Starbucks expands research-driven coffee farm operationDaily coffee news from Roast Magazine

Hacienda Alsacia. Starbucks press release photo by Joshua Trujillo.

Starbucks today announced an expansion of its in-house coffee farming and sustainability research activities, including new coffee farms in Costa Rica and Guatemala and planned investments for farms in Africa and Asia.

The dollar amounts of current or future investments have not been publicly disclosed.

The company estimates that Starbucks buys about 3% of the world’s coffee annually from around 450,000 farms.

Like many of its multinational coffee roasting competitors, the company’s business model does not rely heavily on owning coffee farms. This can be attributed to the disproportionate risk exposure and lack of consistent profitability associated with coffee farming and green coffee production.

Starbucks press release photo by Joshua Trujillo.

But through Starbucks’ own agricultural operations, which first began with the experimental Hacienda Alsacia farm in Costa Rica, the company plans to “find solutions to increase productivity on farms, increase farmer profitability and increase climate resilience.” strengthen”.

Starbucks said its work at Hacienda Alsacia has resulted in the distribution of about 90 million climate-resilient coffee trees and more than 53 million coffee seedlings to other farmers over the years.

A new farm is located next to Hacienda Alsacia, north of San Jose in the Alajuela Province of Costa Rica, according to a company announcement today. The Guatemalan farm is located in the Antigua Valley region.

“The new farms in Costa Rica and Guatemala will both study hybrid coffee varieties at different altitudes and soil conditions, a critical step in exploring new genetic material,” Starbucks said.

The company noted that the farm in Costa Rica will be used to test mechanization, drones and other technologies. In Guatemala, however, the farm operation will “replicate a smallholder farming concept with conditions that reflect the challenges facing many farms today.”

Starbucks press release photo by Joshua Trujillo.

Key challenges for coffee farmers in Guatemala, Costa Rica and elsewhere include: global green coffee pricing mechanisms related to commodity markets, which result in price volatility, price risk and overall low prices; increased production costs; and climate risk, among others.

Starbucks said two more “innovation farms” will soon be coming to Africa and Asia, but the locations were not disclosed.

Together, these farms will be part of what Starbucks calls its “coffee innovation network.”

“In addition to the Innovation Farms, the network includes 10 Farmer Support Centers in coffee-growing regions around the world where world-class agronomists work directly with farmers on research and best practices, as well as 70 ‘model farms’ within the Starbucks supply chain where.” Solutions are put into action,” the company said.

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