Emma McDougall, Communication and Administration Coordinator at the NZSCA
Facing numerous challenges in 2023 has become the norm for the specialty coffee industry. Those uncontrollable global conflicts, supply chain disruptions, extreme weather events, production costs, inflation, workforce management, acquisitions from overseas, and the growing demand for sustainable practices are constantly playing havoc with filling your cup.
Approaching 2024, it is crucial for everyone involved to understand that investing in your cup of coffee goes beyond your caffeine hit.
The New Zealand Specialty Coffee Association (NZSCA) encourages consumers to continue to perceive the added value of paying a premium for their coffee. It starts with getting your coffee in New Zealand. Global conflicts and political tensions coupled with changes in logistical operations have created shortages, delays, and increased expenses. These problems have posed significant challenges for roasters relying on imported goods and the coffee C price index. Importers have collaborated to combine containers to reduce import costs while others look at producing countries geographically closer to us rather than further afield African or South American coffees.
Every aspect of coffee has been subjected to rising production costs, including labour, transportation, raw materials, and inflationary pressures. Businesses are challenged to maintain profitability without compromising product quality. We are actively discouraging a race to the bottom. Integrity must remain at the heart of the delicious cup you hold in your hand. These challenges lead to creativity but at a price.
Cutting-edge equipment and ergonomic machinery continue to evolve in the hospitality space. The community connection in the café is important to the self-proclaimed Kiwi connoisseur. The choice to pay more reflects a commitment to fair compensation for everyone in the coffee supply chain while paying for those technological advances. Evolving consumer preferences, influenced by health concerns, social consciousness, and a desire for unique experiences, have forced the industry to adapt its marketing strategies and product offerings. Some café report that oat milk competes with dairy in a 50/50 split in sales.
New Zealand’s kaupapa reflects a deep appreciation for nature and sustainability. Paying more for your coffee supports sustainable practices in sourcing beans, utilising eco-friendly packaging, and logistics of getting the beans to you.
By strategically addressing challenges through technological adoption, sustainable practices, and innovation, businesses can position themselves for success in 2024. Embracing growth opportunities, staying attuned to consumer trends, and maintaining a commitment to transparency and sustainability will be key factors in navigating the complex landscape of specialty coffee.
In summary, paying more for your coffee in New Zealand is an investment in a uniquely Kiwi experience—brewed with care, infused with sustainability, and supporting the supply chain with community connection.
See more insights from the 2024 Buyer's Guide below:
