  {"id":23128,"date":"2017-11-15T00:27:16","date_gmt":"2017-11-15T05:27:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/climate-change-is-mugging-your-coffee\/"},"modified":"2017-11-15T00:44:59","modified_gmt":"2017-11-15T05:44:59","slug":"climate-change-is-mugging-your-coffee","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/climate-change-is-mugging-your-coffee\/","title":{"rendered":"Climate Change is Mugging Your Coffee"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>Espresso. Macchiato. Frappuccino\u00ae. To many of us, these words elicit a great degree of joy. Now imagine a world where the daily grind is absent its greatest perk: your morning Starbucks. Sound unfathomable? Unfortunately, climate studies show that coffee as we know it may soon be a luxury of the past.<\/p>\n<p>The grimmest reports state that <em>Coffea arabica <\/em>and <em>Coffea robusta<\/em>, the only two commercially relevant species of coffee, could be extinct by 2080 [1], [2]. However, what is far more likely is a constricted supply chain of quality beans. As demand continues to outpace production, prices will skyrocket and quality will plummet [3], [4]. Let\u2019s dive deeper into the causes of this trend, and then touch on what Starbucks is doing about it.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23300\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm-300x113.jpg\" alt=\"\" width=\"828\" height=\"312\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm-300x113.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm-768x288.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm-1024x384.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm-600x225.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Farm.jpg 1920w\" sizes=\"auto, (max-width: 828px) 100vw, 828px\" \/><\/a><\/p>\n<p>To start our analysis, it\u2019s important to understand where coffee grows. The Coffee Bean Belt is a strip of land from the Tropics of Cancer and Capricorn. Within this belt, Arabica grows best in tropical highlands with a temperature range of 18-21\u00b0C. Conversely, Robusta thrives in lowlands with higher temperatures. Arabica is the premium variety and currently accounts for 60% of global production [5]. As temperatures rise, farmers must seek higher ground and lower temperatures, thereby increasing costs. If no higher ground exists, then the only option is switching from Arabica to Robusta, which is a lower grade product largely reserved for instant and discount coffees [6]. Either way, both farmers and consumers are negatively impacted by increasing temperatures.<\/p>\n<p>In many\u00a0cases, loss of terrain is a smaller concern to an increasing prevalence of pests and diseases. The coffee berry borer is an insect that grazes primarily on coffee fruit. Rising temperatures have expanded the domain of this pest to areas where it previously could not survive [7]. Likewise, coffee rust is of much greater concern to farmers today than in years previous. Coffee rust is a fungal disease that devastated the Sri Lankan coffee industry in the 19th century [8]. Since coffee trees take three years to mature, farmers rarely have the capital resources to replant their crop once the disease takes root. Coffee rust is now a concern in most of the Bean Belt.<\/p>\n<figure id=\"attachment_23312\" aria-describedby=\"caption-attachment-23312\" style=\"width: 525px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23312 \" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust-300x203.jpg\" alt=\"\" width=\"525\" height=\"355\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust-300x203.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust-768x520.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust-1024x693.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust-600x406.