And why you’re paying more for your morning cup
Australians are waking up to a bitter truth: coffee is getting more expensive.
From bustling cafés to supermarket shelves, the price of coffee has surged. And it’s not just inflation. Behind every cup lies a complex mix of global pressures: climate volatility, supply chain disruptions, rising production costs, and currency fluctuations. Together, these forces are reshaping the economics of one of the world’s most beloved drinks.
A Steady Climb
In 2025, the price of coffee in Australia has jumped significantly. According to La Marzocco Australia’s Future of Coffee Report, the average price of a cup has increased by 37.5 percent since pre-pandemic levels, moving from $4.00 to around $5.50. In major cities, flat whites now range from $6.00 to $7.00, with iced long blacks reaching $8.00. In some regional areas, prices are nearing $10.
So what’s behind the rise?
Climate Pressure
Coffee is highly sensitive to climate. Rising temperatures, erratic rainfall, prolonged droughts, and the spread of disease are all making cultivation more difficult, especially in regions that have long been the backbone of coffee production.
In countries like Brazil, Colombia, and Vietnam, extreme weather has already reduced yields and disrupted harvest cycles. As climate patterns shift, producers are being forced to adapt, moving to higher altitudes, changing farming methods, or in some cases, abandoning coffee altogether. These pressures are already affecting global supply, and the challenges continue to grow.
Rising Production Costs
From fertiliser to freight, almost every input in the supply chain is now more expensive. Labour shortages in farming regions, higher transport costs, and increasing demand for ethical and environmentally responsible farming all contribute to the pressure.
For the small-scale producers we work with, covering these rising costs while maintaining quality is a daily challenge. It is one we support through direct, transparent partnerships.
Market Volatility
Coffee is traded globally in US dollars. The recent depreciation of the Australian dollar and global trade tensions means green coffee imports now cost more. At the same time, global shipping remains disrupted and freight costs are up.
Demand for coffee continues to grow, especially in emerging markets. When that demand runs up against shrinking harvests, prices naturally rise.
The End of Cheap Coffee?
Some argue that coffee was too cheap for too long. Especially when its quality was hidden behind milk and sugar. As the industry shifts, we are seeing fewer shortcuts, more transparency, and a deeper focus on sustainability.
As a roaster, we source green coffee directly from producers and importers. The cost of high-quality lots has risen sharply in recent years, especially for the varieties we work with — like Caturra, Castillo, Colombia, Tabi, Pink Bourbon, and SL28. These are often grown at higher elevations and require more labour-intensive cultivation and processing.
We pay more for traceability, sustainable practices, and flavour integrity. That affects the cost of beans both in our café and on our shelves, but it reflects a commitment to doing coffee properly, from farm to cup.
At Modus, we believe in paying more for better coffee. That means supporting the producers we work with, ensuring they are fairly paid and able to continue growing exceptional coffee in a changing world. Higher prices are not just inevitable. They are necessary if coffee is to have a future.
Still have questions?
We are always happy to share more about how we source and roast. Drop by the café or get in touch. We love talking coffee.
