|We are always trying our best to absorb cost increases by increasing efficiency through better technology, reducing energy cost through solar panels, using better equipment such as grinders etc. and streamlining production.|
With the help of a low inflation rate, encouraging local customers to pick up rather than shipping and purchasing the coffee beans in larger quantity, we have been able to hold our pricing since 2010.
However, in the last two months the price of green beans has gone up by 30%, due to heavy frost in Brazil, which is the world's largest producer of Arabica coffee. According to Brazil's government and industry crop forecasters the crop loss can be as much as one third of US consumption. This has driven up coffee futures prices by 30% across the board, and also the current prices.
Unfortunately, this does not help the farmers, because their crop is already picked and sold, they can't afford to store their product, or be involved in the futures market. It hurts small roasters because they can’t be in the futures market either. Only large corporations and commodity traders benefit from this. Ultimately, it is the end users and small roasters who suffer.
Regretfully we are forced to increase our prices by 10%, to put it in perspective, that should increase the cost of coffee to the end users by less than 5 cents/12 oz cup.
We hope that together we can continue our commitment to the farmers through Fair Trade, and to the health of our planet, and ourselves by using organic coffee