A blend of cost-of-living pressures and an increase in demand for one of the world’s biggest commodities could bump up the price of a daily cup of coffee, one local roaster is warning.
Noosa-based Brent Deller from First Batch Coffee Roasters said prices could reach $10 per cup as cafes struggle to absorb increasing operating and wholesale costs.
It comes as, according to a leading coffee brand, Australians consider coffee an “affordable luxury” they are happy to pay for, despite an estimated 37.5 per cent price increase in the past five years.
The La Marzocco Australia’s Future of Coffee Report stated that the average price of a cup of coffee rose from about $4 before 2020 to an average of $5.50 this year.
Periods of bad weather in Brazil – one of the world’s biggest coffee growers – is fuelling the increase in wholesale prices, as well as an increase in global demand making coffee the world’s second-most traded commodity after crude oil.
Torrens University Australia suggested rising operational costs for cafes such as higher wages, rent and utilities were adding pressure to increase the price for customers.
It also referred to the growing popularity of milk alternatives such as oat, almond and soy, which increases operational costs for cafes due to these products’ higher prices.
Fleur Studd, who founded Melbourne Coffee Merchants, one of Australia’s biggest coffee bean importers, said prices were on the up.
“The cost of coffee is doubling and cafes will have to put prices up 50c to $1 over time,” she said via the Future of Coffee Report.
“By the end of the year, it won’t be unusual to see $7 or $7.50.”
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Mr Deller predicted the price of a cup of coffee could reach double digits across the region.
The coffee roaster said record cost increases were threatening the future of independent coffee businesses on the Sunshine Coast and throughout the country.
“We’re in a tough spot as an industry,” he said.
“Everything from green coffee beans to rent and wages is rising rapidly.
“Independent coffee roasters and cafes are doing everything they can to keep prices fair, but the rising costs are becoming unsustainable.
“The idea that coffee could become a $10 luxury isn’t something any of us want, but without a change in escalating costs, it could become a reality.”
Matt Turner, from Sunshine Coast-based Coffee Logick, said it was an “interesting” time for coffee prices.
Having been in the industry for 12 years, he said it was important that Sunshine Coast residents continued to support their local coffee shops where they can.
“The price of green coffee is the highest it has ever been, so roasteries and cafes are going to feel the crunch,” Mr Turner said.
“What we all need to do for Australia’s favourite drink, or necessary one, is continue to support small businesses that put so much effort into making the perfect experience.
“From small roasters like myself to cafes that do 100-plus kilograms of coffee per week, we all need to support each other.
“Coffee done well is a drink that can unite people and business and can cross nearly any barrier.”
