Australia's Coffee Industry Brews Up Major Expansion Amid Surging Local Demand

Australians are some of the world's most dedicated coffee consumers, yet less than 1 per cent of the coffee enjoyed across the country is actually grown domestically. However, as the harvest season gets underway on the Atherton Tablelands in Far North Queensland, local growers and researchers are confident there is immense room for the home-grown coffee sector to thrive.

A combination of rising demand from consumers, enhanced farming techniques, and trials of new coffee varieties has sparked strong optimism that Australia can soon supply a much larger portion of its own beans.

Unlocking New Growing Potential

Tobias Kretzschmar, a professor for plant breeding and genetics at Southern Cross University, has spent years evaluating different coffee varieties to see which perform best in Australian conditions. While he acknowledges the industry won't completely replace imports, he sees a bright future for niche growth.

"We're never going to be mainstream so we can't ever meet the total demand of Australian coffee even if we ramped up with maximum potential," Professor Kretzschmar said. "What we're looking at is a sustainable intensification."

He added: "I expect we can expand quite massively with the shift in consumer preferences, but also because we are starting to get competitive in terms of pricing."

Professor Kretzschmar's research has successfully singled out four highly promising coffee varieties, which are now being scaled up by growers on commercial farms. While the country's coffee production has historically been concentrated in northern New South Wales and Far North Queensland, there are plans to test new frontiers.

"We're now going to test whether or not we can grow coffee in Western Australia but also expand production areas in the established regions," he said. "That would allow coffee to become a bigger product in the Australian coffee industry and market."

Diversifying the Agricultural Landscape

This expansion comes at a time when other agricultural producers are looking for alternative crops. Professor Kretzschmar noted that avocado growers, in particular, are showing a strong interest in coffee cultivation.

"One of the key drivers we're realising is there's been an overproduction of avocados in Australia," he said. "There's too many avocado farmers that are looking to diversify."

He explained that the environmental conditions for the two crops are highly compatible: "Traditionally, if you can grow an avocado, it's pretty much the right climate and soil to be growing coffee as well, so that's worth trialling." Additionally, macadamia growers are also exploring coffee as a viable alternative crop.

Growers Experience Unprecedented Demand

In Far North Queensland, coffee grower Jack Murat is already putting some of these new varieties to the test on his plantation. He is actively expanding both the volume and variety of his crops.

"We'll be planting … another 80,000 plants [this year]," Mr Murat said.

According to Mr Murat, less than 0.5 per cent of the coffee consumed nationally is produced, grown, and roasted within Australia. "If we can increase that a couple of per cent, we'll be happy," he remarked.

He has observed a clear shift in consumer behavior over the last five years, with more people actively seeking out home-grown options. "I think the demand for Australian grown and produced coffee, but produce in general, is generally pretty good because we have a good standard of quality," he said. "I don't see why the consumer can't keep expanding and exploring the Australian growing route."

Further north in Mareeba, coffee grower Rob Jaques is preparing for an exceptionally strong season. "We were looking at one of the biggest harvests we've ever had, and it's now being confirmed it is the biggest harvest we've ever had," Mr Jaques said.

Over the last four years, his customer base has expanded by 20 per cent year-on-year. He believes the potential for growth remains enormous. "The market there is huge. It's imported coffee from around the world otherwise, and more people are coming to the realisation that Australian coffee is good," Mr Jaques said. "There's a few more people growing coffee in Australia now, which is really bringing up the profile of the Australian coffee."