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Coffee-Rust.jpg 1050w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><\/a><figcaption id=\"caption-attachment-23312\" class=\"wp-caption-text\">Coffee rust: Janet Jarman for The New York Times.<\/figcaption><\/figure>\n<p>Fortunately for consumers, Starbucks has taken note of these trends and is well on the way to finding solutions. In 2013, Starbucks bought its first coffee farm: Hacienda Alsacia in Costa Rica. The intent is to develop tasty Arabica beans that are resistant to coffee rust and pests [9]. Unlike other major commodity crops like corn and soybeans, coffee is grown by small farmers that do not have the resources to pay for optimized growing systems, R&amp;D, and the latest seed technology [10]. Coffee is also cursed with an usually shallow gene pool since Arabica trees self-pollinate [11]. As new seeds are developed at Alsacia, Starbucks is distributing them for free throughout the supply chain [12].<\/p>\n<p>Another initiative that precedes Alsacia is Starbucks\u2019s commitment to making coffee the first sustainable agricultural product [13]. Through a variety of initiatives, the company has donated over $100 million to coffee communities across the globe to improve growing practices and help farmers impacted by climate change to recover their livelihoods. They recently partnered with Texas A&amp;M University-based World Coffee Research to aid farmers in Central America recovering from a leaf rust outbreak that decimated crops [14].<\/p>\n<p>Despite strong efforts from Starbucks, more can be done to combat climate change in the medium and long term. For example, some farmers are turning away from shade grown coffee despite its universal reputation as the superior product. Shade grown coffee tastes better, requires little fertilizer, and less pesticides [15]. The tradeoff is yield: it is impossible to plant and harvest as many crops as you could in an open field. Unfortunately, as temperatures increase across the Bean Belt, many farmers desperate for profits have turned to deforestation to increase yields in the short term. They are able to turn a quick profit on the lumber and then grow more crops [16]. This shortsighted strategy is going to have cascading effects on coffee quality and in turn the livelihood of these farmers.<\/p>\n<figure id=\"attachment_23308\" aria-describedby=\"caption-attachment-23308\" style=\"width: 517px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Deforestation.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23308 \" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Deforestation-300x199.jpg\" alt=\"\" width=\"517\" height=\"343\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Deforestation-300x199.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Deforestation.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Deforestation-600x398.jpg 600w\" sizes=\"auto, (max-width: 517px) 100vw, 517px\" \/><\/a><figcaption id=\"caption-attachment-23308\" class=\"wp-caption-text\">Deforestation for coffee: San Martin, Peru. \u00a9 Conservation International\/photo by Bailey Evans.<\/figcaption><\/figure>\n<p>Climate change will also impact the role of pollinators such as bees in coffee production. Pollinators are currently responsible for 20-25% of coffee production through increased fruit size and uniformity. As ecosystems are impacted or destroyed by climate change, projections show that habitats of pollinators will overlap less and less with the remaining coffee farms [17]. Taking actions with local governments to protect forests and improving shade grown coffee practices will help to mitigate the impacts of this threat.<\/p>\n<p>At the current rate, coffee production will need to triple by 2050 to meet increased demand, doubling the current area of production [18]. As yields continue to decrease, how can Starbucks best position itself for long term success?