Starbucks is investing in two new farms in Central America to mitigate the impact of climate change on coffee supply. The company will study hybrid coffee varieties and implement sustainable practices at these farms. This move addresses increasing challenges in coffee production due to extreme weather events, while also aiming to educate local farmers in soil recovery and productivity enhancement. Overall, the initiative reflects Starbucks’ commitment to securing its coffee supply chain amid growing climate pressures.
Starbucks has announced the investment in two innovative coffee farms located in Central America, aiming to enhance its resilience against the adverse effects of climate change on coffee production. As a significant player in the coffee industry, Starbucks procures approximately 3% of the global coffee supply, which has been increasingly threatened by extreme weather patterns, including rising temperatures and frosts, particularly in Brazil. The new investments include an existing farm in Costa Rica and a newly acquired farm in Guatemala. At these locations, the company intends to research the performance of hybrid coffee varieties across varying altitudes and soil types. Hybrid plants are known for their increased productivity and enhanced resistance to coffee leaf rust, a fungus that poses greater risks under changing climate conditions. Starbucks’ vice president of global coffee agronomy, research and development, and sustainability, Roberto Vega, acknowledged the severe impact of climate-induced challenges, noting, “Frosts in Brazil have already impacted volumes of up to 50%, so we can have really severe impact in terms of product availability, and that is more and more regular in the whole Coffee Belt.” The company’s strategy not only focuses on developing hybrid coffee but also aims to address broader challenges faced by farmers within the ecosystem. In Guatemala, Starbucks plans to restore depleted soils to improve productivity, utilizing this experience to educate local farmers on sustainable farming practices. Vega emphasized the significance of selecting farms that reflect the prevalent difficulties in the coffee sector today, stating, “The farm is not necessarily in good shape, and that’s exactly what we were looking for. We wanted a farm that really mirrors the challenges that farmers are having today.” Moreover, at its Costa Rican farm adjacent to Hacienda Alsacia, Starbucks intends to leverage technology such as drones to enhance farming efficiency and mitigate labor shortages characterizing many Latin American agricultural processes. Looking ahead, Starbucks anticipates extending its portfolio by acquiring an additional two farms in Africa and Asia, thereby further solidifying its agricultural presence across the Coffee Belt.
The article discusses Starbucks’ proactive approach to securing its coffee supply amid the growing threats posed by climate change. In light of extreme weather events adversely affecting coffee production around the world, particularly in the Coffee Belt, Starbucks is enhancing its cultivation strategies through the establishment of new farms in Central America that will focus on research and development. The investments reflect the company’s historical commitment to sustainability, having previously acquired farms aimed at fostering agricultural innovations that contribute to resilience in coffee production.
In conclusion, Starbucks is strategically investing in two innovation farms in Central America with the aim of climate-proofing its coffee supply amidst increasing environmental challenges. The company’s dual approach integrates research on hybrid coffee varieties and addresses broader agricultural issues faced by local farmers. Through these initiatives, Starbucks seeks not only to secure its coffee sourcing but also to promote sustainability and resilience within the coffee industry.
Original Source: www.cnbc.com
