Showing posts with label coffee. Show all posts
Showing posts with label coffee. Show all posts

Sunday, June 22, 2014

Quoted in: From Mexico to Brazil, climate change threatens coffee growers in Latin America


"From Mexico to Brazil, climate change threatens coffee growers in Latin America"
By: Diego Cupolo
UpsideDownWorld
June 3, 2014

Coffee, like gold, sugar and oil, has long been one of Latin America’s major exports, sustaining everyone from independent farmers in mountain regions to corporate bankers in capital cities, all while keeping weary minds alert throughout the world.

Yet over the last decade, changing climate patterns have intensified droughts and plagues in the region, creating conditions less suitable for coffee production and wreaking havoc on the industry that came to define, even shape, many hillsides in rural Central and South America. Today, as coffee growers struggle to recover from a string of weather-related events, some industry analysts have already foreseen a major shift in coffee production towards Asia and away from Latin America.

The long series of problems came to a peak this spring, when coffee prices doubled after a severe drought stunted the growing season in Brazil, the world’s top coffee exporter. The extent of the damage remains unknown, but the price hike arrived at the same time that many other Latin American nations underwent a record-breaking epidemic of coffee rust, or “roya” in Spanish, a fungus known to suffocate coffee trees and lower bean yields.

The rust outbreak began in 2012 and has since affected nations spanning from Mexico to Peru, with countries in Central America experiencing the highest levels of crop loss, said Monika Firl, social projects manager at Cooperative Coffees, a Montreal-based sourcing co-op that imports specialty coffee.

“In Nicaragua in particular, farmer groups have been really hit hard,” Firl said. “Some groups that we are working with might have 20 percent of their total harvest. There are other farmers we are working with in El Salvador that will have 5 or 10 percent of their usual harvest, so for a farmer that’s already living on the edge, this is disastrous.”

The outbreak is just one of three major epidemics to hit Latin American coffee growers in the last six years. There was also a coffee rust outbreak in Colombia from 2008-2011, where nearly a third of the nation’s harvest was lost to the fungus. Along with this year’s drought in Brazil, the three events were caused by erratic climate patterns, said Peter Baker a senior scientist specializing in commodities and climate change at the Centre for Agricultural Bioscience International.

“It’s difficult to point the finger directly and say it’s because of climate change, but it’s consistent with more chaotic weather patterns which I think we’re seeing globally,” Baker said during a phone interview in May 2014.

Aside from higher prices and lower quality brews for consumers worldwide, the wave of agricultural catastrophes threatens the economic foundation of coffee growing nations in Latin America, where total coffee production has dropped about 20 percent since 2011, an estimated loss of more than $1 billion. In Central America alone, about 5 million people get their livelihood, directly or indirectly, from the coffee and their future remains uncertain.

The latest report from the Intergovernmental Panel on Climate Change (IPCC) states “the suitability for coffee crops in Costa Rica, Nicaragua and El Salvador will be reduced by 40 percent” with increasing of temperatures. Regarding Brazil, the report says warmer summers could make coffee crop unfeasible in Minas Gerais and São Paulo, the nation’s major coffee growing states.

Meanwhile, countries like Vietnam, Indonesia and China are stepping up their coffee production to fill global demand as many Latin American coffee growers face a 2-3 year recovery period before they can return to pre-plague harvest figures. Baker said mitigation efforts are often slowed and complicated by their costs, as they require significant investments and adaptations, which most independent farmers cannot afford without government assistance.

If current trends continue, rural areas from Mexico to Brazil, many of which are already afflicted with poverty and malnutrition, are bound to experience higher unemployment rates, increasing hunger and, eventually, mass migration.

“If the problem persists, employment and stability in the region could be compromised,” Mark Feierstein, administrator of the United States Agency for International Development (USAID), told the International Business Times. “It could affect migration patterns and prompt an increase of immigration to the U.S.”

Deep Roots of a Plague
While speaking of the many causes behind the current rust outbreak, W. Alejandro Sanchez, a senior research fellow at the Council on Hemispheric Affairs (COHA), pointed out the fragility of commodity-based economies in Latin America.

“Countries like Peru, Mexico and Colombia are regarded as the ‘pumas of Latin America’ just like the tiger economies in Asia,” Sanchez said. “As much as some of our economies are thriving, we are still economies based on basic commodities: oil, gas, lithium, potatoes, rice, beans and coffee. That means we are at the mercy of the environment.”

From the environment to farming practices, the recent outbreaks were created by a myriad of conditions, which scientists are still trying to define. While there hasn’t been conclusive research on the subject, the main causes for rust seem to correlate with rising heat and humidity.

