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Why are coffee prices going up?

Trouble is brewing in the coffee world here is what you need to know about the price rise...

THERE ARE A NUMBER OF FACTORS AT PLAY ...

Coffee shortages & bad weather

Owner Matt Swiatkiwsky said one of the worst frosts in half a century hit Brazil in the middle of last year and created a worldwide shortage - ABC Reports.

Brazil is Australia's largest coffee bean importer, producing 50% less coffee in 2021 and 2022. These shortages are expected to impact the crop for the next three years, so brace yourself for the long hall, this crisis isn't going anywhere.

Fuel prices and freight issues

You'll likely already know about the shipping container shortages causing havoc globally, with the situation only being made worse due to the increase in fuel prices off the back of the devastation in the Ukraine.

"Freight would be the big one for us with the cost of fuel going up," Swiatkiwsky added.

Unemployment and increased wages

A less obvious reason your barista-made coffee could be boiling to new all-time highs is the staff shortages forcing café owners to increase wages. This rides off the back of covid lockdowns, which saw startling numbers of hospitality employees moving out of the industry.

Inflation

It's not just these global shortages causing prices to rise, with inflation gearing up to grow above 3.5% this quarter, it is everything else that goes into the cup.

SO HOW HARD IS THIS GOING TO STING?

coffee price increase

While some reports indicate an increase of 30 to 50 cents, others say Australians could expect to see increases up to $1.

Ouch, that burns!

It's safe to say this is larger than just one issue and unfortunately, it looks like the issue is going to stick around, but do we think this is going to effect Aussies love for their morning brew?

Despite a certain sting, it is certainly a part of Australian culture and we cannot imagine coffee is going anywhere.

EcoCaffe is yet to introduce price updates, so if you're running low, it might be time to stock up...

Why not lock in your coffee prices by signing up to a coffee pod subscription.

To try and ease the pain, we are currently offering a massive 20% off your first subscription order using code: SUBSAVE

SHOP HERE

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