Navigating Volatility in the Coffee World: What It Means for all of us.

Introduction: The Brewing Storm in the Coffee World

Imagine a world where coffee prices are at their highest levels in nearly five decades. For coffee lovers, roasters, and farmers alike, the journey from bean to cup has never been more challenging—or more important to understand. Here's what’s happening and how Tectonic Coffee is adapting to ensure you continue to enjoy the exceptional quality you’ve come to expect.

Coffee Prices Hit Historic Highs

Coffee is in the midst of a perfect storm, with prices surging to levels not seen in almost 50 years. Here’s what’s driving the unprecedented rise:

• Arabica Futures Surge: Prices have soared over 70% this year, reaching $3.23 per pound in New York—the highest in 4 decades.
• Robusta Boom: In London, robusta prices are now nearly double what they were earlier this year at $5,507 per tonne.
• Weather Challenges: Brazil, the world’s largest arabica producer, is grappling with its worst drought in 70 years, severely impacting output. Vietnam’s robusta harvest has also been hampered by poor weather conditions.
• EU Deforestation Laws: European importers are stockpiling coffee ahead of new regulations banning crops grown on deforested land, adding to supply pressures.
• Global Panic Buying: Coffee roasters in the U.S. and Europe are scrambling to secure supplies, fearing price hikes and potential U.S. tariffs.

The Impact on the Coffee Industry

These challenges are being felt across the entire coffee industry:

• Exporters in Crisis: Brazilian companies Atlântica Exportação e Importação SA and Cafebras Comércio de Cafés do Brasil SA, responsible for 8% of the country’s arabica exports, are requesting grace periods to renegotiate debts due to skyrocketing hedging costs.
• Volatility Risks: Exporters and roasters face cash flow challenges as they navigate the fluctuating futures market.
• Rising Costs for Consumers: As global prices climb, consumers are beginning to feel the ripple effects.

How Tectonic Coffee Is Adapting

At Tectonic Coffee, we’re committed to transparency and excellence in these challenging times. Here’s how we’re responding:

• Price Adjustments: To weather the storm and continue delivering exceptional coffee, we’ve implemented a modest 6% price increase across our offerings that have a Brazil component. This decision wasn’t made lightly but is essential to maintain the quality and sustainability you expect. It is hard to believe but Brazil is still our cheapest options when it comes to sourcing coffee. 
• Sourcing Resilience: Our direct relationships with producers ensure ethical practices and a steady supply chain, even in volatile times.
• Commitment to Quality: Every cup of Tectonic Coffee reflects our dedication to excellence. Rising costs won’t compromise that, rather it makes a promise to maintain quality.

What It Means for You

We believe that coffee is more than just a drink—it’s a daily ritual, a moment of joy. Here’s how you can navigate this landscape as a coffee lover:

• Choose Specialty Coffee: High-quality beans maximize flavor and value.
• Support Local Roasters: By choosing Tectonic Coffee, you’re investing in ethical sourcing, local craftsmanship, and the future of specialty coffee.
• Cafes Advised To Raise Prices: Even a 10 cent increase per espresso shot would more than cover the raising costs. 

Brewing Together for a Better Future

While the coffee industry faces unprecedented challenges, our commitment to providing exceptional coffee remains unwavering. Together, we can navigate these turbulent times and ensure every cup of Tectonic Coffee is worth savoring. We’d love to hear your thoughts—stop by the café or share your perspective online. Let’s brew a better future, one cup at a time.