(TheIndependentStar.com) – Exposing the wider issues of global supply chains and climate change, morning coffee prices are about to skyrocket to $12 per cup by the end of this year.
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Recent reports indicated that by year’s end, Australians could pay between $8 and $12 for a single cup of coffee.
This is primarily driven by a 50% increase in coffee bean prices, alongside additional surges in packaging, wages, and rent. Such challenges have already impacted around 30% of businesses.
Erratic weather patterns have devastated coffee crops, further straining supply chains and putting pressure on costs.
As farmers struggle against the environment, rising operational expenses pile on another layer of complexity. The demand for coffee remains high, creating the perfect storm for these price hikes.
Fortunately, service stations continue offering coffee at $3-$3.50 for consumers outraged by exorbitant prices, presenting a more affordable alternative.
However, this option may not satisfy those who prefer a superior brew as part of their daily routine. Coffee shops need to innovate to sustain their market share and retain customers.
While coffee is expected to soar this year, beer is also affected by this issue, as prices could climb to $15 for a pint due to increases in the alcohol excise tax.
Independent brewers, particularly at risk, might face closure amidst these mounting financial pressures as the government considers cost-of-living measures but depends heavily on the alcohol tax’s revenue.
Global market dynamics and climate change are reverberating across everyday consumer staples.
As coffee lovers brace for these increases, it is questionable whether these pressures subside.
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