The coffee market is a global business with many stakeholders and characterized by volatility and uncertainty. Today, one of the main challenges the coffee sector faces is the low productivity of smallholder farmers. Coffee price fluctuations make profits hard to come by, particularly for smallholders, offering these farmers little motivation to invest in their coffee farms, closing the door for future generations of coffee farmers.
At the same time, the world is drinking more coffee, and demand is expected to continue to exceed supply. World consumption for 2015/2016 is estimated at 164 million bags (9,840 million tons), while forecasts predict it will increase to 200 million bags (12 million tons) by 2030. This happens as the impact of climate change grows exponentially, posing an ever-increasing challenge to coffee production.
The International Coffee Organization (ICO) states that to supply the coffee world demand, increased productivity should not result in deforestation, soil depletion, pollution and an increased water usage and carbon footprint.
While the coffee industry works to move farmers from subsistence to business, the focus shall remain on profit and sustainability, hand in hand with a protected environment.
We, at Yara, think it is possible. We are committed to sharing our knowledge, as this example of Yara’s partnership in Mexico shows: