Coffee Price Set to Go Up

Cafes across Australia are getting ready to increase the average price of coffee by up to 60c a cup, as a direct result of the drought on the other side of the world limiting coffee bean supply across the world.

Coffee Of The Month Club

Coffee Of The Month Club

For example, Arabica coffee bean prices have increased by over 70% since the start of 2014, and now Australian coffee roasters are wondering if they can continue with the same price they were charging for coffee before the increase, with coffee reaching a new two year high last week above $2 usd a pound.

Analysts are cutting crop forecasts with Brazil “the largest coffee producer nation” experiencing drier than normal weather causing the price of coffee to rise.

Di Bella coffee is one of Australia’s biggest gourmet specialty coffee bean companies “supplying over 1200 cafes” said his business was immune from the coffee price rally because he had already negotiated their coffee price directly with farmers at the start of the year, but did expect a small rise per cup of perhaps 10 cents with some cafes choosing to ignore it or change to cheaper coffee beans.

”The biggest problem for people here is they can’t guarantee the quality of coffee they’ll be drinking because of the brokers [who] will be affected straight away,” Di Bella said. ”But there are other brands out there that won’t drop the quality of their coffee. They’ll keep it at a high standard. They’ll pay more for it and absorb it or pass it on.”

Ross Quail from Sensory Lab coffee roasters, who runs a wholesale specialty coffee roasting business in Melbourne and Sydney said he would never think about changing the quality of his coffee but wondered how long he would be able to continue charging cafes and restaurants the same price as last year in the current market. ”We will absorb as much as we can but it wouldn’t be unreasonable to say that in the wholesale cafe market a price increase is inevitable,” he said.

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