A brewing crisis for coffee lovers and farmers

Coffee prices have reached record highs, with the price of robusta coffee skyrocketing by 70% over the past year.  This surge has been driven by factors like climate change, shifting market dynamics and long-standing structural issues in the coffee value chain.  While higher prices offer some potential benefits to farmers, many smallholder producers- who receive only a small fraction of the final retail price- continue to face significant hurdles.  Unpredictable weather patterns, depleting soil health, and limited access to resources make it difficult for them to maintain productivity or invest in the climate-resilient practices needed to adapt and thrive.

The climate challenge 

Climate change, marked by unpredictable rainfall, droughts, and rising temperatures, is threatening coffee-growing regions. Arabica, one of the most popular coffee beans, is particularly vulnerable, with predictions that half of its suitable growing land may disappear by 2050. As a result, farmers are forced to relocate to higher altitudes, where land is scarce. 

For many farmers, adapting to these challenges requires investment in new, more resilient farming practices. Smallholder farmers, who account for most of the world’s coffee production, face the harshest impacts. Without the financial resources or technical knowledge to adopt sustainable practices, they are trapped in a cycle of poverty and declining productivity.  

Without proactive measures, the sustainability of coffee production may be jeopardized, putting the future accessibility of coffee at risk for both farmers and consumers alike.

Promoting a sustainable value chain 

To address this growing crisis, the coffee value chain must evolve, with an emphasis on economic, environmental, and social sustainability. At the heart of Yara's strategy is regenerative agriculture, which enhances soil health, biodiversity, and ecosystem resilience.

Joao Moraes, Director of New Ag Business, Innovation Americas, at Yara, underscores the importance of this approach: “Yara aims to support security of supply in the coffee value chain through good agricultural practices that support productivity and quality, then the livelihoods of those who grow it. By equipping farmers with knowledge and tools to enhance yields, improve bean quality and crop resilience against extreme weather, as well as reduce environmental impacts, Yara is playing a key role in ensuring coffee remains an everyday staple or luxury, at the choice of the consumer willing or not to pay for quality and more uniqueness. Regenerative agriculture must be outcome-based, in terms of providing farmers with better livelihoods through educating them on best production practices. We approach this through a number of factors, such as: climate change, farmer prosperity, soil health, biodiversity and resource use efficiency.” 

This approach balances environmental sustainability with the economic needs of farmers, leading to improved coffee quality and yields, reducing the carbon footprint of production, and increasing the resilience of coffee crops to climate challenges.

Yara’s role in the coffee sector 

Yara is already making substantial progress in over 90 percent of the world’s coffee-producing countries by promoting sustainable fertilizer management. 

Through knowledge-sharing and training, Yara empowers farmers to increase productivity while protecting the environment. Its coffee nutrition management practices have led to consistent 10-15% increases in yield, as demonstrated in 26 long-term research trials and 350 demo plots across Arabica and Robusta regions. 

In Vietnam, Yara focuses on resource efficiency, helping farmers produce more with fewer inputs. In Kenya, Yara leverages its nation-wide network of Knowledge Centers to equip smallholder farmers with agronomic knowledge and solutions that enhance crop nutrition and improve yields. These centers also introduce farmers to digital solutions that aid in monitoring and managing their crops effectively.

In Mexico,Colombia and Guatemala, Yara has empowered over 2,200 farmers through its Yara CHAMPION Program, helping them achieve international recognition, secure better market prices, and serve as brand ambassadors for sustainable coffee. 

Rodrigo Prom Rendon, Marketing Director of Yara Latin America, explains: “The Yara CHAMPION Program is not just about increasing yields; it’s about giving farmers the tools and recognition they need to succeed in a competitive market. By supporting sustainable practices, we’re helping farmers enhance both the yields and quality of their coffee, ultimately improving their livelihoods."

Securing coffee’s future 

The global coffee crisis, driven by climate change, soil depletion, and economic strain, poses a real threat to the future of coffee. However, with the right strategies, the coffee value chain can be transformed into one that is both sustainable and profitable. Yet, this transformation requires more than just efforts from farmers and agribusinesses. Governments, consumers, and global organizations must collaborate to support sustainable practices across the industry. 

With climate pressures mounting and prices rising, the time for action is now. Through collaboration, innovation, and shared responsibility, we can ensure that coffee continues to be a beloved and accessible part of our daily lives for generations to come.