How The Coffee Industry is About to Get Roasted by Climate Change
Sylvain Charlebois, 11 Oct 17
       

Climate change could severely impact the world’s coffee-producing nations and turn a cup of decent java into a luxury in the years to come. (Shutterstock)

Fall is always a good time to create new habits, and coffee chains know it.

These days, they are desperately trying to find any excuse to get you to drink their java.

Many chains used National or International Coffee Day, just passed, as a reason to offer their coffee at a discount, or even for free — with some conditions, of course.

For restaurant operators, there’s no better hook than coffee to get repeat business. It’s a great scheme that seems to be working for some. Given what’s looming on the horizon, however, offering free coffee may no longer be an option for businesses.

Coffee demand around the world is shifting. Europe still accounts for almost one third of the coffee consumed worldwide, but China has doubled its consumption in just the last five years.

As for Canada, numbers remain robust as more than 90 per cent of adult Canadians drink coffee. Several recent studies suggest coffee is a healthy choice, possibly one factor in the rise in coffee drinkers.

Either way, demand is strong in most Western countries, which puts more pressure on coffee-producing countries. However, as climate change looms, there’s a real threat to coffee’s global success story.

Coffee grown in more than 60 countries

Coffee is the most traded commodity in the world after oil.

Coffee beans are grown in more than 60 countries and allow 25 million families worldwide to make a living. Brazil is by far the largest producer, followed by Vietnam and Colombia.

Globally, 2017 could be a record year, as the world will likely produce well over 153 million 60-kilogram bags of coffee. Coffee futures are down as a result, but we are far from seeing a bumper crop.

Production has been modestly shifting over the past few years. With good rainfalls in Brazil and favourable weather patterns in other regions of the world, Mother Nature has so far spared coffee growers, but their luck may be running out.

Despite not being a staple in any diet, coffee is big business. At the farm gate, coffee is worth over US$100 billion. In the retail sector, the coffee industry is worth US$10 billion.

But there is growing consensus among experts that climate change will severely affect coffee crops over the next 80 years. By 2100, more than 50 per cent of the land used to grow coffee will no longer be arable.

Ethiopia could be profoundly affected

A combination of effects, resulting from higher temperatures and shifting rainfall patterns, will make the land where coffee is currently grown unsuitable for its production.

According to the National Academy of Science, in Latin America alone, more than 90 per cent of the land used for coffee production could suffer this fate. It’s estimated that Ethiopia, the sixth largest producer in the world, could lose over 60 per cent of its production by 2050. That’s only a generation from now.

As climate conditions become critical, the livelihoods of millions of farmers are at risk and production capacity is jeopardized. Other potential contributors to this predicted downfall are pests and diseases.

A Ugandan coffee farmer inspects his plants in 2015. Coffee is the lifeblood of many families in Uganda but their success is threatened by climate change. (AP Photo/Stephen Wandera)

With climate change, pest management and disease control are serious issues for farmers who cannot afford to protect their crops. More than 80 per cent of coffee growers are peasant farmers.

Pests and diseases will migrate to regions where temperatures are adequate for survival, and most farmers won’t be ready. Many will simply choose to grow other crops less vulnerable to climate change. Others may attempt to increase their coffee production, but the quality will almost certainly be compromised.

Coffee quality will suffer

Higher temperatures will affect the quality of coffee. Higher-quality coffee is grown in specific regions of the world where the climate allows the beans to ripen at just the right time. Arabica coffee, for example, which represents 75 per cent of world coffee production, is always just a few degrees away from becoming a sub-par product.

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