Louisiana Coffee Roasters Face Price Hikes Amid Tariffs

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Local coffee roasters adjusting prices due to tariffs.

News Summary

Louisiana coffee roasters are adjusting their pricing in response to new tariffs imposed on imported coffee beans, leading to increased operational costs. The 10% tax on imports, set to take effect in June 2025, has prompted companies like J.M. Smucker Co. and Community Coffee to raise prices. Market volatility and high demand for low-tariff Mexican beans are shaping the sector’s future as retailers work to manage the challenges posed by these tariffs and supply chain disruptions.

Baton Rouge – Louisiana coffee roasters are adjusting their pricing strategies in response to new tariffs on imported coffee beans, which have significantly increased costs. The tariffs, introduced as a 10% tax on all coffee bean imports by the administration of President Trump, are scheduled to affect coffee prices starting June 2025. The price hikes precede a sector-wide adjustment as roasters grapple with the impact of these tariffs on their supply chains.

The J.M. Smucker Co., known for its popular brands like Folgers and Dunkin’, has already announced its intention to raise prices. Locally, Baton Rouge-based Community Coffee has moved to increase the prices of green coffee beans as a direct response to rising costs influenced by the tariffs. Additionally, French Truck Coffee has decided to implement a temporary 4% surcharge on all coffee-related purchases to accommodate the escalating costs of beans and to prepare for potential future tariff adjustments.

The coffee import landscape in the U.S. is particularly influenced by a few major exporting countries. Currently, around 30% of coffee imports come from Brazil, followed by Colombia at 20%, and Vietnam at 10%. Recent market fluctuations have resulted in many roasters, including those at Congregation Coffee, having to purchase beans while navigating the newly imposed tariff line items, resulting in the likelihood of further price increases.

Lauren Fink, representing Cherry Coffee Roasters, has expressed hesitance in raising prices until truly necessary, illustrating the challenging balance that many roasters face between maintaining customer loyalty and covering increasing operational costs. Future tariffs may escalate even more, reaching as high as 30% on imports from central and south American countries, prompting several businesses to shift sourcing strategies. Mexican coffee beans have become more desirable due to comparatively lower tariffs.

Drew Cambre, sustainability manager at International Coffee Corp, indicated that should tariffs on Brazilian coffee soar to 50%, this could render the purchase of Brazilian beans untenable for many companies, drastically impacting their operations.

The Port of New Orleans serves as a vital hub for coffee imports, with coffee being its largest containerized import commodity, bringing in approximately 16,000 containers annually. Approximately 42% of all U.S. coffee imports originate from Brazil. However, there has been a noticeable slowdown in coffee imports lately, which is also contributing to heightened anxiety within the sector.

Retail establishments, such as Current Crop Roasting Shop, are feeling the strain as well. They have witnessed a reduction in purchasing options, with contracts moving from 12-month agreements to a mere three months, reflecting the growing volatility of the market. In light of rising prices, there has been a noticeable increase in consumer interest in home coffee roasting. Many are exploring this option as a cost-effective measure amidst escalating retail prices.

The overarching trend in the coffee market is clear: significant price hikes are on the horizon. This is attributed not only to the newly imposed import tariffs but also to pre-existing high prices caused by adverse weather conditions affecting coffee crops in producing countries. As tariffs continue to exert pressure on prices, consumers can expect an evolving coffee landscape marked by increased costs and shifting sourcing strategies.