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How Coffee Roasters Can Navigate Rising Costs Without Raising Wholesale Prices

Writer's picture: Caleb HolsteinCaleb Holstein

In a recent video, I shared my thoughts on a question many coffee roasters are grappling with: "How can I avoid putting up the price of my wholesale coffee?" Here, I’d like to provide a bit more context to my perspective.


Understanding the Challenge

As a coffee roaster, it’s completely understandable to be concerned about rising costs and the desire to maintain your wholesale prices. These are undoubtedly challenging times for everyone involved in the coffee supply chain, especially roasters. However, I believe these pressures also present a unique opportunity for growth and innovation.


The current market conditions are forcing coffee roasters to re-evaluate their procurement strategies and costing/pricing models. This re-evaluation can lead to more sustainable and effective practices that benefit the entire supply chain.


Analysing the Cost Breakdown

When examining the costs that contribute to the final price of a cup of coffee for consumers, it’s surprising to see how small a percentage the coffee itself represents. A recent report from Pablo & Rustys highlighted that coffee accounts for roughly 11.9% of the total cup price.


While green coffee costs are crucial for roasters, it’s important to recognize the rising costs of all elements involved in being a coffee roaster. Factors like equipment, labor, and operational expenses are also increasing. However, quality and consistent green coffee remain the cornerstone of a coffee roaster's business. Without these, a coffee roaster cannot deliver the exceptional product that customers expect.


Adapting to Market Conditions

If the current market pressures push us, as coffee roasters, to adapt and manage higher coffee costs, it could lead to positive changes across the supply chain. Imagine a scenario where 20% of the cost of a cup of coffee is attributed to the coffee itself. This shift could ensure better compensation for farmers and a more sustainable industry overall.


These challenging market conditions are indeed putting significant pressure on roasters and their traditional models. However, I am excited to see how roasters will react and adapt by planning, budgeting, and forecasting their green coffee needs more effectively. This adaptation could enable them to accommodate higher costs without passing the burden onto their customers.


Join the Conversation

I’d love to hear your thoughts and perspectives on this topic. Engaging in discussions like these is crucial for our industry’s growth and sustainability. Let’s learn from each other and navigate these challenges together.


Feel free to share your ideas and experiences. Together, we can find innovative solutions to keep our industry thriving.



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