Changing the Narrative: Coffee Pricing
Changing the Narrative: A New Perspective on Coffee Pricing
Whew—what a time we’re in! The C-Market hit an incredible $3.40/lb in December and is now hovering around $3.25’s as of early January. These prices have undoubtedly left many feeling squeezed, and it’s certainly fair to feel overwhelmed by the rapid changes!
At Collaborative Origins Imports (COI), we’ve been reflecting on what this means for us and the coffee industry as a whole. More importantly, we’ve been thinking about how we can collectively navigate this shift. As a part of this, I’d like to propose a change in the narrative—one that reframes this challenge as an opportunity to reshape the coffee industry in a way that benefits everyone, from Coffee Producers to Specialty Roasters.
Reframing the Market: From "High" to "Correct"
Words and the verbiage we use have this incredible power to shape our perspective and, even, influence our actions. It’s easy to see the current market as “high” from a historical standpoint and subsequently feel cornered or even taken advantage of. What if, instead of seeing this as a “high” market, we viewed it as a “correct” market—a long-overdue adjustment that better aligns coffee prices with the true cost of production?
To dive into this topic, let’s take a step back!
A Look Back: Coffee Pricing in Context
In 2018, the C-Market hovered around $1.40/lb FOB (Free on Board), and COI’s pricing averaged $2.40/lb FOB. While it seemed like a boastful $1 difference, the reality was that production costs were arguably around $1.85/lb to $2.00/lb. Producers often used profits from relationships like ours to cover losses from coffee sold at C-Market pricing.
Fast forward to 2023, and the challenges intensified. Fertilizer costs tripled, production yields dropped due to climate-related factors, and labor shortages became more severe; particularly in areas like Huehuetenango. The C-Market rose to $2.40/lb, and COI’s pricing increased to $3.30/lb FOB on average. While this was a step in the right direction, production costs had risen to ~$2.85/lb, leaving most coffee still undervalued.
Today’s Market: Progress Amidst Challenges
As of now, the C-Market has reached $3.20/lb, with self-reported production costs ranging from $2.90/lb to $3.05/lb. For the first time in over 20 years, all coffee is finally being priced above the average cost of production! Despite how it may make us feel, that’s definitely something worth celebrating!
At the same time, let’s not lose sight of the bigger picture. These prices, while better, are still not “great.” Climate change continues to impact yields, migration out of coffee-growing regions is worsening, and younger generations remain hesitant to see coffee farming as a viable career.
How COI Sees This Shift and What We Can Do Together
At COI, we see this as a pivotal moment for the industry—an opportunity to rebuild coffee farming as a profitable, sustainable career. We’re excited to see more investment into regenerative farming practices since sustaining current prodction yields is going to be a high priority over the next few years. And we’re excited to be a supportive part of that change and continue fostering long-term partnerships throughout the industry.
That said, we’re also aware of how challenging this adjustment will be for everyone. Here’s what we’re doing—and what you can do—to navigate this new reality:
Planning Ahead: Forward Contracting
Now is the time to start forward contracting. Yes, it can feel daunting, but it eliminates the risk of market uncertainty and secures your needed inventory for 2025. Plus, with COI, forward contracting offers a base savings of $0.15/lb compared to SPOT buying.Educational Content
You’ll see more content from us over the next few months! We’ll be sharing blogs like this one alongside other materials and content we hope will provide some credibility and backing for roasters as they seek to make pricing adjustments on their end as well. Let us know if we can cater something specific to your needs/community!Pricing & Financing Options
Need more flexibility? You got it! As a part of the Forward Contracting process, you’ll get to ask for your preferred payment terms. Doing so at this stage will save you because our SPOT coffees will be priced less advantageously. If you need your yearly supply spread out over 3-9 months, just let us know! We’ll work with ya!Visit Us in Guatemala
See it for yourself! In a world flooded with information, there’s nothing quite like experiencing the source firsthand. Reach out to us about planning a trip to Guatemala. These trips not only provide an opportunity to connect with producers and their work but also allows you to verify facts, witness the process firsthand, and develop a well-rounded perspective on the decisions and impacts you’re striving to create as a roaster and business owner. It’s an experience that brings clarity, purpose, and renewed passion to what we do.
Good News!
Amid the challenges, there’s some positive news for specialty coffee roasters. Because we’ve always paid honorable pricing, our adjustments will be relatively minor compared to larger importers who were historically buying bulk coffees in the $2.40/lb FOB range. By June 2025, cheap coffees will be a thing of the past, leveling the playing field. This shift allows you to stand out based on quality, branding, and sourcing partnerships—areas where you already excel!
Looking Ahead
While the road ahead may be challenging, this is a necessary and overdue correction in the coffee industry. Together, we can create a more sustainable and equitable future—one that ensures coffee farming thrives for generations to come.
Let’s embrace this shift, adapt, and continue building mutually beneficial partnerships that make a lasting impact. If you’d like to explore forward contracting, financing, or simply have a conversation about what’s happening in the market, reach out—we’re here to help.
Here’s to reshaping the narrative and thriving together!
Warm regards,
Ryan Chipman
Collaborative Origins Imports