Starbucks Invests In Future-Proof Coffee: New Farms In Latin America And Beyond To Tackle Climate Challenges - Starbucks (NASDAQ:SBUX)

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Starbucks Corp SBUX expanded its coffee innovation network by adding farms in Guatemala and Costa Rica with plans for future investments in Africa and Asia.

These efforts aim to boost coffee farming’s productivity, profitability, and climate resilience.

Starbucks, sourcing 3% of the world’s coffee, exclusively roasts Arabica beans. Rising temperatures, drought, and coffee leaf rust disease threaten coffee quality, availability, and farmers’ livelihoods due to climate change.

At Hacienda Alsacia, Starbucks is taking action to address the effects of climate change, which is threatening the global supply of high-quality coffee.

Also Read: Shaq Missed A Deal Of A Lifetime With Starbucks – Says Because Growing Up He’s ‘Never Seen A Black person Drink Coffee’

The new Costa Rica and Guatemala farms will research hybrid coffee varieties under various elevations and soil conditions, advancing genetic material studies. The Costa Rica farm near Hacienda Alsacia will also explore mechanization and drone technology to address labor shortages.

In Guatemala’s Antigua Valley, the farm will replicate smallholder farming, reflecting the current challenges many farmers face.

Starbucks plans future farm investments in Africa and Asia, creating a coffee innovation network across the Coffee Belt’s key regions: Latin America, Africa, and Asia Pacific. This network will study diverse cultures, landscapes, and growing methods impacting coffee flavor.

“Through these innovation farms, we will develop solutions that will not only improve coffee productivity and quality but also empower farmers with the tools and knowledge needed to thrive in a changing world and challenging climate,” said Roberto Vega, Starbucks vice president of Global Coffee Agronomy, R&D and Sustainability.

Starbucks emphasized that this work is conducted on behalf of coffee farmers globally, with findings that can be applied to other industries and crops affected by climate change.

Price Action: SBUX shares are trading lower by 0.36% at $96.15 premarket at the last check Thursday.

Photo via Shutterstock

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Starbucks Invests In Future-Proof Coffee: New Farms In Latin America And Beyond To Tackle Climate Challenges – Starbucks (NASDAQ:SBUX)

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