As global coffee prices continue to climb due to supply disruptions, people are wondering if home-grown Australian coffee could offer a solution to the soaring costs.
While the Australian coffee industry is expanding, experts say it will take years before local production can make a real impact in the market.
Australia is a nation of coffee lovers, but less than half of 1% of the coffee consumed across the country is actually grown here, ABC News reported.
Despite this, interest in Australian-grown coffee is rising, particularly in light of the soaring global prices. The recent weather disruptions in key coffee-producing countries like Brazil and Vietnam have led to a sharp rise in coffee bean prices. Arabica beans, in particular, peaked at AU$5.60 per pound in December 2023, the highest price seen since 1977.
With prices continuing to climb, some are turning their attention to the possibility of boosting local coffee production to cushion the market. However, industry insiders say that this will be a slow process.
Local coffee production struggles
Richard Gibson, who operates a small-scale coffee plantation on the New South Wales north coast, doesn’t believe there will be a sudden surge in demand for Australian coffee. Despite efforts to expand, he argues that local coffee production won’t be able to meet the demand in the immediate future.
“If we got hit with a bigger demand all of a sudden, the industry wouldn’t be able to handle it, currently,” he said.
Similarly, Denise Whitney, a grower based in Nimbin, is expanding her operation with over 40,000 trees and an additional 2,000 in the works.
While new growers are entering the market, she believes it will take years before Australian coffee can be produced in sufficient quantities to make a significant impact. According to Whitney, it will take at least three years before Australian coffee growers can produce a decent crop.
Land and labor costs pose challenges
For many coffee growers, land prices are a major barrier to expansion. Robert Jacques, a coffee grower based in Mareeba, Far North Queensland, highlights the rising costs of securing land with the right drainage, soil type, and water access. As land becomes increasingly expensive, finding suitable properties for coffee farming is becoming more difficult.
Labor is another factor driving up the costs of Australian-grown coffee. Rebecca Zentveld, president of the Australian Grown Coffee Association, notes that the labor-intensive nature of coffee farming means local production will always be more expensive than imported beans. Whether cafes, roasters, and consumers are willing to pay a premium for locally grown coffee remains a key factor in the industry’s future, she pointed out.
