Global coffee prices have reached their highest levels in nearly half a century, driven by poor weather conditions in Brazil and Vietnam, the two largest coffee-producing countries.
Prolonged droughts and low soil moisture in Brazil, coupled with challenging conditions in Vietnam, have disrupted the coffee industry.
So what does this mean for coffee lovers?
On Monday morning’s episode of The Briefing, Helen Smith is joined by Kirk Pearson, the owner of Project Zero Coffee and the host of It’s Just Coffee the podcast, to explain how it will all impact us here in Australia.
The price spike has led major coffee roasters, like Nestlé, to raise costs, leaving consumers searching for cheaper options.
Pearson said these changes could also force smaller coffee businesses to reconsider their operations.
“To be honest, there are some pretty hazy days ahead for the cafe industry, a lot of cafes in Australia probably need to close,” he said.
Pearson noted that there are now around 7,000 more cafes in Australia than before COVID, leading to increased competition for a smaller customer base.
“That’s very harsh to say, but I think a lot of people in the industry would agree there’s just too many cafes in Sydney and Melbourne and probably across the rest of Australia.”
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