We have to slightly increase our prices. This is never a nice post to write but we wanted to be honest and upfront. We know everyone is feeling the pinch and it feels better to be open about it. You’ve probably heard that things aren’t easy for small businesses like ours at the moment, here’s what’s happening in our world.
Global green coffee prices have been increasing dramatically since the pandemic, and for example, in Colombia peso has weakened massively and as this market is tied into USD, prices are only continuing to rise.
The market is incredibly volatile and the supply and demand are imbalanced as the consumption is set to out-pace production by nearly 3.1 million bags this year. Global warming and increased prices of fertilisers are also affecting the prices of green coffee.
Logistics are more expensive and complicated. Increased prices and lack for shipping containers are influencing the cost of our coffee enormously. Freight prices continue to rise and in some countries tariffs are up by 70-100%. Shortage of truck drivers and people working at the ports are also affecting the cost.
The global rise in gas and electricity prices is also directly affecting the cost of running a coffee business. Gas prices have hit a record high since the world started to emerge from lockdown but also due to the impact of political crises/Russia's invasion of Ukraine conflict/global economic crisis.
Lack of labour and migration due in part to Brexit is affecting the workforce in the coffee industry. Civil disturbances in some countries are also causing issues.
And last but not least, inflation. Everything is simply more expensive at the moment and it’s making it harder to run an independent business.
We hope that makes things clearer. Raising our prices, however slightly, is never what we want to do but we have no choice. We hope you understand.
If you’re struggling financially and need someone to talk to, our DMs are always open. We’re always here to listen and can help point you in the right direction to get help. It’s never been more important to stick together.
Thanks, the GB Team