The price of one of the world’s most popular drinks keeps rising but dedicated coffee fans seem to be putting up with it in Aotearoa New Zealand – for now, at least.
“It sharpens the mind, gets me going and gives me energy,” one Wellingtonian grabbing a cup of java at The Capital told 1News.
“I can’t live without coffee,” another said.
In July, global data analysts Barchart reported coffee prices have continued to climb on risks to global coffee production.
It said the prices of two popular coffee types – arabica and robusta – were up 2.27% and 3.97% respectively.
The reasons for the ongoing hikes in the price of coffee, which is grown in many countries, are complex.
Coffee wholesaler John Burton Ltd’s head of operations Alice Burton said the situation is “quite unprecedented times in terms of freight issues, climate issues, high coffee markets, and volatile FX rates”.
“When there’s obviously a demand supply kind of deficit, then you’re going to have a drive-up in prices,” she said.
“But the other side of it that’s been driving pricing is a lot of speculators. It’s the same as cocoa prices when they went up recently – it’s a lot of speculation that’s driven in the market.”
Coffee bean yield is currently down 20% in Vietnam. Meanwhile, plant disease, flooding, and fluctuations in temperature have affected crops across South America in recent years.
Variable price increases have been reported across New Zealand with little expectation the situation will change in the short-term.
Burton said the company – the largest importer and distributor of green coffee beans in New Zealand – currently has a three-month supply of the beans for distribution nationwide and is currently monitoring the global situation.
It’s also buying green coffee beans from Papua New Guinea, which is closer and offers faster shipping times.
“We have containers that are struggling to get here. It’s about four months to ship here from Brazil now, so that’s why we’re really focussing on Papua New Guinea,” she said.
Burton added that the weak New Zealand dollar against US currency is affecting “what we can buy and how much we can buy in US dollars”.
In recent days, representatives from PNG’s Coffee Co-operative have been visiting the country.
“Fair trade has impact positively into our community, into the lives of our people,” co-founder Elizabeth Duna said.
But she concedes PNG is dealing with climate-related issues.
“Climate change is very unpredictable for farmers,” Duna said.
“When we dry our coffee, it’s unpredictable because you don’t know whether it’s going to be sunny or rainy.”
Global coffee bean prices are showing no signs of coming down in the near future.
