Revealed: Why Australians could soon be paying $7 for a flat white – and why farmers don’t see a future in growing coffee
- Climate change has made it hard for farmers to grow large amounts of coffee
- Large corporations buy coffee from small farmers well under production costs
- Farmers might abandon coffee and move onto more sustainable industries
Australian coffee-drinkers could soon pay $7 for a flat white because coffee farming has become so unsustainable, one industry expert has claimed.
Mark Dundon, 57, co-owns Seven Seeds cafe in Carlton, an inner-north suburb of Melbourne, and has been a part of the cafe scene for 18 years.
He says climate change is making it harder for farmers in South America and South-East Asia to grow coffee and once they sell their product to major companies, the price they receive is often below the production costs.
He believes the price of coffee could explode because producers are abandoning the industry for better work.
Australian coffee-drinkers could soon pay $7 for a flat white due to farmers affected by climate change and producers at the mercy of the large corporations, according to one expert (stock picture)
‘Coffee is going to become really expensive – maybe $7 a cup. There’ll be a shortfall, prices will spike and cafes will go out of business,’ Mr Dundon told The Sydney Morning Herald.
Mr Dundon believes people will be forced to change their coffee habits to drinking two cups a week rather than two or three a day.
He said the entire coffee-drinking culture is likely to change and cafes will employ less staff to help cut costs.
The cafe boss said climate change is making it extremely difficult for farmers who are turning away from the industry in droves.
‘They will look at avocados, bananas, coca, depending on where they are, or they’ll just walk off the farm and sell cigarette lighters in Bogotá,’ he said.
Mark Dundon, 57, co-owns Seven Seeds cafe (pictured) in Carlton, an inner-north suburb of Melbourne, and has been a part of the cafe scene for 18 years. Mr Dundon said climate change is making it extremely difficult to grow coffee and farmers will move to other industries in order to survive
Most coffee is grown in poor countries with the biggest producers being Brazil, Vietnam, Colombia and Indonesia.
Out of around 25 million coffee farmers, the vast majority, are small and own only a hectare or two of trees.
The biggest importers of coffee from these countries are the US and Germany, who purchase the product for well under the production cost.
Companies within the US and Germany, such as Nestlé and Starbucks Corporation, dictate the price they will pay for the coffee leaving farmers struggling to survive.
Most coffee is grown in poor countries with the biggest producers being Brazil, Vietnam, Colombia and Indonesia (stock picture)
Future coffee traders are looking to lock in low prices for coffee before the small farmers have had a chance to grow it, so they are already far behind before they’ve started production.
The current system hugely benefits large corporations by maintaining a supply of cheap, mass-market coffee.
Small farmers are finding the coffee industry unsustainable and they don’t have the power to set their own prices or access companies who will pay more for better quality coffee.
‘The price is the lowest it’s ever been. Farmers don’t see a future in coffee. If farmers don’t get more for their efforts, the industry is at risk,’ Mr Dundon said.