Starbucks Corp (NASDAQ:SBUX) expanded its coffee innovation network with adding farms in Guatemala and Costa Rica with plans for future investments in Africa and Asia.
These efforts are intended to increase the productivity, profitability and climate resilience of coffee farming.
Starbucks, which consumes 3% of the world’s coffee, roasts only Arabica beans. Rising temperatures, drought and coffee leaf rust disease threaten coffee quality, availability and farmers’ livelihoods due to climate change.
At Hacienda Alsacia, Starbucks is taking action to address the impacts of climate change, which threatens the global supply of high-quality coffee.
The new farms in Costa Rica and Guatemala will conduct research on hybrid coffee varieties under different altitudes and soil conditions, advancing research into genetic material. The Costa Rican farm near Hacienda Alsacia will also explore mechanization and drone technology to address labor shortages.
In Guatemala’s Antigua Valley, the farm will mimic smallholder agriculture, reflecting the current challenges many farmers face.
Starbucks plans future investments in agricultural companies in Africa and Asia, creating a coffee innovation network in the key regions of the Coffee Belt: Latin America, Africa and Asia Pacific. This network will study diverse cultures, landscapes and cultivation methods that influence coffee taste.
“Through these innovation farms, we will develop solutions that will not only improve coffee productivity and quality, but also give farmers the tools and knowledge needed to thrive in a changing world and challenging climate,” said Roberto Vega, Vice President president of Global Coffee at Starbucks. Agronomy, R&D and sustainability.
Starbucks emphasized that this work is being conducted on behalf of coffee farmers worldwide, with findings that can be applied to other industries and crops affected by climate change.
Price promotion: SBUX shares are trading 0.36% lower at $96.15 premarket at last check Thursday.
Photo via Shutterstock
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This article Starbucks invests in future-proof coffee: new farms in Latin America and beyond to tackle climate challenges originally appeared on Benzinga.com
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