It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.

By the end of the year, coffee lovers will be paying up to $7 for a regular cup as cafes nationwide struggle to absorb growing overhead costs warned David Parnham, president of the Café Owners and Baristas Association of Australia.

“What’s happening globally is there are shortages obviously from catastrophes that are happening in places like Brazil with frosts, and certain growing conditions in some of the coffee growing areas,” Mr Parnham said.

“The cost of shipping has become just ridiculous.”

Key points:

  • Prepare to be paying up to $7 a cup by the end of the year
  • Shipping costs and natural disasters in coffee regions are being blamed for the price increase
  • Australians consume one billion cups of coffee annually, but cafe owners say an increase in price won’t change that

It’s nearly five times the container prices of two years ago due to global shortages of containers and ships to be able to take things around the world.

Frosts in Brazil have impacted supply.(Supplied: Melbourne Coffee Merchants)

The pain will be felt from the cities to the outback, but Mr Parnham said the increase was well overdue, with the average $4 price for a standard latte, cappuccino and flat white remaining stable for years.

“The reality is it should be $6-7. It’s just that cafés are holding back on passing that pricing on per cup to the consumer,” he said.

But roaster Raoul Hauri said it hadn’t made a dent in sales, with more than 300 customers still coming through the doors for their daily fix. “No one really batted an eyelid,” he said. “We thought we would get more pushback, but I think at the moment people understand.

“It is overdue and unfortunately it can’t be sustained, and at some point the consumer has to bear that.”

Paving the way for Australian producers

While coffee drinkers will be feeling the pinch, Australian producers like Candy MacLaughlin from Skybury Roasters hopes the increasing cost of imports will pave the way for growth in the local industry, allowing it to compete in the market.

“[In the ] overall cost of business, we haven’t been able to drop our prices to be competitive, so we’ve really worked on that niche base,” Ms MacLaughlin said.

“All those things will help us to grow our coffee plantation once more.”

Candy and her husband Marion produce 40 tonnes of coffee annually but they are prepared to scale up operations(Supplied)

She said the industry could eventually emulate the gin industry, with boutique operations cropping up across the country.

“I think the demand for Australian coffee at the moment is an ever-changing landscape and more and more Aussies are starting to question where their food comes from, who is growing it”

“What you will get is all these kinds of niche coffee plantations who develop a very unique flavour profile and then market in funky packaging and appeal to certain markets,” she said.

“That’s where I see the next stage of the Australian coffee industry going.”

28 C
New York

7.6-magnitude earthquake shakes Caribbean islands

Published:

A magnitude-7.6 earthquake shook the Caribbean Sea south of the Cayman Islands Saturday, according to the U.S. Geological Survey. Several islands and countries urged people near the coastline to move inland but authorities in most places later lifted the tsunami alerts.

The quake struck at 6:23 p.m. local time in the middle of the sea and had a depth of 10 kilometres, the USGS said. Its epicentre was located 209 kilometres south-southwest of George Town in the Cayman Islands.

The U.S. National Tsunami Warning Center said there was no tsunami alert for the U.S. mainland but issued a tsunami advisory for Puerto Rico and the U.S. Virgin Islands, which was later cancelled.

Hazard Management Cayman Islands urged residents near the coast to move inland and to higher ground, warning that wave heights of 0.3 to one metre were expected. The Cayman Islands government later issued on “all clear” on its Facebook site.

Puerto Rico Gov. Jenniffer González Colón said in a statement she is in contact with emergency agencies after the tsunami advisory, but did not recommend anyone leave the coast.

The sounding of alarms in Puerto Rico’s northwest region had caused people to leave coastal areas and caused heavy traffic, according to local media.

The Dominican government also issued a tsunami alert and recommended residents on the coast move to high areas “of more than 20 metres of altitude and two kilometres inland.” But it later cancelled the alert.

Honduran authorities said there are no immediate reports of damages, but urged its residents to stay away from beaches.

The Cuban government requested people to leave beachfront areas.

The U.S. government’s National Oceanic and Atmospheric Administration had said tsunami waves reaching one to three metres above the tide level were possible along some coasts of Cuba.

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