Starbucks invests in two innovation farms to climate-proof coffee

Starbucks has announced an investment in two innovation farms focused on climate-proofing its coffee supply. This initiative aims to develop sustainable farming practices that address climate challenges and ensure a stable coffee supply in the face of environmental changes. By investing in these farms, Starbucks is demonstrating its commitment to sustainability and resilience in agriculture, ultimately aiming to protect its coffee sourcing for the future.

Over ten years ago, Starbucks acquired its first coffee farm located in Costa Rica. The coffee giant has now expanded its holdings by adding two more farms to its collection.

The Seattle-based company announced on Thursday that it has invested in another farm in Costa Rica and its first farm in Guatemala, aiming to enhance its efforts to safeguard its coffee supply against climate change.

In recent years, factors like rising temperatures, frosts in Brazil, three consecutive years of La Niña, and other extreme weather events have adversely affected coffee production, creating supply challenges. For Starbucks, which purchases 3% of the world's coffee, these shortages mean a scramble to source Arabica beans, leading to increased prices for customers. According to the Bureau of Labor Statistics, consumer coffee prices have surged by 18% over the past five years as of August.

“Frosts in Brazil have already reduced volumes by up to 50%, so we are experiencing severe impacts on product availability, which is becoming increasingly common across the entire Coffee Belt,” stated Roberto Vega, Starbucks' vice president of global coffee agronomy, research and development, and sustainability.

The Coffee Belt is the equatorial region known for its ideal conditions for coffee bean cultivation.

At the two new farms, Starbucks plans to research how hybrid coffee varieties perform under varying elevations and soil conditions. These hybrid plants are characterized by higher productivity and increased resistance to coffee leaf rust, a fungus that thrives in warmer temperatures and wetter conditions. “We can develop new hybrids, but just because a hybrid succeeds in one country and specific conditions doesn’t mean it will perform well everywhere,” Vega explained.

Vega’s team is also looking to address additional challenges faced by coffee farmers that are not directly linked to climate change. For instance, the new Guatemalan farm is small and suffers from depleted soil and low productivity. Starbucks aims to rehabilitate the soil and use this experience to educate other farmers on similar recovery strategies.

“The farm is not in optimal condition, which is precisely what we were looking for. We wanted a farm that reflects the current challenges farmers are experiencing,” Vega noted. At the second farm in Costa Rica, situated next to its existing Hacienda Alsacia property, Starbucks intends to employ drones, mechanization, and other technologies to tackle labor shortages that many Latin American farmers encounter.

The company ultimately plans to acquire two additional farms in Africa and Asia, thereby extending its agricultural portfolio throughout the Coffee Belt.

For questions or comments write to writers@bostonbrandmedia.com

Source: CNBC‍