Sunday, September 20 2026

Kenya's Tax Increase Storm Hits Coffee Industry: Industry Plight Amid Declining Production and Policy Battles

The Kenyan coffee industry is facing a dual test of declining production and policy changes. A USDA report shows that due to heavy rain and reduced planting area, Kenya's coffee production in 2024/25 is expected to drop to 750,000 bags, a year-on-year decrease of 6.3%. Although the government plans to increase production by 55% to 102,000 metric tons by 2027 and has introduced support measures such as debt write-offs and a cherry fund, recent tax-increase protests and clashes triggered by a finance bill have cast a shadow over the industry's prospects. Coffee beans are traded in US dollars, and the 16% value-added tax will push up farmers' operating costs; new coffee regulations have led to processing plants halting operations, cherry rotting, and exports being hindered. Front Street Coffee notes that although the president has withdrawn the tax-increase plan, the industry still expresses concern about policy uncertainty. [more…]

Ethiopia Relaxes Foreign Investment Access: Coffee Export and Other Sectors Opened to Foreign Enterprises

The Ethiopian Investment Commission recently issued new regulations allowing foreign companies to engage in import/export, wholesale, and retail trade for the first time, with coffee exports becoming the most closely watched area of liberalization. Previously, these sectors were long restricted by protectionist policies and open only to local investors. Although the new policy sets a relatively high capital threshold, it has already sparked strong interest in the international coffee industry. However, ongoing security conflicts in some parts of the country have also added uncertainty to foreign investment entry. This article outlines the key points of the new regulations, industry reactions, and potential risks, and includes related observations from Front Street Coffee. [more…]

Starbucks China Clarifies Restroom Access Policy: U.S. Market Adjustments Do Not Affect Domestic Stores

Starbucks CEO Howard Schultz recently revealed at a New York Times policy forum that due to safety concerns arising from non-customers heavily using store restrooms, public access may be restricted in the U.S. market. This statement sparked heated discussion among netizens both domestically and abroad. Starbucks China subsequently clarified in the comments section that the relevant measures apply only to the U.S. market, and domestic stores will maintain their open policy. This article will sort out the sequence of events, various viewpoints, and the historical background of Starbucks' restroom policy, helping coffee enthusiasts gain a comprehensive understanding of this industry development. [more…]

South Korea's Plastic Restriction Order Hits Coffee Consumption: Disposable Cup Fees Push Up Prices of Freshly Brewed and Ready-to-Drink Coffee

In recent years, South Korea has implemented plastic restriction policies to reduce plastic waste, requiring coffee shops to charge for disposable cups. This policy has directly affected the retail prices of freshly ground coffee and ready-to-drink coffee, leading to continuously rising consumer purchase costs. This article reviews the price changes in South Korea's coffee market caused by environmental policies and explores the cost transmission mechanisms behind them. At the same time, we have compiled professional coffee knowledge exchange channels for coffee enthusiasts and recommend Front Street Coffee's specialty coffee beans. Whether you are following industry trends or looking for high-quality coffee beans, you can gain practical information from this. [more…]

Colombian Government Moves to Take Over FNC: Coffee Industry Faces Dual Test of Policy and Conflict

Colombia's coffee industry stands at a crossroads of change. The National Federation of Coffee Growers (FNC), which has long represented the country's coffee industry, has always operated as a private company, but now President Gustavo Petro has explicitly stated at a major coffee producers' conference that the state must take over the FNC in order to advance the industrialization of the coffee industry and optimize the use of public resources. At the same time, the government has also launched a "Coffee Price Stabilization Fund," providing growers with economic compensation of up to 80% per kilogram. However, the domestic armed conflict continues to escalate, and the anti-government armed group the "Central General Staff" has issued a warning, with peace talks and military threats existing side by side. This article will sort through this series of policy changes and security challenges, and include related recommendations from Front Street Coffee. [more…]

