Hey Oz Bargain Community,
If you're flat chat, please feel welcome to skip to the deal details in bold below :)
Update and hopefully a win for you!
Just got pricing in for the next lot of green coffee contracts and unfortunately a combination of recent U.S. tariff and coffee market price hikes over the last few years has resulted in the price of coffee going up again. To elaborate without hopefully rambling too much, the main U.S. tariff that resulted in coffee going up is the 50% tariff on Brazil. Brazil produces roughly 1/3 of the world's coffee, so any impact there has a global ripple effect on coffee. There was a chance that large coffee companies in the U.S. would shy away from Brazil thus increase use of coffee from other parts of the world, although the global supply/demand dynamic would be unchanged by the shift it could have created a supply surplus in Brazil which may have led to a Brazil coffee price reduction. However, rather than shifting to other coffees what actually happened was large companies quickly purchased all landed Brazil stock in the U.S. to avoid the tariffs, which depleted buffer stock of Brazil, thus creating a Brazil shortage and therefore Brazil prices went up and in turn global coffee prices increased. The second factor which has increased pricing is historically speaking when a coffee crop is ready farmer's need to move it for cash flow (like most businesses, as the saying goes "cash is king"), however, due to the wild coffee market increased in the last few years farmer's have surplus cash reserves which has afforded them the luxury of being able to sit on stock and so if farmer's think the price will be higher tomorrow than today they can wait to tomorrow, thus this creates an artificial supply shortage which further increases prices which reinforces some farmers holding stock…and so the cycle continues. Now we've covered primary impact factors there's some secondary factors impacting price. First, is margin calls from banks on large exporters (multi billion dollar exporters have gone bust over the last few years because of this), more than ever (well maybe not ever, but let's say decades) exporting and importing coffee has become a game of finance rather than a focus on coffee and secondary focus on the operational side (logistics, finance…). Over the last few years labour at origin has also increased (which is a good thing as it should lead to more people working on farms, but does impact price); this is a factor that means although prices may calm down a bit in the future from the current wild times, it's very unlikely we'll see pre-covid pricing because when wages go up they rarely go down. The unknown, but soon to be found out is the outlook for the yield size on Brazil, this factor is the risk and something I'm not keen to wait to find out about as there's too many players who have a financial interest in the yield looking unpromising and unfortunately these reports will set the pricing tone. The final factor which has an impact, but less so than the other is shipping from origin continues to have bumps along the road. Don't get me wrong, from a long-term perspective I think it's great and much needed that the price of coffee goes up as it prevent farmer's getting out of the coffee industry and leads to better quality coffee. However, when prices increase so rapidly in such a short amount of time that the whole supply chain is at risk due to things like snap margin calls from banks it risks the whole supply chain and without an established supply chain in stable place it in turn risks things for farmer's; slow and stead wins the race, so it would be better long-term for prices to go up at a steady rate year on year, but I do know short-term rapid increases are better for farmer's. All of this translates for the need to increase prices when the next contracts take are active, but no need to hit the emergency panic stations button just yet, the price increase on our contracts are aren't as tremendous as the increase from the 2023-2024 contract price increases. All that said, I do need your help to try and limit the need to increase prices and that is what this deal is all about. The only clear path through this time is to increase our volumes. A key need to increase our volumes is to fulfil a wish list of operational equipment as our current equipment won't allow us to viably get to the volume needed to navigate the continued price increases. As you can imagine the equipment costs a pretty penny. I'm hopeful this deal is a real win-win scenario, as I've super extended the available dispatch dates so you can lock in super savings (well I think it's super in the current market) for you coffee needs from now all the way up to 30th June next year (over 9 months) and we (Lime Blue Coffee) gets a cash flow bump so we can pull the trigger to get the equipment we need to navigate these upcoming coffee rapids in order to continue to deliver the value for month deal's we have and want to continue offering to you…OK ramble complete, link and all details you need are below :)
Deal valid for orders placed until Tuesday 30/09/2025, unless sold out before. Dispatch can happen for you as near as tomorrow and as far as the last Tuesday in June (30/06/2026). Once a given dispatch date is at full capacity the green circle will be removed and date will turn red, first in best dressed :)
Some helpful info:
- You're welcome to place multiple orders scheduled for dispatch at various dates (delayed dispatch) to make the most of this deal, we strive to dispatch our fresh coffee within 72 business hours of roasting
- We're happy to accommodate dispatch date and click and collect/pickup changes, you just need to select a new dispatch date either via clicking the "Edit or View Your Order" button in the order confirmation page or simply logging into you Lime Blue Coffee account at least the day before the current date you have selected for your order
- One dispatch per order
- Please ensure you use the "shipping" dispatch date selector on the cart page if you'd like your order delivered to you and that you use the "click and collect" date/time selector if you'd like to pickup your order. If you plan to pickup your order please ensure you select the "pickup in store" delivery option on the checkout page, as this not only eliminates the shipping fee for you, but also allocates your order to the click and collect system we have in place, so it means you'll receive different notification messaging to assist you towards a smooth pickup experience
- Any existing orders are unable to be changed from delivery to click and collect due to the different tech systems in place
- If you select 500g as a quantity please ensure you also select 500g as the packaging option. If 500g is selected as a quantity with 1kg as the packaging selection the product will show as "unavailable"
- 500g bag packaging (it's resealable) is also available for orders larger than 500g this is an extra $4.00 per kg including the discount (normally $8 extra per kg) to cover the extra bag/s, label/s and time it takes to pack
- Complimentary gift notes can be submitted via a reply message to your order confirmation email
- The largest bag size we use is 1kg and it has a zip (it's resealable), for example if you order 4kg with 1kg packaging you will receive 4 x 1kg bags, you will not receive a single huge 4kg bag
FREE SHIPPING for orders over $69. For example, 2.5kg via this deal for all blends except our Half Strength Full Flavour range is $71.75 thus unlocks the highly sought after FREE SHIPPING. We recommend freezing any excess bags purchased to quality for free shipping, without compromising on enjoying fresh coffee.
- $0.00 for Click and Collect from 15 Cochranes Road, Moorabbin, VIC 3189
- $7.99 No Delivery Company Preference Flat Rate Shipping (No Parcel Locker/PO Box/Collect)
- $9.99 Courier's Please Flat Rate Shipping (No Parcel Locker/PO Box/Collect)
- $9.99 Australia Post Flat Rate Shipping (Parcel Locker/PO Box/Collect available)
- $14.99 Express Post Flat Rate Shipping (Parcel Locker/PO Box/Collect available)
TLDR version
1. Coffee prices are climbing again thanks to tariffs, farmers holding stock, and banks turning it all into a finance game.
2. The silver lining: there’s a deal to lock in beans now before the next round of price hikes.
3. Think of it as future-proofing your caffeine supply for the next 9 months, while helping the LB/Tom scales up for what’s ahead.
4. Potential for prices to come down (just like petrol) as supply/demand rebalances itself