“Warming temperatures at higher altitudes and the resulting shifts in moisture accumulation are likely allowing the rust to thrive in areas previously uninhabitable,” wrote Emma Bladyka, coffee science manager for the Specialty Coffee Association of America (SCAA). “Disruptions in the typical dry season can create an environment more habitable for rust outbreaks. Smaller and more frequent rainfall in the region likely contributed to the perfect fungal habitat.”

Many other factors are also exacerbating the rust outbreak, including land use methods, degradation of soil quality, use and misuse of fertilizers or fungicides and a general shift towards high-density monoculture farming that allows easier disease transmission between plants.

“Roya is a fungus that is always present in coffee,” said Firl of Cooperative Coffees. “When the fields become out of balance or the trees become very vulnerable and climatic spore infestations occur, that’s when you get this epidemic proportion. Once it starts multiplying, it just takes over.”

In Colombia and Guatemala, governments have responded by assisting farmers in planting rust-resistant varieties of coffee, which have proven effective in some short-term case studies, but are not popular among specialty roasters who claim engineered coffees have inferior cup quality.

The US government has also announced a $5 million partnership with Texas A&M University’s World Coffee Research center to create stronger strains of coffee that will fight off future pests and plagues. Yet due to fast evolving and fluid outbreaks, “the science is always three years behind,” Firl said. There are many varieties of coffee rust along with other coffee diseases and researchers often struggle to make hybrids resistant to multiple conditions.

“Clever as we think we are, the natural cycles are much quicker” Firl said. “The insects, the illnesses, the plagues become much more resilient and then you’re back at the laboratory, trying to come up with a more resistant new breed [of coffee] to combat the now more resistant strands of fungus. So it’s great for the labs, but it’s not good for farmers.”

The Orphan Commodity

Fungicides, insecticides, fertilizers and even pruning equipment all require significant investment. Even if governments were to provide subsidies to coffee farmers for such products, large-scale education programs would be needed to teach growers about rust-prevention techniques and planting methods, Baker said.

Fighting region-wide epidemics requires massive, multi-national campaign efforts, which can be difficult to organize due to the fact that coffee is an “orphan commodity,” or a crop without a global institution to direct and oversee development trends.

“Unlike the CIMMYT international corn and wheat center in Mexico or the IRRI rice center in the Philippines, there is no equivalent organization for coffee,” Baker said.
Few crops are in the world are grown like coffee. The results create not only a decentralized, country-by-country response to disaster relief, but also a global deficit in research and development on coffee production. Speaking at the Let’s Talk About Roya conference in El Salvador last fall, Baker said worldwide investment in R&D for coffee totaled about $100 million per year.

“The full value of the coffee industry is a $100 billion a year, so [research and development is] 0.1 or 0.2 percent the total value spent on production and that’s crazy,” Baker said. “It’s completely crazy. Expenditure is completely inconsistent with the risk levels.”


Normally, Baker said industries spend between 2 and 10 percent of their total production value on R&D. He also pointed out the research conducted on coffee is more often focused on its health effects for consumers than on improving growing conditions in the fields.

For these reasons, even the root causes of coffee rust remain unclear to many scientists studying the epidemic. To obscure matters further, there are no official figures on how many crops are lost to disease or how much land is used to grow coffee worldwide. All we know is how much coffee reaches the market, Baker said, a method of commerce that disregards the supply chain and strictly values the end product.

“Instead of developing technology to continue on the same footprint, globally the coffee industry continues, I think, to be a deeply exploitive and extractive industry,” Baker said at the conference. “It moves on, it burns out land, moves on to other areas.”
Other areas like Vietnam, Indonesia, Laos, Myanmar and China where much of the rising coffee production is driving deforestation. While sustainable and fair-trade coffee certifications have made significant impacts on the industry over the last decade, Baker said they haven’t done enough to curb destructive land use practices.

"That’s a principle problem, that you have a lot of new coffee coming onto the market every year and most of that, I think, is coming from deforestation so this is something the coffee industry doesn’t really want to talk about, but it’s happening,” Baker said, citing studies by David Gaveau of the Center for International Forestry Research, that link coffee price fluctuations to deforestation rates in Sumatra.

The globalized production of coffee has kept crop prices relatively stable. New exports from Asia replace crop losses in Latin America and, until recently, consumers have remained unaffected.
“What the last years have told us is we lose millions of sacks of coffees because of rust and yet the price goes down,” Baker said. “So roya is a sort of earthquake that reminds us that we’re sitting on top of a fault and the fault is that the global market doesn’t work for agriculture in general.”

