The robusta coffee bean is widely used in espresso blends as it is widely accepted that it produces a better creamy layer found on the top of a shot than arabica. However over the last year prices have reached their highest level for 29 years – 186.36 US cents/lb in March 2024. The cause of this increase is basic supply and demand
If we look at actual coffee prices in New Zealand the average price of a takeaway coffee around the country has risen to $4.74. That’s 64% higher than it was back in 2007 (which is the earliest we have nationwide data). As a comparison, consumer prices more generally rose by just over 50% over the same period. The cost of beans (arabica beans) has risen around 67%, milk prices are up 50% and the cost of labour in the hospitality sector has basically doubled. See graph below:
Source: Westpac Weekly Economic Commentary – 8th April
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