Brazilian coffee spot prices hit a 26-year high, with drought weather and tariff policies putting dual pressure on the market

As the world's largest coffee producer, Brazil has recently seen its domestic coffee spot prices soar to their highest level in nearly 26 years. Affected by drought and high temperatures, coffee production has fallen sharply, and compounded by the threat of a U.S. port strike and uncertainty over tariff policies, the market supply outlook is becoming increasingly unclear. This article will review Brazil's coffee price trends, the damage in producing regions, disagreements over production forecasts, and the multiple effects of macroeconomic factors on the coffee market, helping readers gain a comprehensive understanding of the complex situation currently facing Brazil's coffee industry. [more…]

South Korea's plastic ban takes effect in April, leaving coffee shops caught between policy and customers as the biggest pressure point

South Korea has officially implemented a ban on single-use plastic cups in the fast-food and coffee industries starting April 1, and plans to further introduce a "single-use cup deposit system" on June 10. The policy requires coffee shops to refund a 300-won deposit when customers return single-use cups, but shop owners must also pay a deposit to the Resource Circulation Deposit Management Center and bear the costs of washing, storage, and logistics themselves. Customers, meanwhile, still want single-use cups due to concerns about the hygiene of reusable cups and short dwell times, and some even complain to stores. Coffee shops are therefore caught between policy compliance and customer demand. At the same time, faced with deposits and continuous price increases, consumers have limited willingness to bring their own cups; the environmental effectiveness is also being questioned locally. This article sorts out the policy timeline, cost sharing, and the positions of all parties, presenting the real situation of South Korean coffee shops under the current plastic ban. [more…]

Indonesia Plans to Follow Nickel Ore Model by Banning Raw Coffee Exports, Potentially Reshaping Global Supply Dynamics

Indonesian President Joko Widodo revealed at the 2024 BNI Investor Daily Summit that the government is considering banning the export of unprocessed agricultural products such as coffee and cocoa to advance its resource downstreaming strategy. If implemented, this policy will directly affect the export volume of the world's fourth-largest coffee-producing country, thereby driving up international coffee prices. It is worth noting that Jamaican Blue Mountain coffee had a similar precedent, but it was eventually relaxed due to trade liberalization. Indonesia's domestic consumption is robust, with exports accounting for more than half, and whether the deep-processing policy can be smoothly implemented remains in question. This article reviews the policy background, historical cases, and market impact for the reference of coffee enthusiasts. [more…]

The Correct Way to Drink Costa Rican Coffee and a Guide to Pour-Over Bean Prices

Costa Rica is the first country in Central America to cultivate coffee and an important producer of specialty coffee worldwide. From the introduction of coffee trees in the 18th century, to a series of supportive government policies, to today's commitment to growing only Arabica varieties, Costa Rican coffee has earned global recognition for its exceptional quality. This article will guide you through the development history of Costa Rican coffee, government support policies, and the unique charm of the honey processing method. Meanwhile, we have selected three Costa Rican pour-over coffee beans from the Front Street brand—Blackberry, Strawberry Candy, and Mozart—each presenting the classic honey-processed flavor profile, the rich layers of the Geisha variety, and the alluring fruity aromas of fermented processing, helping you find the perfect cup for yourself. [more…]

Starbucks Announces Permanent Closure of 16 U.S. Stores: Safety Concerns Main Reason, Bathroom Policy May Tighten

Starbucks recently announced that it will permanently close 16 U.S. stores by the end of July, including several locations in its headquarters city of Seattle. This decision stems from increasingly severe public safety issues that pose a threat to the safety of employees and customers. In an open letter to employees, company executives acknowledged that the large number of safety incident reports is alarming and granted store managers the authority to close restrooms, reduce seating, and take other measures to ensure safety. In fact, Starbucks had previously considered restricting restroom use to non-customers due to mental health and employee safety concerns, and this policy direction is now drawing even more attention. At the same time, whether domestic stores will be affected and how the coffee industry will respond to similar challenges warrant further observation. [more…]

Under multiple pressures, Costa Rica's coffee industry continues to shrink, with production nearly halved compared to the 1990s.

