This has yet to affect Australian coffees as the coffee being sipped now was bought before the price rose, but it will become apparent in the coming months, Mr Scheltus said.
The second reason is that the cost of running a cafe is increasing.
“Personnel, utilities and packaging – just about everyone is affected,” he said.
“It touches every part of your business. Small increases at all levels have a big impact.
Despite the tougher conditions, the 39-year-old hasn’t seen a drop in demand from Market Lane wholesale customers at his cafes in Melbourne, Sydney and Canberra.
“Our coffee is more expensive…we try to find the best coffee possible rather than trying to hit a specific price,” Scheltus said.
The new normal
The Australian Bureau of Statistics does not monitor the price of takeaway coffees, but as part of its March quarter reading released on Wednesday – in which annual inflation rose by 5.1% – it found that the coffee, tea and cocoa purchased at the grocery store increased by 8.2% per year. -on-year.
Store-bought coffee, which is subject to similar global price pressures as beans sold to cafes, rose 6.9% from the December quarter.
Quarterly growth in supermarket coffee prices was highest in Perth (up 11.3%) and Darwin (up 7.3%). The rate was just under 6% for Melbourne and Canberra.
Byron Bay Coffee Company director Annie Chapelle agrees that rising costs mean a new standard for flat whites and coffee-brewed cappuccinos is coming.
His wholesale business raised the price of its 1kg bags by $5 last month and recommended customers up their coffees up to 50¢ a cup.
She says cafes would typically get 80 cups per kilo — factoring in waste and staff drinks — and her wholesale price increase would equate to about 6¢ a cup.
“It was a really painful process because everyone is suffering these days and here in the Northern Rivers we have been through some flooding and then you raise the prices,” Ms Chapelle said.
“Generally, $5.50 would soon be a fair price for a cup of coffee.”
Brazil and Colombia are the two largest producers of Arabica coffee in the world.
Frosts in Brazil last year caused production to drop by more than 30% – this will continue to be felt in 2022 as damaged trees need to be replaced or pruned. Meanwhile, a combination of fertilizer shortages and off-season rains in Colombia have led to a 10% drop in production