Why Coffee Prices Are Rising (and Why We’ll Never Compromise on Quality)

You’ve likely heard about the skyrocketing cost of coffee. Over the past 12 months, coffee commodity prices have experienced significant volatility, reaching record highs.

Arabica coffee prices have surged by over 100%, more than doubling in just 12 months.

This sharp rise reflects ongoing supply challenges and heightened market speculation, putting pressure on roasters like us, but also our café partners across the country. 

The Challenges From Crop to Cup 

The story of your coffee begins in some of the most beautiful (yet challenging) regions on the planet—places like Colombia's rolling green hills, Ethiopia's misty highlands, and the sun-drenched farms of Brazil. 

These regions are the beating heart of specialty coffee, but behind the romantic imagery lies a labour-intensive process that depends on climate, trade, and politics. Rising costs in producing coffee at its origin stem from many factors: 

• Climate Change: Unpredictable weather patterns are making coffee harder to grow. Irregular rainfall and rising temperatures are reducing yields and increasing risks for farmers. 
 
• Higher Production Costs: Fertilisers, farm equipment, and labour costs are increasing year after year, affecting farmers’ bottom lines. 
 
• Global Supply Chain Disruptions: The cost of logistics from crop to cup has spiked. Shipping delays, higher fuel prices, and shortage of containers have exacerbated the problem. 

• Weak Australian Dollar: The Australian dollar has weakened against the US dollar, making imported goods—including coffee—more expensive. Since coffee is traded globally in USD, a weaker AUD means we must pay more for the same green beans, further driving up costs.

A Year of Volatility in the Charts

The chart above highlights key price surges since March 2024. While our price adjustment late last year helped manage the initial spike in June 2024, ongoing increases mean further action was necessary. Here’s a summary of the major price jumps:

• March-April 2024: Prices started rising due to concerns over supply shortages.

• June-July 2024: A significant spike occurred as drought conditions impacted Brazilian coffee farms.

• October-December 2024: Prices surged again, driven by reduced exports from Vietnam and Colombia.

• February 2025: Coffee futures peaked, reaching an all-time high due to ongoing supply constraints.

An Unwavering Commitment to Quality

From crop to cup, we will continue to preserve the integrity of our coffee at every stage, ensuring the end product—your coffee—is consistently premium. 
 
How will we do this? 
 
• Ethically Sourced: Our buyers will continue to work closely with farmers and producers at origin. We prioritise relationships with growers who share our passion for excellence, ensuring everything we source meets rigorous specialty-grade standards. 

Many of our beans come from farms committed to ethical and direct trade agreements. This means fair pay for farmers and reinvestment into their communities—so when you choose Merlo, you’re supporting sustainable practices worldwide.

• Expertly Roasted: despite being more time intensive, we will continue to roast our specialty limited edition coffees in small batches, to ensure their unique flavour profiles are maintained.

• Sustainable growth & support: We are committed to running a responsible and sustainable business—not just for the planet, but for our people. This means looking after our team, managing our operations effectively, and ensuring we can continue supporting our café partners with the best coffee and ongoing support. 

Every stage of our coffee production process is designed to uphold the current industry-leading standards of quality.

What Does This Mean for Your Daily Brew?

For the past 12 months, we’ve absorbed the rising costs of green beans, but price adjustments are now unavoidable. We want you to know that every cent you spend supports ethical sourcing, premium quality, and the livelihoods of those who dedicate their lives to coffee.

Despite these challenges, our commitment to quality remains unchanged—because we know many of you choose Merlo for the exceptional quality and consistency.