Present in Brazil for the 35th Ernesto Illy Award ceremony, dedicated to recognizing the best Brazilian coffee producers who supply beans to the Italian brand, the CEO of the Illy roastery, Andrea Illy, says that climate change has become a structural risk for global coffee farming. According to him, climate change is impacting cultivation areas worldwide, negatively influencing farmers’ production costs, yield per hectare, and consequently the volume and quality of coffee production. In this diagnosis, the executive also points out that this situation reduces the predictability of the business itself, as it tends to cause fluctuations in supply, accentuating price dynamics that inevitably also reach the consumer.
Regenerative agriculture
A proponent of so-called regenerative agriculture, Illy points out that adopting good sustainable agricultural practices is the way to reverse, or at least reduce, the negative consequences of this situation. “It’s about developing varieties more resistant to harsh weather, protecting the soil with cover crops, fertilizing with more environmentally friendly products, shading the producing trees, irrigation, among other measures,” says the executive. In this regard, Illy believes that Brazilian coffee farming is doing its homework – including the advancement of mechanized harvesting. “Minas Gerais is an example.” Brazil, he affirms, has a well-distributed coffee farming network, with widespread reach, and this is a differentiating factor. Furthermore, Illy notes that the increasingly uncertain geopolitical scenario does indeed increase the cost of inputs, transportation, and energy. “There is pressure in this direction, but profitability this year tends to compensate.” Regarding the Mercosur-EU agreement, the executive comments that for Illy’s business, the treaty does not bring about major changes.
This text was translated by machine from Brazilian Portuguese.