Adding to the long list of sustainability problems, Baker said coffee production has become dangerously concentrated over the years, with just four countries exporting 2/3 of the world supply. If one nation undergoes a climate-related event and production is affected, such as the drought in Brazil, the impact that single event can be amplified through the industry worldwide.

“Increasingly, in the future, I think we’re going to get more climate shocks and it will be like playing one of those [slot] machines,” Baker said. “One year, two or three climate shocks will come up together and we’ll have a real shortage of coffee.“

“Locally, on the farm level you’ve got some really nicely run farms, on a micro-level, but globally I think coffee is actually becoming less sustainable,” Baker continued. “I think its carbon footprint must be going up, biodiversity is going down and you’re getting this concentration [of production] and it’s risky to have all your eggs in a few baskets.”

The Future in the Past
In 1870, Sri Lanka was the largest coffee producer in the world. At the time, it was a British colony known as Ceylon and the small island supplied Europe with much of its coffee until the first signs of a rust outbreak appeared in 1875. The fungus spread quickly and the colonizers failed to slow infection rates, resulting in the loss of 95 percent of the coffee harvest in less than 20 years.

With a once thriving industry decimated, local coffee growers began planting tea. Today, many argue the Ceylon coffee rust outbreak of 1875 is the primary reason behind the British addiction to tea. They were forced to adapt to new circumstances.
It’s too early to tell whether the same fate awaits Central and South America, but the prospects are worrisome, Firl said.

“The position rust puts farmers in is so challenging,” Firl said. “Most of the support going out to farmers, I feel, is misguided. It’s pushing them towards chemical solutions, it’s a lot of talk and a lot of showcasing, grandstanding new policies, grandiose summits and very little is going to farmers to help them get through what’s a very horrific plague.”
Most efforts to combat the outbreak have been centered on developing new fungicides and fungus-resistant coffee trees, Firl said. Yet these remedies have proven to be problematic in Honduras, where 50 percent of coffee plants were rust-resistant varieties and the nation still suffered a 28 percent loss of coffee yields during the most recent outbreak.
Firl said chemicals and laboratory solutions alone cannot stop the spread of rust. Organic fertilizers, soil quality and field management are all important components in combating the plague.

“In Marcala, Honduras, we have one organic farmer who is using different kinds of compost, frequent applications, spraying, cultivating micro-organisms that are natural inoculants, adding that back into coffee fields, spraying the soil and spraying the foliage,” Firl said. “He’s doing all of that and this guy is getting 50 quintales of good quality, organic coffee while his neighbors will have scattered berries on their bushes.”

Image: Coffee fields in Costa Rica (Diego Cupolo).
“It takes a lot of work and investment,” Firl continued. “He was already doing this before the plague. Out of conviction, not reaction. He had the resources available that a lot of farmers don’t, to hire extra hands, to do the pruning and the composting, but not all coffee farmers are in that luxurious position of having profits [from their harvests.]”

In response to the Ceylon rust outbreak, growers in Southeast Asia and Africa also replaced much of their Arabica coffee trees, the rich-flavored variety preferred by specialty brewers, with the more bland, but more resilient Robusta coffee trees. Today, Latin America still produces most of the world’s Arabica coffee beans, but if the problems persist more coffee growers are bound switch to Robusta, Baker said.

“Big coffee roasters, in their standard supermarket blends are putting in a bit more Robusta so, yes, the taste and quality, I think, will tend to slip,” Baker said. “Whereas twenty years ago, 30 percent of coffee worldwide was Robusta, now it’s up to about 40 percent and I think that’s going to carry on.”

Taste aside, larger coffee distributors will adapt to changing climate patterns by finding substitute suppliers, Firl said. Global demand for coffee is rising and consumers will likely remain largely unaffected as the production landscape is rearranged throughout the world.
“A year ago, roya was in the news for two or three weeks, and my theory is that once the industry recognized that supply wouldn’t be effected, that they’d just have to move production elsewhere, the issue just completely dropped of the map,” Firl said.

“For us, it’s a little more difficult because we have a really long term relationship with a lot of coffee-growing organizations and we want them to be there three years in, once they recover from [coffee rust], so we’re looking for different ways around this, as we speak,” she continued. “The growers in El Salvador, for example, we won’t be buying coffee from them in the next two years and I keep asking them ‘What are you going to do?’ The only concrete response I’ve heard so far is ‘plant corn.’”

From infrastructure to popular culture, coffee has shaped much of Latin America’s identity. Its importance is hard to overstate as we are constantly reminded of its status by songs like Juan Luis Guerra’s “Ojalá que llueva café” or “Let us hope it rains coffee.”
In times when there have been few alternatives, coffee has sustained families in rural regions throughout Latin America. The present epidemics have dealt significant blows to coffee growers in the region. While some farmers will continue to thrive, others may not, but all will be forced to adapt in the face of global climate change.

Diego Cupolo is an independent journalist, photographer and author of Seven Syrians: War Accounts From Syrian Refugees, released January, 2014, by 8th House Publishing. He serves as Latin America regional editor for Global South Development Magazine. See more of his work at www.diegocupolo.com

Monday, June 2, 2014

Peru This Week: Coffee rust: The deadly enemy of Peruvian coffee


"Coffee Rust: The Deadly Enemy of Peruvian Coffee"
W. Alejandro Sanchez
Peru This Week
June 2, 2014
Originally published: http://www.peruthisweek.com/blogs-peruvian-coffee-rust-103128
 In spite of Peru’s ongoing and impressive economic growth and development, the Andean nation’s economy is still based around the export of non-manufactured products, such as minerals and agricultural goods. A staple of Peruvian culture and an important part of its exports is coffee. Tragically, coffee production in the country is under duress due to a breakout of coffee leaf rust (‘roya’ in Spanish).
The Deadly Roya
Without getting too technical, coffee rust is a fungus. It attacks coffee plants, and gives the leaves a yellow discoloration, making them appear as if they were rusting. Over the past years, coffee rust has spread throughout Latin America: in a March 2014 commentary for VOXXI, I discussed how rust has crippled production in Central American nations such as Guatemala, Honduras, Nicaragua, and El Salvador. Estimates suggest that around half a million people involved in the coffee trade in the region, from seasonal to permanent workers, have lost their jobs due to declining coffee production.
Colombia has also been hit with coffee rust, but according to Colombian coffee centers, its crops and overall production have not been as affected as in other countries thanks to pro-active steps taken by the Colombian government and coffee farmers.
Past Victories and Current Losses
While coffee is not the cornerstone of the Peruvian economy, a decline in its production is nonetheless a hit to the nation’s pride as an exporter of high-quality coffee. In 2010, Peruvian coffee producer Wilson Sucaticona, a member of the coffee union CECOVASA (Central de Cooperativas de los Valles de Sandia), won the prestigious “Coffee of the Year” award given by the Specialty Coffee Association of America. At the time, Peru was also praised for being a major producer of organic coffee.
Tragically, times have changed, and Peru’s 2014 coffee production is expected to be a poor one, at least by the country’s standards. Coffee rust has hit 144 thousand hectares of coffee, around 33% of the total plantations in the country. It is projected that only US$650 million of coffee will be exported this upcoming harvest due to coffee rust – this is significantly less than the US$700 million Peru gained from coffee exports in 2013. For the 2014 harvest, Peru is expected to produce only 5,400,000 quintales (sacks that weight 46 kilograms, though different countries assign differing weights to a quintal). According to the Peruvian daily El Comercio, there are some 150 thousand families in the Andean country that produce coffee for a living.
Moreover, as if coffee rust was not problematic enough, there is another plague that is attacking Peruvian coffee. The other outbreak is called ‘broca:’ an infestation of a beetle originally from Africa which attacks coffee grains; it first appeared around 2013.
Nevertheless, it’s not all bad news for Peru’s coffee. There is hope in a special kind of grain called Catimor, which seems to be resistant to coffee rust. This new coffee strand is being grown in Peru’s Amazon and there are encouraging initial results.
The Great Game of Coffee
As previously mentioned, the Andean nation is not the sole country going through hardships, as Central American nations have also been hit by coffee rust. It has been reported that Central American states have lost as much as USD$243 million due to the rust destroying the 2012-2013 coffee harvest. This is no pocket change for any underdeveloped nation. Moreover, Brazil’s coffee production has suffered due to ongoing droughts in the Portuguese-speaking giant.
This means that other coffee producers will be taking over the coffee market as Peru, Brazil, and Central America suffer; such as Colombia and non-Western Hemisphere nations like Vietnam, the world’s newest coffee giant.
“Coffee wars” does not receive much attention from the international media when compared to the focus given on the disputes over the commerce and control of commodities such as oil, gold, or even water. Nevertheless, coffee is an important commodity consumed across the world, and there is money to be made if a coffee-producing nation exports to the U.S. or European markets.
While Peruvian coffee is regarded as being of high quality, the ongoing plague of coffee rust and the lesser well-known broca have put this important industry in peril. On the other hand, nations like neighboring Colombia have been fairly pro-active in combating their own plagues of coffee rust, by, for example, planting new rust-immune coffee seeds.
Hopefully the government in Lima will provide coffee farmers with the aid they need in order to assure that Peru’s coffee industry can bounce back in the short term.

