Starbucks is investing in two new innovation farms in Central America to enhance the resilience of its coffee supply chain amidst climate change challenges. The company aims to study hybrid coffee varieties suitable for different growing conditions and will address productivity issues in the Guatemalan farm while also incorporating technology to counteract labor shortages. This strategic move forms part of Starbucks’ broader plan to secure its coffee sourcing amidst rising global climate pressures.
Starbucks has announced a strategic investment in two innovation farms located in Central America as part of its ongoing efforts to mitigate the effects of climate change on its coffee supply chain. The iconic coffee giant, which sources 3% of the global coffee supply, has increasingly faced challenges due to extreme weather events, adversely impacting coffee production. The recent investment involves the acquisition of additional farms in Costa Rica and Guatemala, expanding upon its first coffee farm established over a decade ago in Costa Rica. The initiative aims to explore the performance of hybrid coffee varieties under varying elevations and soil conditions, which are crucial for advancing the resilience of coffee production in the face of climate variability. Roberto Vega, Vice President of Global Coffee Agronomy, Research, and Development at Starbucks, addressed the growing concerns regarding coffee supply, stating, “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.” These insights emphasize the company’s proactive approach in adapting to environmental changes that threaten coffee cultivation. At the two new farms, Starbucks intends to assess the suitability of innovative hybrid coffee plants which boast improved productivity and resistance to coffee leaf rust. Nevertheless, Vega elucidated that “the fact that a hybrid works in one country and under certain conditions doesn’t mean that it’s going to be working everywhere,” highlighting the complexities involved in agricultural adaptation. Additionally, the selected Guatemalan farm serves as a demonstration site for sustainable farming practices, focusing on soil recovery and productivity enhancement. Vega elaborated, “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.” At the Costa Rican location adjacent to the existing Hacienda Alsacia, the integration of advanced technologies such as drones and mechanization is anticipated to address the labor shortages prevalent among Latin American coffee farmers. Starbucks plans to further expand its agricultural endeavors by acquiring additional farms in Africa and Asia, thereby widening its influence across the Coffee Belt and solidifying its commitment to sustainable coffee sourcing.
Starbucks is a leading global coffee retailer, known for its commitment to high-quality coffee and sustainability efforts. As climate change increasingly threatens coffee production, the company is proactively investing in innovation to enhance the resilience of coffee farming. The choice of locations in Central America—known for its suitable coffee-growing conditions—highlights the strategic intent to leverage local agricultural practices while addressing the impacts of changing climate patterns on coffee supplies globally.
In conclusion, Starbucks’ investment into two innovation farms serves as a vital step toward safeguarding its coffee supply against the adverse effects of climate change. By exploring hybrid coffee varieties and employing modern agricultural techniques, Starbucks aims not only to secure its coffee sourcing but also to contribute positively to the sustainability of coffee farming practices in the regions it operates. The company’s foresight in addressing potential supply shortages underlines its commitment to maintaining quality and accessibility for its customers.
Original Source: www.cnbc.com
