The price of coffee beans are now at a record high of $14 per kilogram. File picture. Photo: Unsplash
A Wellington café owner says its coffee prices will increase by up to 30 cents per cup before end of the month, as the wholesale price of coffee continues to rise.
Wellington-based Flight Coffee director Richard Corney said the company had not increased its prices in the last year, despite rising commodity prices.
The price of coffee beans has now hit a record high at $14 per kilogram, the highest it had been since the 1970s, due to a global shortage of coffee beans.
"Retail and wholesale coffee as a product to manufacture is going up drastically," he said.
"Essentially roasters will be passing on those costs to their wholesale customers and cafe operators will also need to be passing on those costs if they are to sustain their cafe operations."
Corney said the cost of coffee by the cup had been too low, for too long, when compared to the other cost pressures facing hospitality over the last 10 years.
"It's essential that a correction of sorts happens, as we approach some really uncharted waters for the coffee industry here in New Zealand."
In time, it would also affect the cost of coffee at the supermarket, he said.
The entire global coffee market was affected by rising costs of coffee beans - from Starbucks to Nestle and other multi-national companies - who were all buying coffee under the same conditions, Corney said.
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