Climate Change and Coffee Farm Relocation in Ethiopia: A Real-Options Approach

2021 ◽  
Author(s):  
LUCA DI CORATO ◽  
TSEGAYE GINBO
Keyword(s):  
Climate Change ◽  
Real Options ◽  
Empirical Analysis ◽  
Coffee Production ◽  
Optimal Amount ◽  
Pests And Diseases ◽  
Net Returns ◽  
Real Options Approach ◽  
Coffee Farm

Climate change and emerging pests and diseases may negatively affect coffee yields and revenues in Ethiopian regions at low altitudes. Hence, the relocation of coffee farms to regions at higher altitudes has been suggested in order to assure sustainability and resilience for Ethiopian coffee production. In this paper, we study how sunk establishment costs, uncertain net returns and policy-induced incentives may affect the timing and value of a coffee farm relocation. This is done by developing a real-options model taking into account the relevant drivers of the farmer’s decision to relocate. We then present an empirical analysis examining a hypothetical relocation. We show that relocation is a rather attractive opportunity even though the presence of volatile net returns and relatively high establishment costs may induce its postponement. Thus, we determine the optimal amount of subsidy needed in order to foster the relocation process.

scholarly journals Enhancing the climate resilience of coffee production.

2021 ◽  
Author(s):  
Phoebe Bracken ◽  
Paul J. Burgess ◽  
Nicholas T. Girkin
Keyword(s):  
Climate Change ◽  
Management Practices ◽  
Smallholder Farmers ◽  
Coffee Production ◽  
Pests And Diseases ◽  
Climate Resilience ◽  
The Tropics ◽  
Climate Events ◽  
Reduction In Area ◽  
Policy Mechanisms

Abstract Climate change is adversely affecting coffee production, impacting both yields and quality. Coffee production is dominated by the cultivation of Arabica and Robusta coffee, species that represent 99% of production, but both species will be affected by climate change. Sustainable management practices that can enhance the resilience of production are urgently needed, as coffee production supports the livelihoods of over 25 million people across the world, the majority of whom are smallholder farmers located in the coffee belt spanning the tropics. We conducted a systematic review, identifying 78 studies that describe agro-ecological practices that have potential to enhance climate resilience. Adverse environmental impacts include a reduction in area suitable for production, lower yields, increased intensity and frequency of extreme climate events, and greater incidence of pests and diseases. Potential environmental solutions include altitudinal shifts, the introduction of new, more resilient cultivars, altering agrochemical inputs, and integrating agroforestry. However, financial, environmental and technical constraints limit the availability of many of these approaches to farmers, particularly smallholder producers. There is therefore an urgent need to address these barriers through appropriate policy mechanisms in order to continue meeting growing demand for coffee.

Sustainable Coffee Production

2017 ◽  
Author(s):  
Sarada Krishnan
Keyword(s):  
Agricultural Commodity ◽  
Green Beans ◽  
Coffee Production ◽  
Tropical Asia ◽  
Pests And Diseases ◽  
Net Returns ◽  
Low Genetic Diversity ◽  
Specialty Coffee ◽  
Mascarene Islands ◽  
The Cost

Coffee is an extremely important agricultural commodity, produced in about 80 tropical countries, with an estimated 125 million people depending on it for their livelihoods in Latin America, Africa, and Asia, with an annual production of about nine million tons of green beans. Consisting of at least 125 species, the genus Coffea L. (Rubiaceae, Ixoroideae, Coffeeae) is distributed in Africa, Madagascar, the Comoros Islands, the Mascarene Islands (La Réunion and Mauritius), tropical Asia, and Australia. Two species are economically important for the production of the beverage coffee, C. arabica L. (Arabica coffee) and C. canephora A. Froehner (robusta coffee). Higher beverage quality is associated with C. arabica. Coffea arabica is a self-fertile tetraploid, which has resulted in very low genetic diversity of this significant crop. Coffee genetic resources are being lost at a rapid pace due to varied threats, such as human population pressures, leading to conversion of land to agriculture, deforestation, and land degradation; low coffee prices, leading to abandoning of coffee trees in forests and gardens and shifting of cultivation to other more remunerative crops; and climate change, leading to increased incidence of pests and diseases, higher incidence of drought, and unpredictable rainfall patterns. All these factors threaten livelihoods in many coffee-growing countries. The economics of coffee production has changed in recent years, with prices on the international market declining and the cost of inputs increasing. At the same time, the demand for specialty coffee is at an all-time high. In order to make coffee production sustainable, attention should be paid to improving the quality of coffee by engaging in sustainable, environmentally friendly cultivation practices, which ultimately can claim higher net returns.

