Bioeconomy in the Coffee Value Chain: an Opportunity to Be Seized
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Policy brief Bioeconomy in the coffee value chain: an opportunity to be seized The bioeconomy offers solutions. The The bioeconomy model: use of biomass in different value chains an urgent priority provides an opportunity to boost the productivity of biological resources and Nowadays, the world faces a pressing to capitalize on new developments in need to find alternatives to the prevailing sciences, technology and expertise fossil fuel-intensive models. Thus, to utilize and transform previously development strategies based on greater unexploited resources into high value- and more efficient use of biological added products or services. Greater resources, technologies and processes for exploitation of biological elements is the sustainable provision of the goods and critical, considering that the global market services that our societies require present is becoming substantially larger, wealthier a unique opportunity. and older. Consequently, agricultural production will have to practically double, Today’s challenges are environmental, economic and social, calling for innovative What is the solutions that yield greater economic returns, bioeconomy? while taking greater care of the environment The bioeconomy is the intensive and and opening up new opportunities for knowledge-based use of biological employment and development in rural areas, resources, processes, technologies, and principles, for the sustainable provision of which are home to the greatest concentration goods and services in all sectors of the of poverty and marginalization in the region. economy (IICA 2018). 2 notwithstanding the decrease in available a world in which the impacts of climate land, growing restrictions in the per capita change and the degradation of natural cultivated land (25% less), fewer available resources are progressively severe. The water resources (water demand will Latin American and Caribbean (LAC) increase by 50%), diminishing biodiversity region is the major global producer of and natural resources and the ensuing sustainable biomass and is also equipped increase in climate change repercussions. with the necessary scientific-technological expertise, industrial infrastructure and In this context, the bioeconomy proposes entrepreneurial base to mobilize that a broader and more ambitious vision of potential, which it is already doing in development that is increasingly relevant numerous sectors (IICA et al. 2019). for the achievement of the Sustainable Development Goals (SDGs) and for the implementation of strategies to decarbonize the economy, which will ALC is called upon to play a leading role be critical to meeting greenhouse gas in a new development model that will (GHG) emission objectives to maintain the average global increase in the temperature seek to create a balance between the to below 2 oC by the end of this century. environmental, food and energy demands in the upcoming years. New advances in sciences and technology offer the region Coffee: a powerful the possibility to better capitalize on its economic driver for tremendous biological wealth. Latin America and the Caribbean The region’s biological wealth positions On the other hand, coffee is one of the it to play a leading role, particularly in engines of the rural economy in LAC and one of the main sources of employment and income. Currently, more than 14 million people are involved in coffee- related activities in Central America, Colombia, Bolivia, Brazil, Ecuador, Jamaica, Panama, Peru, Mexico and the Dominican Republic. The combined production of coffee in Central America, Jamaica, Panama, Peru, Mexico and the Dominican Republic is more than 30 million bags (of 46 kg each), representing approximately 25 % of the total production of Arabica coffee in the world. In countries such as Honduras and Colombia, coffee accounts for more than one third of total exports from the country. 3 The value of global coffee exports is about USD 20 billion, with the total value generated by the industry amounting to approximately USD 200 billion (Panhuysen and Pierrot 2018). the urgency of ensuring the economic sustainability of the activity, by making strategic investments in farms to keep production costs at a minimal or optimal level, and seeking to sustain levels of employability, despite minimal levels of productivity and use of technology. Indeed, the current situation impacts employment and income, prompting daily migration, particularly of young people, who are A crisis that can be gradually abandoning rural areas. transformed into an Given this scenario, it seems opportunity unavoidable to wonder if all the biological potential of coffee plantations has Low international prices and the onslaught been exploited. Although it may seem of pests and diseases endanger the contradictory, the current crisis offers income of coffee producers, increasing an opportunity to expand beyond their risk of debt. With a lower cash flow, mere coffee production, seeking new investments destined for agriculture opportunities to add value, diversify also decline. Consequently, previously income and generate wealth. controlled pests and diseases, such as coffee leaf rust, reemerge with greater virulence. The greatest devastation caused by this scourge occurred during the 2012-2013 period. Production in The bioeconomy allows to capitalize Central America and the Caribbean on new scientific and technological was severely affected with the loss of expertise to improve productivity approximately 2.7 million bags (close to and the sustainability of biological 20% of total production). resources, while generating new and Although the LAC coffee industry has high value-added bioproducts and been recovering in a slow albeit sustained bioservices. manner, lower prices having heightened 4 4 Less than 5% of the biomass that is provides at least two major opportunities: generated throughout the entire coffee one the one hand, to use the products of production chain is used to prepare the the plant more efficiently, and on the other beverage. The remainder is lignocellulose hand, given that the new biology provides (leaves, branches and stems obtained us with a better understanding of how the during coffee tree renovation); green fruit plant functions, to consider enhancing its that falls to the ground during harvesting; production capacity (improving the quality, fruit removed from the lot during building resistance to pests, etc.) It would processing; and other residue, including not be amiss to also mention the role the pulp, mucilage1, parchment (hull or of research and development (R+D), in endocarp) and the grounds2 or dregs that general, and biotechnology, specifically, in remain after preparing the beverage. This meeting these goals. 1. Viscose plant substance that adheres to the parchment of the coffee by natural enzymes, composed mainly of water, sugars and pectic substances and containing mainly yeasts. 2. The residue of the ground coffee after coming into contact with hot water. 5 5 The bioeconomy and the challenges of the coffee chain Challenge Solution offered by the bioeconomy Decline in productivity Improved materials: better yields, resistance to water stress, (low yields and problems pests and diseases. with pests and diseases) Greater business efficiency and sustainability. Diversified production. Lower costs, less vulnerability. Use of the entire product – providing sustainability to all areas within the coffee chain. Low prices in Value adding and differentiation, thereby enabling international markets differential pricing and better market growth prospects. The use of byproducts that were previously considered to be waste creates new, productive and profitable options. Extensive amount of Generation of bioenergy and bioproducts for the food, waste and residue that cosmetic, chemical and other industries, using waste, which negatively affects the in most cases, was a source of pollution. environment Generation of lower volumes of non-usable waste. Lower volumes of transported products. Substitution of chemical inputs for use in farming operations (bioinputs). Unemployment and Generation of new job opportunities in rural areas in the migration in coffee new chains. regions Generation of job opportunities outside of harvest season. Greater impact on the rural economy. 6 Success stories prove coffee (uniform powder, Cherry Coffee Oil (viscous liquid), Cherry Coffee MCT that it is possible! (liquid) and Nutri Coffee (micronized powder). The latter gave rise to the development of the Chococoffee Brazil prototype, in which cocoa powder is replaced with powdered coffee. The aim AQIA Coffee (http://aqia.net/en/aqia- is for these areas to generate commercial coffee/), a business established in 2015 growth of between 20% and 50% for by the Guaxupé Regional Cooperative of AQIA, by 2020. Coffee Producers (Cooxupé), and AQIA Química Industrial, launched a line of The project invested between USD cosmetics that are manufactured with 1.2 million and 1.7 million in research components derived from oils and pulp and in establishing a factory in Guaxupé from green coffee beans. (Minas Gerais) to begin the process of extracting green coffee oil for the This is the first coffee cooperative in cosmetic industry. In addition to the Brazil that is extracting raw material for oil, the residue remaining after the new niche markets. The AQIA coffee extraction of the raw material (pulp) is line includes green coffee oil (viscous used for exfoliating products. The idea liquid), coffee oil (liquid),