Last week I visited Indonesia with a group of international journalists, organised by ofi (formerly Olam) to learn about the green coffee supplier’s regenerative practices and decarbonisation strategies in Aceh (12 hours by car from Medan). ofi is one of the top three suppliers of green coffee globally and operates in 18 growing origins across Africa, Asia, Central and South America. ofi has been in Indonesia since 1996, and today buys coffee, cocoa, nutmeg, and black and white pepper from more than 400,000 farmers, collectors and suppliers throughout the archipelago. Presently, ofi exports Arabica and Robusta, and has a combined market share of approximately 15%.

ofi’s Coffee LENS 2022 impact report (published in November) noted that in 2022, the company introduced regenerative land practices to an area equivalent to 47,000 football (soccer) fields, increased the share of renewable energy in its processing facilities to more than 50%, and achieved over 81% traceability to farmer/farmer group/regional level. ofi’s availability of sustainable coffee stands at more than 40% (directly sourced).

On the coffee farms throughout Aceh, we observed farmer training sessions on agroforestry, composting, and other regenerative practices in action (including fertiliser made from fruit that is safe for human consumption). We also participated in a mock polygon mapping, which ofi has been doing as part of its sustainability practices but this also meets EU requirements for traceability and environmental due diligence. We then had the opportunity to learn about post-harvest processing at wet and dry mills, and cup a variety of coffees (some were truly amazing, at least according to my limited palate).

The trip fell amid the peak of the second harvest period, when farm activities, post-harvest practices and processing were in full swing. During this time, ofi hosts its annual Farmers’ Day celebration, which, designed by its Indonesia team, acknowledges and rewards the efforts and engagement of the farmers in ofi’s supply chain in Aceh. Activities will include games, cultural displays, and distribution of premiums to the farmers. One of the more interesting awards was given to farmers in the cooperative who have downloaded – and are using – a banking app, in order to encourage more farmers to do so.

It is always beneficial to be able to interact with the farmers and politely pepper them with questions about being a coffee farmer – the rewards and challenges – what it is like working with new technologies and learning new coffee-growing methods and techniques, and of course, implementing the growing number of sustainability strategies, as well as to see how they operate and often, where and how they live (unlike many coffee-growing regions, in Indonesia, the farmers do not live on their coffee farms). And while speaking with the farmers, their children are most often not far behind, eyes wide open with curiosity. Some of the brave will come up – always in a group, never alone – and ask questions in the English they are learning. Then they giggle and run away, which is adorable.

On the occasion of ofi’s third Farmers’ Day, our group was treated to a special performance by the children, choreographed just for us. It was beautiful, fun and heartwarming.

When we visited Aceh, the prolonged and heavy rains had delayed the bulk of the harvest (some coffee had been picked), and while stressful for the farmers, on this special day celebrating them, the joy on their faces was evident, knowing that they were being appreciated for their efforts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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I was honoured to moderate yesterday’s morning events at the UN headquarters, which, this year, featured a panel of leading experts in the coffee sector discussing the urgency of preserving and protecting the future of coffee through regenerative agriculture. The panelists also appealed to the international financial community (some of whom were in the audience) to invest in the transition to regenerative agriculture through public and private partnerships. Panelists included: Vanusia Nogueira, executive director, International Coffee Organization (ICO); Jeffrey Sachs, economy professor at Columbia University (NYC) and co-chair Regenerative Society Foundation; Oscar Schaps, president of the Latin America division of StoneX Financial Inc. and commodity trader; and Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro.

Andrea Illy, chairman of illycaffè and co-chair of Regenerative Society Foundation, kicked off the panel discussion reminding the audience of the impact the low and volatile coffee prices have had on farming communities. He explained that improvements the ‘caffeculture’ has achieved in recent decades through the process of de-commoditization – improvements that still have a long way to go before achieving economic, social and environmental sustainability – are at risk of being reversed due to climate change. Regenerative agriculture, Illy said, has proven to be more resilient and to produce both environmental and health benefits. “Today we have proof that this model works, it is essential to implement it.”

Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro (Brazil) is a pioneer of regenerative agriculture. He began transitioning to regenerative agriculture several ago, and although he admits it is challenging and changes and tweaks were – and still are – De Castro sees the benefits and believes regenerative agriculture is the “[way to go].”