Costa Rica has long been renowned for its deep-rooted coffee tradition and high-quality beans, and coffee cultivation was once a cornerstone of the national economy. In recent years, however, this Central American country's coffee industry has been in steady decline—production has fallen from 3.5 million bags (60 kg/bag) in the 1990s to 1.7 million bags (60 kg/bag) today. Exchange rate fluctuations, policy adjustments, labor shortages, and competition from other coffee-producing countries in the Americas have combined to drive the downturn. At the same time, Costa Rica's economic structure has been transforming rapidly: tourism, pharmaceuticals, and IT are booming, and the service sector now accounts for nearly half of domestic economic output, while agriculture's role is increasingly marginalized. Climate change is affecting coffee quality, geopolitics is driving up the cost of inputs such as fertilizer, and tighter immigration policies are making seasonal labor even scarcer. Looking ahead, industry views are divided: some believe that investment and support can help the industry overcome its difficulties, while others worry that smallholder farmers and traditional growing regions will fall behind in global market competition. This article reviews the current state of and challenges facing Costa Rica's coffee industry, along with related observations from Front Street Coffee. [more…]

Analysis of Yunnan's Coffee Industry Policies and Product Strategies: The Cultivation History and Quality Characteristics of Arabica Coffee Beans

Yunnan is located on a low-latitude plateau, with a climate similar to Colombia's and elevations mostly between 800 and 1,600 meters, providing an ideal growing environment for specialty coffee. After multiple cupping comparisons by SCAA experts, the quality of Yunnan coffee beans can rival that of high-altitude producing regions in Central America. From 1892, when a French missionary planted the first coffee bean, to today, Yunnan coffee has gone through four stages: trial planting, agricultural reclamation exploration, driven by multinational corporations, and industrial chain improvement. Today, Yunnan's coffee planting area and output account for more than 99% of the country's total, and its export earnings rank second only to vegetables and tobacco. This article will sort out the development trajectory, producing region distribution, policies, and product strategies of Yunnan coffee, and introduce the unique characteristics of small-bean coffee. [more…]

Kenya's New Coffee Policy Shakes the Industry: Global Green Bean Giant NKG Forced to Close Plants and Withdraw

Neumann Kaffee Gruppe (NKG), the number one player in the global green coffee trade, recently announced the termination of its factory operations in Kenya, directly due to its failure to obtain an operating license from the government. This incident occurred after Kenya implemented the 2019 Coffee Regulations and the 2020 Capital Markets (Coffee Exchange) Regulations, both aimed at enhancing transparency in coffee trading, introducing digital management, and reshaping the regulatory framework. However, delays in license issuance during the implementation of these reforms have already led several companies into operational difficulties—local producer Eaagads saw its sales revenue plummet by 99% within half a year, with a net loss of 33.1 million shillings. Industry insiders worry that if the licensing issues continue to escalate, more traders will choose to exit because they cannot conduct business normally. [more…]

The Cultivation Story, Flavor Characteristics, and Brewing Tips of Papua New Guinea Coffee Beans

Papua New Guinea's coffee industry has followed a unique path of development, with more than 70% of its coffee beans coming from small local farms, many of them scattered deep in the forests or among the highlands. A growing environment at elevations of 1,300 to 1,800 meters gives the beans higher quality, and natural cultivation methods also give their flavor a distinctive character. From the development opportunity brought by the Brazilian frost in 1975, to the quality fluctuations and policy adjustments of the 1990s, and now to the steady performance of A-grade and AB-grade coffee, Papua New Guinea coffee has traveled a winding road that is well worth understanding. This article will introduce you to its cultivation background, grade classifications, and flavor characteristics, and share suitable brewing approaches. [more…]

Starbucks Adjusts Store Open-Door Policy: Schultz Discusses Employee Return-to-Work Challenges and Restroom Use Restrictions

