24th October 2024
Who is up for a cup of delicious coffee?
Coffee has long been more than just a beverage. It is a culture, a livelihood and a booming industry. The global coffee industry is worth an astounding $495 billion as of 2023. While coffee sales reach billions of dollars annually worldwide, many coffee farmers disproportionally live in poverty.
For Amazonia Impact Ventures (AIV), investing in coffee producers is all about supporting sustainable practices to preserve the Amazon region and improve the lives of local communities in Peru, Colombia, and Ecuador.
Our fund aims to improve the land use of one million hectares of farm and forest lands in the Amazon rainforest and the livelihoods of 20,000 underserved smallholder producers, especially women and Indigenous peoples.
According to Aldo Soto, co-founder of AIV, one of the company's missions is to provide advice and technical assistance to avoid deforestation and mitigate climate change. “As Peru is the major producer of organic coffee, we help farmers increase the diversity and resilience of their agricultural lands and preserve the forest and biodiversity”, he explained.
Critics of the coffee industry have pointed to its negative environmental impact and the clearing of land for coffee growing. AIV monitors their investees’ impact on the environment through effective satellite surveillance.
At the same time, cooperatives receive incentives to regrow native tree species on their farms instead of introducing alien species not part of the ecosystem. This practice benefits many species of native birds, including the Amazonian Motmot (Momotus momota).
Since 2020, five cooperatives of smallholder coffee farmers have received financial support from AIV to produce and export high-quality coffee beans to Europe and the USA.
Coffee rise and shine
Considered the world’s most-sold hot drink, coffee is cultivated in over 70 countries, primarily in the equatorial regions of the Americas, Africa, Southeast Asia, and the Indian subcontinent.
Coffee production is heavily influenced by climate conditions. Ideal coffee-growing regions require specific environmental factors, including temperature, altitude, and rainfall patterns.
South America remains a coffee industry powerhouse, with Brazil, Peru, Colombia and Ecuador playing crucial roles. In 2021, 79% of all loans disbursed by major lenders in Peru and 100% in Colombia were concentrated in coffee.
Peruvian coffee is renowned for its unique flavours (chocolate, caramel, and fruity undertones). AIV’s partners produce mainly arabica-type beans. About three-quarters of coffee cultivated worldwide is Arabica too.
Peru is known for its organic and fair-trade coffee, with many producers adhering to sustainable farming practices. Peruvian coffee-growing regions are incredibly diverse, ranging from the high-altitude areas of the Andes to the lower regions of the Amazon.
Smallholder farmers in Peru depend on the contribution of the coffee economy to survive. Throughout the year, the country celebrates the culture and heritage of coffee at events like Ficafé (November) and the Peru Coffee Expo (April).
UK market
Although Nordic countries are the highest coffee-consuming nations per capita, with Finland leading the world, the UK is a huge market for the commodity. According to the British Coffee Association, the UK now drinks approximately 98 million cups of coffee per day and the coffee industry creates over 210,000 UK jobs.
About 80% of UK households buy instant coffee for in-home consumption, particularly those aged 65 and older, while younger people will rely more on their local coffee shops and their home pod machines. In 2022, the world consumers spent nearly $110 billion on coffee.
Global journey through the past
Discovery in Ethiopia
9th Century: The story of Kaldi, the goat herder, discovering coffee is well-known. After observing his goats eating the berries of a certain tree and becoming energetic, Kaldi tried the berries himself and experienced the same effects.
Spread to the Middle East
15th Century: Coffee made its way to Yemen, where it was first cultivated on a large scale. The port city of Mocha in Yemen became a major centre for the coffee trade.
16th Century: Coffee spread to the rest of the Middle East, including Egypt, Turkey, and Persia. Coffee houses, known as "qahveh khaneh," became popular social gathering places.
Introduction to Europe
17th Century: Coffee arrived in Europe through trade routes. The first coffee house in England opened in Oxford in 1650, followed by the famous Lloyd's Coffee House in London, which later became the insurance company Lloyd's of London.
18th Century: Coffee became widely popular across Europe, with coffee houses becoming centres of intellectual and social activity.
Colonial Expansion
18th and 19th Centuries: European colonial powers introduced coffee to their colonies in the Caribbean, South America, and Asia. Brazil became the largest coffee producer in the world, a title it still holds today.
Modern Era
20th Century: The development of instant coffee and freeze-dried coffee revolutionized the way people consumed coffee. The rise of speciality coffee and the third wave of coffee culture in the 21st century has brought a renewed focus on quality, sustainability, and the unique flavours of coffee beans from different regions.
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