The South Korean government is preparing support measures for the cafe industry as a surge in the cost of supplies tied to the Middle East war squeezes small operators.
The Ministry of SMEs and Startups held an emergency meeting April 21 with the National Cafe Owners Cooperative to assess business conditions for cafe operators hit by a weak won and high oil prices and to hear on-the-ground concerns. Cafe owners said sharp oil price increases and a shortage of naphtha have pushed up the cost of plastic cups, vinyl and other packaging, adding to their burden.
With instability in the Middle East driving up oil and raw material prices, the monthly average price of naphtha last month rose more than 67% from the previous month, per ton. Coffee beans, a key input, have also climbed. Data from the Korea Agro-Fisheries & Food Trade Corp.’s food industry statistics system showed Arabica beans traded in March at $6,768.12 per ton, up about 9.19% from the February average.
The ministry and the cooperative shared details on price hikes and delivery conditions for plastic cups and vinyl and discussed ways to support small businesses affected by the war.
They also reviewed proposals to help cafes switch from plastic to alternative materials and to ease the costs small operators face during that transition.
The meeting was the third industry-specific support case following similar sessions with bakeries and the broader restaurant sector. The ministry has previously shared concerns over soaring plastic container prices with relevant agencies and requested cooperation.
Lee Byeong-gwon, the ministry’s second vice minister, said, “We have listened to a range of difficulties faced by small business owners through meetings with bakeries and the restaurant sector, but coming to the field, the impact feels even greater.”
Lee also said the government would actively seek cooperation with rules announced April 15 on banning hoarding and allowing emergency supply-demand measures for petrochemical product feedstocks. The rules prohibit stockpiling of seven basic fractions produced from naphtha: ethylene, propylene, butadiene, benzene, toluene, xylene and other fractions.
“If instability in the supply of packaging containers occurs, we will closely monitor supply conditions with relevant ministries, including by designating additional items,” Lee said.
* This article has been translated by AI.
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