[ad_1]
More than ten years ago, Starbucks purchased its first coffee farm in Costa Rica. Since then, the coffee giant has acquired two more farms in an effort to safeguard its coffee supply from the impacts of climate change.
The company announced its investment in another farm in Costa Rica and its first farm in Guatemala with the goal of protecting its coffee sources. Recent extreme weather events such as rising temperatures, frosts in Brazil, and La Nina have negatively affected coffee production, leading to supply shortages. Starbucks, which accounts for 3% of global coffee purchases, has been facing challenges in sourcing Arabica beans, resulting in higher prices for consumers.
Roberto Vega, Starbucks’ vice president of global coffee agronomy, research, development, and sustainability, expressed concerns about the impact of frosts in Brazil on coffee production. The company aims to mitigate these challenges by studying hybrid coffee varieties at its new farms, evaluating their performance under varying conditions. These hybrids are known for their high productivity and resistance to coffee leaf rust, a fungus that thrives in warmer and wetter climates.
In addition to addressing climate-related issues, Starbucks also plans to tackle other challenges faced by coffee farmers at its new Guatemalan farm, which has low productivity and depleted soil. The company aims to improve the farm’s soil health and share these practices with other farmers in need of assistance. The second farm in Costa Rica, located near its existing Hacienda Alsacia, will leverage technology such as drones and mechanization to address labor shortages in the region.
Looking ahead, Starbucks intends to expand its agricultural portfolio by acquiring two more farms in Africa and Asia, extending its presence across the Coffee Belt.
[ad_2]
SOURCE
Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.