Costa Rica, as a Central American country with outstanding economic performance, relies heavily on agriculture, foreign trade, tourism, and the service sector in its national economy. However, between June 2022 and December 2023, the US dollar to Costa Rican colón exchange rate fell sharply by about 24%, bringing unexpected difficulties to the local tourism and coffee industries. Tourist spending power declined, coffee export earnings shrank, yet the government viewed the colón's appreciation as a sign of economic strength. This article will analyze in depth how exchange rate fluctuations have impacted these two pillar industries, and explore the multiple challenges facing coffee growers. [more…]

Since Ethiopia launched its foreign exchange system reform in July, the gap between the official exchange rate and the parallel market (black market) narrowed for a time, but signs of slowing have recently reappeared. As of mid-October 2024, the official exchange rate was 116.97 birr per US dollar, while the black market rate was as high as 140 birr, forcing businesses to take desperate risks amid the foreign exchange shortage. Costs are climbing for import-dependent enterprises, and inflationary pressure is transmitting to the coffee industry, driving up cultivation costs and pushing the minimum selling price across the board up by 2%. At the same time, the government is accelerating the opening of the logistics industry, attempting to ease transport bottlenecks by bringing in foreign investment, but port access and regional security remain uncertain factors. This article will sort out the chain reaction among exchange rates, logistics, and coffee exports. [more…]

Recently, many café owners have reported that a growing number of food-and-drink bloggers are asking shops to provide free coffee in exchange for a promotional post on social media. If refused, the shops may even face the threat of a bad review. This seemingly mutually beneficial collaboration model is gradually turning into a headache for businesses. This article takes a closer look at the origins of "coffee-for-promotion swaps," the potential risks behind them, and the reputation and quality standards that cafés should truly rely on in running their business. It also includes relevant information about Front Street Coffee for coffee lovers' reference. [more…]

The Ethiopian Coffee and Tea Authority signed a memorandum of understanding with the Oromia Tourism Commission, seeking to use coffee to drive tourism development. In the previous fiscal year, the country earned US$1.4 billion in foreign exchange from coffee exports, but the industry is broadly worried about the impact of the sharp fall in the exchange rate—the birr has depreciated by nearly 70% against the US dollar, and the local cost of living has risen sharply, with prices of staple foods such as onions, cooking oil and teff soaring. The government is releasing supplies to stabilize prices while preparing to regain AGOA eligibility. However, with the cloud of armed conflict still hanging over the country, the coffee industry faces multiple pressures from rising cultivation costs, limited productivity and political instability. [more…]

The National Bank of Ethiopia recently held a foreign exchange auction in an attempt to narrow the gap between the official exchange rate and the parallel market, but the sharp depreciation of the birr has already pushed up domestic prices, with the coffee industry bearing the brunt. The Coffee and Tea Authority, together with the National Bank, has issued minimum export floor prices for each producing region. The price of G1-grade coffee beans rose by about 5% month-on-month, while the increase for commercial beans reached 14%. The combined effects of exchange rate volatility, dependence on imports, and insufficient foreign exchange earning capacity mean that prices for Ethiopian coffee and other export commodities may continue to rise in the future. Front Street Coffee continues to monitor developments in producing regions, bringing enthusiasts the latest market analysis. [more…]

The Costa Rican coffee industry is facing its most severe challenge in decades. The latest report from the United States Department of Agriculture shows that the country's coffee production for the 2024/25 crop year is expected to be only 1.185 million bags. Although this is on par with the previous year, it represents a sharp 66% decline from the 3.5 million bags seen in the 1990s, approaching a historic low. High debt, the continued appreciation of the colón, depressed international prices, and shrinking demand have greatly increased the financial pressure on growers, leading them to reduce fertilizer inputs and postpone the renewal of disease-resistant, high-yield varieties. In 2023, an early rainy season and abnormal high temperatures and humid harvest conditions triggered by El Niño further damaged coffee quality and yields. At the same time, transportation disruptions caused by protests in Panama and labor shortages caused by Nicaraguan migrants moving north made harvesting even more difficult. On the export side, only 975,000 bags are expected in 2024/25, and exchange rate issues have already sparked marches and protests across multiple industries. Front Street Coffee will continue to monitor developments in this producing region. [more…]