While regenerative agriculture is the agreed upon model by the panelists, it is costly — it requires investments of approximately US $10 billion over the next ten years. Of course, producing countries do not have sufficient economic-financial capacity, so it is necessary to create private and public partnerships that can generate international supply chain funds (this challenge is nothing new as governmental, intergovernmental, non-governmental and private stakeholders have been involved or approached for many years).

“To have a future in coffee we need to think about the planet and the people involved,” said Vanusia Nogueira, executive director, ICO. “It’s part of our responsibility as leaders of this sector to look for alternatives to provide good life to the producers and their families and also to take care of our planet. It’s clear that the challenges are big enough to not be addressed individually but in a collective and pre-competitive effort. Together I believe we can find impactful solutions.”

Economist Jeffrey Sachs, who is an internationally recognized leader in the field of sustainable development, said that true economic development aims to transform our society by creating sustainable increases in wellbeing through investments in human capital, physical infrastructure, and business enterprise, all with attention to the preserve natural capital on which our economy and survival depend.

“My morning coffee will never be grown in Central Park but will continue to be grown in Kenya, Rwanda, Uganda, Ethiopia, Guatemala, Colombia, Vietnam, and elsewhere. A well-managed developing country with access to major markets and international finance can grow very quickly,” Sachs continued, noting, “after decades of severe human-induced environmental degradation, we need to transform our economies to the core principles of sustainable development and the regeneration of natural capital. The most basic principle of all is to act for the common good. This means that we must start from cooperation within our communities, our nations, and globally.”

Andrea Illy concluded the panel discussion explaining that two things are needed for adaptation to climate change: improved agronomic practices and the renewal of plantations with more resistant varieties. “Regenerative agriculture seems to provide an answer to the first need, and I hope that this will become a model for the whole ‘caffeculture’. As far as renewal is concerned, we need to speed up considerably. All this requires supply chain investments that cannot be delayed any longer.”

The 8^th Ernesto Illy International Award ‘Best of the Best’ and ‘Coffee Lovers Choice’ winners were announced at an evening gala at the New York Public Library. The 2023 ‘Best of the Best’ winner is São Mateus Agropecuária from Brazil and the 2023 ‘Coffee Lover’s Choice’ winner is Finca Danilandia from Guatemala.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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This label verifies the origin and quality of coffee produced using regenerative practices that are received in the warehouses. To acquire the certification, Expocacer’s environmental, social, and governance responsibility was evaluated, and it received 100% approval in these criteria.

“Projects and initiatives such as ‘Elas no Café,’ ‘Jornada da Qualidade,’ ‘Expocacer Teens,’ and others that work to promote sustainable actions within the coffee community were essential for this achievement, along with our exclusive department dedicated to sustainability-related matters, where we provide guidance to our members,” said Simão Pedro de Lima, executive director of Expocacer.

Regenerative coffee farming adopts practices aimed at preserving soil health, increasing biodiversity, protecting water resources, and enhancing the resilience of agricultural systems. Among the advantages of regenerative practices are the preservation of flora and fauna, cost reduction, decreased pollution, improved coffee quality, increased resilience to climate change, and reduced deforestation. This year, with support from Brazilian Support Service for Micro and Small Businesses (Sebrae), Expocacer has already managed to certify 14 cooperative members, a number that is expected to grow to 24 by the end of 2023.

“We are very proud because this achievement confirms the work that has been carried out for years by Expocacer. This certification strengthens our commitment to ensuring sustainable and high-quality coffee production for our cooperative members, customers, employees, and commercial and institutional partners,” commented Farlla Gomes, sustainability manager of Expocacer.

For the cooperative, the automated traceability that utilises RFID technology (radio-frequency identification) and allows producers to know the exact location of their coffee in the cooperative’s warehouses was also a differentiating factor in obtaining the certification, recognising the care that Expocacer takes with the coffee from its members.

Recently, the world’s first regenerative agriculture-certified coffee has also begun to be distributed globally in retail by the Italian brand Illy Caffè, in partnership with the Cerrado Coffee Growers Federation and Expocacer. With notes of intense caramel, the product is already available in 50 countries, with plans to expand to 140 by 2024.