Monday, March 31, 2014

VOXXI: Central America’s coffee woes

Central America's Coffee Woes
W. Alejandro Sanchez
VOXXI
March 31, 2014
Originally published: http://voxxi.com/2014/03/31/central-america-coffee-woes/


Over the past couple of years, coffee production in Central America has been hit by a deadly wave of coffee leaf rust (“roya” in Spanish), a type of fungus that has hurt the production of this valued commodity in the region. The Central American Secretariat for Economic Integration has quoted statistics by the International Coffee Organization (ICO) which estimates that Central American states lost roughly $243 million USD between 2012-2013 due to this fungus.
This is no pocket change for developing nations, as much of their economy is centered on exporting coffee and other basic commodities.

Losses in numbers

Central American states between southern Mexico and Panama have been particularly hit with a wave of coffee rust (it has also expanded farther south, to countries like Peru). A May 2013 report by the ICO explained that “the epidemic affecting the region [is] the worst seen since the pest first appeared in Central America in 1976.”
Honduras has suffered the biggest loss, totaling $90 million USD. This is a tragic development for a country that has experienced political instability and underdevelopment for years. (I discussed whether Honduras can be qualified as a semi-failed state in an August 9, 2013, commentary for VOXXI).
Honduran coffee exports between October 2013 and February 2014 were just over 1,800 million quintales (bags of 46 kilograms). This is 17.19% less than the same period one year ago, according to Honduras’ Institute of Coffee.
Costa Rica and Nicaragua have lost around $46 million USD each, while Guatemala lost $28 million USD. In Nicaragua there are some 125 thousand hectares used for coffee production, and between 37 and 69 thousand have been infected by the coffee rust, according to Oxfam, a global development organization. The loss of so many hectares is a major problem as the coffee industry in Nicaragua provides jobs, permanent and seasonal, to some 500 to 600 thousand people.
Central America’s presence in the global coffee market has understandably been diminished due to decreasing exports. In 2011 the region produced 11% of the world’s total production of coffee, but in 2013 it dropped down to only 8%.
An estimated 83% of coffee production in Central America is destined for export. As much as 36% of its coffee goes to the U.S., while Germany receives 15%.

Climate change and side effects

It is debatable to what extent climate change is to blame for the spread of this fungus. In a January 2013 BBC report Guatemalan coffee experts argued that in recent years, changes in the environment have included higher temperatures and more rain, contributing to the coffee rust’s expansion.
To make matters worse, the disruption in the ecological balance due to coffee rust has also affected other regional industries. Guatemala reports that honey is produced in the same areas where coffee grows, but due to the coffee rust and global climate change (which has brought other plagues), honey production in the country is expected to fall by 40% for the 2013-2014 harvest.

Reasons to hope?

It is unclear if things will improve in the near future. An October meeting in Costa Rica concluded that the region will need two-three years to bounce back from this crisis. The theory is that in order to stop the coffee rust, producers will have to prune up to 28% of their coffee crops. It will then take two years for the new rust-free (hopefully) plants to produce back to full capacity.
Unfortunately, the chemicals that can be used for fumigation to eliminate the rust are unaffordable for many farmers.
In Guatemala, 45% of coffee growers are small farmers while 8% are large companies. In other words, the government needs to step in and provide subsidies for fumigation and pruning initiatives so that small farmers can survive the crisis and successfully grow their crops once again.
Nevertheless, there is reason to believe that Guatemala can bounce back soon. In January, it was reported that the Guatemalan government purchased coffee seeds that are resistant to the fungus and hopes to replant one tenth of the 276 thousand hectares of coffee in the country by the end of the year (the government will provide these seeds free of charge).
However, even after the coffee rust (eventually) recedes, Central American governments and coffee producers will have to convince their clients, such as Starbucks or Green Mountain Coffee Roasters that their coffee grains are once again of high quality and safe.
The coffee leaf rust that is plaguing the region is not just an inconvenience; it has been, and will continue to be, a challenge to the livelihood of thousands of Central Americans involved in the coffee industry. The situation also has political and security implications as unemployed farmers could turn to criminal activities in order to survive, or protests could occur if regional governments are perceived to be inefficient to deal with this situation.
At best, the current wave of coffee leaf rust will not spread anymore and Central American farmers will, slowly, recover their crops. But this may just be wishful thinking.