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BSA Member
Most small roasters work with
tighter budgets and have less
operational flexibility. They
may not have the resources to
bulk buy or use sophisticated
forecasting tools. Even a small
rise in the price of green coffee
forces a rethink in pricing,
production, and sourcing
strategies.

Simon Speed-Andrews from Cornish Coffee Simon added, "Cornish Coffee
looks at the impact of the coffee price has the buying power of a
explosion. larger operation in terms of our

Unpredictable weather patterns, including core coffee business, but we
severe droughts in Brazil and Vietnam, two of also manage three small,
the world's largest coffee-producing regional roasteries producing
countries, reduced coffee yields, disruptions speciality hand-roasted
to the supply chain, geopolitical instability, blends."
potential trade tariffs, and increasing demand "For our 'Hand Roasted'
have pushed the price of green coffee beans ranges, we buy in smaller
to record levels. quantities to reflect batch

To put this in perspective, wholesale prices sizes and to help maintain
for Arabica coffee beans have risen by 80% quality control, ensuring our
since the start of the year and are currently coffees achieve their full

hovering around a 10-year high at $4 per flavour profile. So yes, we feel
pound. the pain too as we are also
affected by the price hikes the
"For small, independent roasters, these rising
costs aren't just figures on a trading screen, industry is experiencing."
they affect every kilo of coffee sold and the

long-term sustainability of their business,"
Simon explained.

The Impact on Small Roasters
Large companies lock in long-term contracts
to hedge against price fluctuations, whilst
small-scale roasters usually buy green coffee
beans on the spot market, leaving them
exposed to sudden price hikes and facing a
difficult choice: absorb the extra costs and
accept lower profit margins or pass the
increase on to customers.

Simon continued, "It's a tough call. Increase

prices and risk losing customers, or opt for
lesser-quality green beans and risk damaging
the reputation of a speciality coffee brand."

MARCH/APRIL. 2025 | ISSUE 41