We clearly recognize serious and fundamental challenges in the coffee supply chain. From long-term production and supplies of quality Arabica coffees, vulnerabilities as a

result of limited genetic diversity, lack of mitigation approaches for climate change, to a weak economic foundation for coffee

farmers—anyone who is looking ahead in their business, should be concerned about where coffee is going to come from.

We have made a significant and ongoing commitment to World Coffee Research because we know the big solutions will only come from science and this type of collaboration.

– Lindsey Bolger, GMCR

World Coffee ResearchWorld Coffee Research (WCR) was formed by the coffee industry to establish a strategic and scientific approach for supply development, crop resiliency, climate change mitigation, and quality improvements—to create a plan for sustainable growth.

World Coffee Research is developing new scientific solutions, enhancing existing science, and putting more scientific innovation into the industry. In our first year of activity, we have developed a global network of leading scientists and research institutions to drive advancements and transfer knowledge across the entire coffee sector.

We are working collaboratively and openly, creating more access points—down to the farmer—so that everyone in the value chain has an opportunity to benefit from our work and to ensure the supply of quality coffees into the future.

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EXECUTIVE HIGHLIGHTS

Advanced plan for new sensory evaluation method

Germplasm Collection sampled and expanded

International Multi-Locational Variety Trials underway

Development of pre-breeding populations underway

Strategic partner for East Congo coffee sector revitalization

Strategic partner for rust response and recovery efforts

GROW. PROTECT. ENHANCE.

World Coffee Research

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OrganizationalSUMMARY

MISSION To grow, protect, and enhance supplies of quality coffee while

improving the livelihoods of the families who produce it.

KEY COMPONENTS of CURRENT WORK INCLUDE:Germplasm collection, screening, and preservation

-Development of new breeding populations

-Variety trials

-Development of seed multiplication technology

-Farm productivity enhancement

-Sensory enhancement

STRUCTUREThe program is funded and driven by the global coffee industry,

with representation by the producers, executed by coffee scientists around the world and managed by the Norman Borlaug Institute for International

Agriculture of the Texas A&M University System.

EXECUTIVE DIRECTOR and CEO Dr. Timothy Schilling

World Coffee Research is a 501 (c)(5) non-profit agricultural research organization.

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Core VALUESEverything we do is reinforced by the desire to leverage and maximize the potential of coffee to provide for farming families. As with all crop species, the most efficient and economical way to increase productivity and quality, and hence income potential, at the producer level is through variety development and efficient distribution.

WHILE OUR MISSION IS BASED IN SCIENCE, OUR VISION IS SET ON PEOPLE.

World Coffee Research is headquartered at the Norman Borlaug Institute for International Agriculture of the Texas A&M University System and we are deeply proud of our association with the late Nobel Peace Prize laureate Norman Borlaug’s vision of alleviating global poverty:

- Maintaining social and environmental consciousness in agriculture research to ensure benefits for those affected and the safety of all living things.

- Working hard and persisting to see an initiative through to completion, regardless of obstacles and opposition. - Working together as a global family with members from diverse backgrounds, livelihoods and disciplines to keep us honest and fair, allowing us to deliver on our commitments.

Following Dr. Borlaug’s legacy of helping alleviate world hunger through agricultural science, World Coffee Research supports farmers in coffee growing communities by producing and delivering technologies that strengthen local economic and social development. These technologies directly help farm families by increasing the yield and quality of their coffee thus improving their livelihoods through increased incomes impacting thousands of families in coffee growing communities.

WCR is a stellar example of how a non-food crop, utilizing a ‘Borlaug’ approach, can have a huge impact on food insecurity and

conflict in development.– Julie Borlaug, Director of Partnerships, Borlaug Institute, Texas A&M University

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THE PLAN Our Road Map to Resiliency

This is the outcome of our genesis phase, which allowed World Coffee Research to officially come into being and begin work in April 2012.

The major thrust of the World Coffee Research strategy is the creation of a toolbox of coffee varieties, genetic resources and accompanying technologies and the dissemination of those technologies strategically and collaboratively in producing countries to alleviate current and future constraints to the supply chain of high quality coffees.

Our strategy places an emphasis on genetic improvement for the rapid productivity and quality gains needed to sustain and grow the supply chain. Using proven technological advances in other crop species, World Coffee Research is leapfrogging over decades of expensive, painstaking research to deliver greatly improved products to farmers that keep the coffee industry growing and the producers satisfied. This is taking coffee to the level of technological sophistication enjoyed by the world’s leading food commodities like cereals, dairy, meat, fruits and vegetables. For the first time ever, coffee has a coordinated research strategy.

