Caffeine enthusiasts in Aberdeen and the shire face a bitter brew as the cost of coffee beans hits a record high on global markets.
Coffee roaster Brian Milne who owns MacBeans in Little Belmont Street, says it’s “a scary time to be buying coffee”.
He roasts one-and-a-half tonnes of coffee beans every month to supply trade and direct customers in the north-east
And he says cafes will have to put their prices up to absorb the extra cost – which comes on the back of hikes in energy bills and staffing costs.
Tough time to be in coffee business
“The current market is fierce and is showing no signs of slowing down,” he added.
“This will make new forward purchases of coffee very painful.
“Add that to other costs such as National Insurance increases and minimum wage increases and it means it’s a tough time to be in the coffee business just now.”
The price for arabica beans, the world’s most popular variety, has risen more than 80% in 2024, reaching £2.70 a pound this week.
This has been blamed on extreme weather and poor harvests in Brazil and Vietnam, the world’s two largest producers.
“It’s probably gone up about 30-40% recently,” said Brian.
“That cost is going to go up, which means the price is going to go up for the coffee that we sell to our trade customers, if they are running cafes then they are going to have to go and put their prices up.”
Aberdeen coffee roaster on price impact
Brian says coffee bean prices are being pushed up even higher by speculators.
“The actual coffee buyers who need coffee aren’t the people who are buying coffee right now,” he said.
“At the moment the market is being pushed up by speculators.
“If it stays high then at some point the people who need to buy coffee are going to have to buy coffee which might then prop it up at that high level, so it’s a real drama.”
Brian forward-buys his coffee and his current beans were contracted at the beginning of the year, when prices were lower.
“But I am coming to the end of those contracts and I’m having to contract new coffee and I’m already seeing increases in the market.”
Price rises expected
Aberdeenshire roaster Paul Paterson of Kilted Coffee says local hospitality venues are already struggling with increased costs, before adding a hike in beans into the mix.
One of his customers is the popular Inverurie cafe No.8 High Street. Its owners announced it will close on Christmas Eve citing “unsustainable” running costs.
Meanwhile, Mintlaw-based Kilted Coffee is working to cope with rises in the cost of gas and electricity, delivery charges and packaging.
“For the customer, every aspect of what goes into making a cup of coffee has increased,” said Paul.
“When I started in 2019 I paid £3.50 to £4 for one kilo of single origin direct trade Brazil [beans].
“Now I will struggle to get a good source direct trade Brazil for under £5.50 per kilo.”
Likewise, Paul says pressure is mounting to up his prices.
“My wife Kim runs the company day-to-day and we’ve managed to keep prices relatively low and quality high only because I also work full-time in the oil and gas industry,” he explained.
“But if I want to have a future for Kilted Coffee, I will have to start increasing my prices.”
Conversation