It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.

By the end of the year, coffee lovers will be paying up to $7 for a regular cup as cafes nationwide struggle to absorb growing overhead costs warned David Parnham, president of the Café Owners and Baristas Association of Australia.

“What’s happening globally is there are shortages obviously from catastrophes that are happening in places like Brazil with frosts, and certain growing conditions in some of the coffee growing areas,” Mr Parnham said.

“The cost of shipping has become just ridiculous.”

Key points:

  • Prepare to be paying up to $7 a cup by the end of the year
  • Shipping costs and natural disasters in coffee regions are being blamed for the price increase
  • Australians consume one billion cups of coffee annually, but cafe owners say an increase in price won’t change that

It’s nearly five times the container prices of two years ago due to global shortages of containers and ships to be able to take things around the world.

Frosts in Brazil have impacted supply.(Supplied: Melbourne Coffee Merchants)

The pain will be felt from the cities to the outback, but Mr Parnham said the increase was well overdue, with the average $4 price for a standard latte, cappuccino and flat white remaining stable for years.

“The reality is it should be $6-7. It’s just that cafés are holding back on passing that pricing on per cup to the consumer,” he said.

But roaster Raoul Hauri said it hadn’t made a dent in sales, with more than 300 customers still coming through the doors for their daily fix. “No one really batted an eyelid,” he said. “We thought we would get more pushback, but I think at the moment people understand.

“It is overdue and unfortunately it can’t be sustained, and at some point the consumer has to bear that.”

Paving the way for Australian producers

While coffee drinkers will be feeling the pinch, Australian producers like Candy MacLaughlin from Skybury Roasters hopes the increasing cost of imports will pave the way for growth in the local industry, allowing it to compete in the market.

“[In the ] overall cost of business, we haven’t been able to drop our prices to be competitive, so we’ve really worked on that niche base,” Ms MacLaughlin said.

“All those things will help us to grow our coffee plantation once more.”

Candy and her husband Marion produce 40 tonnes of coffee annually but they are prepared to scale up operations(Supplied)

She said the industry could eventually emulate the gin industry, with boutique operations cropping up across the country.

“I think the demand for Australian coffee at the moment is an ever-changing landscape and more and more Aussies are starting to question where their food comes from, who is growing it”

“What you will get is all these kinds of niche coffee plantations who develop a very unique flavour profile and then market in funky packaging and appeal to certain markets,” she said.

“That’s where I see the next stage of the Australian coffee industry going.”

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Corrections and clarifications

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CBC News is committed to transparency and accountability to our audience whenever we make an error or need to clarify a story. Until now, we noted any corrections or clarifications to online articles at the bottom of the story; TV or radio correctives were done on air on the relevant broadcast.

Effective Jan. 1, 2021, as part of this commitment to transparency, CBC News is also publicly tracking significant corrections or clarifications to our TV and radio news reports and online articles.

Oct. 17, 2024

On Oct. 15, Your World Tonight aired a story about the organization Samidoun, which was declared a terrorist entity by the Government in Canada. The story described Samidoun as a “registered charity.” In fact, the group is a non-profit and does not have charity status in Canada. A clarification was aired on Your World Tonight on Oct. 16.

Oct. 9, 2024

On Oct. 9, World Report aired a story that stated the Green Party Leader of British Columbia, Sonia Furstenau, was expected to win in the electoral district she’s running in, for the upcoming B.C. provincial election. In fact, polls suggested the B.C. New Democratic Party candidate is favoured to win that race in Victoria-Beacon Hill. A correction was aired on World Report on Oct. 10.

Sept. 6, 2024

On Aug. 30, CBC News in Newfoundland and Labrador reported on the parole of former RNC officer and convicted sex offender Doug Snelgrove. We originally reported that his parole date was set for summer of 2025. In fact, he would have been eligible for full parole in January of 2025, and his statutory release date is April of 2026. The story was updated and a new headline added. A correction notice was posted to the story. A correction was also broadcast on Here and Now on Sept. 5.

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On June 27, 2024, CBC Ottawa News at 11 aired a story about a former Ottawa neurology resident who misrepresented himself as a fully licensed doctor and provided medical services to dozens of patients during the 2022 Freedom Convoy protests. CBC referred to ivermectin as a “drug that is usually meant for livestock and is dangerous to humans.” In fact, there are two forms of ivermectin: one approved for veterinary use and one approved for use in humans to treat parasitic infections. Neither, however, is approved for the treatment of COVID-19.

July 26, 2024

On May 22, 2024, families of Israeli hostages taken by Hamas in the Oct. 7, 2023 attacks released an edited series of video clips that were shot Oct. 7. The video was provided to the Hostages Families Forum by the Israel Defence Forces.  It shows Hamas militants with five Israeli female conscripts.  Translation of the Arabic speech on the video was distributed with the video. Based on that translation, CBC News reported that one militant referred to the soldiers as “women who can get pregnant.”  CBC News did not independently translate the audio before broadcast and, in fact, that translation is in dispute. 

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Clarifications were also broadcast on radio and television programs where the original story aired.

May 30, 2024

World Report aired a story on May 25, 2024 about low water levels at Great Slave Lake. The story said the Mackenzie River drains into the lake. In fact, the river carries water from Great Slave Lake north to the Beaufort Sea. A correction aired on the program on May 30.

May 29, 2024

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