We are working from an extremely limited gene pool in coffee. If you take all the varieties that coffee farmers grow today, it represents only a tiny fraction of the diversity that exists out there. This not only leaves the industry open to the

extremes of crop vulnerability, and supply chain risk through epidemics and pandemics, but it limits what can be developed in terms of positive attributes too.

- Dr. Vincent Petiard, former NESTLE’S Plant Science Director

CONSUMERS Higher quality, more choice and greater taste differentiation leading to higher consumption

THE GLOBAL COFFEE INDUSTRY Supplies of quality coffees grow with greater product differentiation potential

PRODUCERS Higher yields and quality increase income and improve livelihoods

ACCELERATED PRODUCTIVITY ENHANCEMENT Extension, credit, fertilizers, see, field demonstrations...

Making the new technology affordable and easily adoptable

Get the new varieties and accompanying technologies

into the hands of the producer

Stacking the good genes into strong and desirable genetic stocks for quick

and easy breeding of origins

NATIO

NA

L AN

D IN

TERN

ATION

AL

BREED

ING

PROG

RA

MS

VALU

E PR

OPO

SITI

ON

STR

ATEG

IC W

OR

KFL

OW

Rapid gains through variety performance comparison trials in

all origin countries

New and needed genes for climate change, quality attributes,

productivity and pest resistance

MULTI-LOCATION VARIETY TRIALSScientific information for climate change and quality research

DEVELOPMENT OF ‘SEED’ MULTIPLICATION TECHNOLOGY Dissemnation of new technologies in producing countries

DEVELOPMENT OF NEW BREEDING POPULATIONSClimate change tolerant, high quality attributes, CBB, CBD, rust...

GERMPLASM COLLECTION, SCREENING AND PRESERVATIONConserving coffee diversity

IMPACT NOW

2-5YEARS

2-10YEARS

10-15YEARS

FOREVER

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THE STRUCTURE Built to Deliver

The Board of Directors, Technical Advisory Committee, External Audit Committee and the Industry Advisory Committee are chartered and functionally defined through founding cooperative agreements and bylaws of World Coffee Research and composed of leadership from industry and research. The Board of Directors, representing perspective from multiple industry leaders, has ultimate responsibility for the direction of World Coffee Research. The Industry Advisory Committee will be the voice of the specialty coffee industry and advise the Board of Directors on issues relating to research and fundraising. An External Audit Committee ensures transparency and veracity in the financial and managerial functions of World Coffee Research. Finally, a Technical Advisory Committee guarantees the scientific integrity of the research performed on each of the projects, monitors the research and advises the Board of Directors on all matters pertaining to research insight and future direction.

SCIENTIFIC STAFFMANAGEMENT ENTITYTim SchillingVincent PétiardChristophe MontagnonLeonardo Lombardini

Agricultural Economics / Horticulture / Crops and Soils / Sensory Sciences /Genomics / Biotech and Breeding

Other Universities and Foundations /International Ag Res Centers / USDA / Development Organizations / NGOs

BOARD OF DIRECTORS

BORLAUG INSTITUTE

TECHNICAL ADVISORY COMMITTEEBayetta Bellachew Aaron DavisBenoît Bertrand Luciano NavariniPeter Baker Huver PosadaCarlos Carvalho Syra PrakashRonald Peters Edgardo AlpizarPeter Laderach Surip Mawardi

TEXAS A&M UNIVERSITY

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World Coffee Research has established collaborative agreements with major research institutes throughout the world. This network of top researchers and administrators are working together to harness the scientific power of the global scientific community—through “cross-fertilization” of ideas and technologies to ensure we develop the best solutions which are then transferred as quickly as possible to the producer. This type of collaboration not only pushes the envelope of science to develop needed technologies; it also builds capacity for many coffee research institutes that are resource-challenged.

RESEARCH TEAM Collaborative by Design

APLU American Public Land Grant Colleges and Universities

ACO The African Coffee Organization/Research and Development

ACRN African Coffee Research Network which includes all African Coffee Research Institutions

ANACAFE and other LA producing country producer and/or resarch institutions

BRAZILIAN COFFEE RESEARCH CONSORTIUM Embrapa Café and 10 other Brazilian coffee research institutions

CENICAFE Colombian Coffee Research and Development Institute

CABI Centre for Agriculture Bioscience International

CATIE Tropical Agricultural Research and Higher Education Center

CIAT International Center for Tropical Agriculture

CIRAD French Agricultural Research Centre for International Development

INDIAN COFFEE BOARD Research and Development

ICCRI Indonesian Coffee and Cocoa Research Institute

KCRF Kenyan Coffee Research Foundation

KEW Royal Botanic Gardens

PROMECAFE Coffee Research and Development institutions from Costa Rica, Honduras, Guatemala, Panama, Dominican Republic and Jamaica

INECOL Mexican Ecology Institute and Mexican Strategic Coffee Alliance

RAMACAFE Nicaraguan coffee promotion and development orgranization

USDA Coffee Research Program8

COLLABORATION.

