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tariff updates: no, this isn't a spooky story.
perhaps today's tariff update can feel more like a bonfire convo than a jump scare. let's chat!
as news articles spread & we enter many cafes' busiest season, questions do continue to arise: what's happening with coffee prices?
last month, we shared our approach as your roaster:
- buckle in
- maintain relationships
- trust the market to stabilize
- seek how to adapt
that's still what we're doing, but we want to update you on active steps we're taking to adapt.
first, we're continuing to maintain & develop producer & importer relationships.
including the story above regarding new importing from mexico, we're getting the sweet opportunity to go visit our partners - two birds coffee - in guatemala next month. can't wait to fill you in. relationships like this are the bread and butter of who we're hoping to be & how we operate. likewise, we are beginning conversations with new importers to continue the pursuit of quality coffee at approachable prices.
second, we're directly tackling rising costs in two complimentary ways:
1. contracting coffee. as in any contract, we work with our importers & producers to make pricing agreements. currently, we're looking at our math in order to potentially lock in "x" amount of bags at the current green coffee price, which can be held for us for a small fee until we request them. we've done this historically, and are looking at considering further contracting to help stabilize green prices (and therefore, roasted coffee prices) in the future.
2. paired with contracting, we're actively testing blend ratios. blends always change with seasons, since coffee is a crop; the magic of a blend is utilizing subtly different coffees throughout the year to create the same singular flavor "profile." now, we're asking questions (& testing accordingly) more deliberately pointed away from the coffees with the most rising costs, such as brazil. as we lock this in, we lock in contracting, & we stabilize your prices all the more.
what's our word to you?
as with last month, our word is similar. we'll keep you updated and prepared. through this calendar year, we’re holding your wholesale costs with no changes.
we have begun outlining a wholesale price update come the new year, & will keep working hard on our end to keep said price update in a range that feels practical and possible. as of this week, coffee prices indeed hit an all time high. as all aspects of the supply chain feel the pinch, it’s our goal to make a price adjustment at the beginning of the calendar year and to keep it stable as long as possible.
we might also note, though tariffs are uncertain and changing, good news is always on the possible horizon.
just this week, the trump administration is finalizing an agreement to exempt coffee from tariff's for the country of vietnam. while we don't have a green partner in vietnam (yet), we hope these exemptions can spread to trade relationships with countries we are working with. additionally, even yesterday, a bipartisan "no coffee tax act" was introduced by senators. so stay tuned...
these are truly unprecedented times in coffee pricing, but we are committed to this industry for the long haul!
as always, please feel free to reach out! our team would be delighted to hop on a phone call & join in this tariff conversation anytime. you can reach our ecc team during business hours at 812-746-3668, or reach out to your contact individually.
for now, cheers. let's keep working hard to serve incredible coffees to incredible people.
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