As The Largest Coffee Grower In The US Faces An Existential Crisis, Concerns Of Private Equity Interest-Driven Developments On Agricultural Land Grow – CoffeeTalk

Kauai Coffee Company, the largest coffee grower in the U.S. with approximately 140 employees managing 4 million coffee trees over 3,100 acres, faces uncertainty regarding its future as its land lease expires at the end of March. Parent company Massimo Zanetti Beverage Group has been negotiating with Brue Baukol Capital Partners (BBCP), which bought the property in 2022, but reports suggest Kauai Coffee plans to permanently cease operations and lay off 136 employees between March 14 and March 28. Kauai County Council Chair Mel Rapozo is poised to meet with both parties to address concerns for employees amidst this uncertainty.

Former Kauai Coffee president Wayne Katayama expressed concerns to the council, highlighting that 30% of the workforce has over a decade of tenure, and many employees are local residents with deep roots in the community. Rapozo emphasized the importance of the company’s stability, noting its significant role in the local culture and economy.

BBCP aims to retain employees interested in remaining in agriculture, with commitments to use Kauai Coffee’s Important Agricultural Lands for long-term agricultural purposes. They have established a Kauai Coffee Transition Task Force to ensure community alignment during this potential transition. Local government officials, including Kauai Mayor Derek Kawakami and State Rep. Dee Morikawa, have expressed limited capacity to intervene in the private matter of lease negotiations, stressing the importance of the company’s sustainable practices and its positive impact on local jobs.

Concerns also revolve around the broader implications of potential developments on agricultural land driven by private equity interests. BBCP owns over 18,500 acres in Kauai and has recently listed portions of Kauai Coffee lands for sale, prompting worries about the agricultural future of the area. Though options for agricultural stewardship are being considered, the company asserts that development beyond permitted uses is not their intent.

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