Here at Pacific Crest Coffee, we strive to have fair and competitive pricing for the high quality products that we curate and offer; both locally with our drink prices, as well as nationally on our e-commerce site. However, the global coffee market dictates that we must raise our current prices.
Why are Coffee Prices Rising?
The coffee industry has faced an incredibly challenging harvest cycle with the harvest that started in November-December 2024. The primary challenges have been climate events that have decreased green output in Brazil and Vietnam, and may impact output for a couple years. The decreased supply has driven the commodity price, known as the C-Market price, from below $2.50 up to $4.20 as I write this, since the start of November 2024 alone. This rapid increase in price of ~70% has created liquidity issues up and down the supply chain; from the mills that purchase freshly harvested coffee cherries to process on a per-pound basis, to the importers that purchase the coffee by the shipping container load, and to us, the coffee roaster. While the C-Market price has steadily increased from ~$1.50/lb since October of 2023, we have tried hard not to adjust our prices. We unfortunately have reached the point where a price increase on drinks and beans is required for Pacific Crest Coffee Co, effective immediately.
For a deeper dive into the factors contributing to rising coffee market prices, check out this article shared by our coffee importer, Royal Coffee.
An Explanation on the C-Market & Pricing Transparency
A shipping container holds approximately 37,500 lbs of coffee. The C-Market price is for one container of Commodity Level coffee. The coffee we purchase and roast is of a higher quality, and our importer pays the producers a premium for that quality. After freight and mark-up, the price we pay our importer, Royal Coffee in Oakland, ends up being $2-4/lb higher depending on the coffee scarcity, any organic or fair trade certifications, and its origin. When we roast, we can lose up to ~22% of the green coffee’s weight as the moisture content is roasted out; $6/lb green can end up being worth ~$7.75/lb after it’s roasted, not including the cost of labor, utilities, nor overhead. With those calculations in mind, we have concluded that we need to raise our prices, effective immediately. We hope to be able to lower our prices as the market stabilizes and allows.
Thank you for your understanding and continued support.
