Triple Coffee buys micro-lot coffees directly from farmers. Through our conversations with exporters and industry folks who have first-hand insight into prices at the coffee origin, we have learned that prices are going up for micro-lots that in the past were in the $3-$7 per pound range. The price increases that are being seen are between 10% to 15%. Coffee micro-lots that are in the $10 per pound and up range are typically not seeing prices increases because producers of those coffees are conscious that their coffees are already expensive.
This echos inflation increases being seen in all consumer goods and commodities. Starbucks is planning to hike its prices this year, its third increase since October, as large U.S. restaurant chains try to blunt the impact of the most ferocious inflation in decades by passing costs along to consumers.
At the farm level, price increases in micro-lots are being influenced by lower coffee yields, coffee-rust, and increases in labor costs. Coffee rust being an issue is something we've heard about from coffee producers in Honduras and Mexico.