The cost of importing coffee beans into Australia is at a new high and roasters see this as the new norm. Once a tea and chicory nation, Australia is one of the globe’s coffee guzzlers. According to Worldmetrics.org the coffee shop market in Australia “is worth approximately $6 billion annually with 91 per cent of adults in Australia consume coffee regularly.
As reported by the ABC, wages, rents and operational costs account for the vast majority of what you pay for in a coffee, but extreme weather in coffee-producing regions overseas is also putting upward pressure on prices.
Nestle Global thinks rising costs will affect margins in the next six months, with coffee and cocoa contributing upward pressure.
Climate change, shipping costs, bean prices and money value are all impacting how much people pay for their coffee.
Neos Kosmos reached out to OASIS Griffiths, a company who has played a key role in the nation’s cultural food revolution since Australia welcomed post-war Greek migration.
OASIS has experienced green coffee bean prices doubling from origins over the past three years.
“As an Australian-owned family-run business we have been mindful of the cost-of-living pressures that our OASIS customers are experiencing and have absorbed a reduced margin in order to maintain the signature flavour profile our loyal coffee drinkers expect and love daily,” OASIS Director Chris Togias said.
He added that the coffee industry continues to endure unprecedented challenges.
“Escalating green bean prices were initially something that many coffee roasters thought might settle in three to six months however this coffee industry view has now changed, and higher bean prices have been accepted as the new norm.”
There are four effects that are driving green bean import increases.
- Climate change is impacting harvesting yield.
- New entrants into the market, such as China is spurring global demand.
- Global conflict is resulting in shipping delays, increase freight costs, and challenging the stability of transportation plans.
- Currency fluctuation continues to reshape the market.
Coffee aficionados would be worried if the rise in costs for companies means a rise in cost for customers and a dip in quality.
As the coffee market shifts OASIS doesn’t want the quality of pulverised coffee to drop, so they said a small price increase will take effect before the end of the year.
“We’ve made every effort to keep this to a minimum and we’re confident that our prices will remain competitive within our sector reflective of the good quality and great tasting coffee quality of coffee that we provide, without compromise,” Togias said.
Australians are being told they need to start getting used to paying more for coffee, especially at cafes.
