Coffee consumption around the world is estimated at about 173 million 60kg bags a year, or roughly two billion cups a day.
The International Coffee Organisation forecasts that in 2023-2024, consumption will rise to 177 million bags.
But just what does the world’s seemingly insatiable demand for coffee mean for the environment, and in particular biodiversity, given that the crop is often grown on land that was once forested?
The speciality coffee brands, they like to talk a lot about sustainability, but they do very little on the ground
Sander Reuderink,
founder and CEO of Carble
According to the Coffee Barometer 2023 report, produced by an initiative supported by Conservation International, over the past two decades an average of 130,000 hectares of forested land a year has been converted to coffee production.
Aside from the impact this has on biodiversity, this deforestation has also released the equivalent of about 45 million tonnes of carbon dioxide each year.
A big issue for sustainability is whether the coffee plants are grown as a single crop or are mixed in with trees that provide shade, a practice known as agroforestry.
According to the Coffee Barometer, agroforestry can, among other things, store carbon and promote biodiversity, and so replicates, at least to a limited extent, the benefits that forests bring.
Agroforestry, thanks to the shading and the microclimates it creates, is also more resilient than single crop plantations to temperature increases.
Growing in harmony
Few have looked into the sustainability of coffee more closely than Sander Reuderink, a Dutch former coffee roaster and trader who is the founder and chief executive of Carble, which analyses land-use changes – such as the conversion of forests to plantations – and develops incentives to encourage farmers to grow more sustainably.
Mr Reuderink said coffee “can be grown in perfect harmony with nature”.
“That’s what we see in Ethiopia,” he said. “The first time I visited a coffee farm in Ethiopia, I didn’t know what I was looking at, because I had expected to see neat rows of trees like on a coffee farm in Brazil, but I was looking at a forest.
“I asked the farmer to explain to me what was going on, what I was looking at. He explained, ‘This is how we’ve been growing coffee for generations. This is how coffee should be grown.’
“But in other countries coffee is grown in a monoculture without the use of shade. Especially the transition from forests to new plantations is hugely problematic from an environmental perspective. That land-use change is one of the biggest components.
“Another really big component is the use of fertilisers and pesticides, which have a very large carbon footprint.”
A widespread perception might be that smallholders, who account for an estimated 80 to 90 per cent of coffee production, grow their coffee more sustainably than large-scale producers.
Mr Reuderink said, however, that the opposite is often the case, while adding the caveat that smallholders are “a very diverse group”, so practices vary widely.
“The assumption that I always had was that industrial farms or larger farms would produce in a monoculture, while smallholders would do more agroforestry. Surprisingly this was not always true,” he said.
“For example, in Ethiopia, we’ve actually seen much healthier shade cover with the larger plantations than with the smallholders.”
Sustainability is also influenced by the extent to which native forests were felled to allow for the growing of coffee and, if so, how long ago this happened.
While indicating that efforts to achieve sustainability vary between coffee companies – Nestle and Starbucks tend to come out better than most in its surveys – Coffee Barometer said many companies did not address the issue themselves, but instead “placed the responsibility on suppliers to ensure deforestation-free coffee”.
“Very few roasters have policies that meet best-practice requirements,” the 2023 report said. “While some individual companies may be performing better than others, our Coffee Brew Index reveals that most companies are not yet taking the action necessary to fulfil the existing sector commitments in addressing social and environmental risks.”
The larger, the better?
Mr Reuderink said that, in general, larger coffee companies were more focused on achieving environmental producers than their smaller counterparts.
“The mainstream companies, the larger companies, they typically have a much more advanced climate strategy than the small-scale speciality segment. The speciality coffee brands, they like to talk a lot about sustainability, but they do very little on the ground,” he said.
Commercial coffee production largely originated in Ethiopia, but one of the other early producers was Yemen, which has grown coffee commercially since the 15th century.
Coffee is also grown in Saudi Arabia, which has more than 400,000 Arabica coffee plants, according to reports, and plans for big increases.
In 2022, the Saudi Coffee Company was founded to help develop the sector in the country. Its production, mostly by smallholders and local farmers, is concentrated in the south-west of the country.
Dr Abdullah Bokhari, the sustainability and quality, health, safety, security and environment director, said that the company was currently assessing its overall sustainability, including efforts to reduce deforestation and deal with carbon dioxide emissions.
Scheduled to take about two years, this work will cover farming, manufacturing and distribution.
Current measures include having irrigation systems that rely on solar power instead of diesel pumps, while a factory will be solar powered and designed to achieve green building certification.
“Additionally, we have used green materials in compliance with regulatory requirements, and have adopted waste-reduction practices for our farming and factory operations,” Dr Bokhari said.
On the ground
For consumers, selecting a coffee on environmental grounds may not be easy. One approach is to look for certifications.
“There’s lots of different certifications out there – fair trade or sustainable coffee – but these are very patchy,” said Mark Maslin, a professor of earth system science at University College London.
He recommends that consumers purchase “quality coffee” because with this, he said, it is more likely that farmers will have been paid a fairer price.
“It won’t make much difference to [the price of] your coffee, but it will make a huge difference to the farmer and the industry,” he said.
Mr Reuderink said not all environmentally sustainable coffee was certified as such and, when looking for more sustainable coffee, he said he made his selection based on geography.
The Coffee Barometer 2023 report does not have figures for Ethiopia, but for Brazil it states that five per cent of coffee-growing hectares are shaded, while in Vietnam the figure is 25 per cent, in Colombia, 39 per cent, in Indonesia, 60 per cent, and in Honduras, 80 per cent.
“I choose based on countries, such as Ethiopia, that I know grow more of their coffee in agroforestry, because that’s more sustainable,” he said.
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- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
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- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
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- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
What should do investors do now?
What does the S&P 500's new all-time high mean for the average investor?
Should I be euphoric?
No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.
So what happened?
It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.
"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."
Should I buy? Should I sell?
Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.
"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.
All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.
Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.
Will the rally last?
No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.
"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."
PREMIER LEAGUE TABLE
1 Man City 26 20 3 3 63 17 63
2 Liverpool 25 17 6 2 64 20 57
3 Chelsea 25 14 8 3 49 18 50
4 Man Utd 26 13 7 6 44 34 46
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5 West Ham 26 12 6 8 45 34 42
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6 Arsenal 23 13 3 7 36 26 42
7 Wolves 24 12 4 8 23 18 40
8 Tottenham 23 12 4 8 31 31 39
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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