Leaf Bean Machine, Rising Coffee Prices, and you.

Explaining rising coffee prices

Leaf Bean Machine is a family-run business in Perth, Western Australia. It might feel like we are miles away from the plantations that grow the delicious green beans that we import and that we roast here onsite for our coffee-loving community, but perhaps we are closer to the action than you think… Coffee is the world’s most consumed beverage, and in a way, it brings us together, all of us. The growers, the brokers, the roasters, the baristas, and finally, the consumers. The increase in coffee prices here in Australia and around the world is not a new conversation, and you will have heard and likely read lots of different stories from the media, but as local Perth coffee roasters, we want to share our story.

In November 2021, Brad and I wrote a letter to our wholesale customers to communicate some important industry information impacting coffee pricing and coffee supply globally. Fluctuating prices, and in particular high prices, have been an issue since 2020 and only magnified during the Covid pandemic. Our industry, and coffee roasters, remained optimistic, hopeful that prices would eventually correct themselves. Unfortunately, this was not the case, and we had to make the difficult decision to stop absorbing the price increases. For many specialty coffee roasters, the 2021 price adjustments were long overdue. We understood the current economic challenges and were in support of the ethical advancements; for example, there were global freight increases during this period, freight more or less doubled, and it was important to the longevity of our industry that farmers were being paid appropriately. One source said, “Everyone’s groceries go up, everyone pays more rent each year, and everyone experiences inflation on a daily basis, but to compensate, salaries usually go up. Why shouldn’t that be the case for coffee producers and all agricultural workers around the world?”

As industry leaders, we feel that transparency is our responsibility to you.

The increase in coffee prices here in Australia and around the world is not a new conversation, and you will have heard and likely read lots of different stories from the media, but as local Perth coffee roasters, we want to share our story.

As we touched on, the price of coffee has been on a steady increase since 2020, but 2025 sees us experiencing a historical high. Coffee is one of the highest traded agricultural commodities in the world, and we wanted to highlight that we are now paying the highest price for this commodity in 50 years! This increase in the price of trading will undoubtedly affect the price that you pay for your coffee beans and your cup of coffee. As roasters, we are working harder and paying more to import and secure the specialty coffee you love and, for lack of a better phrase, have come to expect, so if you are a consumer who wants to support a farm-to-cup product, then you can expect to pay a premium.

Commodity and Specialty green beans on the ICE

This graph shows the fluctuations in commodity coffee prices on the ICE (Intercontinental Coffee Exchange) based on demand and supply. Commodity coffee makes up the majority of coffee consumed around the world. For roasters trading in smaller, higher quality coffee, there is an even higher demand.

Commodity grade coffee is defined as a uniform product that is interchangeable with another coffee of the same type. This makes up the majority of coffee consumed around the world. Commodity coffee is traded without regard to intrinsic coffee quality. Roasters/companies buying this coffee are supporting the price only with no traceability, no commitment to long-term relations, or consideration for sustainability.

Speciality Grade Coffee When we purchase beans through our green bean suppliers, such as Bennett’s, we are looking to trade in specialty coffee. This coffee is high-scoring (85+ points out of 100), 100% Arabica, and it is selected from origins and farms that offer traceability.

Brad Cassidy says “After I saw the price this morning I was also able to put a line across the graph showing where the price for basic commodity coffee sits at to show how drastic the change really is”.

Speciality grade coffee production needs more investment than commodity coffee.

It is often grown at higher altitudes with steep slopes that are difficult to clamber up. Care and attention to detail are required through the season. Hand-picking is often needed to select perfectly ripe cherries. Processing must be carried out with exceptional care. Yield is lower as low quality and defects are removed. Farmers are dedicated and passionate about their farming methods and processing methods.

“While we certainly don’t pretend to have a firm view on what the next year holds for the coffee market and its many moving parts, we do know that it will be paramount for roasters to have plenty of stock on hand and in the pipeline to face these uncertainties with a proactive stance, rather than a reactive one.”

