SUPPORTING A SUSTAINABLE COFFEE FUTURE
Have you ever stopped to wonder what goes into the price of your coffee? That comforting flat white or energising espresso is more than a drink—it’s the product of an intricate supply chain that starts with farmers halfway across the world. Lately, you may have noticed prices creeping up, and there’s a good reason for it.
The coffee industry is facing unprecedented challenges, with green coffee prices reaching their highest levels in decades. Behind that price tag is a complex story that impacts everyone along the chain—from the farmer to the consumer—and reveals why sustainable pricing is essential for the future of coffee.
At Locale, we believe that every cup of coffee should tell a story—a story of fairness, quality, and sustainability. Let’s explore why your coffee is worth every cent and how we can work together to protect its future.
the real cost of coffee.
Extreme weather events and climate change have wreaked havoc on coffee-growing regions in recent years, leading to reduced yields and rising costs. While commodity coffee prices have skyrocketed, specialty coffee—the only coffee we source—faces even greater challenges. Specialty-grade coffee demands higher quality as well as ethical & sustainable sourcing, with farmers having to invest more time, labour, and resources into producing it.
When prices at your local cafe don’t reflect these rising costs, someone in the supply chain inevitably shoulders the burden. Unfortunately, it often starts with the farmer.
for the farmer.
THE FOUNDATION OF THE COFFEE INDUSTRY:
Farmers are the backbone of the coffee industry, yet they’re often the most vulnerable. Without fair compensation, they face impossible choices: reduce quality to save on costs, switch to different crops, or abandon farming altogether.
Sustainable pricing ensures farmers can invest back into their farms, pay fair wages to their workers, and continue producing the exceptional coffee that specialty roasters and cafes rely on. When we talk about the “value” of coffee, it’s not just about flavour—it’s about livelihoods, communities, and the future of agriculture.
for the roaster.
BALANCING QUALITY & COST:
At Locale, we buy all the green bean for our blend coffees directly from the farms. Like many other reputable specialty coffee roasters, our commitment to quality and sustainability doesn’t waver, even when costs rise. But we also recognise the growing pressure on cafes and consumers. Balancing these realities means partnering with farmers who share our vision for sustainable practices and paying them fairly, even when it cuts into our margins. It’s a delicate dance, but one we believe is worth every step to preserve the integrity of specialty coffee.
We’ve seen our green bean costs rise significantly over the last 3 years—by 60% on average for most lots we purchase direct from farms, with some going up over 100%.
This is compounded by over 500% increases in shipping costs during the covid period and other inflationary pressures. Unfortunately, there’s only so long we can ride the curve and absorb these costs before we’re forced to raise the price of our coffees.
As roasters everywhere start to feel the pinch, the pressure to source cheaper, lower-quality green coffee could increase. For consumers, it’s worth keeping an eye on the quality of the house blend at your favourite cafe. A noticeable drop could indicate cost-cutting at the sourcing level, even if prices remain stable (or potentially even increase).
for the cafe owner.
NAVIGATING TIGHT MARGINS:
Cafe owners sit at the centre of this chain, often absorbing cost increases – not just for coffee but also for milk, wages, and rent – all while striving to stay competitive. Adjusting prices can feel risky, as many customers may not immediately connect the price of their coffee with the larger story of sustainability. Yet, when cafes keep prices low, it often comes at a higher cost—undermining quality, cutting staff hours, or sacrificing the cafe owners own livelihood.
We understand it can be tempting for cafe owners to seek out cheaper beans in challenging economic times. But in reality, ‘cheaper’ doesn’t equate to better value; it means lower quality.
While the savings might seem appealing at first, customers will begin to notice inconsistencies in the taste of their coffee – and when quality falters, so too can customer loyalty. The resulting decline in volume can have a far greater negative impact on the bottom line than any short-term savings.
Let’s put it into perspective: coffee is only one component of what goes into the price of a cup. The difference between $35 per kg and $28 per kg equates to just 9 cents per cup. Australia is renowned for having some of the best coffee in the world, and we’ve been fortunate to enjoy exceptional quality at prices well below the global average. While other specialty industries, like wine or craft beer, reflect quality differences in their pricing, specialty coffee is often unfairly held to a different standard.
In our view, a flat white or latte at a specialty café should be priced around the $5.50 mark. Of course, exact pricing depends on the cafe’s product, service, overheads, and operating costs. Thoughtfully raising prices helps ensure cafés can continue to pay staff fairly, source high-quality beans, and deliver the world-class coffee experience Australia is known for.
“$5.50 for a coffee? What about the $2 coffee I can get from the servo?”
A valid question, but these offerings aren’t close to being comparable. Service station coffee is typically produced for large corporations leveraging economies of scale to sell at minimal margins or even at cost, using it as a loss leader to draw customers into the store to buy higher-margin products (don’t get me started on the $4 bottle of water that is free from the tap).
The difference extends beyond cost: the quality of beans is vastly different, and while one is prepared with care and skill by a barista, the other is dispensed at the push of a button. Ultimately, servo coffee sells convenience, not the specialty café experience.
for the consumer.
THE POWER OF YOUR DOLLAR:
Where does this leave you, the coffee drinker? We’re all feeling the effects of higher costs of living, with everything from groceries to car insurance seemingly endlessly on the rise. While it’s only natural to feel a twinge when the price of your daily flat white creeps above $5, it’s worth considering the positive effects.
That extra dollar is helping to ensure:
- Fair & sustainable wages for farmers, roasters, and cafe staff.
- High-quality coffee that’s sustainably and ethically sourced.
- A bright future for the coffee industry that will continue to innovate and grow.
As a consumer, your role in this chain is more powerful than you might think. By supporting cafes and roasters that prioritise quality and sustainability, you’re casting a vote for a better coffee industry. It’s not just about the coffee in your cup today; it’s about ensuring that cup, and our unparalleled cafe scene, still exists tomorrow.
building a sustainable coffee future.
At Locale, we believe in the power of coffee to connect people, spark conversations, and make a difference. But for coffee to thrive, everyone in the chain needs to thrive too. By embracing sustainable pricing and supporting businesses that do the same, we can ensure the coffee industry continues to grow and innovate, from farm to cup.
The next time you enjoy your morning coffee, take a moment to appreciate its journey—from the farmer to the roaster, to the barista who serves it with a smile. Behind every sip is a community of passionate individuals working to bring you something extraordinary.
No doubt 2025 will be a challenging year for our industry, but together, we can ensure that story continues—for generations to come.
Let’s keep the conversation brewing. What does the value of a cup of coffee mean to you? Share your thoughts with us—we’d love to hear them!
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