From bean to cup<\/p>\n
Every day, about 2 billion cups of coffee are consumed worldwide. Coffee beans are grown in the \u201cbean belt,\u201d spanning about 70 countries along a latitude<\/a>, including Colombia, Vietnam, Ethiopia, and Indonesia\u00a0[1]<\/a>. Coffee is mainly grown by around 25 million small-scale famers. For example, in Colombia, 95% of the half-million coffee-farms span less than 5 hectares. Moreover, a single species of the coffee plant (Coffea arabica)\u00a0<\/em>represents about 70% of all coffee produced<\/a>[2]<\/a>.<\/p>\n Coffee grows best between 64 and 70 degrees F, and temperatures above 73 cause the plant to fruit prematurely, leading to less aromatic and flavorful beans<\/a>[3]<\/a>. In addition, the coffee leaf rust (a plant fungus) thrives at higher temperatures and spreads to infect healthy plants, further decreasing crop yield. As small-scale farmers possess little capacity to adapt to climate changes, current estimates indicate that certain regions will be unable to produce any viable coffee beans as early as 2020. Even if viable coffee is produced, changing climate and rainfall patterns have caused road damage and landslides in rural farming areas, causing direct difficulty in transporting crops. At present, Starbucks obtains more than half of its inventory from small scale farmers that travel to deliver their crops.<\/p>\n Starbucks Response<\/p>\n Over the past several years, Starbucks has actively tried to mitigate climate risk to its coffee supply chain via: 1) policy work, 2) reducing its own carbon emissions, 3) developing programs to assist farmers, 4) conducting research efforts, and 5) diversifying their product offerings.<\/p>\n Starbucks was a founding member of BICEP (Business for Innovative Climate and Energy Policy), which is a consortium of US companies that lobby governments for stronger action against climate change<\/a>[4]<\/a>. The company has engaged in grass-roots efforts, and has promoted media sources that educate consumers about climate change. For example, Starbucks stores promoted \u201cArctic Tale,\u201d a documentary about a walrus pup and a polar bear as they navigate life in a changing Arctic climate<\/a>[5]<\/a>.<\/p>\n Starbucks is also attempting to achieve a carbon-neutral footprint, meaning that any carbon emissions made by their supply chain is offset by carbon-reducing activities<\/a>[6]<\/a>. In 2005, the company purchased enough wind energy to power 5% of all its stores in North America (equivalent to removing 3000 cars off the road)<\/a>[7]<\/a>. Starbucks has long used its Coffee and Farmer Equity standards (CAFE) to track intermediate exporters and importers and to ensure farmers are paid fair prices, and that farmers are incentivized to practice good soil management<\/a>[8]<\/a>. Starbucks piloted a \u201cTodos Sembramos Caf\u00e9\u201d project in Chiapas in 2014, where it gave away over 100,000 rust-fungus resistant coffee plants to farmers. Following this, in 2015-6, the company planted a coffee tree in Central America for every bag of coffee bought in the US<\/a>[9]<\/a>.<\/p>\n Starbucks purchased a 240-hectare farm in Costa Rica in 2013 to develop plants that grow at warmer temperatures<\/a>[10]<\/a>. The company has also been expanding its products to diversify beyond coffee. In the past years, Starbucks has acquired Evolution Fresh juices, La Boulange Caf\u00e9 and Bakery, and Teavana; stores now offer options for tea, fresh-pressed juices, and baked goods. Starbucks spent over $750M in acquisitions to make this possible<\/a>[11]<\/a>.<\/p>\n Avenues for the Future<\/p>\n In the short term, efforts should be made to diversify and use many species of the coffee plant as a source of beans. Wild coffee plants should be protected as they represent genetic diversity that might be needed for cross-fertilization and development of new disease or temperature-resistant strains. In addition, Starbucks should partner with farmers to identify areas more or less vulnerable to changes in climate. In so doing, they can help farmers optimize when to plant, how long to wait before harvest, and in which areas to plant.<\/p>\n Starbucks should also develop robust monitoring platforms to track which of their risk mitigation strategies are proving to be most efficacious. These platforms should also aim both dovetail with and inform local and national government efforts that are also aiming to protect crops and farmers so efforts are not duplicated or wasted.<\/p>\n Open questions remain as to how to incentivize others in the supply chain (ie export partners) to develop ways to reduce their carbon footprint. Another open question regards whether diversification (including expanding into teas and juices) will prove to be a viable strategy for Starbucks as climates continue to change.<\/p>\n Word count: 717<\/p>\n [1]<\/a> Watts, C (2016). A Brewing Storm: the climate change risks to coffee, The Climate Institute.<\/p>\n [2]<\/a> Renton, A. Latin America: How climate change will wipe out coffee crops and farmers. The Guardian: <\/em>Mar 2014.<\/p>\n [3]<\/a> Watts, C (2016). A Brewing Storm: the climate change risks to coffee, The Climate Institute.<\/p>\n [4]<\/a> Thorpe J, Fennell S. Climate change risks and supply chain responsibility. Oxfam Discussion Papers: <\/em>June 2012.<\/p>\n [5]<\/a> Green scene: Starbucks to promote arctic tale. (2007, Jun 28).\u00a0FinancialWire<\/em>Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/467450666?accountid=11311<\/p>\n [6]<\/a> Climate Change and the Coffee Industry. (2010).\u00a0International Trade Forum<\/em>, (1), 26.<\/p>\n [7]<\/a> Hilowitz, A. (2005). Starbucks to Buy Wind Energy to Address Climate Change.\u00a0Business & The Environment With ISO 14000 Updates,\u00a016(6), 8.<\/p>\n [8]<\/a> Starbucks strengthens global specialty coffee supply: Openly shares more than a decade of research, verifies 99% of coffee ethically sourced. (2015, Apr 09).\u00a0Business Wire<\/em>\u00a0Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1671199916?accountid=11311<\/p>\n [9]<\/a> Starbucks distributes one million coffee trees to farmers; will plant another tree for every bag of coffee purchased through 2016. (2015, Sep 28).\u00a0Business Wire<\/em>Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1716891136?accountid=11311<\/p>\n