If you've noticed your daily cup of coffee getting more expensive, you're not alone. Coffee prices in New Zealand have been on the rise, and the reasons behind it go beyond just supply and demand. Here’s what’s driving these increases and what it means for coffee drinkers across the country.
The Rising Cost of Green Coffee
The price of green coffee - the raw beans that make up your morning brew - has soared 65% since November 2024. This is due to a mix of climate instability, supply chain disruptions, and global economic shifts. "Market prices have skyrocketed by 65% since November," says our Green Coffee Buyer. "This is having a huge impact on both farmers and roasters, especially in regions already facing climate-related challenges."
Currency Fluctuations & The Strength of the USD
Because coffee is traded in US dollars (USD), fluctuations in currency exchange rates have made it even more expensive for New Zealand businesses to import coffee. The New Zealand dollar (NZD) has weakened against the USD, meaning local roasters and suppliers are paying significantly more for the same amount of coffee.
NZ Recession & Economic Pressures
New Zealand’s economic downturn, marked by high inflation, rising interest rates, and a recession, has put added strain on the industry. Businesses are grappling with higher operational costs, and consumers are feeling the pinch, making price adjustments inevitable.
Climate Change & Production Challenges
Extreme weather events in coffee-growing regions are also driving up costs. Unpredictable rainfall, temperature shifts, and increased production expenses make it harder for farmers to maintain supply levels. Specialty coffee, which relies on high-quality, sustainable farming, is particularly vulnerable to these challenges.
Supply Chain Disruptions
Even for businesses with strong supplier relationships, global supply chain disruptions are making coffee logistics more expensive. The closure of key shipping routes, such as those in the Red Sea, has led to delays and increased transportation costs. "The supply chain is under immense pressure, and these disruptions may force some coffee buyers into short-term purchasing strategies," our buyer explains.
The Growing Demand for Specialty Coffee
Despite rising prices, demand for specialty coffee in New Zealand continues to grow. More consumers are choosing ethically sourced, high-quality coffee, which places additional pressure on supply.
What This Means for You
While we do our best to absorb these rising costs, maintaining ethical sourcing, fair wages, and sustainability means some price adjustments are necessary. Supporting specialty coffee means contributing to a more sustainable industry and ensuring that coffee farmers receive fair compensation for their work.
"We remain committed to offering high-quality coffee and maintaining long-term, fair relationships with both suppliers and customers," our team reassures. "Although global coffee demand has traditionally remained strong even during price hikes, the unprecedented increases we’re seeing now could change that."
We appreciate your ongoing support and passion for great coffee. If you have any questions, feel free to reach out - we’re always happy to chat!