Coffee Price Increase
From climate change, to shipping, to failed crop harvests, prices of commodities around the world have increased, and coffee is no different. It’s a complicated yet important topic, and one that we’ve explained more about here.
The new year is our time to plan, and 2025 is shaping up to be big for Yallah. In February, we’ll welcome a new 20kg fully electric Typhoon roaster, tripling our capacity and marking a major step toward our goal of becoming carbon-negative. As climate change increasingly affects us and our suppliers, this shift is as vital as the coffee we provide. We’re also preparing for coffee purchases, focusing on our long-standing relationships with Central American producers who have shaped our identity over the past decade.
2025 brings challenges, including record-high coffee prices and mounting climate impacts on producers. However, we remain committed to maintaining the quality you expect and managing price impacts as best we can.
Coffee Price Increase
The news is littered with articles of prices soaring and coffee is no different, with the C-market price at $3.24/lb at the time of writing this - a 77% increase since January 2024 (see graph below). This increase is driven by a complex mix of factors, including extreme weather events and speculation on the outcome of the recent EUDR proposals, all while demand remains high, resulting in a rapid price increase.
Whilst the coffee price has been rising since mid-2021 we have managed this internally and insulated our customers from major price increases, absorbing the cost ourselves. But after such a drastic increase in 2024 and as prices are set to remain high in 2025 we are forced to make a small adjustment to our prices to ensure we can deliver the same exceptional quality you expect from us.
We appreciate price increases are difficult to manage, we have debated this at length at the roastery to ensure the impact on our customers is mitigated. We have been working hard to minimise this increase as much as possible by:
- Streamlining our roastery operations for greater efficiency
- Increasing our on-site storage capacity to take advantage of bulk buying opportunities
- Securing better financing terms to reduce our overall costs
By delivering coffee in reusable 4kg tins we have not only managed to reduce waste in our supply chain but also save money and we will continue to explore more solutions like this.
We're also taking a long-term view; by basing our price increase on the average green coffee cost for 2025, we're effectively softening the blow. This means that while the increase is necessary now, it will help us balance our margins and avoid even steeper increases later in the year. And most importantly, we remain committed to providing the same quality and level of service you have come to expect. We will not compromise on the quality of our coffee, even in the face of rising costs. You can continue to trust that every sip of Yallah is crafted with the same dedication and care that you've come to expect
Rising coffee prices are a big challenge but it's important for us to stay true to our values. Quality and fairness always come first - we don't want to change suppliers or lower the quality, so we're moving with the market, which is going up. I have always believed that context and perspective is key to getting customers onboard, so that's why we’re educating them through our communication channels. Most people don't know why the markets change, whether it’s the impact of climate change, failed crop harvests, disruptions to global shipping, or the true meaning of a quality-premium. When you learn about the many implications, the price changes feel fairer. Ultimately, we should be happy to see the commodity price higher because it represents more money to the producer - that's exactly the goal of the specialty industry! Our challenge is how we can maintain relationships and buy the same coffee without becoming exclusive for our existing customers in the UK, as they're the people who have made us the business we are today.
- Rich Blake, Founder
We thank you for your understanding and continued support. If you’d like to reach out and discuss this further please feel free to contact us.