cutting across the supply chain, and pressure on the people who grow, source, and serve it.

If we want to continue to enjoy quality coffee, support fairness, and keep our local cafés thriving, we need to start valuing coffee for what it’s really worth.

 

 

Our Promise

At Dimattina, we’re not here to chase shortcuts. We’re here to keep doing things properly.

That means sourcing carefully, roasting with precision, and building long-term relationships with the people behind every cup — from origin to café to kitchen bench.

We’re committed to quality, transparency, and doing the work behind the scenes that makes good coffee possible.

The coffee landscape is shifting. That’s not a bad thing. It’s a chance to reset expectations, invest in quality, and make sure coffee remains something worth getting up for.

Thanks for backing us — and everyone behind your daily dose.