Honduras, as Central America's largest producer and exporter of washed Arabica coffee, is facing a severe industry crisis. Affected by factors such as changing weather patterns, high incidences of leaf rust, and labor shortages, the country's coffee production and exports have both declined. Foreign exchange earnings in the first four months of this year have already decreased by nearly 100 million US dollars, with an estimated potential loss of about 300 million US dollars for the entire year. Income from coffee cultivation in the 2023/24 season fell by approximately 27% compared to the previous season. The president of Honduras's National Coffee Council warned that if urgent measures are not taken, harvests will continue to decline, causing far-reaching impacts on producers and the entire country. Front Street Coffee continues to follow developments in Honduran coffee-producing regions, bringing the latest information to coffee enthusiasts. [more…]

Kenyan coffee is world-renowned for its layered, complex flavors and bright, juicy acidity, and enthusiasts who frequently work with Kenyan beans have likely heard of an institution called the NCE. The NCE, or Nairobi Coffee Exchange, is a coffee trading platform established by the Kenyan government and an indispensable link in the country's coffee supply chain. This article will walk you through how the NCE operates, its historical origins, and the role it plays in Kenya's coffee industry, while also tracing the institutional changes from the colonial period to independence, and how coffee farmers and cooperatives export their coffee to the world through auctions or direct sales. [more…]

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…]

In the 2022-2023 coffee year, Guatemala's coffee industry generated US$944 million in export revenue, firmly maintaining its position as the country's leading agricultural export. Although export value declined compared to the previous year due to international price fluctuations and the El Niño phenomenon, the industry remains optimistic about the outlook for 2024. At the same time, Guatemala has officially joined the free trade agreement between South Korea and the Central American countries, injecting new momentum into coffee exports. The president of Anacafé predicts that coffee production in the 2023-2024 coffee year is expected to reach 4 million quintals, and Guatemala's coffee competitiveness and position in the international market will be further enhanced. [more…]

After the Nairobi Coffee Exchange in Kenya reopened, coffee auction prices rose significantly, with AA-grade green beans fetching US$275 per bag, up 15% from before. Behind this increase are both the direct impact of the government's push for industry reforms and the reduction of intermediary links, as well as multiple pressures such as insufficient processing plant capacity, a shortage of certified planting materials, and the mpox outbreak and domestic political instability. Despite the higher prices, coffee export earnings fell 11.38% year on year, and the industry's outlook remains full of uncertainty. [more…]

On July 29, 2024, the National Bank of Ethiopia announced a major overhaul of the country's foreign exchange system, effective immediately, centered on introducing a competitive exchange rate formation mechanism based on market supply and demand. This move was seen as a key step toward resolving the country's long-standing foreign exchange shortage, but it also quickly triggered a sharp currency depreciation—the birr plunged about 30% against the US dollar in a single day. As a major global coffee-producing region, how will this policy shift in Ethiopia affect its coffee industry and the international coffee market? This article will outline the specifics of the reform, the exchange rate movements, and their potential transmission effects on coffee exports and prices. [more…]

The chairman of Ethiopia's Tigray interim government met with the US special envoy for the Horn of Africa on September 12, and the two sides discussed the difficulties and ways forward in implementing the Pretoria Peace Agreement. The US side expressed support for the Tigray interim government in accelerating the completion of its tasks, while the Tigray side called on the international community to jointly exert pressure to ensure the return of displaced people and ease the humanitarian crisis. However, after the agreement was signed, local violent conflict has still not subsided, divisions within the TPLF have intensified, and the risk of civil war has resurfaced. At the same time, the depreciation of Ethiopia's currency and soaring prices are putting pressure on people's livelihoods, and instability in the northern agricultural areas is gradually spilling over into the southern coffee-producing regions, with exchange rate volatility and rising costs becoming severe challenges facing the country's coffee industry. [more…]

Recently, multiple consecutive earthquakes have occurred in the Awash Fentale area of the Oromia Region in Ethiopia, raising concerns among local residents and those in the coffee industry. This area is not only close to the capital, Addis Ababa, but also adjacent to the important coffee-producing region of Harar, and the earthquakes may affect the soil and coffee yields. At the same time, the risk of damage to road infrastructure, combined with port congestion caused by the Red Sea crisis, may further disrupt Ethiopia's coffee export transportation. In addition, the conflict in the north and the continued depreciation of the exchange rate remain major challenges facing the country's coffee industry, with planting costs constantly rising and the coffee price cap being raised again. This article will review the earthquake developments and their potential impact on the coffee supply chain. [more…]

