FAO Seeks Urgent Global Coffee Value Chain Transformation

The global coffee industry is facing significant challenges and transformation opportunities, as highlighted by FAO Director-General QU Dongyu at the UN Food Systems Summit +4. He emphasized the urgent need for climate resilience, market adaptation, and inclusive investment to support over 25 million coffee farmers, many living in poverty, noting that climate change threatens to render up to 50% of coffee-growing areas unsuitable by 2050. Meanwhile, local coffee markets such as in the Philippines show a dynamic landscape where global brands like Starbucks and Dunkin' dominate, but homegrown brands and specialty coffee shops are gaining ground, enriching consumer options. In Thailand, Factory Coffee Bangkok exemplifies the growing coffee culture with award-winning baristas and innovative offerings, reflecting regional enthusiasm for quality coffee experiences. On the corporate front, Coca-Cola's $5.1 billion acquisition of Costa Coffee in 2018 has struggled, particularly in the U.S. market, due to tough competition and strategic challenges, leading the company to reconsider its coffee business approach amid evolving market conditions. These developments illustrate the complex interplay of climate, market forces, and consumer trends shaping the coffee sector globally.