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Coffee Prices Set To Rise In Australia As Supply Issues Drive Up Costs

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Coffee Prices Set To Rise In Australia As Supply Issues Drive Up Costs

The price of coffee in Australia is about to jump due to an increase in the cost of imported beans.

Cafes across the country are expected to raise their prices due to supply chain issues, natural disasters and shipping container shortages, driven by Covid-19.

Sean Edwards of the Cafe Owners and Baristas Association of Australia told 9News that prices would increase by up to $1 more for a cup.

Cultura Creative RF / Alamy Stock Photo
Cultura Creative RF / Alamy Stock Photo
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Inner-city areas are expected to be hit the hardest, particularly with cafes closing after Covid-19 lockdowns and restrictions and some looking unlikely to reopen.

"We've lost probably 20 to 25 per cent of the cafes and they probably won't be returning for a while," Edwards told 9News.

Brazil's coffee crop took a hit this year after a major drought and frost, heavily impacting supply from the world's largest producer.

Papua New Guinea, another big supplier of beans to Australia, has taken a big hit from Covid-19 cases and health restrictions, disrupting the coffee supply chain and impacting production.

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A lack of hospitality workers and increased freight and shipping costs for Australian wholesalers due to supply chain issues have also aided the rise in overall pricing, which is overdue after 10 years of stability according to Edwards.

In fact, the cost of importing beans has almost doubled in the last year.

Edwards doesn't think it's going to stop Aussies from reaching for their daily dose of caffeine, but he says lower quality options may start to suffer as price increases push people to seek out quality.

"It's probably going to be a small rise in coffee. I wouldn't say anything more than 50 cents to $1 a cup, but I think that's definitely going to happen," Edwards told news.com.au.

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"As things start to open back up again, I think we'll see it."

Featured Image Credit: Nirut Saelim / Alamy Stock Photo

Topics: News, Coffee, Australia

Hannah Blackiston
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