In recent years, the coffee industry has faced unprecedented challenges, leading to conversations about the true value of coffee. This conversation has been happening for a while and most recently our friends down in Wellington gave their opinions on the topic, and if you haven’t already we’d recommend you read what they had to say. But let's dive straight in and address the elephant in the room: coffee prices need to increase. Here’s why:
The Cost of Coffee Production is Rising
Coffee isn’t just a commodity; it’s the result of countless hours of hard work from farmers, pickers, and processors. The reality is that the cost of coffee production has been steadily rising. Climate change, pests, and unpredictable weather patterns and many more factors are making it harder to grow coffee, while the costs of fertilisers, labour, and transport continue to climb. Farmers often bear the brunt of these increased expenses without seeing fair compensation. At Allies our motto is ‘United by Coffee’, farmers are the first step in the coffee production chain and our hope is to see them fairly compensated. For this to happen on a global scale, the standard price for a cup of coffee needs to increase.
Quality Comes at a Price
We all love a good cup of coffee, but producing high-quality beans requires investment. Specialty coffee demands meticulous care, from hand-picking ripe cherries to precise processing methods. These practices aren’t cheap, yet they are essential for delivering the flavour profiles that coffee lovers crave. By paying a fair price for coffee, we’re investing in better-tasting coffee and sustainable practices.
Sustainability Isn’t Free
Sustainability is a buzzword in the coffee industry, but it’s more than just a label. It involves significant investments in eco-friendly practices, from farming, water conservation, and reducing carbon footprints. Sustainable practices are crucial for the future of coffee, yet they come at an extra cost that is rarely reflected in the current market price.
The Hidden Costs of Low Prices
Low coffee prices might seem like a win for consumers, but they come with hidden costs. When prices are too low, it pushes farmers into poverty, compromises quality, and threatens the future of the coffee supply chain. It’s a short-term gain that jeopardises the long-term sustainability of the industry. By paying more, we’re not just buying coffee; we’re supporting an entire ecosystem that includes farmers, roasters, and baristas.
Inflation and Global Economic Pressures
Inflation isn’t just a headline—it’s a reality that affects every aspect of the coffee industry. From the cost of importing beans to running a roasting facility in New Zealand, every step of the process has become more expensive. These rising operational costs must be reflected in the price of coffee to ensure that businesses can continue to operate sustainably without cutting corners on quality.
Ultimately at Allies we believe coffee is more than just a beverage; it’s a connection to the people and processes that bring it from farm to cup. While no one likes to see prices rise, it’s a necessary step to ensure that coffee remains sustainable, ethical, and of the highest quality. Does that mean coffee should be $6... $7, or even $8 per cup, it's hard to exactly say. But by paying a higher price, we’re not just supporting a product—we’re supporting an entire industry. Allies believes that investing in coffee’s true value is an investment in a better future for everyone involved.
Let’s raise our cups—and our prices—to support the true cost of coffee.