EXPANDING OPTIONS: The International Multi-Location Variety Trial

WCR is taking advantage of the best of existing genetic material worldwide, most of which has never been evaluated on a broad basis, and we are setting up a network of international variety experimental and demonstration trials. The major objective is to allow rapid and widespread production and quality increases through variety testing and distribution to farmers of the identified best varieties in each region. Tangible results will be available by 2015 and promising material could start to increase production in as little as 5 years fromplanting date.

THE WORK Projects and Milestones

MEXICOOro Azteca

JAMAICA

EL SALVADORPacamara

COSTA RICAVenecia

HONDURASParainemaLempira

PANAMAGeisha

NICARAGUAMarsellesa

KENYARuiruSL28K7

Batian

INDIA

PNGTypica

BourbonArushaCatimor

Mundo NovoCaturra

COLOMBIAColombia 1Colombia 2Colombia 3Colombia 4Colombia 5

BRAZILIPR107

Catucai Amarelo 6/30Catucai Vermelho 144

IPR103Mundo Novo IAC 379/19

ParaisoCatigua

DEMOCRATIC REPUBLIC OF THE CONGO

This program is of tremendous significance because never before has coffee from Costa Rica been grown in Kenya, and never before Brazil has received coffee from Kenya for a multi-location international variety trial program.

WCR is promoting research collaboration between many countries.

- Dr. Ronald Peters Seevers, Executive Director Costa Rica Coffee Institute (ICAFE)

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This is a coffee industry “first”—never before has a country had in their possession so many different varieties. By expanding the options so dramatically, we will undoubtedly expand possible solutions for increased productivity and quality.

In order to make the international multi-location variety trial a reality, many complicated political, biological and logistical challenges were successfully managed. The key milestones reached for this year include:

ESTABLISHED international Steering Committee to implement the trial platform- Dr. Carlos Carvalho of EMBRAPA Café-Brazil- Dr. Vincent Petiard, Technical Committee Chairman, Private Industry- Dr. Benoit Bertrand, Arabica breeder, CIRAD, France- Dr. Huver Posada, Arabica breeder, CENICAFE, Colombia- Dr. Ronald Peters, Director of Research, ICAFE, Costa Rica

ASSEMBLED the highest performing varieties from around the world and selected the best varieties for testing in our target countries (see illustration opposite) - 30 high performing varieties and F1 hybrids selected- 20 participating producing countries- 3-6 diverse location in each of the participating countries

MULTIPLIED seedlings of each variety through sterile in-vitro propagation ready for distribution: Because of the narrow window for coffee seed germination viability, collecting and distributing seed was not feasible.

NEGOTIATED sub-grant agreements with partner institutions- PROMECAFE: Guatemala, Costa Rica, Honduras, El Salvador, Panama- INECOL: Mexico- ICCRI: Indonesia- KCRF: Kenya- CENICAFE: Colombia- EMBRAPA: Brazil

HIRED an IMLVT Coordinator to oversee operations - Dr. Christophe Montagnon, Coffee Breeder, Consultant

ESTABLISHED a back-up collection through seed propagation in greenhouse conditions at Texas A&M University and also a tissue culture collection at AgriStart in Florida.

In summary, seed from over 10 countries have been collected for 30 varieties. These seeds are being propagated in-vitro into small sterile seedlings and are being sent to the 20 participating countries.

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BUILDING FOR THE FUTURE: Development of Pre-Breeding Populations

The current pool of Arabica varieties used around the world are not ready to tolerate new disease and insect pressures as well as heat or other environmental threats posed by climate change. The root problem is a narrow genetic base. World Coffee Research scientists know that the total amount of genetic diversity in the varieties used today represent only 10% of what exists in the world Arabica collections, like the ones in CATIE and CENICAFE. This low or narrow genetic diversity is a high risk factor that jeopardizes the sustainability in the supplies of quality coffees.

Narrow genetic diversity was responsible for the potato famine in Ireland, the French grape crisis, the Mexican agave disaster, and many other crop epidemics. With extreme climate events occurring at greater frequency, the probability that more crises will occur in coffee is higher. In order to reduce this risk, World Coffee Research is ‘leapfrogging’ over decades of expensive and painstaking research by using advanced technologies to create ‘super-varieties’ capable of high quality and productivity under a broad range of adverse environments.

