Cost of living: These are the reasons why coffee prices have gone up

On days when hundreds of thousands of Israelis travel around the country during the Passover holiday, one of the most consumed products is coffee, especially for drivers who spend hours in traffic jams and are looking for ways to refresh themselves. In general, sitting down for a cup of coffee is a common pastime, but it seems that soon it will become a pastime for the rich only. When the price of a cup of coffee reaches up to 16 shekels, and that is without mentioning additives that make it even more expensive, such as special milk, it is difficult to remain indifferent. True, we have often heard the explanation for the rise in the price of disposable dishes and coffee beans – but do these really justify the high price?

Walla! Set out to review the prices of the popular drink from the north to the south of the country, and examine how the rise in prices in the market has affected cafe owners and customers. And also – we checked where Israel is located compared to the world.

the reasons

The recurring reasons we have heard for the high pricing of a cup of coffee are the price of the disposable utensils and the tax on them, the rise in coffee bean prices, the general wave of price increases in the economy, a shortage of workers and ricochets from the corona.

Despite the tendency to think that fair trade is another reason for the rise in coffee prices, it seems that this is not the case and fair trade will not be paid more than another 0.2%. Fair Trade This is a trade method that ensures fair conditions for farmers, and especially a fair price for the product they produce. A farmer who works without fair trade gets only five cents for a cup of coffee, while a fair trade farmer gets 15 cents.

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Raz Frogel, CEO of Israel’s Fair Trade, explained that Starbucks moved to work under fair trade terms and did not raise prices. “I call on cafes in Israel to move to work under fair trade conditions for both the farmer and the consumer,” he said.

Like Lake You Too (Photo: Nofar Friedenberg)

Name of the cafe: We Like You Too
Location: Tel Aviv
Price range for coffee per cup: NIS 16-10

“A month ago, we had to raise prices due to the wave of price increases in the economy that also affected us,” say Elon and Yaffa, employees at the cafe. “The price of coffee went up, but in order not to hurt customers and absorb as much as possible, we left the pricing of all types of milk as it was,” they explain. We also noted that the coffee in the place is imported from South America and Costa Rica and the water used is minerals, and their price is embodied in the pricing of the cup of coffee.

Yael, a customer at the place, said she was helpless in the face of coffee prices. “I know lied, everywhere is expensive. I bought the coffee without looking at the price because I know there is nothing to do.”

Shahar, a resident of Jerusalem, said that before he left for Tel Aviv, he drank his coffee at home. “The prices in Tel Aviv are unimaginable and I do not feel like coming to this city. Coffee is assimilated into Israeli culture and it is impossible to sit down today for a meeting that is not over a cup of coffee. .

Cafe 5 (Photo: Shlomi Heller)Cafe 5 (Photo: Shlomi Heller)

Name of the cafe: Cafe 5
Location: Jerusalem
Price range for coffee per cup: NIS 10-5

“I sell coffee for five shekels and do not make a shekel on it,” says Baruch, one of the business owners. “I try to profit from the products around, but from the coffee nothing. Before the tax on the one-time I would earn a shekel and a half on a cup of coffee and they took that too,” he said. He further noted that he understands chains that raise prices in order to make a living. “I earn less because I am not willing to raise the price, but that is what there is. I feel that at this price I am allowing social justice, but neither the government nor the municipality are doing enough so that we can earn a decent living.”

Cafe Au (Photo: Yoav Itiel)Cafe Au (Photo: Yoav Itiel)

Name of the cafe: Oa
Location: Haifa
Price range for coffee per cup: NIS 15-8

“In recent years, prices have dropped, but after the holidays we will raise prices. The stickers are ready,” said Ophir Azoulay, the manager of the place for seven years. “Competition has intensified, the raw material has become more expensive and this is before the expenses of import and transportation. Green coffee has doubled in price in the last year and also the price of disposable cups following the new tax,” Azoulay described. He goes on to review the difficulties and considerations in pricing a cup of coffee and notes the corona crisis, the fires in Brazil and the shortage of workers.

My Father's Empire (Photo: Yanir Yinga)My Father’s Empire (Photo: Yanir Yinga)

Name of the cafe: My father’s empire
Location: Netivot
Price range for coffee per cup: NIS 9

“Our coffee is the cheapest in the city and compared to the center in general by a large margin, but unfortunately we raised the price per cup in the last year in shekels,” says Avichai Klimi, the business owner. He said the price of disposable cups, taxation, the price of coffee beans and electricity went up and therefore had to raise the price. “The government is not doing enough so we are forced to raise prices against our will. Customers have accepted the price increase but they are also angry about the cost of living,” he noted.

Karnaia Cafe (Photo: Eli Ashkenazi)Karnaia Cafe (Photo: Eli Ashkenazi)

Name of the cafe: Cafe Karina
Location: Ramat Hashofet Junction
Price range for coffee per cup: NIS 14-8

“In the past year there have been price increases for coffee beans and disposable utensils,” described Gerry Millrod, the owner. “Despite the increases the price with us did not go up to the customer and we do not pay extra for special milk. It is important for us to keep Karin’s spirit in place and behave as she would like,” he said. Karin, Gary’s wife, set up the cafe about two years ago and died about three months ago after a battle with cancer.

Teller Cafe (Photo: Bini Ashkenazi)Teller Cafe (Photo: Bini Ashkenazi)

Name of the cafe: Teller
Location: Reut
Price range for coffee per cup: NIS 9-12

According to the branch manager, Aviad Jamani, there has been no price increase at the place recently. If so, a customer at the place said that “very expensive here. I generally buy from the writer near and sit here because it turned out to sit here, but expensive bombs.” Meir, another customer at the place, said he thought the prices were reasonable. “It’s fun to sit here but if they raise the price I will consider again whether to come back here,” he noted.

And what is the situation in the world?

The price of a cup of coffee, according to the World Coffee Index for 2021:

South Korea – $ 7.77
Japan – $ 5.29
France – $ 4.82
Jordan – $ 3.86
United States – $ 3.77
The Netherlands – $ 3.69
Germany $ 3.67
New Zealand – $ 3.3
Canada – $ 3.11
Italy – $ 2.47
Cuba – $ 1.97
Brazil – $ 1.89
Ukraine $ 1.76
Iran – $ 0.46

The largest consumer of coffee in the world is Luxembourg, with 11.1 kg per capita per year. The countries that consume the least coffee are Nepal, India and Pakistan, where they drink less than 0.1 kg per capita per year.

Assisted in the preparation of the article: Nofar Friedenberg, Uri Sela, Bini Ashkenazi, Yoav Itiel, Shlomi Heller, Eli Ashkenazi, Yanir Yagana and Tali Goldstein, Walla !.

Source: – כלכלה בארץ by

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