Coffee prices continue to rise in Australia
A significant increase in coffee prices has taken place in most Australian cities over the past six months, according to the latest Gilkatho Cappuccino Price Index (CPI).
The Gilkatho Cappuccino Price Index (CPI) has been conducted for the past ten years by Gilkatho, an Australian coffee supply company.
The CPI surveys more than 200 cafés (more than 900 in total) in Melbourne, Brisbane, Perth, Sydney, Adelaide and Canberra. Gilkatho aggregates these figures to understand how the selling price of a cup of coffee is changing over time.
The latest report shows a significant increase in Australian consumer coffee prices over the past six months. The average price of a take-away coffee in Melbourne has risen from AU$3.21 to AU$3.35. Similarly, in Sydney the average price has risen from AU$3.11 to AU$3.19.
However, while the latest report shows a rise in takeaway coffee prices for Sydney and Melbourne, Brisbane shows no change in prices for both takeaway and dine-in coffee.
Gilkatho’s Managing Director, Wayne Fowler, said the relief of the price pressure on the Food and Nonalcoholic Beverages sector has provided some respite to business operators allowing them to moderate any price increases as a result of other rising costs.
The ABS Consumer Price Index released last week showed a 2.1 per cent decrease in the Food and Nonalcoholic Beverages sector over the same period.
Mr Fowler said, “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.”
International raw coffee prices set to decrease in 2012
According to Mr Fowler, raw coffee prices have reached a record high in the last quarter of 2011 and that Australian buyers of green coffee beans can be expected to renew supply contracts at lower prices.
He said that record production in Brazil has sent a clear message to the market that prices are going to decrease in the future and that this has already been evident with countries such as Kenya producing a high quality bean selling at lower prices into the international market.
According to international figures, Australians will this year consume 2.95kg per person up from 2.7kg per person in 2009.