These populations will be made available to national breeding programs for the rapid development of country-specific varieties with heat tolerance, high productivity, high cup quality and tolerance to other biologic pressures. The pre-breeding populations will expedite the variety development in national programs by 5–10 years so that impact can be made rapidly across a host of different producing countries.

THE WORK Projects and Milestones

I am pleased to note that World Coffee Research is taking advantage of cutting edge technologies; in particular, the use of next generation sequencing and

associated bioinformatics that provide robust experimental power. These cost effective, powerful computational approaches as applied to “precision breeding”

will advance coffee breeding by leaps and bounds.

– Martin B. Dickman, Ph.D., Director, Institute for Plant Genomics and Biotechnology, Texas A&M University

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13

50 SUPER DIVERSE x BEST KNOWN VARIETIES

F2 SEGREGATING POPULATIONS

10x diversity on everything

Photos courtesy of MARS DRINKS

Quality disease resistance yield

ACTIVITIES IN 2012 AND 2013 included the following milestones:

- Conceptualized the necessary genetic diversity studies with WCR Technical Advisory Committee

- Negotiated sub-grant with CATIE to implement the key components of the total pre-breeding program including sampling, testing, evaluating, crossing and distribution of genetic materials

- Selected 1,000 strains of Arabica coffee from over 3,000 strains in the CATIE Arabica collection. The 1,000 strains represent the most unique strains in the collection coming from early germplasm expeditions.

- Sampled each of the 1,000 strains through leaf drying and freeze-drying for genetic analyses.

- Negotiated contract with Nature Source Genetics, Inc. (NSG) to conduct DNA sequencing work and genetic diversity analyses

- Arranged for the sending of leaf samples from Yemen, New Caledonia and Guadeloupe for expanded analyses and rust resistance

- Sent samples to NSG for DNA extraction at Cornell University

- Began sequencing DNA strands from each of the 1,000 strains or genotypes to perform genetic diversity analysis resulting in the identification of a handful (10-20) of super-diverse genotypes that represent over 90% of all the genetic diversity found in the total Arabica collection

- This handful of ‘super-diverse’ genotypes forms the core population from which next-generation coffee varieties will be created

World Coffee Research will not employ genetic engineering techniques that are associated with genetically modified crops. Rather, we will use the advances in DNA science to greatly increase the amount of genetic diversity we will work with and then to use it in very precise ways to develop better varieties. Creation of the pre-breeding pools will be done by assembling as much genetic diversity as possible in a pool of agronomically sound genetic material. The actual breeding work will use classic plant breeding techniques aided by the new methods that insure desirable characteristics are accumulated in the varieties being developed.

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NEW SCIENTIFIC METHODS.

NO MORE SHOOTING IN THE DARK: A New Sensory Evaluation Method

To improve something, you must be able to measure it, and an accurate, repeatable and statistically discriminatory sensory analysis measuring coffee quality is lacking in the coffee research community. Because World Coffee Research projects entail the evaluation of quality attributes for large volumes of varieties and genetic material to be used in variety development, World Coffee Research must determine a better way to evaluate quality in order to increase it. By dialing in more specifically on objective points, such as volatile compounds, physical measurements, and using new technology adapted to sensory evaluation, we can deliver a more precise, efficient way of measuring quality that complements existing industry practices.

In June of 2012, World Coffee Research engaged the Texas A&M University sensory laboratory to develop a plan, which included a partnership with the world-renowned sensory laboratory and staff located at Kansas State University. In order to develop a set of procedures that can be used to screen a large number of coffee samples in coming years, industry partners will select Arabica coffee from different genetic stock and geographical locations and provide those to Kansas State University for sensory lexicon development. Initially, roasting and sampling protocols will be developed. Secondly, the different coffees will be prepared and presented to an expert descriptive attribute sensory panel that have long term experience of lexicons across many product categories (e.g. green tea, cheese, various fruits, soy sauce, etc). This panel will use results from Phase I and their experience to begin identifying quality attributes for coffees. They will use resources from Aroma Trax System to identify flavor attributes, a reference for each attribute and an example of how to prepare references to show differences in each attribute for standardization of the lexicon.

THE WORK Projects and Milestones

This type of sensory evaluation has commercial applications as well. It provides a platform for innovation, enhancing our ability and speed to develop new products.

