Digitally Transforming Supply Chains in the Coffee Industry

Overview

There exists a reciprocal relationship between coffee-producing and coffee-consuming countries, forming a virtuous circle that requires enhancement. The challenge lies in elevating the value of coffee products through improved quality, added value, and sustainable practices – in line with current and forthcoming regulations, such as EUDR. Furthermore, the development and growth of collaborative efforts between public and private sectors are essential to foster an environment conducive to positive, sustainable change in the coffee industry.

Approach

The solution addresses new and evolving regulatory requirements through existing and innovative data driven technology solutions to deliver a sustainable and climate resilient coffee supply chain for all parties.

The solution proposes a combination of unique supply chain technology and data components, incl. AI, digital platforms, satellite imagery and geospatial datasets, predicative data and trend analysis, to optimize sustainable coffee sourcing and supply chains.

The EU’s Deforestation Regulation requires coffee operators and their suppliers to verify the sourcing of deforestation free materials across supply chains.

The democratic, transparent and scalable ownership of supply chain data will empower coffee growers and deliver a fair distribution of agency power.

Estimated implementation duration

12-24 months

Potential locations for implementation:

Brazil, Viet Nam, Indonesia, Colombia, Ethiopia, Uganda, Peru, India, Honduras, Central African Republic, Guinea, Guatemala, Mexico, Lao People's Democratic Republic, Nicaragua, China, Costa Rica, Cote d'Ivoire, United Republic of Tanzania, Democratic Republic of the Congo, Philippines, Nepal

Solution Provider(s)

International Coffee Organization

United Nations Industrial Development Organization

Impact

The consumption of commodities is a considerable driver of deforestation and forest degradation on a global scale, with coffee ranking within the top five, accounting for 7.0% of the total.

Key Indicators

100k hectars of forest lost every year due to coffee production, approximated worldwide loss every year due to coffee production

50% of all coffee beans produced are subject to the EUDR regulation

6M smallholder farms will need to have their boundaries mapped to export coffee to the EU under EUDR compliance.

SDGs:

SDG 2: Zero Hunger

SDG 8: Decent work and Economic Growth

SDG 9: Industry, Innovation and Infrastructure

SDG 12: Responsible consumption and production

UNIDO Priorities:

Sustainable supply chains

Thematic Area(s):

Industrial decarbonization

Sustainable agribusiness

Food safety and quality

Agro-technology and innovation

A virtuous circle bounces coffee producing countries with coffee consuming ones: this circle must be nurtured by increasing product value with quality, value addition and sustainability. Continued work and expansion of partnerships between the public and private sectors are key to creating the conditions for change.

Andrea Illy

Chairman illycaffè SpA

Technology Used

AI & Deep Learning Models, Geospatial and Traceability Platform (incl. TraceMark, BigQuery, Earth Engine, Vertex AI, & Maps), a multi-petabyte catalog of satellite imagery with planetary-scale analysis capabilities, Cloud Solutions, Low/No Code Models

Catalytic Outlook

The solution reacts to the needs and opportunities created by the EUDR for the coffee industry as a whole and can be adapted, replicated and scaled on different countries and commodities

Unique Solution Characteristics

Making supply chain ESG data accessible, democratizing supply chain data, eliminating deforestation and increasing the agency of coffee farmers

Previous Funding Source(s)

N/A

Dedicated Resources

N/A

Links

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