Coffee is the world’s second most important commodity. It is cultivated in over 50 countries and is one of the most popular beverages in many regions. Around 125 million people are employed in the coffee industry – from growing the coffee beans to selling the finished drink.

However, coffee cultivation in particular faces numerous challenges: for example, climate change is already having a significant impact on crop yields. At the same time, monocultures are causing a decline in biodiversity, soil degradation, and water scarcity. Moreover, uncertain harvests, fluctuating market prices, and low margins are making it difficult for coffee farmers to earn a living – making coffee cultivation unattractive and causing coffee-growing areas to shrink.

These challenges can only be met by taking a systemic approach. After all, the changes we are observing are mutually dependent in many respects. Instead of focusing on individual aspects, we need to take a holistic view that considers how different parts of the system interact.

In order to realize our “Coffee of the Future” concept, we therefore analyze all stages of our coffee value chain and develop measures and paths based on this analysis to establish new systemic approaches and sustainable business models (“Theory of Change”). The focus here is on the regeneration of coffee-growing regions and the implementation of regenerative agriculture.

However, we cannot achieve this by ourselves. We are therefore working closely with associations at national and international level and reaching out to relevant players in the coffee sector – in politics, business, and society.

Regenerative value creation is more than just sustainability

First steps on the joint path to transforming the economy and accelerating systematic change across the entire coffee sector.

Whether coffee husks, pulp or the wood of old coffee plants: coffee cultivation generates large quantities of organic waste. Previously, most of this waste was thrown away – thus polluting the environment.

In order to clarify whether this and many other types of organic waste along the coffee supply chain could be meaningfully recycled, we launched the “Back to the Roots” project together with the Hanns R. Neumann Foundation. Co-funded by the German development agency DEG (“Deutsche Investitions- und Entwicklungsgesellschaft”), the project was launched in 2020 and based in the Brazilian state of Minas Gerais.

As part of the three-year project, waste management experts and scientists from the Universidade Federal de Lavras (UFLA) collaborated closely with coffee farmers in the region to develop promising methods for processing various organic waste into nutrient-rich organic compost and organic liquid fertilizer.

When the resulting fertilizer is used in coffee cultivation, initial results indicate numerous benefits: the soil quality and resilience of the coffee plants improve, the need for artificial fertilizer decreases, and the profitability of coffee cultivation increases. Moreover, the collection and recycling of waste reduces the environmental impact and creates new business models and jobs.

Empowering the next generation of coffee farmers: young people participated in the project and developed a more conscious approach to the changes they can make.

The project has also meant that coffee farmers can share information about recycling and composting options more effectively via a specially created digital platform. Moreover, training programs have been initiated for local communities and school children to raise awareness of waste and promote better recyclability and proper disposal practices. The results of the project are currently being compiled so that other coffee-growing regions can also benefit from them.