Have you noticed that your morning coffee is costing a bit more lately? Well, you’re not alone.
The price of green coffee beans –the raw material used to craft that delicious black gold- has been climbing, and it’s having a huge impact on the Aussie coffee scene. You may ask but why is this happening to me? What does this mean? Can I still afford my daily pick me up?
Let us break it down for you...
WHY ARE COFFEE BEAN PRICES GOING UP?
There’s no single reason for the price surge, it’s a ‘perfect storm’ of global circumstances that affects directly the entire coffee supply chain. Here’s what you need to know:
1. Weather is hitting hard the main coffee growing regions.
From droughts in Brazil to unexpected heavy rains and floodings in Colombia, Global Warming and extreme weather, impacts
directly coffee harvests. So, less coffee being produced means higher prices for the beans that are available.
2. Shipping & production costs are skyrocketing.
Everything from farming to transportation has become more expensive. Fuel prices, political turmoil, war, shipping delays, and rising wages for workers are still driving up the cost of getting beans from origin to Australian roasters.
3. Currency swings aren’t helping.
Since coffee is traded in US dollars Vs. a weaker Australian dollar means we’re paying more to import beans. Even little fluctuations in exchange rates can have a big impact on the final cost of the average cup of coffee.
4. Coffee demand is on the rise.
Coffee consumption is growing globally. More people are drinking specialty coffee, and with this disproportionate demand, competition for high grade green bean is fierce. As simple as: More demand + less offer = higher prices.
HOW ALL THIS AFFECTS YOUR DAILY DOSE?
So, what does this all mean for coffee aficionados in Australia?
Expect slightly higher prices at your local
Many cafés and roasters (including us) are absorbing the financial blow, but as prices keep climbing, you might notice that your latte, flat white or even your 250g bag of beans are going to increase by a few dollars.
More traceability: knowing where your coffee comes from
With prices rising, there’s a bigger push for ethical sourcing and direct trade with farmers. Meaning, more transparency about where your coffee is coming from and a stronger focus on quality and sourcing.
Pushing Sustainability
More and more cafés & roasters are finding creative ways to cut waste and improve efficiency. Initiatives range from reducing milk wastage to using ‘greener’ roasting methods –like changing to energy efficient roasters, renewable energy and even composting chaff. Sustainability is no longer just an option; it’s becoming a priority across the industry.
WHAT DOES THE FUTURE HOLD FOR US?
The future is unwritten that’s for sure. Yes, prices are rising but the good news is that Aussie coffee culture is not going anywhere. Another positive outcome from this uncertain scenario is that it’s pushing the industry out of its comfort zone. It’s driving all of us to be more innovative, sustainable and focused on high-end quality.
So next time you grab a coffee and take a sip, reflect for a moment and know that the cup you’re holding is part of something way bigger. At the end of the day, coffee is more than a drink –it's part of a ritual, a social conduit, a fleeting moment of pure joy. And no matter what happens with prices or stock exchanges, that’s something worth holding onto.
