Explainer: Why your cafe latte costs S$6

SINGAPORE — A cup of coffee in Singapore can cost S$1.20 in a kopitiam or neighbourhood coffee shop, or it can cost S$6 at a hipster cafe.

While customers here are spoilt for choice when it comes to their daily brew, not many are aware of what goes into it, and why some are costlier than others.

Before you next order a cafe latte at your favourite coffee joint, find out more about where your dollars and cents are going.

WHY A LATTE COSTS S$6

Speciality coffees are commonly brewed with arabica beans, a type of coffee derived from plants that are usually grown at higher altitudes of more than 600m above sea level and at temperatures of between 15°C and 24°C.

About 75 per cent of the world’s coffee production is arabica beans and it is more expensive than its cheaper counterpart, robusta beans.

While a cup of cafe latte typically costs between S$5 and S$7, its cost price is about S$0.80 — about S$0.40 for an espresso shot and $0.40 for fresh milk. This was revealed by a manager — who did not want to be named — at a cafe here called The Community Coffee Bar.

 Asean Coffee Federation's president Victor Mah said that there are other factors that drive up cost, including manpower, workers' training, equipment and rent.

The Asean Coffee Federation is a body which gathers coffee industry experts and traders from seven countries in the region, namely Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

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“If you are in Singapore, your number one killer is your rental cost,” Mr Mah said.

“It is not easy. It takes a lot to develop the skills to be a good latte artist or barista.”

Cafe owners also have to invest money in creating an ambience for customers, which can make or break the cafe experience, Mr Mah added.

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WHY A KOPI COSTS S$1.20

Typically, traditional kopi at coffee shops here is brewed with robusta beans that are wok-roasted with slabs of butter (or margarine) and sugar to bring out its fragrance.

Robusta beans are also commonly used in instant coffee, and it costs nearly a third of the price of arabica beans. Robustas have almost twice as much caffeine compared with arabicas, and most of the world’s robusta beans are produced in Vietnam.

Traditional kopi contains condensed and evaporated milk, which makes its cost price lower compared with a cup of latte made with fresh milk.

On its own, the robusta-based brew tastes more earthy, bitter and strong compared with the lighter arabica, which may have hints of fruit and nuts.

Despite having tasted many different specialty coffees in his 42-year career in the industry, Mr Mah still has a soft spot for a traditional cup of kopi.

“At heart, we still love our own local kopi. It is really something that you grow up with and it’s a taste that you would want to go back to,” he said.