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Our Take On The Coffee Market

March 20, 2025
You’ve probably heard coffee prices are climbing. Here’s our take:
Traditional coffee farms (where forced labour is common) don’t invest in their land, workers, or crop health. Extreme weather, disease, and aging trees have led to consecutive poor yields, while global demand keeps rising.
Less coffee + more demand = higher prices.
Adding to the uncertainty, the US Government’s threatened tariffs could send further shockwaves through commodity markets, particularly affecting our producers in Mexico. Some traders expect prices to climb even higher, while others predict a dip as consumers start cutting back.
Will prices stay high? Not forever. The market will adjust over time, but without real change, this cycle will repeat in a few years.
For us, coffee is very important. We’re securing fair contracts and keeping stock steady so Aotearoa can keep drinking its favourite fair trade brews. Yes, we’re paying more, but we’re committed to making ethical coffee accessible.

For our fair trade partners, extreme weather hit their farms too. Their yields were lower this year, but thanks to organic and fair trade practices, they’ve invested in people and crops – ensuring a better harvest next season.

For our roasters, bean prices are up. We absorb what we can, but as a not-for-profit, some of the cost has to be passed on. That means cafés are paying more for fair trade, organic coffee, and so are you.
For you, coffee will cost a little more. Not a huge amount, but enough to notice. So if you’re paying extra anyway, wouldn’t you rather support farmers investing in their communities instead of a system that profits from exploitation?
Something to think about.

 

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174 Gayhurst Rd, PO Box 35 049
Christchurch 8640, New Zealand

Phone +64 3 385 3535

Freephone 0508 872 332

Email customerservice@tradeaid.org.nz

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