Message from the CEO of KUDU Coffee

Athens, 27/11/24

The invisible battle behind your daily cup.

The world of coffee often hides the challenges behind every sip. As a coffee roasting company based in Greece, we are committed to delivering exceptional flavors in every cup. However, the journey from the farm to roasting raw materials and finally to the beverage in the consumer's cup has become more complex than ever. 

The rise in green coffee prices

Green coffee prices have risen dramatically in recent months, reaching the highest levels in fifty years. The average price over the last twelve months has exceeded $2.60 per pound, with the annual change in Arabica prices surpassing 80% compared to the same period last year. As of now, prices exceed $3.10 per pound.

Key drivers of price increases

Climate Crisis

Brazil, the world’s largest coffee producer, continues to suffer from extreme weather events. Frosts and droughts from 2021 to 2023 caused a reduction in production by up to 30%, with the situation remaining uncertain in 2024.

Transportation Costs

Shipping costs have nearly tripled compared to pre-pandemic levels. Additionally, delays in the supply chain complicate the procurement of fresh green coffee.

Speculation

The increasing involvement of financial markets in determining coffee prices has heightened volatility. For instance, prices can fluctuate by 10-15% within a single week, leaving no room for stability for businesses like ours.

What does this mean for us?

Green coffee traders can adjust their prices quickly, reacting to market changes in real time. At KUDU Coffee, however, things are different. We focus on quality and stability, making it challenging to adapt our prices as quickly.

Why this matters:

- We do not compromise on the quality of our raw materials.
- Price increases in our raw materials directly affect us, as we don’t easily change suppliers or specifications.
- The result? Retail prices are inevitably affected, though we strive to manage this as smoothly as possible.

How this impacts your daily experience

Global market changes directly affect your experience with specialty coffee:

Price Adjustments.

Increases in our raw materials force us to adjust retail prices—this is not a choice but a necessity to maintain the quality we’ve offered to date.

Supply Challenges.

Sourcing exceptional beans is becoming increasingly difficult as crops shrink, the supply chain slows, and demand grows.

A message of responsibility

At KUDU Coffee, we are committed to transparency, quality, and sustainability. Despite the challenges, we continue to build bridges between coffee producers and you.

We invite you to support specialty coffee:

• By recognizing the effort behind every cup.
• By supporting companies that choose quality over shortcuts.
• By embracing a new approach to coffee, appreciating its true value.

The road ahead is full of challenges, but for us at KUDU Coffee, our commitment to excellence remains unwavering.

Thank you for being part of our journey.

Nikolaos Ferras

Co-Founder & CEO

KUDU Coffee Roasters