Why the price of coffee is going up | The Business | ABC News

In the past year, the price of beans has increased by 56 per cent, hitting a 13-year high of $US2.60 per pound. Joe Taweel from the Australian Coffee Traders Association, says the industry is facing a multitude of challenges. The world's largest arabica bean producer Brazil is going through the driest season since 1981 with wildfires destroying crops. Vietnam's production of the robusta bean has been disrupted by drought and typhoons. In addition, coffee is being stockpiled in Europe before sustainability regulations come into effect in December. That is exacerbating supply shortages and shipping delays for bringing coffee to Australia. Joe Taweel says although the price of beans hasn't hit the ceiling yet, it's unlikely significant increases will be passed on to Australian consumers because of stiff competition in the sector.
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