Coffee drinkers could be hit in the pocket because of the rising cost of raw ingredients.
The increases are beginning to filter down to customers and the days of paying less than $4 for a coffee could be at an end.
"The consumer gets a great deal at the moment, coffee in New Zealand by international standard is really cheap," Chris Dillon from the Coffee Roasters Association says.
But cafes are facing rising milk prices and the price of coffee beans has surged to a 10 year high on the international commodity market. Cocoa is also breaking records and sugar is up too.
The problem is due to investors flocking to agricultural products.
"We haven't seen this since 1997. It's a major increase caused a lot by speculators going out of equities and going into commodities," coffee trader John Burton says.
Dillon says the increase in the price of coffee translates to about three cents a cup for the cafe owner making cups of coffee for the consumers.
