Global coffee prices have surged owing to unfavourable weather conditions in key nations like Brazil and Vietnam, the leading producers of Arabica and Robusta beans. The coffee brewed from these renowned beans is enjoyed globally, including in Malaysia.
Arabica beans reached nearly US$3.50 (RM15.75) per pound (450g) last month, marking its highest level since 1977 – a staggering 83% increase. Robusta beans, too, saw a sharp price jump, rising 73% to US$5,885 per tonne in November.
Malaysian coffee drinkers would undoubtedly experience the impact of the shortage in the intake and price of their brews. Coffee enthusiast Luqman Hakim Kamaruzzaman, 29, told Bernama he spends RM120 to RM150 weekly on coffee.
To him, anything beyond RM15 a cup is expensive, “so I’ll be more selective about choosing the right cafés”. He added: “I can brew my own coffee by finding a local coffee roastery, buying my own coffee beans and grinding them myself, and that’s how I can save.”
Nurul Huda Muhammad Noor, 45, shared that the rising cost is making her reconsider indulging in her favourite drink as frequently as before.
“I am definitely a strong coffee lover, but now I have reduced it a bit due to health and financial factors. I will definitely reduce my consumption, saving it for special occasions and outings,” she said.
On the other hand, Ahmad Hijazi Mohd Faizal, who spends roughly RM30 weekly on coffee, would opt for cheaper options, such as local products or small roadside stalls that offer more affordable beverages.
However, the 27-year-old acknowledged that not all local coffee shops can satisfy his taste buds, owing to the quality of coffee beans used.
According to the statistics department, Malaysia imports most of its coffee beans from Vietnam, Indonesia and Brazil, and the average Malaysian consumed 2.2kg of coffee in 2022, a 5.2% increase from 2017.
Meanwhile, local café owners who import beans and sell specialty coffees are now faced with the challenge of rethinking their pricing strategies. Hijjaz Suhaimi, owner of Rendevú Coffee in Wangsa Maju, said in the face of skyrocketing green coffee bean prices, difficult decisions now have to be made.
“However, as long as businesses maintain strong branding and adapt to cultural trends, demand will persist, even with higher prices,” he opined.
Hijjaz’s café imports green coffee beans from Guatemala, Ethiopia, Brazil and Mexico. To offset the rising cost of buying roasted coffee – up to RM100 per kg – he said roasting the beans themselves is a more cost-effective solution that allows them to produce the same quantity for RM40.
For Che Wan Sufian Che Wan Abdullah, owner of Kampung Brew, the global coffee bean price hike is worrisome for local owners. “We have not received any official notices from suppliers yet, but the recent sales and service tax hike and minimum-wage adjustments have already driven up costs for items like coffee, cocoa and milk.
“If the coffee bean price hike happens, most cafés will be forced to raise their prices,” he told Bernama at his Ampang outlet recently.
Nevertheless, he remains optimistic that customers will continue to support local businesses despite price increases.
As for Ellina Amin, the owner of Whatever Works Coffee in Kampung Datuk Keramat, her business is keeping its beverage offerings stable for now, as current bean prices offer enough flexibility for her to adjust in-store prices without drastic hikes.
Still, entrepreneurs and consumers alike may agree that perhaps it is time for Malaysia’s coffee industry to achieve greater recognition as a specialty-grade producer, which could help reduce reliance on imported beans and enhance the local coffee market.
In the meantime, perhaps it is best to sit back and smell the coffee.