<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23294\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart-300x169.png\" alt=\"\" width=\"999\" height=\"563\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart-300x169.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart-768x432.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart-1024x576.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart-600x337.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Production-Chart.png 1327w\" sizes=\"auto, (max-width: 999px) 100vw, 999px\" \/><\/a><\/p>\n<p>(Word Count: 800)<\/p>\n<p>References:<\/p>\n<p>[1] Emma Mills, \u201c&#8217;Coffee could be extinct by 2080&#8242;: why climate change may eradicate your daily latte,\u201d The Telegraph, September 1, 2016, <a href=\"http:\/\/www.telegraph.co.uk\/food-and-drink\/news\/coffee-will-be-extinct-by-2080-climate-change-could-spell-an-end\/\">http:\/\/www.telegraph.co.uk\/food-and-drink\/news\/coffee-will-be-extinct-by-2080-climate-change-could-spell-an-end\/<\/a>, accessed November 2017.<\/p>\n<p>[2] Jonah Engel Bromwich, \u201cClimate change threatens world\u2019s coffee supply, report says,\u201d The New York Times, September 22, 2016, <a href=\"https:\/\/www.nytimes.com\/2016\/09\/23\/science\/climate-change-threatens-worlds-coffee-supply-report-says.html\">https:\/\/www.nytimes.com\/2016\/09\/23\/science\/climate-change-threatens-worlds-coffee-supply-report-says.html<\/a>, accessed November 2017.<\/p>\n<p>[3] Sara Chodosh, \u201cClimate change will make your coffee cost more and taste worse,\u201d Popular Science, June 21, 2017, <a href=\"https:\/\/www.popsci.com\/climate-change-will-make-your-coffee-cost-more-and-taste-worse\">https:\/\/www.popsci.com\/climate-change-will-make-your-coffee-cost-more-and-taste-worse<\/a>, accessed November 2017.<\/p>\n<p>[4] Nassos Stylianou, \u201cCoffee under threat: Will it taste worse as the planet warms?\u201d BBC News, June 19, 2017, <a href=\"http:\/\/www.bbc.co.uk\/news\/resources\/idt-fa38cb91-bdc0-4229-8cae-1d5c3b447337\">http:\/\/www.bbc.co.uk\/news\/resources\/idt-fa38cb91-bdc0-4229-8cae-1d5c3b447337<\/a>, accessed November 2017.<\/p>\n<p>[5] Alessandro Craparo, \u201cCoffee snobs: This brew may get pricey, thanks to climate change,\u201d Fortune, June 2, 2015, <a href=\"http:\/\/fortune.com\/2015\/06\/02\/coffee-snobs-this-brew-will-get-pricier-thanks-to-climate-change\/\">http:\/\/fortune.com\/2015\/06\/02\/coffee-snobs-this-brew-will-get-pricier-thanks-to-climate-change\/<\/a>, accessed November 2017.<\/p>\n<p>[6] Charlie Mitchell, \u201cThe coffee bean belt: Climate change map,\u201d Financial Times, September 24, 2017, <a href=\"https:\/\/www.ft.com\/content\/a3b5748e-51c8-11e7-a1f2-db19572361bb\">https:\/\/www.ft.com\/content\/a3b5748e-51c8-11e7-a1f2-db19572361bb<\/a>, accessed November 2017.<\/p>\n<p>[7] \u201cCoffee and climate: What\u2019s brewing with climate change?\u201d Union of Concerned Scientists, October 18, 2011, <a href=\"http:\/\/www.ucsusa.org\/global_warming\/science_and_impacts\/impacts\/impacts-of-climate-on-coffee.html#.WgvHS2hSxPZ\">http:\/\/www.ucsusa.org\/global_warming\/science_and_impacts\/impacts\/impacts-of-climate-on-coffee.html#.WgvHS2hSxPZ<\/a>, accessed November 2017.<\/p>\n<p>[8] Gideon Long, \u201cColombia coffee farmers tackle many foes in fight to do it right,\u201d Financial Times, September 24, 2017, <a href=\"https:\/\/www.ft.com\/content\/ed531f08-51c6-11e7-a1f2-db19572361bb\">https:\/\/www.ft.com\/content\/ed531f08-51c6-11e7-a1f2-db19572361bb<\/a>, accessed November 2017.<\/p>\n<p>[9] \u201cFor partners, from partners: The first crop of coffee from Starbucks Costa Rica farm,\u201d Starbucks, October 15, 2014, <a href=\"https:\/\/news.starbucks.com\/news\/hacienda-alsacia-coffee\">https:\/\/news.starbucks.com\/news\/hacienda-alsacia-coffee<\/a>, accessed November 2017.<\/p>\n<p>[10] Caitlin Dewey, \u201cThe race to save coffee,\u201d Washington Post, October 19, 2017, <a href=\"https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.b23d204bfdda\">https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.b23d204bfdda<\/a>, accessed November 2017.