Instant Coffee Prices Surge, Leaving Consumers to Wonder When Relief Will Come
WELLINGTON, NZ – New Zealand consumers are facing a significant jump in the price of instant coffee, with costs rising 25.5 percent in the past year to an average of $7.88 per 100g, according to Stats NZ data. The increase is impacting household budgets,with shoppers reporting price hikes of several dollars per container.
“I think for the refills of the Moccona coffee it was like maybe $6 or $7 and now it’s like nearly $11,” one listener shared with Morning Report. Others noted price variations depending on the retailer, ranging from $6.50 to almost $10. “It’s a necessity, right?” another shopper commented.
coffee Supreme chief executive Andrew lowe attributes the price surge to a confluence of global factors. These include drought conditions impacting coffee-growing regions, increased demand from China, a weaker New Zealand dollar against the US dollar (the currency in which coffee is traded), and disruptions to the supply chain caused by geopolitical instability.
“We’re seeing a 300 percent increase in the cost of green beans compared to this time a year to a year-and-a-half ago. And that’s incredibly high,” Lowe explained.He added that renewed contracts between global corporations like Nestle and coffee growers, following years of farmers operating at below-cost, are contributing to the “aggressive spike” in instant coffee prices.
while farmers are now investing in increased production by planting new trees, Lowe cautioned that it will take two to three years for these crops to mature and considerably impact supply. Specialty coffee, he noted, is less susceptible to these volatile commodity market fluctuations.
Coffee Supreme is actively working to mitigate costs through collaboration with farmers and streamlining processes, but a return to more affordable instant coffee prices isn’t imminent. consumers will likely need to adjust to the higher costs for at least the next year, with substantial relief dependent on future harvests.
