More than a decade ago, Starbucks purchased its first coffee farm in Costa Rica. Now, the coffee giant has expanded its portfolio by acquiring two more farms, marking a significant step in its efforts to safeguard its coffee supply from the growing challenges posed by climate change.
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On Thursday, the Seattle-based company announced that it has invested in another farm in Costa Rica and its first farm in Guatemala. This move aims to help the company get closer to its goal of protecting its coffee supply from climate threats. Rising temperatures, frosts in Brazil, and three consecutive years of La Niña, along with other extreme weather conditions, have significantly disrupted coffee production in recent years, putting immense pressure on global supply chains.
Roberto Vega, Starbucks’ vice president of global coffee agronomy, research, development, and sustainability, explained: “Frosts in Brazil have already impacted production volumes by up to 50%, and this can severely affect product availability. Such events are becoming more frequent throughout the entire Coffee Belt.” The Coffee Belt refers to the equatorial region that offers ideal conditions for growing coffee.
For Starbucks, which purchases up to 3% of the world’s coffee, supply shortages mean scrambling to source high-quality Arabica beans, along with higher prices for consumers. According to data from the U.S. Bureau of Labor Statistics, consumer coffee prices have risen 18% over the past five years as of August.
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At the two new farms, Starbucks will study how hybrid coffee varieties perform at different elevations and soil conditions. These hybrid varieties are known for their greater productivity and resistance to coffee leaf rust, a fungus that thrives in higher temperatures and increased rainfall.
“We can develop new hybrid varieties, but just because one works well in one country doesn’t mean it will work everywhere,” Vega explained. He emphasized that Starbucks is searching for comprehensive solutions for the coffee industry as the challenges from climate change become more apparent.
In addition to climate change, Starbucks is also addressing other issues faced by its coffee farmers. For example, the company’s new farm in Guatemala is small, with depleted soil and low productivity. Starbucks aims to restore the land and use the lessons learned to help other farmers improve their farms. “The farm is not in great condition, and that’s exactly what we were looking for. We wanted a farm that reflects the challenges farmers are facing today,” Vega said.
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At the second farm in Costa Rica, located next to Starbucks’ existing Hacienda Alsacia farm, the company plans to implement drones, mechanization, and other technologies to address the labor shortages that many Latin American coffee farmers face.
Looking ahead, Starbucks plans to purchase two more farms in Africa and Asia, further expanding its agricultural portfolio across the Coffee Belt. This global agricultural network aims to protect the coffee supply against the unpredictable effects of environmental changes.