scholarly journals A Study of Regenerative Farming Practices and Sustainable Coffee of Ethnic Minorities Farmers in the Central Highlands of Vietnam

2021 ◽  
Vol 5 ◽  
Author(s):  
Quan Vu Le ◽  
Sanya Cowal ◽  
Grace Jovanovic ◽  
Don-Thuan Le
Keyword(s):  
Climate Change ◽  
Success Factors ◽  
Farming Practices ◽  
Net Returns ◽  
Regenerative Agriculture ◽  
Coffee Farmers ◽  
Coffee Farm ◽  
Central Highlands ◽  
Environmental Integrity ◽  
Coffee Farming

Coffee is highly vulnerable to climate change, thus impacting coffee-dependent livelihoods and economies. As rising temperatures continue to reduce the suitability of many historical coffee-growing regions, some farmers are practicing regenerative, organic coffee farming as a means of climate change mitigation. In the Central Highlands, the primary coffee growing region of Vietnam, conventional sun-grown, monocrop coffee requires intensive inputs, including fertilizers, pesticides and water. However, some farmers are converting their conventional sun farms to organic shade farms utilizing regenerative farming techniques for both environmental and economic reasons. This study examined regenerative farming practices and sustainable coffee in a small ethnic minority village in Lâm Ðồng province. The comparative analysis between soil samples taken from a regenerative shade-grown coffee farm and two conventional sun-grown coffee farms revealed that the soil of the regenerative farm, enriched with organic manure, is comparable to, or healthier than, the soil on the conventional farms enriched with chemical fertilizers. The results indicate that regenerative farming practices promote biodiversity; however, they also maintain microclimates that promote the growth of Roya fungus, which can decrease coffee yields. The economic analysis of farm costs and net returns found that regenerative farming practices decrease external inputs through a system of crop diversification and integrated livestock production that improves productivity and economic performance while preserving the ecological and environmental integrity of the landscape. Regenerative agriculture is an important step toward climate change adaptation and mitigation; however, in order for the farm communities in the Central Highlands to make the transition to regenerative agriculture, the success factors and benefits of this method must be demonstrated to the coffee farmers.

scholarly journals Coffee Cultivation in Kerala: Some Economic Aspects

2017 ◽  
Vol 16 (4) ◽  
pp. 97-108
Author(s):  
N Karunakaran
Keyword(s):  
Climate Change ◽  
Climate Changes ◽  
Economic Aspects ◽  
Coffee Production ◽  
Limited Access ◽  
Pests And Diseases ◽  
The People ◽  
Cost Of Production ◽  
Coffee Cultivation

Coffee production in India is mostly done in Karnataka, Kerala and Tamilnadu. It is one of the important commercial crops of Keralaand is the main source of income and employment to the people of three districts in Kerala. Coffee cultivation is not an easy businessandis adversely affected by various factors at present. Small coffee growers fail to acquiretechnological improvement to compensate labour scarcity and climate change and have limited access to technologies promoted by the Coffee Board of India due to high cost and mode of payment of subsidies.This studyreveals that problems like scarcity of labour, pests and diseases, thehigh cost of production, low price for coffee, marketing difficulties and unusual climate changes often hurt coffee cultivators. However,the schemes and programmes ofthe coffee board benefited the growers. Theanalysis of the profitability of the crop shows that coffee cultivation is profitable in Kerala.

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