Over the past year, the price for exchange grade washed Arabica coffee has surged, recently peaking at $4.25/lb*. That's a 77% increase from the 2024 average of $2.40/lb. Why? Several major reasons: climate challenges, global supply chain disruptions, and increased demand have all contributed.
Brazil, the world’s largest coffee producer (40% global production), suffered extreme droughts this harvest, reducing crop yields by an estimated 25%. The global deficit for 2025 is estimated at 8.5 million bags (about 1.1 billion pounds of coffee). All while the global demand for coffee has never been higher.
Supply chain disruptions in the Red Sea have still not abated. As of early this year, freighters are still being routed around the southern tip of Africa to avoid the Houthi attacks in the region leading to increased transit times and costs for those East African coffees that we have come to know and love. Meanwhile, coffee farmers worldwide are also facing rising costs for labor, fertilizer, and equipment - making sustainable pricing more important than ever.
Photo: Fresh coffee cherry being sorted by hand for ripeness in Sidama, Ethiopia.
At Zazen, our sourcing model relies on buying what is called "flat-priced coffee", meaning the prices aren’t directly tied to the volatile futures market. Instead, we have chosen to work exclusively with importers that pay farmers a price based on their actual costs of production and include additional premiums for quality and certifications. We believe this model should be the standard for coffee buying as it provides income stability, long-term profitability, and incentives for producing quality coffees.
Purchasing our coffee this way doesn’t mean we’re completely insulated from global market shifts—when production and operational costs rise, they impact everyone in the supply chain, including us.
Like many businesses, we’re experiencing increased costs at every level, from the cost of goods to roasting and shipping. For example, USPS ground shipments recently increased 3.9%. But rather than cutting corners on quality, we’re choosing to maintain the exceptional coffee you know and love. We remain committed to sourcing responsibly, roasting with strict adherence to our QC standards, and providing you with the best coffee experience possible.
What This Means for You
💰 As of 03/01/2025 prices for our Signature coffees will be increased $1-2 per 10oz bag - New single origin coffees will be priced accordingly based on the contract prices we are able to acquire them at.
📈 While prices fluctuate, we’ll always strive to keep them fair— and if the market stabilizes, we’ll pass those savings along to you in the form of lower prices.
☕ Your coffee remains high-quality and ethically sourced—we won’t ever compromise on quality and remain committed to transparency in all aspects of our business. We are an open book and share as much info as we have available for every coffee we buy.
🤝 Your support makes a difference—by choosing Zazen, you help create stability for farmers, ensuring they can continue producing amazing coffee for years to come.
We appreciate your trust and loyalty—it allows us to keep doing what we love while supporting the people who grow your coffee. If you ever have questions, comments or concerns, we’re always happy to chat.
Thank you,
Corbin & Lauren
P.S.
Some additional information on coffee futures and pricing structures for those who are keen :)
*The price quoted above represents the Arabica coffee futures price (aka "C price") and is traded on the Intercontinental Exchange (ICE). The C market price serves as a global benchmark for washed Arabica coffee, but specialty coffee pricing often includes differentials and premiums that adjust the final cost. Differentials account for factors like origin, processing method, and export costs—for example, Colombian coffees often trade at a premium over the C market, while other origins may see discounts. Specialty premiums go beyond differentials, rewarding higher cup scores, sustainability certifications, and direct trade relationships. These premiums aren’t fixed and vary based on quality and sourcing agreements.
While flat-priced coffee isn’t directly tied to the daily fluctuations of the C market, it’s still influenced by rising production costs and shifting differentials. When the C market surges, producers may demand higher prices to cover increased costs, meaning even alternative pricing models feel the ripple effects. Specialty coffee operates within this broader system, but its pricing structure allows for more stability overall and producer-focused sustainability.
Photo: Coffee farmlands in Huehuetenango , Guatemala.
Images courtesy of Cafe Imports and Primavera Coffee.
