The coffee industry is at a pivotal moment, according to Andrea Illy, chairman of illycaffè.
Recognising the severity of the challenges the industry faces – climate change, poverty, and market instability – G7 2024 endorsed the creation of a global public-private partnership. This initiative aims to secure coffee’s future by scaling proven solutions that can serve as a model not just for tropical crops but for agriculture worldwide.
This commitment couldn’t come at a more critical time. Droughts in Brazil and Vietnam, the two largest coffee producers, combined with the European Union’s new deforestation regulation, have disrupted global coffee supply chains and driven prices to historic highs. Smallholder farmers, who produce more than 70 per cent of the world’s coffee, are bearing the brunt of these shocks.
Thankfully, solutions are within reach and highly cost-effective. Regenerative agriculture is a groundbreaking innovation, offering adaptation and mitigation against climate change. It enhances soil health, conserves water, protects biodiversity, and reduces emissions – all while maintaining productivity, lowering costs, and producing superior coffee quality. Moreover, new coffee plant varieties, designed to be more resilient and productive, are ready for adoption.
Addressing climate challenges also requires tackling the chronic poverty faced by micro-growers. Education is the key lever for both fighting poverty and transitioning to regenerative practices. By equipping farmers with the knowledge and tools they need, we can generate meaningful change.
Looking ahead, my hope is that resources are allocated swiftly to launch sustainable supply chain projects across Africa, Latin America, and Asia. If these initial efforts yield scalable impacts, we can expand funding to the estimated US$10 billion needed over the next decade. Together, we can ensure a sustainable future for coffee – one that not only addresses climate challenges but also uplifts the communities that cultivate this vital crop.
At illycaffè, we remain committed to leading this transformation, proving that economic success and environmental stewardship are not mutually exclusive but mutually reinforcing. Together, we can ensure coffee’s future is not one of crisis but of resilience and hope.
This article was first published in the January/February 2025 edition of Global Coffee Report. Read more HERE.