“Obtaining the regenerative certification for Expocacer represents reaching a higher level of value expansion because this achievement directly influences the core of our business. It’s the conjunction of a set of ideas, strategies, and attitudes that are ecologically correct, economically viable and socially fair, ensuring a supply without compromising the one future generations,” concluded Flávia Nunes, director of operations and logistics at Expocacer.

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illycaffè has long been committed to mitigating the effects of climate change throughout the entire supply chain, starting with coffee cultivation, for which it promotes the sustainable model of regenerative agriculture. This model allows for proper nourishment of the plants, naturally regenerating the soil, and thus reducing CO2 emissions. Additionally, this new type of cultivation allows for an improvement in the health of the ecosystem thanks to the increased biodiversity of the species used for ground cover and soil dynamics. In the Cerrado Mineiro region, where the company has been working hand in hand with local producers for over thirty years, the Arabica Selection Brazil coffee has been grown by applying the best regenerative practices certified regenagri.

“The Arabica Selection Brazil Cerrado Mineiro is the result of the relationship we have built over the years with coffee producers and the Federation of Producers of Cerrado Mineiro. We have shared the urgency of finding a solution to the effects of climate change,” commented Cristina Scocchia, CEO of illycaffè. “Aware that this challenge can only be overcome by joining forces, we have identified the best techniques for ecosystem adaptation, mitigation, and regeneration, producing the first 100% Arabica coffee sourced from certified regenerative agriculture, as regenagri certified.”

The reduction of natural resource exploitation, soil regeneration, and the preservation of biodiversity and future land productivity are some of the results achieved through the application of regenerative agronomic practices selected by illycaffè. This model shifts the focus from the plant to the soil, offering the best natural solutions to nourish, strengthen, and make it fertile and resilient to external threats.

The Arabica Selection Brazil Cerrado Mineiro, with its hints of caramel and nuts, is available in 250g cans in both whole bean and ground versions. The products can be purchased from illy.com from 1 October and Waitrose from 16 October.

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Recently adopted practices include intercropping, mulching and integrated weed management. In 2022, the Nescafé Plan 2030 farmer trainings on regenerative agricultural practices reached more than 100,000 farmers in 14 countries. In addition, 1.4 million trees were planted in and around coffee farms that supply coffee to Nescafé, providing shade to prevent coffee’s over-exposure to the sun and additional revenue sources for farmers.

Rejuvenation of coffee trees is key to improving the yields of coffee farms. In 2022, Nescafé distributed 23 million disease and drought-resistant, high-yield coffee plantlets to help rejuvenate coffee plots, increase productivity and reduce the use of agrochemicals.

Philipp Navratil, head of Nestlé’s Coffee Strategic Business Unit said, “The Nescafé Plan 2030 Progress Report shows the potential of regenerative agriculture to help make coffee farming more sustainable over the long term. We are supporting coffee farmers to make this transition and are giving them the know-how and tools they need to increase yields and income, while helping reduce carbon emissions at the same time.”

Climate change is the number one concern for coffee farmers in the 14 countries assessed by the Rainforest Alliance. It is followed by high input costs and low raw material prices. Most farmers say that the main reasons for the Nescafé Plan’s success are its consistent and high-volume purchases, regular technical assistance on the ground and access to markets.

The Nescafé Plan 2030 is piloting financial support schemes to help farmers transition to more sustainable practices. The pilots have engaged around 3,000 coffee farmers in Côte d’Ivoire, Indonesia and Mexico, countries where farmers earn, on average, less than a living income. These pilots include testing conditional cash incentives to reward the transition to regenerative agriculture and the rejuvenation of coffee plots as well as weather insurance schemes to protect farmers’ income against the unexpected effects of climate change. Although the pilots are still ongoing, Nescafé is seeing encouraging results and strong farmer engagement.

Yustika Muharastri, monitoring and evaluation manager from the Rainforest Alliance said, “The Rainforest Alliance works with the Nescafé team to monitor and assess their efforts through the Nescafé Plan. We have observed encouraging trends, including improved incomes in some countries, and increased adoption of important regenerative practices, such as integrated weed and pest management. We are excited that our ongoing collaboration will continue to provide valuable insights to the Nescafé Plan, further supporting its ambition to improve the livelihoods of many more coffee farmers.”

