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Coffee

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Synopsis – Australian Industry

The Australian coffee industry is mainly located in the northern rivers area of New South Wales and the Cairns/Atherton region in Queensland.  The advent of machine harvesting techniques has re-invigorated the Australian coffee industry through reduced labour costs, a key barrier to its competitiveness.  Australia has the advantage of being free from the main diseases and pests that affect many of the coffee producing regions in the world.   Growing high quality coffee requires fertile land in a climate that is free of frosts, but with good rainfall, temperature and humidity.  In 2006-07, there were around 590 hectares of coffee planted in Australia, producing 973 tonnes of dry green beans.


Year

Gross value of Prod’n
$ ‘000

Exports 
$ ‘000

Imports
$ ‘000

Estimated number of growers

2006-2007

7,780

~120 tonnes

280,750

149

 

Background

The two most important types of coffee grown commercially are Coffea arabica (arabica coffee), accounting for around 63 per cent of world production, and Coffea canephora (robusta coffee).  Two other types that are grown on a much smaller scale are Coffea liberica (liberica coffee) and Coffea dewevrei (excelsa coffee).
Arabica coffee is produced in more temperate and elevated regions than robusta coffee.  Brazil, Vietnam, Indonesia and Colombia are the largest producers and exporters of green coffee beans. Countries in north America and Europe have strong export industries based on the blending and roasting of imported green coffee beans.  Total world trade in coffee products averaged more than US$12 billion in the three years to 2005, around two thirds of which was trade in green beans.

Mild Arabica types command price premiums compared to robusta types in world markets.  Since the mid 1990s, the emergence of Vietnam as a major coffee producer has put downward pressure on world coffee prices.  There is a niche market for decaffeinated coffee stemming from health concerns over caffeine consumption.  Decaffeinated coffee makes up around 3 per cent of world trade in green beans and around 7 per cent of world trade in roasted beans.

Australia imports coffee in various forms worth $281 million in 2006-07.  Australia also exported $45 million of coffee products in 2006-07 but a large part of the export industry is based on the processing of imported coffee beans.  The Australian coffee industry virtually grows only the high quality arabica coffee beans used in the specialty or ‘roast and ground’ market.  Although there are constraints on suitable land and many competing alternative land uses, a number of producers are obtaining premium prices for their produce.  If this trend continues, it may enable the industry to compete economically with alternative land uses.

Australian coffee production is projected to increase to around 1400 tonnes by 2012, reflecting the maturing of existing coffee plantations.

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