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What’s the forecast for smallholder farmers of Arabica coffee?

By Hannah Savage

For millions of smallholder farmers residing in the rural highlands of East Timor and Ethiopia, Arabica coffee is a major source of income. Yet, weather patterns are threatening their future livelihoods. With global coffee yields predicted to dramatically reduce in coming decades, how will this touch Melbourne’s privileged cafe culture?

Edited by Ashleigh Hallinan & Irene Yonsuh Lee

Issue 2: December 10, 2021

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Illustration by Aisyah Mohammad Sulhanuddin

The world loves its coffee. After crude oil, coffee is the most exported commodity in the world and global demands are projected to skyrocket alongside demographic growth (2). With a strong inclination by Australian citizens to participate in our bourgeois cafe culture, Australian demand can be expected to mimic this trend. However, as climate change continues to throw curveballs, pressures to satisfy these demands will be felt by all in the supply chain.

 

There are many species of coffee beans, yet global consumption relies only on a narrow genetic selection. Coffea Arabica is the dominant coffee bean species in commercial production (approximately 70 percent), followed by Coffea Robusta (2). Agricultural research and breeding of these crops are not extensive, considering their high sensitivity to climate. 

 

If Arabica was a child, it would be the no-mash-touching-the-peas type. Though a laborious crop to farm, this fussy plant has low yield when too much shade deprives it of sunlight or too little shade shrinks soil moisture levels. It insists on altitudes 1000-2000m above sea level and 2000mm of rainfall per annum (2). Moreover, the optimal air temperature for Arabica is 18-21 degrees Celsius (3). 

 

With these environmental specifications, it is expected that half of the world’s optimal areas for growth of Arabica and Robusta are expected to be lost by 2050 due to climate change (13). 

 

After Hurricane Maria hurtled across Puerto Rico in 2017, 80 percent of coffee trees were destroyed and rural livelihoods were flattened overnight (4). Climate change does not pay sympathy towards poor and marginalized rural communities. Frequency and intensity of extreme weather is increasing in many developing nations. Changes in temperature, weather events and rainfall patterns are already challenging the ability of farmers to adapt.

 

Rainfall distribution is becoming more erratic and unpredictable. This is a key concern to farmers as rain patterns correlate with timing of flowering and fruit production (2). Flowering is usually triggered by the first rains of the wet season, yet unpredictable rains during the year may cause flowering at undesirable times. Unsynchronized ripening requires additional harvesting cycles, costing farmers more money and labour. 

 

In addition, water scarcity and warmer air temperature also have profound impacts on harvests. Prolonged drought leads to misshapen or small beans with marks and imperfections (3). Low moisture and heat stress causes wilting, death of crops or acceleration of bean growth (3). At temperatures above 23 degrees, fruit ripens too fast for a rich, sweet coffee flavour to develop (2). 

 

What will thrive from these changing climatic conditions are pests, diseases and coffee rust fungus, which are becoming more prevalent in areas previously unfavourable for their survival (5). The insect Coffee berry borer has been a particular challenge to coffee producers globally, as it feeds on coffee beans and damages plantations. One to four generations of these critters are born each fruiting season (5). 

 

Climate change brings uncertainty to the future livelihoods of millions of smallholder coffee farmers around the world, who produce 70 percent of the world’s coffee (6). 

 

While world leaders dance around pretty statistical graphs of their carbon-cutting “achievements”, there is the underlying issue that global efforts to lower emissions will not have equal consequences across geographical locations. Poorer economies abundant in fossil fuel resources are pressured to implement policies that further increase their vulnerability and are left grappling to find quick coping strategies. 

 

Although it accounts for only a small percentage of global coffee production, East Timor is one of the most economically dependent on coffee. East Timor, the small-island nation 700km north-west of Darwin, has relied on its oil sector for economic development in recent decades, but now interest from foreign traders is depleting with global trends towards renewable energy. 
 

The coffee industry has been identified by the East Timor government as being a key opportunity for sustained economic growth and reduction of rural poverty. More than 18 percent of Timorese households rely on coffee production as their primary source of income (7). Coffee producers have a poverty rate of 47.9 percent, which is higher than the national rate of poverty, 40.3 percent (7). Many coffee-producing households are without electricity or access to clean water and regular meals. 

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Figure 1: Distribution of coffee-selling households in Timor-Leste (7).

Timorese Arabica coffee farmers today celebrate achieving yields their grandparents would have considered inadequate in the early 20th century during Portuguese occupation. This reflects how much the climate has changed across generations. Rain, once predictable to begin at the end of every November, is now inconsistent and reduced (1). Unfortunately, adaptive solutions often demand high investment and low reward in the initial implementation stages. Farmers may be reluctant to remove their aging, unproductive coffee trees and replant new ones for fear of losing a major source of income while waiting for financial output from the new growth (9). There is the temptation to instead plant new crops between existing ones, which exploits soil nutrients and harms coffee yields.

 

Small short-term rewards also discourage poorer farmers from participating in collective reforestation projects (9). There is much work to be done to restore ecosystems devastated from rainforest clearances during Indonesian colonisation in 1975, which occurred mere months after independence from Portugal. Shade trees that characterise these tropical rainforests play important roles in supporting coffee growth. If farmers grow coffee crops amongst the rainforest, crops will benefit from wind shelter and rich soil nutrients (8). Shade reduces daytime air temperature and increases humidity.

 

In the region of Baguia, the collaboration project WithOneSeed, (co-founded by Melbourne’s own ‘The Corner Store Cafe’ owners), actively alleviates poverty by restoring rainforests and granting farmers profits from carbon credit trades. Farmers plant an indigenous shade tree, carbon credits are purchased by foreign customers to offset fossil fuel emissions and a remuneration of 50cents per tree is given to farmers each year so long as the tree survives (10). 

 

WithOneSeed therefore provides rural coffee producers with income before trees mature and re-establishes tara bandu, customary resource management that sustained Timor Leste’s environment for centuries pre-colonisation. Organic beans are purchased from smallholder farms at a fair price by The Corner Store and roasted in Oakleigh. The supply chain is transparent and traceable and profits go towards funding WithOneSeed planting. Plus the coffee is good quality and grown without nasty chemicals! (11)

 

Simple adaptive responses are also being made by coffee producers in the world’s fifth largest Arabica producer, Ethiopia (3). As Arabica has been said to originate here, it is perhaps unsurprising that 16 percent of the population rely on coffee for their livelihood. 

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Figure 2: The main coffee growing areas of Ethiopia (3).

In the case of a global temperature rise of 2.4 degrees Celsius, land areas suitable for coffee production in Ethiopia would be expected to decline by 21 percent (12). Resilience for smallholder Arabica producers now depends on creative solutions using limited technology and resources available to rural communities. Relocating farms to higher altitudes of Ethiopian highlands is one solution. But this transition comes at a cost for coffee producers in the form of social network losses. While climate conditions of higher land might be more suitable, other factors such as land tenureship rights and soil quality may pose new obstacles (13).

 

As rain seasons shorten and dry seasons lengthen, Ethiopian coffee producers aim to boost irrigation by diverting nearby streams. This is an ancient and cost-effective solution that enables coffee to successfully be grown in areas classified unsuitable (3). Similarly, coffee producers are carrying out traditional techniques of mulching, where laying compost over soil conserves soil moisture (3). However, more government investment in supporting these adaptations is needed to keep ahead of global warming (3). 

 

Sustainable agriculture also needs to be met with fair prices. 

 

Many Ethiopian farmers do not have access to foreign traders who will pay premium prices that outweigh production costs. Coffee prices are determined by the international market, or “C price”, which is based on the theory that cost is proportional to global demand, with no consideration of quality or organic farming practices (14). This supports and encourages cheap, unsustainable agricultural practice because sustainable or not, farmers will receive the same revenue for their produce.

 

To combat this, Ethiopian business CoQua, based in Addis Ababa city, facilitates opportunities for private  producers to link with international clients and initiate direct lines of trade (14). Through CoQua, Melbourne’s Seven Seeds cafe were able to establish a trade relationship with private smallholder Ethiopian Arabica producers. Seven Seeds claim to pay 3.56 times the “C price” (14).

 

Continue as we may to remain disconnected from the challenges of an environmentally fragile coffee industry, it is only a matter of time before global reduction makes noticeable impacts on Melbourne’s shielded society. 