<\/p>\n<p>[11] Jackson Landers, \u201cWith smart planning, coffee and bees can survive climate change,\u201d Smithsonian, September 11, 2017, <a href=\"https:\/\/www.smithsonianmag.com\/smithsonian-institution\/tropical-bees-and-coffee-will-survive-climate-change-smart-planning-180964836\/\">https:\/\/www.smithsonianmag.com\/smithsonian-institution\/tropical-bees-and-coffee-will-survive-climate-change-smart-planning-180964836\/<\/a>, accessed November 2017.<\/p>\n<p>[12] \u201cThe coffee farm dedicated to ensuring the future of coffee,\u201d Starbucks, April 25, 2017, <a href=\"https:\/\/1912pike.com\/starbucks-hacienda-alsacia\/\">https:\/\/1912pike.com\/starbucks-hacienda-alsacia\/<\/a>, accessed November 2017.<\/p>\n<p>[13] \u201cEthical sourcing: Coffee,\u201d Starbucks, <a href=\"https:\/\/www.starbucks.com\/responsibility\/sourcing\/coffee\">https:\/\/www.starbucks.com\/responsibility\/sourcing\/coffee<\/a>, accessed November 2017.<\/p>\n<p>[14] Nick Brown, \u201cStarbucks grants $400,000 to World Coffee Research to assist Guatemalan farmers,\u201d Daily Coffee News, April 8, 2015, <a href=\"https:\/\/dailycoffeenews.com\/2015\/04\/08\/starbucks-grants-400000-to-world-coffee-research-to-assist-guatemalan-farmers\/\">https:\/\/dailycoffeenews.com\/2015\/04\/08\/starbucks-grants-400000-to-world-coffee-research-to-assist-guatemalan-farmers\/<\/a>, accessed November 2017.<\/p>\n<p>[15] Meghan Bartels, \u201cClimate change effects could mean the end of coffee beans,\u201d Newsweek, September 14, 2017, <a href=\"http:\/\/www.newsweek.com\/climate-change-effects-could-end-coffee-beans-bees-pollinators-664836\">http:\/\/www.newsweek.com\/climate-change-effects-could-end-coffee-beans-bees-pollinators-664836<\/a>, accessed November 2017.<\/p>\n<p>[16] Nick Brown, \u201cClimate change could make coffee a major driver of tropical deforestation,\u201d Daily Coffee News, April 19, 2016, <a href=\"https:\/\/dailycoffeenews.com\/2016\/04\/19\/climate-change-could-make-coffee-a-major-driver-of-tropical-deforestation\/\">https:\/\/dailycoffeenews.com\/2016\/04\/19\/climate-change-could-make-coffee-a-major-driver-of-tropical-deforestation\/<\/a>, accessed November 2017.<\/p>\n<p>[17] Merrit Kennedy, \u201cCoffee, bees and climate change are linked in ways you may not have expected,\u201d NPR, September 11, 2017, <a href=\"https:\/\/www.npr.org\/sections\/thetwo-way\/2017\/09\/11\/550169720\/coffee-bees-and-climate-change-are-linked-in-ways-you-may-not-have-expected\">https:\/\/www.npr.org\/sections\/thetwo-way\/2017\/09\/11\/550169720\/coffee-bees-and-climate-change-are-linked-in-ways-you-may-not-have-expected<\/a>, accessed November 2017.<\/p>\n<p>[18] \u201cFuture demand and climate change could make coffee a driver of deforestation,\u201d Conservation International, April 4, 2016, <a href=\"https:\/\/www.conservation.org\/NewsRoom\/pressreleases\/Pages\/Future-Demand-and-Climate-Change-Could-Make-Coffee-a-Driver-of-Deforestation-.aspx\">https:\/\/www.conservation.org\/NewsRoom\/pressreleases\/Pages\/Future-Demand-and-Climate-Change-Could-Make-Coffee-a-Driver-of-Deforestation-.aspx<\/a>, accessed November 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Starbucks is striving to save coffee by whatever beans necessary. <\/p>\n","protected":false},"author":9659,"featured_media":23336,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,614,1275,612],"class_list":["post-23128","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-coffee","category-deforestation","category-starbucks","hck-taxonomy-organization-starbucks","hck-taxonomy-industry-food-and-beverage","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Climate Change is Mugging Your Coffee - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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