Research aims to help small coffee farmers implement sustainable, environmentally friendly practices

Monday, April 2, 2018
Shadi Atallah works with coffee grower

Shadi Atallah talks with a coffee grower about access to international听specialty coffee听markets that offer听price premiums.

Cappuccino, espresso, latte, macchiato, plain old coffee, iced, frozen or hot: whatever the preference, many of us probably can鈥檛 imagine starting the day without a beverage made from coffee beans. Worldwide, people drink more than 500 billion cups of coffee every year and demand for coffee 鈥 specifically specialty coffee 鈥 is growing.

But if you think that makes coffee bean farming a lucrative business, think again. Coffee farmers face all sorts of risks, ranging from price volatility to climate change impacts.

Recent research by 91制片厂 environmental and resource economist Shadi Atallah found that one way thought to protect coffee farmers from a warming climate and boost their bottom line 鈥 growing their coffee in 40-percent shade, which can earn them a 鈥渂ird friendly鈥 price premium 鈥 constitutes an ecological win but can mean an economic loss for farmers. His findings could inform the development of certification premiums that incentivize nature-based solutions to climate adaptation and produce global environmental benefits but in a way that does not leave growers worse off.

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Coffee plants grown in a shade grown system

鈥淭he bottom line is that, under many conditions, it is not economically feasible for a small farmer to increase their farm鈥檚 shading level to 40 percent even if it is ecologically beneficial for their farm,鈥 says Atallah, assistant professor in the department of natural resources and the environment at 91制片厂. 鈥淲ith the current price premiums in the market, costs of certification and costs of maintaining shade trees, it is not economically justified for a small farmer.鈥 He summarizes his work in a paper recently published听in Ecological Economics titled "."

While coffee farms provide an economic livelihood for more than 25 million people within the 鈥渂ean belt鈥 between the Tropics of Cancer and Capricorn, many are small agricultural enterprises 鈥 less than five acres 鈥攁nd operate at a breakeven point.

And climate change isn鈥檛 helping their bottom line. As average temperatures rise, so does the prevalence of diseases and pests such as the destructive coffee berry borer.

But thanks to certain certifying organizations, farmers can earn a premium for their coffee if it鈥檚 grown under sustainable conditions that have ecological听benefits like increasing biodiversity and reducing the need for pesticides and fertilizers.

For example, the Smithsonian鈥檚 Migratory Bird Center offers a 鈥渂ird friendly鈥 certification for coffee that鈥檚 grown on a farm with 40 percent shade because the trees create a habitat for birds. There are other benefits to a shade-grown system as well: Shade can improve coffee quality, reduce coffee berry borer infestation and increase soil fertility and water availability.

Combined with the price premium, certification sounds like a good deal for struggling farmers. Atallah found otherwise, unless price premiums are higher or certification costs are lower.

Atallah, who focused on small farms in Colombia, worked with entomologists and economists to create a computational model that simulates a small coffee farm where yields are affected by shading levels and coffee berry borer infestations, and farm profits are determined by price premiums available for 鈥渂ird friendly鈥 coffee in the marketplace and timber produced on the shade-grown farm.

Using this model, Atallah and his team, which included Miguel Gomez from Cornell鈥檚 Dyson School of Applied Economics and Management and Julianna Jaramillo from Bayer CropScience, found the shade level that offers farmers the most economic benefit is around 25 percent 鈥 15 percent lower than the Migratory Bird Center鈥檚 requirement 鈥 even with the price premium.

Atallah refers to the Migratory Bird Center鈥檚 figure as a 鈥渟ocially optimal鈥 percentage, which responds to bird habitat conservation goals and the demands of well-meaning consumers but doesn鈥檛 take into account the economic tradeoffs faced by small farmers.

鈥淚 don't think that certifiers are aware that these requirements can hurt farmers鈥 economic bottom line,鈥 says Atallah. 鈥淭he thinking is 鈥極f course it鈥檚 going to be good for farmers because a [shade-grown system offers] pest control services and soil fertility services,鈥 but I'm hoping that once they see this research, they can appreciate the importance of using integrated ecological-economic frameworks when they define these premiums and how the requirements for certification.鈥

Atallah presented his research findings to the coffee industry at the in Seattle on April 21 during a titled 鈥淩esilient Coffee?: What 鈥楻esilience鈥 Means & Why This Matters for All Members of Coffee鈥檚 Supply Chain.鈥

Atallah鈥檚 computational model can be applied to other locations where climate and geography produce different ecological relationships between shade and yield, and he hopes the work will benefit more than just the farmers in Colombia.

鈥淭he reality is we cannot follow only ecological objectives when it affects the livelihood of a small farmer who's at the poverty line,鈥 he says.

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  • Written By:

    Sarah Schaier | College of Life Sciences and Agriculture