 

What will happen when coffee stocks fail to meet Melbourne demand? Seven Seeds co-owner Mark Dundon told The Sydney Morning Herald that he predicts coffee prices will rise, despite general reluctance of consumers to spill more than one bank note from their wallets for a flat white (14). And why shouldn't we pay more for our hot beverages if producers vulnerable to food insecurity are paying more from the brunt of climate change?

 

The following decades have a bitter outlook, but the recent pandemic outbreak enhanced our ability to envision rapid global disruptions where no corner of the world is excluded. Certainly a disruption to Melbourne coffee culture is a trivial issue in the grand scheme of things, but as consumers it is one worth considering now.  

 

The future for Melbourians to satisfy their cultural addiction balances dangerously on a series of environmental conditions being met in foreign highlands. While it’s true that being a “smart consumer” can feel like a matter of blind faith (how fair is fair trade?), favouring businesses that have ethical, direct lines of trade with smallholder producers is one small, immediate solution towards building a sustainable future for our treasured beans and those in the firing line of climate change. 

References:

1. Jack Board, “From crop to kopitiam, Asia's coffee is facing its biggest threat - climate change,” CNA, published 29 February 2020, https://www.channelnewsasia.com/asia/climate-change-coffee-prices-timor-leste-crops-1338741 

 

2. Abaynesh Asegid, “Impact of Climate Change on production and Diversity of Coffee (Coffea Arabica L) in Ethiopia,” International Journal of Research Studies in Science, Engineering and Technology 7, 8 (2020): 31-38.

 

3. Kew Royal Botanic Garden, Coffee farming and climate change in Ethiopia, (London: The Strategic Climate Institutions Programme), 37, https://www.kew.org/sites/default/files/2019-01/Coffee%20Farming%20and%20Climate%20Change%20in%20Ethiopia.pdf 

 

4. “How is Climate Change Impacting the Future of Coffee?,”  TechnoServe Business Solutions to Poverty, published 16 September 2021, https://www.technoserve.org/blog/climate-change-impacting-future-coffee/ 

 

5. Getachew Weldemichael and Demelash Teferi, “The Impact of Climate Change on Coffee (Coffea arabica L.) Production and Genetic Resources,” International Journal of Research Studies in Agricultural Sciences (IJRSAS) 5, 11, (2019): 26-34, DOI: http://dx.doi.org/10.20431/2454-6224.0511004

 

6. Michon Scott, “Climate and Coffee,” Science Information for a climate-smart nation, published 19 June 2015,  https://www.climate.gov/news-features/climate-and/climate-coffee 

 

7. Brett Inder and Nan Qu, Coffee in Timor-Leste : What do we know ? What can we do ?,  (Australia: Monash University), 17.

 

8. Simon P.J Batterbury, Lisa R. Palmer, Thomas R. Reuter, Demetrio do Amaral de Carvalho, Balthasar Kehi and Alex Cullen, “Land access and livelihoods in post-conflict Timor-Leste: no magic bullets,” International Journal of the commons, 9, 2, (2015): 619-647.

 

9. Lisa Walker, Understanding Timor Leste, (Dili: Swinburne Press, 2013), 22-158.

 

10. Andrew Mahar, “Meet the farmers helping to reforest Timor-Leste,” World Economic Forum, published 26 January 2021, Meet the farmers helping to reforest Timor-Leste | World Economic Forum (weforum.org)

 

11. “The Roastery,” The Corner Store, accessed November 2021, https://cornerstorenetwork.org.au/the-roastery 

 

12. Cheikh Mbow et al., Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems, (2019), https://www.ipcc.ch/site/assets/uploads/sites/4/2021/02/08_Chapter-5_3.pdf 

 

13. Yen Pham, Kathryn Reardon-Smith, Shahbaz Mushtaq and Geoff Cockfield, “The impact of climate change and variability on coffee production: a systematic review”, Climatic Change, 156, (2019): 609-630, The impact of climate change and variability on coffee production: a systematic review | SpringerLink

 

14. Dani Valent, “ 'The industry's at risk': the high price of cheap coffees,” published 31 May 2019, national/the-industry-s-at-risk-the-high-price-of-cheap-coffees-20190528-p51rti.html 

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