{"id":194917,"date":"2025-10-07T09:41:12","date_gmt":"2025-10-07T09:41:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/194917\/"},"modified":"2025-10-07T09:41:12","modified_gmt":"2025-10-07T09:41:12","slug":"coffee-roasters-and-cafes-grapple-with-increasing-cost-of-beans","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/194917\/","title":{"rendered":"Coffee roasters and caf\u00e9s grapple with increasing cost of beans"},"content":{"rendered":"<p>Your daily cup of java is getting a little more expensive as roasters and caf\u00e9s grapple with rising coffee bean prices.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/1759603997_236_70c8fc80.png\" alt=\"\" style=\"position:absolute;width:1px;height:1px\" referrerpolicy=\"no-referrer-when-downgrade\"\/><\/p>\n<p>Climate change has been the biggest contributor to the ongoing surge in bean prices, as coffee crops are very sensitive to temperature changes, said Michael von Massow, food economist at the University of Guelph.<\/p>\n<p>\u201cWe\u2019ve seen some increases in disease and some decreases in yield that have lowered supply, and basic economics 101 \u2014 when supply goes down, prices go up,\u201d he said in an interview on Monday.<\/p>\n<p>Coffee prices have remained high amid concerns of dry weather in Brazil, a major coffee-producing country.<\/p>\n<p>That\u2019s making your daily cup of coffee more expensive, whether you\u2019re brewing it at home or buying a coffee at a caf\u00e9.<\/p>\n<p>Statistics Canada data shows Canadians paid 27.9 per cent more for their coffee at a grocery store in August compared with a year earlier.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\t\t\t\t\tOn Monday, Tim Hortons announced that inflation is forcing it to increase its coffee prices by about 3 cents per cup.\t\t\t\t <\/p>\n<p>\t\t\t\t\tGlobal News\t\t\t\t<\/p>\n<p>Robert Carter, president of the Coffee Association of Canada, said the surge in coffee prices is a continuation of what roasters and caf\u00e9s saw last year.<\/p>\n<p>\u201cThe commodity side is still fluctuating, and the production side, we\u2019re still seeing limited production challenges out of various countries such as Colombia and Brazil,\u201d he said.<\/p>\n<p>\t\t\t\t\t<img decoding=\"async\" width=\"170\" height=\"225\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/national.jpg\" alt=\"Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.\"\/><\/p>\n<p>\t\t\t\t\tGet daily National news<\/p>\n<p>Get the day&#8217;s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.<\/p>\n<p>Carter said caf\u00e9s and coffee bean roasters were already struggling with rising operational costs, such as with packaging and labour, and now coffee bean prices are adding to their challenges.<\/p>\n<p>\u201cThe cost of goods, which coffee would fall into, has definitely seen an increase \u2026 within the double digits,\u201d he said.<\/p>\n<p>Coffee prices are also seeing added price pressures from tariffs, even as Canada dropped its counter-tariffs in September.<\/p>\n<p>Von Massow suspects price fluctuations are likely hurting smaller roasters in Canada more than larger players who buy directly from producers. Small-scale coffee roasters typically buy coffee beans from brokers who aggregate supply from farmers and coffee-producing countries.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>\u201cThe smaller roasters are going to get squeezed, everyone gets squeezed, as costs go up because we as consumers are resistant to price increases and they don\u2019t want to see volume go down,\u201d he said.<\/p>\n<p>Von Massow said it will be more difficult for smaller roasters to pass down costs to their customers.<\/p>\n<p>\u201cThey\u2019ve always differentiated not on price, but on product,\u201d he said of smaller roasters. \u201cBut the greater the price disparity is, the less their demand will be.\u201d<\/p>\n<p>\t\t\t\t\tStatistics Canada data shows Canadians paid 27.9 per cent more for their coffee at a grocery store in August compared with a year earlier.\t\t\t\t <\/p>\n<p>\t\t\t\t\tTHE CANADIAN PRESS\/Chris Young\t\t\t\t<\/p>\n<p>However, some costs will be mitigated for these roasters as the impact of counter-tariffs start to wear off, von Massow said. Meanwhile, other costs are likely to be passed on to customers.<\/p>\n<p>\u201cWe\u2019re seeing big companies start to announce some price increases as the shortages become more sustained,\u201d he said.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>Coffee chain Tim Hortons said it will increase the price of its coffee by an average of three cents per cup.<\/p>\n<p>\u201cThis is the first time in about three years that we\u2019ve adjusted the price of coffee,\u201d said Michael Oliveira, director of communications at Tim Hortons, in an email.<\/p>\n<p>\n\t\tRelated News\n\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11466125\/tim-hortons-coffee-price-going-up\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/Tim-Hortons-Timflation.jpg\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tTimflation? The price of your coffee is going up at Tim Hortons\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>\t\t\t<a href=\"https:\/\/globalnews.ca\/video\/11078436\/biv-business-news-19\/\" class=\"c-posts__inner\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-posts__thumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/WEB_BIZ_NEWS_TYLER_ORTON_MARCH_12.jpg\" loading=\"lazy\" width=\"540\" height=\"360\" alt=\"\"\/><\/p>\n<p>\n\t\t\t\t\tBIV: Soaring coffee prices on the way\n\t\t\t<\/p>\n<p>\t\t\t<\/a><\/p>\n<p>\u201cThis is significantly below inflation and reflects our commitment to great value and everyday low prices for our guests.\u201d<\/p>\n<p>Speculation on coffee futures \u2014 a way of measuring commodity prices based on contracts for future delivery in a publicly-traded market \u2014 have also amplified price pressures.<\/p>\n<p>\u201cThe coffee market has been on a roller-coaster for the past year,\u201d said Adam Pesce, president of Oakville, Ont.-headquartered Reunion Coffee Roasters, which sells wholesale and also runs a retail caf\u00e9 in Toronto.<\/p>\n<p>Reunion has had to increase prices over the past several months to match its rising costs, said Pesce.<\/p>\n<p>He said market speculators have been active and making a lot of money by holding a longer position on the commodity. Meanwhile, coffee roasters are buying as little as possible, hoping prices might come down.<\/p>\n<p>It has been \u201ca very exhausting, very time-consuming year of watching the market,\u201d compared with previous years when markets were more stable and less erratic, Pesce said.<\/p>\n<p>Story continues below advertisement<\/p>\n<p>Von Massow said coffee prices will continue to reflect the climate impacts of an individual year \u2014 with some annual yields better than others.<\/p>\n<p>\u201cOne thing that we can say definitively is that there\u2019s going to be more variability in prices going forward,\u201d he said.<\/p>\n<p>This report by The Canadian Press was first published Oct. 6, 2025.<\/p>\n<p>\n\t\t&amp;copy 2025 The Canadian Press\t<\/p>\n","protected":false},"excerpt":{"rendered":"Your daily cup of java is getting a little more expensive as roasters and caf\u00e9s grapple with rising&hellip;\n","protected":false},"author":2,"featured_media":194918,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,52876,46],"class_list":{"0":"post-194917","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-coffee-prices","12":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/194917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=194917"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/194917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/194918"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=194917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=194917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=194917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}