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Coffee prices expected to hit $7 by the end of the year

https://hyperhypercoffee.com.au/

Absolutely brew-tal. Words by Mariam Digges.

Millions of Aussies have never batted an eyelid while lining up for their morning coffee, long considered an affordable daily ritual.

But that could soon change as experts warn that your daily latte or long black could soon set you back as much as $7 – more if you prefer alternative ‘mylks’, extra shots or fancy brews.

If you’re partial to a morning cup of joe and a 3pm pick-me-up, you’re looking at a $5,110 annual hit to your hip pocket.

According to Cafe Owners and Baristas Association of Australia president David Parnham, coffee lovers could be feeling the pinch before the end of the year. 

“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,”  Parnham told the ABC.

“The cost of shipping has become just ridiculous.

“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.”

Like many in the coffee industry, Parnham thinks the price increase is long overdue – businesses have been absorbing the increased costs for years to avoid hiking flat white prices up beyond the $4 mark. In reality, customers should be forking out between $6-$7 for their daily cuppa.

The projections come on the tail of exponential national petrol price hikes, housing price jumps and a 4.8 per cent increase in the cost of domestic holiday travel and accommodation, according to ABS head of prices statistics Michelle Marquardt. 

The price jump is positive for coffee growers, and could also mean good things for coffee machine manufacturers like Nespresso and Breville, as consumers weigh up the cost of their caffeine habits. 

But for the average Aussie, could this fling coffee in the same boujee basket as avo on toast? 

Related news: Australia’s first cheese train has opened and it sounds too gouda to be true

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