The Nescafé Plan 2030 aims to issue a progress report every year to provide an update on the evolution of its work in helping coffee farming communities transition to regenerative agriculture practices and improve their livelihoods.

Read the Nescafé Plan 2030 Progress Report (pdf, 12Mb)
Read the Rainforest Alliance Impact Assessment

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Carbon, and in turn, the carbon footprint, has been recognised as one of the leading causes of human-induced climate change. Over the past few decades, companies have shifted their infrastructures to reduce the negative impact, hoping to protect plants, waterways, and animals. However, when carbon is in the soil, it improves its ability to retain water and its overall fertility. So, the challenge is how do we get carbon out of the air and back into the earth? The solution is regenerative agriculture.

Bringing soil to the forefront

For decades, the climate change conversation centered around harm reduction with the goal of shifting agricultural practices to become carbon neutral. The challenge with this model is that it simply maintains the environment where it is today, which means that the current challenges plaguing the industry, including climate unpredictability, drought, and pest infestations, remain. Minimising harm is no longer enough to mitigate the risks of climate change; the environment needs to improve. Instead of adopting methods that will sustain, the focus needs to be repair and regeneration, beginning with adopting agricultural practices that will build healthy soil.

Regenerative farming begins with recognising soil’s role in the health of the planet and those living on it. “Conventional, which is the majority, this is where we have been, and sometimes it is where we are still stuck, but the method is destructive and unsustainable,” said Michael Ham, president, Well AP, Mt Kisco, New York. “Sustainable, which is achieving net zero, will maintain the status quo, but we need to reverse the damage that has been done and the only way to do that is through regenerative. This is where the focus needs to be in the next decade for us to really bring things back to where they should be. “Recognising the benefit, both for the earth and farm itself, Ham shared that their Korean tea farm Wild Orchard made the commitment to shift its practices from organic to regenerative. This past May, Wild Orchard obtained the Regenerative Organic Certification, becoming the first tea farm to receive this certification.

Curious deer traipsing through tea plants that are surrounded by other plants and wildflowers. Image: Wild Orchard

“Regenerative agriculture takes it one step further by focusing on the health of the soil,” said Ham. The model emphasises that soil requires living microbes to achieve its optimal health, which is obtained through various methods, including crop cover, minimising the amount of tillage, biodiversity, and intermittent grazing techniques, can grow nutrient-dense plants and reduce the amount of carbon in the environment.

In 2014, the Rodale Institute, Emmaus, Pennsylvania, released the white paper “Regenerative Organic Agriculture and Climate Change: A Down to Earth Solution to Global Warming,” urging the agricultural sector to consider the long-term impacts of its practices and to adopt regenerative methods. According to the Rodale Institute, most agricultural soil has lost between 30 to 75 per cent of its organic carbon. The loss has been linked to the atmosphere and conventional farming practices. Six years later, the Rodale Institute published “Regenerative Agriculture and the Soil Carbon Solution,” reiterating the harm in conventional practices, and urged the agricultural industry to adopt regenerative practices to build healthy soil, and in turn, reduce the levels of carbon in the atmosphere.

Dr Rattan Lal, director of carbon management and sequestration centre, Ohio State University, Columbus, Ohio, and winner of the 2020 World Food Prize, has extensively studied soil health. He continues to emphasise the importance of protecting the soil, both for the health of the environment and to improve food security. He explained the interdependency between the health of soil and the health of the planet, stating that if the health of the soil goes down the health of everything else goes down with it.

Making the shift to regenerative practices

In November 2020, the World Coffee Research organisation invited both Dr Lal and Andrea Illy, chairman of illycaffè, Trieste, Italy, to discuss soil health, and more specifically regenerative agriculture and the need for the coffee industry to shift its farming practices to mitigate the risks of climate change. Over the last five years, several coffee and tea manufacturers have adapted their sustainability strategies to focus on regeneration and soil health. Starbucks launched a holistic sustainability project with a focus on regenerative agriculture in Nariño, Colombia, with 100 smallholder farmers. Nestlé committed to investing 1.3 billion dollars, over a five-year period, to aid farmers with the transition to regenerative practices.

illycaffè announced its goal of becoming a carbon-free company by 2033, including zero-emission coffee plantations in both Guatemala and Kokkere, Ethiopia, where the farmers are adopting the principles of regenerative agriculture. While Unilever released its five regenerative agriculture principles, which would serve as a model of standards that they would use to help educate suppliers and guide their farmers.