Bennetts—Green Bean Supplier

What is driving green coffee pricing up?

The US coffee/lbs price is approximately 3.6 times higher than its average price, and we have spoken to many roasters who are all feeling the effects of this perfect storm. The combination of factors such as;

• Climate conditions severe drought and frost

• The EU deforestation policy’s new rules require growers/exporters to show that their coffee isn’t linked to deforestation. This will impact a number of smallholders who produce in regions where they do not grow on plantations.

• Consumer demand for high-quality, ethically sourced coffee in existing and emerging markets.

Links will be available in the reference notes of this blog to read in more depth.

Leaf Bean Machine have excellent, long-standing relationships with our green bean brokers

Leaf Bean Machine has excellent, long-standing relationships with our green bean brokers, who we have been communicating with during this time. These relationships help us continue to buy the quality that we expect regardless of circumstance and fluctuations in supply and demand. To secure the volumes and quality of coffee that we desire for long-term consistency, we choose to commit every year to long-term contracts that last between 6 and 12 months. This helps to minimise our risk and ensures we have coffee for you.

“The relationships we’ve built, our forward planning, our experience, and liquidity are a benefit to us as a business, but they do not make us foolproof in these Wild West-type environments.”

Fleur Cassidy, Leaf Bean Machine owner

How does this impact our wholesale and retail customers?

Price is a conversation that none of us want to have, but we think it is important to invite you to understand how we have been navigating increasing green bean prices. During Covid, our green bean cost increased by $4/kg; we waited until February 2022 to pass on any increase to our wholesale customers, and when we eventually did, it was a conservative $2/kg. Our retail customers, who enjoy the option to shop with us in the roastery at roastery direct prices, had a $3/kg increase, whilst our online community had no increase at all.

Up to Dec 2024, the cost of green beans increased further, making the total increase $6/kg. We didn’t pass these additional increases on to our customers; instead, we made the decision to absorb these extra costs. The reasoning behind this decision? We thought that coffee prices would stabilise and reach a new normal. Regrettably, we have been informed that as we renew new contracts, we are looking at further increases, which may take the overall total to $10+ since 2022.

What are the challenges we face as coffee roasters?

As a company, Leaf Bean Machine can no longer afford to absorb these costs. We appreciate your understanding during this uncertain time and thank you for supporting our family-run business. Our business is built on the foundation of “spoiling the hospitality industry with service and support,” and that is what we will continue to do while we navigate key challenges;

• Green bean price increases

We normally lock in our green bean prices and volumes so that we can forward-plan the coffee that we are going to roast for our coffee community. As our green bean coffee contracts expire, we have been advised by our brokers that we will not have our pricing protected. Our new pricing will be reflective of the U.S. coffee futures index, and this means that our costs will increase further.

• Maintaining quality and affordability

Our partnerships and solid industry reputation are important to us. We are resourceful and passionate about roasting specialty coffee. We will not compromise our quality, and we will continue to roast sustainable, delicious coffee for you to enjoy.

• Communication with our wholesale and retail community

Effective immediately, our retail prices will increase in the roastery and online. We will be beginning conversations with our wholesale family soon. We are all in this together, and we want to continue to support you. 

How can cafe owners and hospitality businesses protect costs?

Late last year, in anticipation of current circumstances, we asked our team to research the average price of a 12oz cup of coffee in the Perth area. We know that business costs are increasing because we also run our roastery cafe and face relatable challenges, so we initiated some market research.

The median price of a cup of coffee

How to evaluate your per kg price increase

Based on this research and media awareness, we feel now is the time to assess your pricing and increase your per-cup price to recoup increases in your business costs.

Green beans and beyond

As a company, we value all of our customers, and for the sake of our industry, it is important that we stick together, supporting each other through this. We know that the last few years have been very trying on business owners, us included.

Our focus is on you. On helping you to stay profitable and keep providing Perth with a thriving café community.

Kind regards,

Read more; visit some of our sources PerthNOW | The Guardian | Perfect Daily Grind | Melbourne Coffee Merchants