Bay Area coffee roasters hit with tariffs in ‘perfect storm’

Greg Reed of Benicia savored a sip of coffee and slipped a piece of his scone to his dog Cocoa at Moschetti Coffee s free tasting on Sixth Street in Vallejo Saturday morning Despite what he describes as a perfect storm of soaring raw material costs insurance and utility prices and a percent tariff levied by President Trump coffee roaster Fabrice Moschetti is continuing his longstanding free tastings on Saturdays though his coffee prices have gone up Related Articles Brunch spot debuts in Foster City incredible Bay Area things to do this weekend Taco Bell will bring back Crispy Chicken Nuggets on April Menlo Park is getting a Michelin-cred chicken and wine restaurant Hop to Easter brunch at South Bay and Peninsula dining spots I m definitely going to keep buying my coffee here Reed mentioned I love the way they open this up to the area referring to the outdoor space where he and other customers were sitting at several tables sipping coffee Holding up a bag of Moschetti s Mistral Espresso he had just purchased Reed added Plus I love the flavor Prices for green coffee the unroasted green coffee beans sold wholesale to which roasters like Moschetti apply their unique processes have more than doubled in the last year Moschetti mentioned Insurance costs in California have soared PG E prices have tripled and now Moschetti and his counterparts must deal with tariffs he stated Moschetti imports green coffee beans roasts them and sells them to about hotels restaurants and cafes all over Vallejo the Bay Area and Sacramento He also sells the beans at his retail store and on the website The popular Saturday tastings which often include free live entertainment and his -year-old company are examples of the importance of small local businesses to a society businesses that have been challenged for over a year by the increasing prices A number of factors are behind the increases Along with all the other woes there are developments a multitude of attribute to surroundings change Rising temperatures droughts and excessive rains struck Brazil and Vietnam the world s two biggest producers during the coffee growing season Vietnam s December export fell nearly percent according to a January overview from the International Coffee Organization The drop in supply was accompanied by growing global demand In just one example consumption increased percent over years in China according to the U S Department of Agriculture As with gas prices as Bay Area residents know all too well less supply plus more demand equals higher prices In my over years in coffee this is the highest I ve ever seen wholesale prices declared Byron Ferm a Vallejo resident with a long track record in the industry Ferm now roasts coffee for himself his family and friends as a cottage industry His wares can be purchased via his Ferm s Coffee Facebook page A fellow local coffee roaster echoed Ferm s comment The previous historical high was a pound in when Brazil lost their entire crop mentioned Reid Waterman of Benicia-based Bay Area Coffee The company also a roaster was founded in by Mitch Lison and Tom Waterman the latter of whom is Reid s father Their customers are mostly grocery store chains though individuals can buy beans via the website The cost of wholesale arabica beans surpassed a pound for the first time in February jumping from under a pound in January to a record a pound on Feb The price was hovering around Saturday As their costs fluctuate Waterman mentioned if costs go down this is passed on to customers and vice versa The supply issues were already making things tough enough But then President Trump s tariffs entered the picture A percent base global tariff on imported goods including coffee went into effect April and remains in effect Heavier tariffs were paused for days Within days it might be percent on Indonesian coffee percent on coffee from Vietnam Moschetti explained It isn t realistic to try to buy green coffee beans from a U S source Moschetti and his counterparts reported Aside from a small amount grown in Hawaii the United States produces little coffee domestically The only place where coffee is commercially grown in the U S is Hawaii and Hawaiian coffee is expensive explained Waterman So it s not even remotely sustainable he reported It hasn t really hit us yet but that percent base tariff adds to the issue In a world of four-dollar coffee adding percent to that can be the difference between making money and not making money Waterman stated Moschetti summed up Coffee is crazy Insurance is crazy PG E is crazy Tariffs are crazy It s a perfect storm During the interview at Moschetti s Sixth Street facility customers continually came over for a hello or a conversation a tradition that has endured through the nearly years the tastings have taken place The roaster is constantly there on Saturday and it seems clear that his customers will be as well Vallejo resident and former mayoral candidate Ravi Shankar has been coming to the tastings for years He noted I have met activists nonprofit leaders neighbors businessmen here I m sticking with Moschetti s It s a place for society connections