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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Poilievre says he wants to cut the federal public service, doesn’t mind remote work

Published:

Conservative Leader Pierre Poilievre says a government led by him would cut the number of federal public servants — but he doesn’t mind if they work from home.

When asked by Radio-Canada on Tuesday if U.S. President Donald Trump’s executive order sending federal workers back to the office five days a week is a good idea, Poilievre said that what matters is whether public servants do the work.

He said that work is not getting done now within the federal government, though he did not go into detail about public servants’ productivity.

A Parliamentary Budget Officer report that analyzed Departmental Results Reports data between 2018-19 and 2021-22 found that, on average, nearly a quarter of federal performance targets were not met annually.

There have been chronic delays in recent years for services like passports and immigration applications.

Poilievre called for public servants to be given clear assignments and be monitored to ensure they’re completing their tasks.

He said he would also cut the federal public service, arguing that Canada has far too many bureaucrats.

Size of civil service has increased since 2015

Poilievre said the federal Liberals drove up the deficit in part by hiring 110,000 public servants.

The Canadian Press asked Poilievre and his team how many public servants he would drop, what type of monitoring methods he thinks should be in place and whether he would end the mandate requiring public servants to work in person at least three days a week. They have not yet replied.

According to the Government of Canada website, the size of the public service has grown from 257,034 workers in 2015 to 367,772 in 2024.

Before this week, Poilievre had largely avoided the topic of remote work.

When asked about the issue in May, Poilievre responded by criticizing Prime Minister Justin Trudeau over the size of the public service and said “everyone should be working five days a week.” His spokesperson later clarified that his comment was not about being in offices and that the Conservatives want the public service working five days a week “as they already are.”

The federal government’s latest remote work mandate, which took effect in early September, requires all staff employed under the Treasury Board to work on site a minimum of three days a week. For executives, the expectation is that they work in the office four days a week.

Many federal employees and unions have responded by holding rallies, filing complaints and submitting grievances. The Public Service Alliance of Canada (PSAC), the largest federal public-sector union, has filed a challenge of the new rules in Federal Court.

PSAC national president Sharon DeSousa said in a media statement that “remote work is the future of Canada’s public service,” adding that it reduces traffic and pollution and could save the government money by allowing it to sell buildings.

DeSousa said that if Poilievre is looking to cut costs, he should be looking at reducing government outsourcing.

“Reckless public service cuts will always cost more in the long run, and it’s the people who depend on these vital public services who ultimately pay the price,” she said. “We have one of the best public services in the world, and it’s common sense that fewer people helping a growing population isn’t going to solve the problems families are facing today.”

A union executive at an outdoor rally in summer. Her shirt says 'Remote works.'
Public Service Alliance of Canada (PSAC) National President Sharon DeSousa at a rally in Ottawa on Sept. 9, 2024. She said that if Poilievre is looking to cut costs, he should be looking at reducing government outsourcing. (Francis Ferland/CBC)

Canadian Association of Professional Employees president Nathan Prier said the union is “disappointed” with Poilievre’s comments.

“It is shocking to see how little he knows about the federal public sector and how little he thinks of federal employees despite a decades-long career in federal politics,” Prier said. “It is also irresponsible to be talking about arbitrary downsizing when we need to ready ourselves to stand up to the U.S. giant next door. A strong federal workforce is our best defence against (U.S. President Donald) Trump.”

To reduce costs and boost productivity, Poilievre should prioritize repealing the return-to-office mandate and focus on modernizing government infrastructure, said Prier.

“If he believes things aren’t getting done, the root of the problem lies in outdated management approaches, bloated senior management ranks and a record-shattering overreliance on costly and nepotistic private contractors,” he said. “What the federal workforce truly needs is a leader who invests in recruiting and retaining top talent for the work that needs to be done, not someone who is mostly indistinguishable from Elon Musk in his plans for the public sector.”

At a press conference on Wednesday, NDP Leader Jagmeet Singh said Poilievre’s comments about the public service offer proof that he’s “not a friend of working people.”

He said cuts to public service jobs would hurt workers, their families and regions across the country.

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