Global coffee prices on the rise

Global coffee prices are rising but the cost of a cappuccino in Australia isn't about to suffer a similar fate just yet.

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Global arabica coffee prices have risen to a nine-month high of around 135 US cents a pound because of dry conditions in Brazil, the world's biggest coffee exporter.

Nick Carey, green coffee buyer with Australian specialty coffee trader MTC Group, said wholesale prices paid for imported beans could rise if the recent price spike continued.

"You will probably start to see that in the next couple of months, given it takes two months for shipping," he said.

However higher bean prices won't necessarily mean higher prices in cafes.

Bay Coffee Roasters owner David Rosa said the cafe trade tended to use higher quality beans which commanded a price above that for standard arabica.

Much of the price of a cup of coffee also comprised costs such as labour and rent, he said, and so did not fluctuate with the cost of beans.

Current world prices are still well below huge prices of almost US$3 a pound seen two years ago.


1 min read

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Updated

Source: AAP


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