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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Players’ group co-founded by Canadian Vasek Pospisil files antitrust suit against tennis organizers

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Calling the groups in charge of professional tennis “a cartel,” the players’ association co-founded by Canada’s Vasek Pospisil and Serbia’s Novak Djokovic filed an antitrust lawsuit against the women’s and men’s tours, the International Tennis Federation and the sport’s integrity agency on Tuesday in federal court in New York.

The suit by the Professional Tennis Players’ Association says the organizations that run the sport hold “complete control over the players’ pay and working conditions” and their setup constitutes “textbook violations of state and federal law” that “immunize professional tennis from ordinary market forces and deny professional tennis players and other industry participants their right to fair competition.”

The lawsuit seeks a jury trial and wants players to gain access to more earnings, arguing that the governing bodies that oversee the four Grand Slam tournaments — Wimbledon, the U.S. Open, the French Open and the Australian Open — and other professional events “cap the prize money tournaments award and limit players’ ability to earn money off the court.”

On top of the case in U.S. District Court, the PTPA made filings with the European Commission in Brussels and the Competition Markets Authority in London.

“There is a complete and utter lack of competition that exists in professional tennis, and we believe by filing these actions, we will ultimately inject the kind of competition that will be fair to the players, to the fans and actually to the people [who] operate the system,” said Jim Quinn, a lawyer working with the PTPA.

“It’s going to require a restructuring,” Quinn said.

The WTA Tour and ATP Tour issued separate statements Tuesday saying they would “vigorously” defend themselves.

The WTA said it has “committed to a $400 million US increase in player compensation” in recent years and labeled the PTPA action a “baseless legal case” that is “regrettable and misguided.” The ATP touted a “major increase in player compensation” that created a jump of “$70 million in the past five years,” and called the PTPA’s case “entirely without merit.”

“The PTPA has consistently chosen division and distraction through misinformation over progress,” the ATP’s statement said. “Five years on from its inception in 2020, the PTPA has struggled to establish a meaningful role in tennis, making its decision to pursue legal action at this juncture unsurprising.”

The International Tennis Integrity Agency — which investigates and adjudicates doping and corruption — said it noted the PTPA’s action but did not offer any direct reaction to the case itself.

An ITF spokesman declined to comment.

The PTPA was founded by 24-time Grand Slam champion Djokovic and Vasek Pospisil in August 2020, aiming to offer representation for players who are independent contractors in a largely individual sport. One of the goals made clear along the way was to become a sort of full-fledged union that negotiates collective bargaining agreements like those that exist in team sports.

“Beyond just the economics, we see … player welfare is completely disregarded in everything, from the tour schedule to anti-competitive practices, to abusing our rights around name, image, likeness,” Pospisil said.

He is one of the players listed as a plaintiff; Djokovic is not. Players whose names are attached to the U.S. lawsuit include 2022 Wimbledon runner-up Nick Kyrgios, Sorana Cirstea, Varvara Gracheva, Reilly Opelka, Tennys Sandgren and Nicole Melichar-Martinez.

PTPA executive director Ahmad Nassar said Djokovic is “certainly very involved, very up to speed. He is still a sitting member of our executive committee at the PTPA. … This is about much more than one player.”

The PTPA said it met with more than 250 players — women and men, and a majority of the top 20 in the WTA and ATP rankings — before going to court.

“We’ve seen the Grand Slams try to change some things unsuccessfully. We’ve seen the tours themselves try to change things unsuccessfully. We’ve seen outside money try to come in and change things unsuccessfully. And so we really think this is the only path forward, and we don’t do this lightly, whatsoever,” Nassar said.

“But we think it was necessary, because the players really do demand to be heard, to have their issues taken seriously, to address these structural issues that plague tennis and really choke it as an international sport, and to create a system that brings balance and equality and fairness to really the entire business of tennis.”

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