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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This northern Quebec business pulls out all the stops to recruit and retain foreign workers

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Sajjade Tugano has come a long way since he first set foot in Chibougamau, six hours north of Quebec City, in the depths of winter in November 2021.

“I didn’t enjoy that first winter,” Tugano says. “I didn’t want to go out because of the cold. I just went from work to home. And I was so homesick.”

Tugano is a machinist and occasional crane operator at the Chantiers Chibougamau mill, which produces engineered wood products for the construction industry. When he was looking to move from the Philippines, Canada wasn’t on his radar. But he knew someone who was working for the company who encouraged him to apply.

An outdoor sign for Chantiers Chibougamau.
​​​​​​​Chantiers Chibougamau has been recruiting skilled laborers from the Philippines since 2017, when bosses say it became clear it was becoming impossible to attract workers from southern Quebec. (Susan Campbell/CBC)

Since that initial winter, Tugano’s wife and child have joined him in northern Quebec and his wife got a job at the mill. Tugano says his plan now is to stay on.

“What I really appreciate here is the simple living,” Tugano says. “All the people here are equal. And most of all, the safety and the security for the kids.”

Paid to quit work, study French for 6 months

Tugano is one of over 100 temporary foreign workers from the Philippines employed in Chantiers Chibougamau’s mills in northern Quebec, including in Chibougamau, LaSarre, Lebel sur Quévillon and Landrienne, near Amos.

In 2017, the company realized their well-paying jobs weren’t attractive anymore to labourers in the province’s south, who had plenty of offers, thanks to a hot labour market.

A man in a suit in a dining hall.
Chantiers Chibougamau vice-president for corporate affairs Frédéric Verreault says the hot labour market has made it impossible to recruit skilled labour from southern Quebec to the north. (Dominic Chamberland/Radio-Canada)

Frédéric Verreault, vice-president for corporate affairs, says the company was facing a dead end, so it widened its net.

The Philippines has a modern, automated wood transformation industry and a large pool of skilled labour. The one thing lacking was French, but Verreault says the language was something that could be taught. The work ethic was a different story.

“From day one, it’s plug and play,” Verreault says of the Filipino workers. “They come in and it’s breathtaking: their skills, their knowledge, their technical capabilities.”

LISTEN | A region banking on foreign workers: 

Chantiers Chibougamau is a construction materials business with mills across Northern Quebec. When it became impossible to attract workers from the south, they went to the Philippines. And they’re investing a lot of money in housing and teaching Filipino workers French to convince them to stay. Community Reporter Susan Campbell went north for a look at how the region is banking on temporary foreign workers to help its businesses and communities thrive.

Faced with long delays with immigration paperwork, the company decided to pay hires their full salary so they can quit work and study French for six months before they leave home.

Verreault says that investment speaks to their commitment to the French language and integration.

Wanting to stay but worried about rule changes

Rex Ardiente, a machine operator, did full-time French before arriving in Quebec in 2021, and he’s continued with government-sponsored online classes since.

“One of my friends here, a colleague, was laughing at me at first,” says Ardiente. “But now he says, ‘Hey, you’re good! You read fast! The intonation!'”

A worker in a yellow hard hat.
Rex Ardiente and his wife both came to Chibougamau to work at Chantiers. They’re funding their adult children’s studies back home in the Philippines. (Susan Campbell/CBC)

Ardiente worked for a decade in South Korea before accepting the job in Chibougamau. His wife also works at Chantiers, and their two salaries serve to pay university tuition for their two daughters back in the Philippines.

Ardiente’s hope is to become a permanent resident, bring his children to Quebec and eventually retire in Chibougamau. But now those plans might be in jeopardy.

The federal government recently announced it will cut the number of new permanent residents from 485,000 to 395,000 this year. That came in response to what the government calls Canadians’ changing attitudes toward immigration.

“Our contract will finish in 2026,” Ardiente says. “We must save money in case they let us go, and we have to return to our country. At least we’ll have our own investments.”

Immigration a boon for town, says Chibougamau mayor

Manon Cyr has no time for the current debate about whether there are too many immigrants in Quebec.

Mayor of Chibougamau for the past 15 years, Cyr has seen the difference newcomers make to a town with an outmigration problem. She points to a provincial pilot project that saw a dozen students from the Maghreb region of Africa come to study at the local CEGEP last year.

“They are living in Chibougamau and taking care of my friends at the hospital or the CHSLD,” Cyr says. “And they’re making a difference.”

A woman smiling.
Chibougamau Mayor Manon Cyr rejects the idea that immigrants are a burden to Quebec, insisting that towns like hers need to grow their populations. (Susan Campbell/CBC)

Still, there are challenges that come with an influx of new people. Chibougamau has a very low vacancy rate, and the town is making building new rental housing a priority.

Verreault says Chantiers Chibougamau didn’t want to add to that problem. The company therefore teamed up with a local construction company to build a whole new neighbourhood of 40 homes not far from Chibougamau’s downtown, destined for their foreign workers and their families.

An outdoor chalet.
A worker puts the finishing touches on one of the new homes commissioned by Chantiers Chibougamau to house the families of temporary foreign workers from the Philippines. (Susan Campbell/CBC)

Cyr says that kind of grassroots effort should be backed by government policies that make it easier for workers to envision a future in Quebec. That includes giving more time to workers in regions that are close to 100 per cent francophone to achieve proficiency in French.

“Even if the business gives them time to learn, you’re working 40, 50 hours a week, then you have to go to school at night to pass your exam?” Cyr says. “Come on, guys.”

Kids key to family integration

Agnes Eusantos and her children joined her husband Lamberto in Chibougamau in the winter of 2022. Both parents work at Chantiers.

Their 17 year-old son Ian and 10 year-old daughter Iyana are in French schools and take additional classes in the French language. In two years, they’ve adapted to their new life.

“At first it was hard,” Ian says. “But now I speak French. I like the winter, I go snowboarding with my friends. They’re Quebecois and Filipinos.’

Iyana answers timidly when asked what she likes most about Quebec.

La neige,” she said, French for “the snow.”

A family smiling.
The Eusantos family, from left to right, Lamberto, Iyana, Ian and Agnes, reunited in Chibougamau in winter 2022. The children are enrolled in French schools where they’re quickly absorbing the language. (Submitted by Agnes Eusantos)

Eusantos is grateful for the life her family has found in Quebec’s north. But it’s not easy not having the support of family. The cost of living is also steep.

“Now that we’re paying our rent, our car, our insurance, the expenses are bloating,” Eusantos says.

“We buy what’s necessary and important and we’re able to save money for the future, as well.” 

With their skills and their proficiency in English, Filipino workers have options. For employers like Chantiers Chibougamau, that means finding ways to make staying in northern Quebec attractive.

Verreault and Chibougamau’s mayor are both having conversations with the Quebec government about giving regions like the Nord-du-Québec or James Bay special status to make it easier for people to come for work and make a permanent home.

“It’s about our capability to do our work and our work is producing materials for the construction industry,’ Verreault says.

“And without those people, the mills would be empty.”

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