Climate Transition for Coffee Producers

It can be challenging to grasp the immediate impact of climate change on our daily coffee ritual. However, within this industry, this challenge is increasingly becoming more visible and concerning. We are facing clear consequences that are impacting both coffee quality and quantity, putting at risk the income of more than 25 million families worldwide who rely on this crop.

According to World Coffee Research, if current emissions trends persist, by 2050, half of the current productive soil for Arabica coffee (sourced in Colombia) will no longer be suitable. Yet, we do not need to look 25 years into the future to see what is happening in the global coffee market. We are observing unpredictable and dramatic droughts, floods in coffee-growing regions, and rising temperatures. This has led to uncertainty in the harvest seasons, challenges with the quality and quantity of production, and rising prices that impact value chains.

Colombia, famous for its premium coffee around the world, also faces the same challenges when it comes to talking about climate change. The country, which produced 14.39 million coffee bags in the last 12 months, has seen how recent rainfalls have severely affected crops by hindering flowering, which in turn impacts fruit production. Also, it has been seen that lands that used to be coffee apt are no longer suitable because of rising temperatures.   No doubt, this reality brings consequences for the lives of more than 550.000 families, who are primarily small and medium-sized coffee producers, with no more than 5 hectares. Additionally, according to the national federation of coffee growers (NFCG), 26,8% of total coffee growers live under multidimensional poverty, transforming an environmental challenge into a relevant social one, as any climate solution must address a differential focus.

Juan Valdez, a Colombian coffee brand owned by NFCG, with a presence in more than 40 countries, has been working with communities to address these challenges affecting its supply chain, and mostly reflects communities' vulnerability to climate change. In order to do so, we have built programs that include purchasing their premium coffee while strengthening communities' technical, environmental, social, entrepreneurial, and productive capacities. The biggest obstacles we have seen to climate change mitigation and adaptation in coffee producers are financial constraints, innovation projects' scalability, and cultural barriers, making a fair transition costly and difficult to achieve. 

According to the National Federation of Coffee Growers (NFCG), 26,8% of total coffee growers live under multidimensional poverty, transforming an environmental challenge into a relevant social one, as any climate solution must address a differential focus

 Juan Valdez has found in the NFCG, an organization with almost 100 years in Colombia, and in all its institutions, a key support for climate change adaptation, with a powerful institutional framework that is focused on trading, communities' technical assistance, R&D, and a coffee information system. Apart from Juan Valdez’s initiatives, such as the decarbonization plan aligned to our Race to Zero goal by 2050, we have worked on a sustainable supply chain model where we assess our key suppliers and work together on environmental, social, and governance initiatives in order to promote better practices. Nevertheless, with coffee producers acknowledging the communities' vulnerable conditions,  we work with them to train them in better practices to reduce environmental impacts, primarily during the post-harvest stage, and support them with technology solutions for water stewardship, waste management, and reforestation. Also, we work on raising environmental awareness with consumers and other stakeholders. This is particularly relevant, as recent global regulations, such as EUDR and net-zero commitments, have raised the bar for coffee producers. As climate change demands a fair transition, we are building a joint agenda where we build multistakeholder partnerships that can absorb better social and environmental practices-related costs to enhance competitiveness, while we promote certified products such as Organic or Rainforest. 

Climate transition in the coffee industry is a challenge that requires involvement from all stakeholders. However, as companies, we must recognize the immense responsibility we hold in our scope, which implies supporting communities in improving their environmental and social practices. Training, technology, financial resources, and raising awareness are fundamental to achieving this goal. Finally, the Global North also has the responsibility to acknowledge the reality of producer countries and support them with international cooperation, competitive prices, and reasonable market access regulation.