Illycaffè's Pursuit Of Sustainability Through Regenerative Agriculture Greatly Benefits Brazilian Coffee Farmers – CoffeeTalk

Italian coffee giant illycaffè is transforming the narrative of Brazilian coffee by focusing on regenerative agriculture. In October 2023, the company launched the first coffee certified by regenagri, a leading global regenerative agriculture verification system. The results have been transformative, with Brazilian coffee farms implementing these regenerative practices winning illy’s prestigious Ernesto Illy International Coffee Award for two consecutive years in 2023 and 2024. This transformation is particularly noteworthy given Brazil’s historical reputation as the world’s largest coffee producer, accounting for nearly 38% of the world’s coffee.

The regenerative farming practices hold even greater significance if considering the coffee industry’s substantial environmental footprint. Coffee is grown on over 11 million hectares globally and employs an estimated 25 million farmers across 50 “coffee belt” countries, 80% of whom are smallholders (less than five hectares) vulnerable to climate change and market volatility.

Illycaffè’s Chief Total Quality & Sustainability Officer, David Brussa, discusses the company’s comprehensive approach to regenerative agriculture, which includes the concept of “Virtuous Agriculture” and strategies for adapting to climate change. The company ensures fair compensation for farmers implementing these methods and their efforts to collaborate across the industry to bring systemic changes.

illycaffè is rewriting the narrative of Brazilian coffee through regenerative agriculture, transforming its coffee ecosystems and communities.

David Brussa, CEO of illycaffè, discusses the regenerative momentum in coffee production and the development of “Virtuous Agriculture,” a philosophy that combines environmental and human health benefits. The company has become a benefit corporation and started the process to become a certified B Corp, which was achieved in April 2021. Brussa emphasizes the connection between quality and sustainability, with ethics as the edge connecting them. They are currently in a circularity period, focusing on restoration and conservation over the next ten years.

Brussa also highlights the Arabica selection from Brazil, certified as regenerative agriculture by regenagri. This is a pure Arabica product from farmers certified in regenerative agriculture. Regenerative agriculture, which originated in Pennsylvania from the Rodale Institute over 50 years ago, encompasses over 180 different practices. After three years of work, Brussa identified 18 practices suitable for the coffee sector, including using scissor-cut arms, intercropping trees, creating terraces, replacing chemical fertilizers with organic ones, using biostimulants instead of fertilizers, avoiding tillage entirely, and increasing biodiversity through cover crops. These practices reduce evaporation, helping Arabica coffee absorb moisture through the roots, crucial for seed growth and maturation.

Brussa also introduces precision farming techniques, using sensors to measure soil conditions, air temperature, and moisture. These methods have gained momentum partly due to the new technological ideas and perspectives brought by farmers’ children who studied abroad and returned home during COVID-19.

Brussa emphasizes that quality has a cost and must be rewarded with a premium. For 90 years, illycaffè has purchased coffee based on quality, with stock option value as the base plus a quality premium connected to production. Today, they look for “superior quality and sustainable coffee.” Their approach to paying producers is already part of their business model, independent of market fluctuations.

Illycaffè operates under a “sustainable procurement process” developed in line with international standards ISO 26000 for corporate social responsibility and ISO 20400 for sustainable procurement. Through this process, they train producers in quality and sustainability practices, teaching them how to manage funds, control costs, collect primary data for carbon footprint and water usage calculations, and select the most beneficial and least harmful inputs when treatments are necessary. Knowledge transfer occurs directly through the Università del Caffè della illycaffè (University of Coffee) and online platforms in Brazil, where they share weekly information on new technologies and best practices.

Climate change is a significant concern for coffee cultivation, and Illy is working to adapt to these changes by using regenerative agricultural practices. They suggest that producers maintain older coffee plants rather than replacing them every 10 years, as ancient plants have longer roots and are more resilient in absorbing moisture. They recommend various cover cropping patterns to retain moisture, reduce soil temperature, and improve plant health.

Illy is also identifying and suggesting coffee varieties that are more resilient to drought or excessive moisture, depending on the location. For areas with strong winds, they recommend planting taller trees as windbreaks to reduce evaporation. Additionally, they are introducing biostimulants and conducting chemical analyses of pH and microelements to optimize growing conditions. This is highly specific work that depends on each plantation’s unique characteristics, including location, soil type, and coffee variety.

Looking forward, Illy is exploring artificial intelligence applications in agriculture, collecting comprehensive data from specific fields using sensors that monitor weather conditions, soil chemistry, plant health, and bean quality. By identifying correlations among these factors, they hope to help growers select the best practices for their specific conditions rather than relying on trial and error.

In terms of consumer communication, Illy has achieved success by becoming B Corp certified and promoting the Brazil Arabica Selection in the HoReCa market (Hotel, Restaurant, and Catering) in Italy and abroad. The Ernesto Illy International Coffee Award in New York has been held for the past nine years, recognizing the best coffee from the nine origins in their blend. In 2023, a Brazilian producer who was certified in regenerative agricultural practices won the award, and in 2024, another Brazilian producer won again – this time a farm practicing regenerative agriculture without certification but meeting our assessment criteria.

When serving this coffee in cafes and restaurants, baristas can tell customers they’re tasting an award-winning, regeneratively grown Brazilian coffee, creating a compelling story and distinguishing certain hospitality businesses looking to emphasize sustainability. The entire chain of custody is certified by regenagri to avoid greenwashing risks and protect Illy’s reputation.

To spread regenerative practices more broadly, Illy is working in a pre-competitive way with companies like Nestlé, JDE Peet’s, and Keurig dr. Pepper (KDP) through the Global Coffee Platform to develop a regenerative farm protocol called “Regncoffee.” This collaborative effort aims to demonstrate that proper coffee cultivation can increase economic, social, and environmental sustainability while enhancing market resilience and value.

A major challenge in the coffee industry is its structure, with about 30,000 producers accounting for only 20% of worldwide coffee production, while the remaining 80% comes from 12 million smallholder farmers with less than two hectares each. To drive change at scale, companies like Illy promise to purchase coffee from producers adopting regenerative practices, guaranteeing them a market and premium prices. Dr. Illy is also leading the development of a coffee resilience fund, combining private and public resources to support small producers who often live in poverty and receive only 5-10% of the coffee value chain. This pre-competitive approach reflects their belief that tactical sustainability is a dead end, while being business creates the resources to pursue true sustainability.

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