Coffee could be $5 a cup by Christmas

Coffee drinkers should prepare to take another hit – and not just from the caffeine.

The world price of beans is at a 34-year high, fuelled by weather damage to crops and increased demand.

Suppliers say a 20 percent rise per cup is on the way and one retailer predicts a take-out cup will cost $5 by Christmas. They say they’re paying 50 percent more than they did a year ago and fear there is no end in sight.

It’s not just the big boys who are struggling. At smaller retailer Emporio, owner Eric Heycoop says they can’t absorb any more and his forecast is grim.

“Possibly coffee could be $5 in the cup by Christmas time,” he says.

It’s not just the cost of beans going up, it’s also the milk – meaning more people are turning to espressos, because they’re cheaper.

But there’s at least one place that isn’t putting up prices; a flat white has been $3.50 at Midnight Espresso for years and manager Nicole Duke says they won’t budge.

“We’ve got a lot of students and they can’t afford to spend a lot of money. So if we’ve got lots of them turning over, we’re making a bit constantly.”

Café prices in general are on the rise and with more crop-damaging weather predicted for South America, that coffee treat is only going to get more expensive.

From: 3news.co.nz