Coffee from Peru, Thailand and other smaller producers used to be a luxury for dedicated drinkers particular about their morning brew. Now, in a warming world, it could be key to the industry’s future. Some 40 countries grow coffee, but more than half of global production has long come from just two: Brazil and Vietnam.
And when bad weather hits both — an increasing risk in a destabilised climate — prices soar. Witness this year’s expensive lattes, as drought gripped both nations. That’s lending new momentum to coffee-industry investments in other countries, from Cuba to Rwanda.
There’s clearly a market, as many consumers seek out beans of uncommon origin. And the industry, suffering from consolidation, badly needs a more diverse supply chain. “There is an urgency now, because this year proves that the impact of climate change cannot be underestimated,” said Andrea Illy, CEO of Illycaffe , in an interview.
“It is starting to change the market itself.” His family-run company, founded in 1933, has re-entered countries in East and Southern Africa where it used to buy beans, and it’s expanding procurement from current suppliers outside Brazil and Vietnam. Coffee trader Volcafe in May secured US$60-million in financing to boost its operations in East Africa.
Starbucks has been distributing trees and investing in loans to producers in Peru, Rwanda and Tanzania. European coffee roaster Lavazza is in the midst of a 20-year project to help revive Cuba’s coffee .