Starbucks invests in two innovation farms to enhance its coffee resilience to climate change.

• Starbucks is investing in two new farms in Central America to safeguard its coffee supply from climate change.
• Recently, extreme weather has put pressure on the world's coffee supply, which the company has been purchasing 3% of.
• Starbucks will investigate the performance of its hybrid coffee varieties at varying elevations and soil conditions at two new farms.

Over a decade ago, Starbucks purchased its first coffee farm in Costa Rica. Currently, the coffee corporation has expanded its portfolio by acquiring two additional farms.

The company, based in Seattle, announced on Thursday that it has invested in a new farm in Costa Rica and its first in Guatemala to protect its coffee supply from climate change.

Coffee production in Brazil has been negatively impacted by rising temperatures, frosts, and three consecutive years of La Nina, putting pressure on supply. This has caused Starbucks, which purchases 3% of the world's coffee, to scramble to find Arabica beans and resulted in higher prices for customers. Consumer coffee prices have increased by 18% over the past five years, as of August, according to the Bureau of Labor Statistics.

Roberto Vega, Starbucks vice president of global coffee agronomy, research and development, and sustainability, stated that frosts in Brazil have already impacted volumes of up to 50%, which could result in a severe impact on product availability. This occurrence is becoming increasingly common in the Coffee Belt.

The region with optimal conditions for growing coffee beans is known as the Coffee Belt.

Starbucks will investigate the performance of hybrid coffee varieties at varying elevations and soil conditions at two new farms. These hybrid plants possess increased productivity and immunity to coffee leaf rust, a fungus that prospers in high temperatures and precipitation.

Vega stated that while we can create new hybrids, the success of a hybrid in one country and under specific circumstances does not guarantee its effectiveness everywhere.

Vega's team aims to address other challenges confronting coffee farmers apart from those caused by climate change.

Starbucks aims to revive its Guatemalan farm by improving soil health and productivity, with the hope of sharing its knowledge with other farmers.

Vega stated that the farm was not in good condition, which was precisely what they were searching for. They were seeking a farm that accurately reflected the difficulties that farmers face today.

In Costa Rica, Starbucks plans to use technology such as drones and mechanization to address labor shortages faced by many Latin American farmers.

Starbucks intends to expand its agricultural portfolio by purchasing two additional farms in Africa and Asia, which will be located within the Coffee Belt.