As worldwide price spikes hammer the local coffee sector, coffee drinkers may soon be paying more for a caffeine hit, or being offered a lower-quality brew instead.
The annual statistics in the dataset represent the average of monthly arabica and robusta green, or raw, coffee bean prices.
“That type of price peak hasn’t happened since 2014,” said Suzy Oo, senior industry analyst at IBISWorld.
What’s the story behind the price hike? Weather events linked to climate change have impacted important coffee-producing countries, and global supply chain concerns are impacting importers.
Drought and heavy frost are thought to have killed roughly 20% of Brazil’s coffee plants.
Brazil is the world’s largest coffee producer, accounting for over half of global production. After Sweden, it is Australia’s second-largest coffee importer.
Marcelo Brussi, an importer from Brazil, pays around 45 percent extra for premium coffee beans. This does not take into account the higher freight expenses.
His company, Minas Hill Coffee, covers some of the expenses, but he must share some of the burden with the speciality roasters to whom he provides.