Starbucks has expanded its efforts to protect its coffee supply by acquiring two new farms—one in Costa Rica and another in Guatemala—as part of its strategy to combat the effects of climate change on global coffee production. This move adds to Starbucks’ existing farm portfolio, which began over a decade ago with its first coffee farm in Costa Rica. The new acquisitions aim to bolster the company’s supply chain as climate change threatens the world’s coffee-producing regions.
Rising temperatures, unpredictable frosts in Brazil, and years of extreme weather patterns, including three consecutive years of La Niña, have severely impacted coffee production. These disruptions pose significant challenges for Starbucks, which sources 3% of the world’s coffee. With reduced coffee yields, the company faces higher costs and must contend with price increases. According to the Bureau of Labor Statistics, consumer coffee prices have risen by 18% over the past five years, underscoring the urgency of addressing supply chain vulnerabilities.
Roberto Vega, Starbucks’ vice president of global coffee agronomy, research, and sustainability, explained the dire effects of climate change on coffee crops. “Frosts in Brazil have already impacted volumes by up to 50%, and these kinds of events are becoming increasingly common across the Coffee Belt,” Vega said. The Coffee Belt refers to the regions near the equator that are ideal for coffee bean cultivation.
The two new farms will serve as research hubs for Starbucks, allowing the company to study the performance of hybrid coffee varieties under different soil conditions and elevations. These hybrid plants have been developed for higher productivity and greater resistance to coffee leaf rust, a harmful fungus that thrives in warmer climates with increased rainfall. However, Vega noted that hybrids effective in one location may not work in others, necessitating further research.
Starbucks’ new farm in Guatemala presents an opportunity to address challenges beyond climate change. The farm’s soil is depleted, and productivity is low. By restoring the land, Starbucks hopes to develop sustainable farming methods that can be shared with other coffee farmers facing similar challenges. “We specifically sought a farm that mirrored the difficulties farmers are facing today,” Vega said.
Additionally, at its second Costa Rican farm, located near Hacienda Alsacia, Starbucks plans to test new technologies like drones and mechanization to tackle labor shortages—a common issue for many coffee farmers in Latin America.
Looking ahead, Starbucks plans to expand its agricultural portfolio with farms in Africa and Asia, ultimately spanning key regions across the Coffee Belt. Through these investments, Starbucks aims to safeguard its coffee supply and support farmers in adapting to a changing climate.
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