Coffee has inextricably linked countries around the world through deeply ingrained trade pathways that criss-cross the globe.
This means that climate risks to the coffee crop are also shared across borders and because coffee is highly vulnerable to the effects of a changing climate, those risks must be managed across companies and governments.
Using the Brazilian-German coffee supply chain as an example, this brief explores the options for how best to manage these risks.
Video: Mia Shu / SEI / YouTube.
The global coffee sector involves more than 100 million people in over 80
countries. Because agriculture – and coffee in particular – are vulnerable to increasing climate volatility, climate change stands to disrupt one of the world’s largest agricultural supply chains.
This spillover effect of climate change across borders is known as Transboundary Climate Risk (TCR). And it calls for attention and coordination among public and private sector actors who must manage adaptation in an environment where no such framework exists.
Drawing from interviews with 65 people associated with the Brazilian-German coffee supply chain, this brief outlines five options for managing TCR and analyses the value of each pathway. It then issues a set of policy recommendations that can guide progress on coffee supply chain adaptation.