A recent white paper released by World Coffee Research (WCR) highlights a critical shortfall in research and development (R&D) funding within the coffee sector, posing a threat to the diversity and quality of green coffee. The non-profit organization estimates that an annual investment of approximately $452 million is essential over the next decade to sustain the current state of coffee that consumers worldwide have come to enjoy.

Without such investments, the study suggests that the industry could witness widespread consolidation in coffee production, accompanied by a significant decline in the diversity of high-quality arabica coffee varieties and their origins. This potential crisis is primarily attributed to the impacts of climate change and the pressures faced by producers amid escalating global demand.

The white paper refers to the $452 million financial benchmark as an “investment gap” and characterizes the situation in the global green coffee sector as an “innovation crisis.” Dr. Mywish Maredia, the lead researcher and a development economics professor at Michigan State University, emphasizes that this scale of underinvestment is unsustainable if the world wishes to continue enjoying its favorite beverage. Increasing global investments in coffee R&D is seen as crucial to fostering innovation across various countries, addressing climate change challenges, and combating poverty while averting further consolidation of production.

WCR, a non-profit based in Portland, Oregon, advocates for increased funding across the global coffee industry, which it claims has been disproportionately underfunded compared to other agricultural sectors of similar consumer value. The authors specifically highlight the need for R&D funding in the coffee sectors of Latin America and Africa, citing historical deficiencies.

The paper unveils previously undisclosed financial statistics, revealing that the current global investment in coffee R&D stands at $115 million per year, with 90% originating from the public sector and 10% from the private sector. This amounts to just under half a cent for every dollar of green coffee produced globally. Despite green coffee constituting about 4.8% of the total value of agricultural output in 45 coffee-producing countries, the investment in the sector is merely 1.8%, the paper contends.

In conclusion, the authors assert that a nearly four-fold increase in R&D investments is imperative to prevent further consolidation and loss of commercial green coffee diversity. They advocate for allocating a fraction of retail profits, stating, “For an industry with a retail value of more than US$200 billion, this would mean setting aside less than 0.3 cents for every $1 of coffee retailed to consumers.” The urgency of increased funding is underscored as essential to safeguard the future of the global coffee industry.

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The green coffee industry needs $452 million to overcome the “innovation crisis”