Australian coffee growers struggle to capitalise as bean price soars

Australian coffee growers struggle to capitalise as bean price soars

Australia is a nation of coffee lovers, but less than half of one per cent of the coffee consumed across the country is grown here.

Bad weather over the past year in key coffee producing countries such as Brazil and Vietnam has sent the price of coffee beans soaring.

The global price of Arabica beans peaked at US$3.47 (AU$5.60) per pound in December last year, its highest price since 1977.

So could this trigger a boom in demand for home-grown coffee?

Grower Richard Gibson does not think so.

He owns a small-scale coffee plantation at Teven, on the NSW north coast.

“If we got hit with a bigger demand all of a sudden, the industry wouldn’t be able to handle it, currently,” he said.

“Everything that’s being produced is being sold — there’s no real excess for someone to come in and say, ‘I want 20 tonnes of the product’.”

Nimbin-based grower Denise Whitney said she had more than 40,000 trees on her farm and was in the process of planting another 2,000.

Denise Whitney is expanding her coffee plantation as demand increases. (Supplied: Denise Whitney)

Ms Whitney said while producers were expanding and new growers were entering the market, it would still be some time before more Australian coffee was available.

“It’d probably be three years before they get a decent crop,” she said.

“But it would be good for [cafes and roasters] to explore both options to see if they can supplement their imported coffee with Australian coffee.”

Challenges to increasing supply

Coffee roaster Charelle Harkins primarily imports beans to process at her facility at Grassy Head on the NSW mid-north coast, but her company has been looking at Australian suppliers.

Charelle Harkins is exploring local options for sourcing beans. (Supplied: Charelle Harkins)

“We see a lot of potential for Australian coffee to cushion the market to some degree, so we’re not so dependent on the importing of coffee from other regions,” she said.

But Ms Harkins agreed the amount of Australian coffee being grown was tiny in comparison to the demand.

Coffee grower Robert Jacques, based at Mareeba in Far North Queensland, said land prices were a major barrier to expanding the Australian industry.

He said finding land with the right drainage and soil type, enough water, and accessibility for mechanical harvesters was becoming increasingly expensive.

Coffee requires specific growing conditions to be commercially viable. (ABC Rural: Kim Honan)

“To actually start a farm, to buy the land for 100 acres [40 hectares], you’re looking anywhere in excess of $1 million to $3 million to get the block of land to get started,” he said.

Australian Grown Coffee Association president Rebecca Zentveld said the cost of labour was adding to the final cost of coffee grown here.

“We can never be competitive based on price,” she said.

“Australian coffee is competing on quality, specialty and … ethical production values.”

Rebecca Zentveld would like to see Australian coffee receive more attention. (ABC North Coast: Kim Honan)

Ms Zentveld said a lot depended on whether cafes, roasters and individuals would pay more for Australian produce.

“I feel that will be valued in the years to come with the recognition that coffee is rare and what if we couldn’t bring in the imported coffee?” she said.

“Everyone suddenly turns around and looks to Australia and goes, ‘What have we got here?'”

Ms Zentveld said Australian coffee had its own unique taste.

“It depends on the micro-climate — what type of soil, how much rainfall — all those factors affect taste, just like wines will vary in taste depending on where the grapes are grown.

“Subtropical NSW and south-east Queensland coffee is … chocolate, berry, sweet, and Far North Queensland coffee is more chocolate, nutty, biscuit [in] taste.

“More than other coffees of the world, ours is known as generally a sweeter coffee than most.”

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