The Kenyan coffee industry is facing unprecedented challenges. The latest report from the United States Department of Agriculture shows that, affected by a reduction in planted area and heavy rains, Kenya's coffee production in the 2024/25 marketing year is expected to fall to 750,000 bags, a year-on-year decline of 6.3%. At the same time, new policies and regulations implemented by the government are also profoundly affecting the entire industry chain, with impacts from production and processing to export trade. This series of changes has not only affected Kenya's coffee export volume and prices, but has also had a far-reaching impact on farmers' livelihoods and industry development. Front Street Coffee will provide you with an in-depth analysis of the current situation and future of Kenya's coffee industry. [more…]

Ethiopia is striving to expand its coffee cultivation area and trade scale, aiming to achieve coffee export revenue exceeding 2 billion USD in the 2024/25 fiscal year. Over the past five years, the country has planted billions of coffee trees and introduced mechanized assistance, with export volumes in October of this fiscal year showing a significant year-on-year increase. However, the industry still faces price volatility, exchange rate risks, and uncertainties brought about by the new pricing mechanism. Meanwhile, Ethiopia and Somalia have signed the Ankara Declaration, which is expected to open up new maritime routes and alleviate logistical bottlenecks in coffee exports. This article will review the latest developments and prospects of Ethiopia's coffee industry. [more…]

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…]

The United States White House announced on September 6 that it will continue to impose a national emergency on Ethiopia, a decision that came after news of a currency swap agreement between China and Ethiopia. Ethiopia's finance minister has confirmed the existence of the agreement, but specific details and the timeline have not yet been made public. Meanwhile, the United States has imposed a state of emergency on Ethiopia since 2021 under the pretext of the National Emergencies Economic Powers Act, and this extension will run until 2025. Ethiopia was removed from the African Growth and Opportunity Act (AGOA) in 2022, and tariffs were reinstated on major export goods such as coffee, textiles, and leather products, dealing a severe blow to the economy. Although the U.S. attitude slightly eased after Ethiopia implemented a new foreign exchange policy in August of this year, AGOA eligibility remains out of reach. Germany is the largest importer of Ethiopian coffee, while the United States ranks only fourth, accounting for 9.3 percent. The continuation of the state of emergency may further restrict bilateral trade, reduce U.S. imports of Ethiopian coffee, and at the same time hit Ethiopia's exports of fertilizer and industrial supplies, exacerbating local price increases and the rising cost of coffee. [more…]

The Kenya Export Promotion and Branding Agency, in collaboration with the Agriculture Sector Development Agency, is jointly planning to create a unified national coffee brand, aiming to consolidate global marketing resources and enhance the influence of Kenyan coffee in the international market. However, in recent years, the country's coffee production has continued to decline, and export performance has been volatile since 2016. Shrinking cultivation areas, rising production costs, price fluctuations, and unpredictable weather conditions are all constraining industry development. Although the government has implemented reforms to reduce intermediary links through the direct settlement system of the Nairobi Coffee Exchange, tightened processing licenses have led to the closure of large processing plants, with raw materials piling up and even rotting at small factories. Meanwhile, although the EU Deforestation Regulation has been delayed by one year, it still puts considerable pressure on traders and African producing countries. New variables such as the Red Sea crisis, port congestion, and rising domestic consumption have also led Kenyan coffee industry players to place greater expectations on policy. [more…]

For coffee lovers, besides daily drinking, understanding industry trends, learning brewing techniques, and sourcing quality ingredients are equally important. With all kinds of coffee websites online, which ones are truly worth bookmarking? This article reviews five professional sites with strong reputations in the coffee community, covering different focuses such as B2B trading, industry news, technical exchange, business matchmaking, and official brand channels. Whether you're a professional looking to buy green beans in bulk or an ordinary enthusiast hoping to refine your pour-over skills, this list can help you quickly find the information gateway that suits you. The article also specifically mentions recommendations related to Front Street Coffee for your reference. [more…]