Brazil is by far the world’s largest coffee bean grower and it has been hit by severe drought followed by damaging frosts,causing production to fall by an estimated 30 per cent. In Columbia,the third largest producer,the La Nina weather pattern has reduced crop yields by at least 10 per cent.
The world benchmark price index for arabica coffee,the Coffee C contract,has doubled since early 2021 to about $US2.40 ($3.25) per pound,pushing up the price Australians pay for their “green beans” by 100 per cent.
The Brazilian production problems are particularly bad news for consumers in Australia,where the South American country’s beans are used in most blends of espresso on the market,according to Cafe Owners and Barista’s Association of Australia president David Parnham.
Parnham said cafes had for years hesitated to pass on spiralling costs to customers and price rises were long overdue.
“[A flat white] had been around that $4 price forever,about four or five years,” he toldThe Age.
“That price was a ceiling. If you went above that you were seen as being an expensive cafe. Now we’re seeing a $5 dollar ceiling and $6 by the end of the year,I think is likely.