Arabica coffee prices have reached a 2.5-month high, slowly climbing back up after a dip between June and the start of August.
Over the past year, coffee roasters in Australia and New Zealand have been carefully watching the market as a range of factors has caused ongoing price volatility. In February 2025, Arabica hit an all-time high when it reached US$4.40 per pound, while in June it reached a year-low of US$3.22 per pound.
As of 21 August, Arabica stood at US$3.77 per pound. This steady increase over the past two months is said to be influenced by factors in Brazil, the world’s largest producer of Arabica beans. These factors include worries about the impact of recent cold weather on production as well as producers holding back beans due to tariffs imposed by United States President Donald Trump.
While many roasters in Australia and New Zealand pay above commodity prices to ensure quality and fair farmer pay, price increases in the commodity market often sees specialty prices rise proportionately.
For cafés, these latest market movements won’t necessarily mean another price increase as green coffee contracts are often locked in many months in advance.
If the current 50 per cent tariff on coffee imports from Brazil to the US are reduced or put on hold, it’s hoped shipments currently on-hold will resume and that will ease the market. What’s more, if top growing regions such as Minas Gerais receive rain, this could also have a positive impact.
