CARLOS UNFILTERED

Whinge if you like, but we still pay less than almost everyone

Whinge if you like, but we still pay less than almost everyone

Ninety per cent of the beans in this country arrive by ship. Once you know that, the price story makes sense.

Here is a fact that surprises most people, including a lot of people in the trade. Australia grows almost none of its own coffee. We produce something in the order of 500 tonnes a year domestically, against roughly 100,000 tonnes of green beans imported. Procurement analysts quoted in Time Out put our import reliance at around 90 per cent. We are one of the most coffee-obsessed nations on earth, and we are almost entirely at the mercy of other people's harvests to feed the habit.

That one fact explains most of the price pain of the last few years, and it is worth understanding properly rather than just being cross about. When we import nearly everything, two things we do not control decide what a bag costs before it is even roasted. The weather in Brazil and Vietnam, and the Australian dollar. When drought hit those two producers, global Arabica prices ran up around 100 per cent year on year at one point, according to Rabobank analysis reported in the trade press. At the same time our dollar softened against the US dollar, which is the currency coffee trades in. So the beans got dearer and our money bought fewer of them. A double hit, both entirely offshore, both landing squarely on your local roaster.

Now, there is a small and genuinely exciting counter-story. High global prices have given Australian growers, mostly in northern New South Wales and Queensland, a real incentive to plant and experiment. Local production is tiny and will stay tiny for a long time, because coffee trees take years to mature and our land and labour are expensive. It will never feed the national habit. But it is not nothing, and I am glad someone is having a go.

For the rest of us, the honest takeaway is a bit humbling. Australian coffee culture is world class, and it is built almost entirely on imported raw material we cannot influence. That is not a scandal. It is just the shape of the thing, and it is why your roaster cannot simply shrug off a bad harvest in Minas Gerais. They are as exposed to it as the farmer is.

What it means for you is mostly perspective. When prices move, it is rarely your roaster getting greedy and almost always a container ship, a drought and an exchange rate you never see. The best thing you can do is buy from people who source thoughtfully, tell you where the coffee is actually from, and treat that imported bean with the respect it earned crossing an ocean to reach your cup.

There is a fairness angle here too that rarely gets airtime. When you buy imported coffee, you are part of a supply chain that runs all the way back to a farmer in Brazil, Colombia, Ethiopia or Vietnam who did the hardest and least-paid work in the whole business. The best roasters care about what that farmer got paid, because a trade that only works when the grower is squeezed is not a trade worth defending. Good sourcing is not a marketing slogan. It is the difference between a coffee culture that lasts and one that quietly eats its own foundations.

Stay caffeinated. I'm out.
Carlos

Sources: Time Out Australia, Rabobank.