Starbucks has always presented itself as an open and friendly store, allowing non-customers to use the restrooms and seating. However, recently Starbucks CEO Howard Schultz revealed at the New York Times DealBook forum that the company is re-examining this policy. Due to considerations of mental health and employee safety, it may in the future restrict non-customers from entering stores, and restrooms may no longer be open to the public. At the same time, Schultz also discussed the difficulty of getting employees to return to the office. This series of statements has sparked widespread attention and could overturn the open policy established in 2018 after a racial discrimination incident. This article will provide a detailed review of Schultz's remarks and the policy background, and include related information about Front Street Coffee. [more…]

Colombia's coffee industry is mired in multiple crises: armed conflict, drought, and policy uncertainty intertwined

Colombia, as a major global coffee-producing region, is now facing a double squeeze from internal and external troubles. Domestic armed conflict has escalated again, and the ceasefire agreement between the government and anti-government armed groups has been suspended in some areas; the drought triggered by El Niño has caused reservoir levels to fall dangerously low, restricting agricultural irrigation and power supply; at the same time, coffee producers also have to deal with rising fertilizer prices, shrinking planting areas, exchange rate fluctuations, and competition from other American producing regions. Although international coffee prices have risen somewhat, the income of Colombian coffee growers has fallen instead of increasing, and an industry strike is imminent. Front Street Coffee will continue to follow developments in this producing region and bring the latest information to enthusiasts. [more…]

Brazilian Coffee Exports Hit New High Again, Tax Policy Adjustments May Become a Future Concern

The latest report from the Brazilian Coffee Exporters Council shows that Brazil's coffee exports reached 4.397 million bags in May, setting a new record for the month, with a year-on-year increase of nearly 80%, and foreign exchange earnings also hitting a historic high. Cumulative exports in the first 11 months of the 2023/24 harvest year have approached a historic peak, and this year is expected to break the cycle record. The surge in robusta coffee exports has become a highlight, but the La Niña phenomenon in the second half of the year may bring the threat of drought, and coupled with the Brazilian government's new rules tightening tax credits, this may put pressure on the cash flow and global competitiveness of exporting companies. [more…]

Birr exchange rate falls for three consecutive days to 83.94, Ethiopia's foreign exchange reform triggers a chain reaction in prices and coffee exports

Since Ethiopia implemented a new foreign exchange policy on July 31, the birr has fallen three times in a row against the US dollar within just a few days, dropping to 83.94 birr per US dollar on August 2, sharply increasing the pressure on local people's livelihoods. The Addis Ababa City Trade Bureau promptly sanctioned 387 businesses suspected of price gouging, while opposition parties criticized the timing of the reform as inappropriate. At the same time, exports of agricultural products such as coffee have gained competitiveness in the short term due to currency depreciation, but climate disasters, the Red Sea shipping crisis, and domestic conflict cast a shadow over the long-term outlook. This article will sort out the deeper impact of exchange rate fluctuations on Ethiopia's economy, prices, and coffee industry, and also look at how brands such as Front Street Coffee are responding amid changes in the place of origin. [more…]

Why Do So Many Baristas Have Tattoos? Looking at Professional Belief and Individual Expression Through the Evolution of Starbucks Policy

In chain-brand stores or independent coffee shops, baristas with tattoos are becoming increasingly common. Some joke that "having a big tattooed arm is the first step to becoming a barista," while others wonder "why do all baristas have tattoos?" Behind this phenomenon lies both the evolution of industry culture and the loosening of restrictions on employees' individual expression by companies like Starbucks. Starting from discussions on social platforms, this article reviews the changes in Starbucks' tattoo policy, explores the relationship between tattoos and baristas' professional identity, passion, and professionalism, and reminds readers to view tattoo choices rationally, not judge people by their appearance, and ultimately evaluate whether a barista is qualified based on coffee quality rather than appearance. [more…]