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.”

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Businesses brace for impact with Broadway Bridge closure looming in Saskatoon

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Businesses and commuters in Saskatoon are bracing for a major bridge closure this year, with the Broadway Bridge scheduled to close for about seven months, starting in April.

The repair and maintenance work will close all lanes of traffic, as well as the multi-use pathways on both sides of the bridge.

This will be a headache for commuters, but businesses in the area are also bracing themselves for a slower summer. Some shops on Broadway said having their closest bridge closed could really hurt them.

“I don’t think it will be as bustling as regular summers, for sure,” said Kim Rashley-Anton, co-owner of McQuarries Tea & Coffee Merchants on Broadway Avenue.

The upcoming bridge closure brings up memories of the months-long closure of Broadway Avenue in 2016, when the city dug up water mains and repaved roads.

A woman stands with coffee and tea lining the walls.
Kim Rashley-Anton, co-owner of McQuarries Tea & Coffee Merchants, expects the Broadway Bridge closure to directly impact businesses in the area. (Travis Reddaway/CBC)

“I think about nine years ago Broadway was closed for pipes and that was a massive undertaking and it hurt a lot of people,” Rashley-Anton said. 

This year, the Broadway Bridge Rehabilitation Project is scheduled to begin in April, with construction expected to last until at least October. The city said the bridge must be repaired in order to maintain the structure’s longevity.

Todd Grabowski, engineering manager for asset preservation with the City of Saskatoon, acknowledged the closure will cause disruption for many people.

“When it’s a full closure, there’s an expectation that we’ll have to re-route your commute and use other structures in the city of Saskatoon,” he said. “There is significant capacity in other structures throughout the city so there will be impacts and delays.”

WATCH | Saskatoon businesses brace for impact of Broadway Bridge closure:

Saskatoon businesses brace for impact of Broadway Bridge closure

3 months ago

Duration 2:06

Beginning in April, the Broadway Bridge, including the multi-use pathways on both sides, will fully close for at least six months.

Why the bridge needs to close

The bridge’s deck, walkway and railings need repairs and the expansion joints on the structure are leaking, which Grabowksi said could lead to serious safety concerns. 

With the amount of repairs underway, the main walkways of the bridge will also be closed, meaning no cyclists or pedestrians will be able to cross the bridge either. 

Business owners in the Broadway area expect this could cause foot traffic to slow down significantly.

“People do have a hard time with the idea of coming to any kind of downtown area with parking and traffic,” Reid Challis, an owner of Bike Doctor said. His shop is located right off Broadway. 

“Ideally, people are biking here and it’s easy, but I think it’ll have a little bit of an impact for sure.”

Man fixes a bike.
Reid Challis, an owner of the Bike Doctor, located just off Broadway Avenue, hopes people will still visit his bike shop despite no longer having access to the Broadway Bridge. (Travis Reddaway/CBC)

Roadwork planned at same time

The project also includes reconfiguring the intersection at the bottom of the bridge, at Fourth Avenue South and 19th Street East.

It will become more of a “T” intersection, with relocated traffic signals, new pedestrian signals and the removal of the right flow-through lane onto Fourth Avenue.

Parts of Broadway Avenue will also be affected by construction as the city installs Link stations for the planned bus rapid transit system. The four Link stations will be built over about four weeks starting in mid-May, and involve partial lane closures on the street.

Grabowski said the city planned the bridge closure to align with the Link platform installation, to get construction for the area out of the way in one summer.

The city plans to monitor traffic impacts at the beginning of the project and throughout, and make changes to traffic signal timing as needed. 

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