Starbucks announced that it has made investments in two more farms: one in Guatemala and the other in Costa Rica—to achieve its objective of securing its coffee supply against climate change.

The production of coffee has been negatively impacted in recent years by rising temperatures, frosts in Brazil, three years in a row of La Nina, and other extreme weather events, placing strain on the supply. Starbucks, a company that purchases 3% of the global coffee market, may have to scramble to locate Arabica beans, which might result in increased pricing for its consumer base. As of August, consumer coffee costs had increased by 18% over the previous five years, as reported by the Bureau of Labor Statistics.

Starbucks plans to investigate the performance of hybrid coffee varietals under various soil and elevation conditions at the two new farms. Higher output and resistance to coffee leaf rust, a fungus that favours warmer temperatures and more precipitation, are two benefits of the hybrid plants.

According to CNBC reports, Starbucks' team is also seeking to solve additional difficulties encountered by its coffee producers that aren’t the direct impact of climate change.

For instance, the business's new farm in Guatemala is tiny, has poor output, and degraded soil. By restoring its land, Starbucks intends to create a turnaround. It will then utilise the lessons learned to instruct other farmers on how to follow suit.

In order to solve the labour crisis that many Latin American farmers are facing, Starbucks intends to utilise drones, mechanisation, and other tech at its second farm in Costa Rica, which is situated close to its current Hacienda Alsacia.

Starbucks intends to expand its agricultural portfolio throughout the Coffee Belt by eventually purchasing two additional farms in Asia and Africa.

(Sources: cnbc.com)