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Starbucks pioneering farms dive into climate-resilient coffee production.

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In a move to secure its coffee supply chain and combat the impacts of climate change on production, Starbucks has recently made significant investments in acquiring two new coffee farms, one in Costa Rica and the other in Guatemala. This strategic decision comes as the global coffee industry grapples with rising temperatures, frosts in key coffee-producing regions like Brazil, and other extreme weather events that have hampered coffee production in recent years.

Starbucks, known for its commitment to ethically-sourced and high-quality coffee beans, purchased its first coffee farm in Costa Rica over a decade ago. The company’s latest acquisitions in Costa Rica and Guatemala mark a proactive effort to protect its coffee supply chain from the effects of climate change. Roberto Vega, Starbucks’ vice president of global coffee agronomy, research, and development, emphasized the severity of the impacts, stating that frosts in Brazil have already led to volume reductions of up to 50%.

The shortage of Arabica beans, coupled with the challenges posed by climate change, has resulted in increased prices for consumers, with coffee prices rising by 18% over the last five years. To address these challenges, Starbucks plans to study hybrid coffee varieties at its new farms to assess their performance in varying elevations and soil conditions. These hybrids offer higher productivity and resistance to coffee leaf rust, a fungus that thrives in warmer temperatures and increased rainfall.

Furthermore, Starbucks aims to leverage technological advancements such as drones and mechanization at its Costa Rican farm to address labor shortages experienced by coffee farmers in Latin America. By investing in these farms, Starbucks intends not only to safeguard its coffee supply but also to improve soil quality, productivity, and sustainability practices for coffee farming in the region.

Looking ahead, Starbucks plans to expand its agricultural portfolio by acquiring two more farms in Africa and Asia to establish a global presence across the Coffee Belt. These strategic investments underscore the company’s commitment to sustainability, innovation, and ensuring the long-term availability of high-quality coffee for its customers worldwide.

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