Soaring raw coffee prices predicted to drop in 2012

Raw coffee prices reached record highs in 2011, but increased production in Brazil will hopefully alleviate some of the pressure for buyers.

In coffee supplier Gilkatho’s annual survey, it found that last year had the most costly raw coffee prices, which then flows onto suppliers and retailers.

The Gilkatho Cappuccino Price Index (CPI), which has been conducted for the past decade by Gilkatho, which surveys over 900 cafes in Australian capital cities to understand the change in coffee prices over time.

Australian consumer coffee prices have risen over the past six months, the research found.

In Sydney the average price of a takeaway coffee has risen from $3.11 to $3.19 while Melbourne coffee drinkers have seen a similar change, with prices increasing 14 cents to $3.35 in the period.

However, there could be some evidence that the coffee beans themselves are not causing the price increase, but rather the cost of the takeaway cups they’re sold in.

The price of dine-in coffees has not changed in Sydney, Melbourne or Brisbane.

Gilkatho’s Managing Director, Wayne Fowler, said retailers are increasing the costs of items such as coffee to meet other rising costs in running the business.

 “The March CPI portrays a continuing trend of steady price increase reflecting the healthiness of the Australian coffee market as consumers appear willing to pay the increased costs.”

Following the record prices of raw coffee last year, Fowler is predicting a drop in prices in 2012 due to record production in Brazil.

He pointed towards countries including Kenya, which is producing high quality beans that it sells for lower prices into the international market.

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