Tazo launched a regenerative organic tea line in August. Image: Tazo Tea

This past August, Tazo Tea (formerly owned by Unilever, now owned by ekaterra) launched a regenerative organic tea line made with ingredients grown with regenerative agriculture practices. The product launch included four Tazo original tea blends relaunched as regenerative organic blends. The commitment to becoming regenerative included not just the farms themselves but also a focus on developing resilient communities and replenishing the planet’s resources.

“Tazo has always been a brand that challenges the status quo, and this regenerative organic transition is no exception,” said Laraine Miller, president, ekaterra Americas, New York. “For too long, business as usual has been killing our planet. It is time for every company, including the entire tea industry, to overhaul their means of production to combat climate change and help people and planet thrive.”

The tea and coffee industries are taking action, adopting strategies that focus on regeneration, beginning with educating farmers on the importance of soil health and providing the resources that will support them with making this transition. However, the path to become regenerative, is still in its infancy. “Regenerative agriculture might be the new buzzword on the block, but the key aspect behind it to shift the focus of sustainable farming from ‘doing no harm’ towards delivering positive impact is urgent and garnering more corporate commitment,” said Piet van Asten, head sustainable production systems-coffee, Olam Food Ingredients (OFI), Singapore. “This momentum is proving powerful in driving efforts around decarbonisation and pesticide reduction.”

The message from both the tea and coffee communities is clear. Instead of sustaining, we need to reduce the amount of carbon in the environment, a term, called decarbonisation, and the adoption of regenerative practices provides a strategy to help achieve this goal.

For regenerative practices to be viable at the farm level, the strategies adopted need to be responsive to the particular needs of the farmer.

“From our experience, it’s important to present it to farmers as an extension of what they already do well, rather than as a requirement to change existing practices,” said Van Asten. “To encourage uptake, we need to go beyond the buzzwords by translating what ‘regenerative,’ ‘climate-smart’ or ‘agro-ecological’ practices mean on the ground in terms of better productivity and livelihoods.”

OFI strives to do this through education, including highlighting the benefits that some of these shifts, that may initially appear counterintuitive, like integrated weed management, can provide. For example, through education, the farmers begin to see soil erosion, recycle nutrients, and harbour natural predators to control insect pests. “Educating farmers and supporting them to meet demand by shifting to more eco-friendly production makes what might initially seem a daunting task, an economically viable route in the long-term,” said Van Asten.

From an economic standpoint, this model is being looked at for its potential in developing more resilient crops, and in turn, aiding with food security. However, converting to this model requires farmers to look at the entire process, from soil to the harvest, including both the short- and long-term outcome of each of the techniques that are used. Machine harvesting, for example, traditionally uses fossil fuel emitting these toxins into the environment, which in turn, enters the soil, and the plants. However, innovation in agrotech is looking at eco-friendly alternatives to respond to these challenges so that large scale farms have an option that will maintain their productivity without causing harm to the environment.

At Olam AtSource agronomist shows the benefits of a properly pruned coffee plant. Image: Vanessa L Facenda

Currently, the tea at the 1000-acre farm of Wild Orchard is hand-picked, however, the company is looking at investing in battery powered harvesting machines to pluck their second and third flushes of their crops. The hope is that by incorporating these types of tools into their operation will help accelerate the amount of regenerative tea that enters the supply chain.

The long-term benefits of regenerative agricultural practices continue to gain recognition throughout the tea and coffee industries. On a positive note, each shift that is made at the farm level, whether it is increasing biodiversity, integrated weed management, or maintaining cover crops, will help to feed the soil, and over time, reduce the amount of carbon that is emitted into the atmosphere. The launch of the regenerative organic alliance certification is a tool that will help increase consumer recognition of this agricultural model. However, now, it is up to the industry to share the positive actions that their companies are taking so that the products that are grown through the regenerative model receive both the recognition and the economic value that they deserve.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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