Why you pay up to $9 for a fresh juice

Willoughby juice bar owner Saif Kamran said some of his Healthy 19 customers complained after he raised the price of a small cup of juice from $5.50 to $6.50 and a large mug from $7.50 to $8.50. The Devondale milk he buys at the supermarket for his smoothies has gone from around $1.30 to $1.60 a litre.

“Everything goes up – the oranges, the apples,” he said.

Molly Bradfield manages Melonhead in Coogee.Credit:Brook Mitchell

NSW Farmers Federation Guy Gaeta, who grows apples and cherries in Orange, says farmers are not getting extra profit from their produce.

He says the cost difference between the apple he grows and the ones he crushes to make juice is taxed throughout the supply chain. He said a watermelon would have to cost more than $20 to justify the $7-9 cost of a glass of juice.

“Everyone makes money except the producer and the poor consumer who has to pay,” he said. “Farmers still receive the same money on average. ”

Restaurant and Catering Association chief executive Wes Lambert said the cost of wages in the hospitality industry had risen sharply due to understaffing.

He said Australians had been underpaying for many years because companies had kept prices low to avoid losing business to competitors. But most hotel businesses had now raised prices by 10-20% to cover higher product prices through supply chains, rent and labor.

“Many hotel companies hadn’t raised prices significantly in nearly a decade, with consumers conditioned to pay $4 for a coffee and $28 for a steak for most recent souvenirs,” he said. -he declares.

“COVID was the straw that broke the camel’s back and hotel businesses were forced to raise prices because the cost of doing business was more than previous prices could bear.”

While a similar amount of labor could go into serving a $9 fruit juice and a $4 cappuccino, Mr Lambert said the wholesale cost of milk and coffee was “almost nothing compared to the price fruits”.

Paul Signorelli, managing director of the Doltone House group of more than 30 event venues, said its costs “from paddock to plate” had increased. He said transport costs and labor costs, including those of fruit pickers and hospitality staff, had driven prices up.

Inflated pricing

  • Eastern suburbs and north shore juice bars, freshly squeezed juice (regular cup): $6.50
  • Sydney Eastern Suburb Cafes, Cup of Juice: $8-$9
  • Sydney Lower North Shore cafes, cup of juice: $7-$9
  • Balmain coffee, juice cup: $7 to $8
  • Cup of Parramatta coffee, juice: $7
  • Penrith coffee, cup of juice: $7

“The cost of goods has gone up at least 25%,” he said. “From the farmer, to the truck driver, to the supplier, to the restaurant paying the labor, everything has gone up.

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“In my business, meat, fish, fruits and vegetables have increased due to supply chain and availability.”

In its half-year earnings announcement last week, Coles said inflation in the cost of red meat “was more than offset by deflation in fresh produce, primarily fruit, due to favorable growing conditions.”

A Woolworths spokesman said while there has been shelf price inflation across the red meat and packaged grocery industry, fresh fruit and vegetables have been deflationary throughout this exercise.

“Favorable growing conditions in many parts of Australia have provided ample supplies of fresh fruit and vegetables, driving prices down across the category,” a spokesperson said.

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