Whilst there is known to be such a thing as a ‘caffeine tax’, prices of the (arguably most popular) autumnal drink are skyrocketing as of late. Here is why:
About 63% of people in the UK drink coffee regularly. According to a survey by Statista, the average person consumes an average of 2 cups a day - myself included - and the increasing cost of their daily habit is beginning to cause these people distress.
The average take-away coffee costs £3.40, with an added charge for non-dairy milks and extra flavourings. This is due to a combination of many reasons, all of which come down to the “cost-of-living crisis” - a term thrown around very frequently as of late. But what does it actually mean? The term refers to the scenario in which the cost of everyday essentials like energy and food is rising much faster than average household incomes are, meaning people are unable to afford necessities with only their wages. This is what the UK is experiencing right now, and what makes the daily 98 million cups of coffee cost more than we would like!
The Source
Firstly, coffee beans are sourced from countries such as Brazil, Colombia, Kenya, Ethiopia, and Sumatra, where fairtrade projects are often located. The coffee bean price has soared from just over $2 per kg to $4.45 per kg today. What’s more, because of climate change and average global temperature increasing, the annual yield of coffee in Brazil (which accounts for 35% of the UK supply) is at its lowest for 12 years!
Higher temperatures will also affect the quality of coffee. Higher-quality coffee is grown in specific regions of the world where the climate allows the beans to ripen at just the right time. Arabica Coffee, for example, which represents 75% of world coffee production, is always just a few degrees Celsius away from becoming a sub-par product. This has also led to coffeehouses and brands wanting to act more ethically concerning where they source their coffee from. Although it means a higher cost for the roast beans found in a cafe, or the instant granules in your kitchen, it ensures farmers are paid a fair wage for their services and products. But, fairtrade has been in operation since 1992, so there are surely more significant factors.
Cafes Can’t Cope
Owning a coffee shop - whether it is a chain like Starbucks or your local, idyllic coffee house - is extremely hard, expensive work. It comes lumped in with a rough monthly price of £20,000, which factors in rent, food, water, gas, electricity and wages. Since goods prices have increased, this has led to rent prices and electric prices increasing too.
So, imagine you too owned a cute little cafe with a catchy title? What would you do? Or what if you worked in your nearest Costa shop? You’d expect to get paid. So, with climate change messing up the growing environment globally and the local prices for gas, water and property also being forced to increase because of climate change, the owners of coffee shops are in a corner where they must increase their prices to get by.
Upon further research of coffee prices around Europe, I’ve found that many countries in the EU are not experiencing the challenge of extortionate coffee prices. Here’s why:
“Higher shipping costs have also contributed,” claims a Lavazza Chairperson. Since October last year, vessels have been forced to take the longer route around the bottom of Africa to avoid attacks by Houthi rebels in the Red Sea. This is difficult situation for a coffee company that sources beans from countries in Asia and east Africa, Lavazza said. Whilst this is a challenge, landlocked countries in Europe find it easier to access coffee and therefore do not have this to factor into their coffee prices. So, perhaps if you’re holidaying in Europe this winter, take extra advantage of the cheaper coffees!
On top of this, new EU restrictions over shipping products have disrupted supplies from Italy to the UK. If this continues, and farmers cannot meet new regulations, coffee will become a luxury for the population! How would the Gilmore Girls cope?!
To save you from the tragedy of a coffee cut-off, I have tried and reviewed different coffees, ranking from cheapest to chain café, to see if there is a solution for the rising prices.
· Aldi Essentials Instant coffee (milk and a sweetener for me)- around 20p per coffee
· Leventhorpe latte – £1.70 (large)- too hot at first to taste anything but not bad on the whole
· Greggs - latte £2.00 - So nice, couldn’t believe it; rich and frothy (My Winner!)
· Starbucks - latte- £3.25- Just as good as Greggs Latte; nice foam art, good balance of smooth milk and bitter espresso
So to conclude this caffeine-crazy journey; whilst the prices for coffee are being driven up faster than you can sip your pumpkin latte, it must be said it’s just karma for our neglect of the planet. We’ve caused a warming planet, so if we have to make sacrifices and settle for the school coffee, surely we can survive.
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