— Dr. Maya Zuniga, Director of Product Development and Innovation, S&D Coffee and Tea

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- Identified sensory experts at Texas A&M University and Kansas State University and formed a proposal development group

- Held a sensory working session with sensory and scientific experts and Texas A&M University experts and held cupping sessions and working meetings to review sensory methodologies and discuss lexicon development

- KSU and Texas A&M University sensory groups submitted pre-proposal in February 2013

- Reviewed pre-proposal with Board of Directors and Technical Advisory committee

- Submission of detailed proposal

In summary, the sensory project has been formulated and approved for launching next year.

MILESTONES:

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GETTING AT THE HEART OF THE MATTER: The WCR Germplasm Project

In order to make the kind of productivity and quality gains needed to sustain and grow the Arabica supply chain, there must be ample genetic diversity. In the cultivated Arabica species, the genetic base is severely constricted. However, there are huge reserves of genetic diversity in Arabica germplasm collections and in the wild that can now be tapped for needed productivity, resistance, and quality traits to alleviate current and future constraints to supply and quality. The goal of the WCR Germplasm project is therefore to identify, collect and preserve wild coffee germplasm before climate change renders it extinct.

In 2012, World Coffee Research set up and began work on its program of collecting and utilizing the Arabica germplasm base.

- In November, WCR worked with the CATIE coffee program and agreed on funding a ‘cryopreservation’ project to store unique strains of coffee species and especially different unique strains of Arabica.

- In February, the WCR team traveled to South Sudan to confirm the presence of wild varieties of Arabica coffee, the first expedition of its kind since 1932. Approximately 200 wild species were tagged and marked with GPS through the WCR KEW and Denver Botanical Gardens team and the USAID-Borlaug JGMUST project in South Sudan. - Dr. Aaron Davis of KEW Gardens saw firsthand the effects of climate change on the indigenous Arabica populations of South Sudan over the 80 year period between the first botanical mission led by Dr. Thomas in 1932.

- As a result, in November 2012, Dr. Davis published a highly compelling scientific article in the PLOSone Journal leading to a recognition of the effects of climate change on ordinary citizens through thousands of popular press articles musing about the loss of your morning coffee. WCR funded the publication of the PLOSone article.

- The germplasm expedition was largely funded by the USAID-Borlaug-JGMUST Project. A genetic diversity analysis on the material collected was conducted by Dr. Sarada Krishna, member of WCR expedition from Denver Botanical Gardens. The study indicated which Arabica strains to return and collect seed samples for phenotyping, breeding and conservation.

Genotypes, genes, markers, and knowledge identified from this program can be used in current and future breeding programs, directly and through the WCR pre-breeding pool program, to alleviate today’s known constraints to productivity and quality and tomorrow’s unknown constraints. This program will preserve coffee’s biodiversity and provide long term insurance for the entire coffee supply chain. In all these efforts, the genetic material will remain the intellectual property of the respective country.

THE WORK Projects and Milestones

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This work allows World Coffee Research to recreate a better Arabica species. …Because C. Eugenoides crossed with C. Canephora approximately 30,000 years ago in what we now know was a ‘single event’, re-doing the cross with a

more diverse parental base of eugenoides and canephora species will theoretically create a more diverse ‘new’ synthetic arabica species where possibilities for

industry could be mind-boggling.

- Dr. Tim Schilling, CEO, WCR

Photo courtesy of MARS DRINKS

BIODIVERSITY.

EXTENDING THE WORK: Kivu Specialty Coffee Project

THE WORK Projects and Milestones

Through the Kivu Specialty Coffee® Project, funded by the United States Agency for International Development and the Howard Buffet Foundation, and led by Catholic Relief Services/East Congo Initiative, World Coffee Research is helping to revitalize the coffee sector in East Congo. With an emphasis on restoring quality and increasing productivity, World Coffee Research is currently assessing varieties, developing production systems, and establishing protocols for wet processing. World Coffee Research will ultimately deliver to farmers, and the sector, the tools to build supplies of quality coffee and establish itself as a viable producing partner for the coffee industry. The first containers of Kivu Specialty should be ready for sale in 2015.

NEXT YEAR’S MILESTONES:- Establish Research Unit at the Catholic University of Bukavu, Congo - Establish multi location variety trial- Purify varieties at INERA for multiplication- Engage full time WCR agent under direction of UCB Research Unit- Conduct applied research on farmers’ fields

Coffee in North and South Kivu has had numerous challenges over the past 30 years including severe plant diseases, dislocation of farmers and disruption

of input and product markets caused by conflict. Entrepreneurs of the Kivus are eager to re-launch the coffee industry based on new technologies, increased availability of inputs and strengthening of demand based upon improved

coffee quality. World Coffee Research is playing a key role to support the coffee industry in the Eastern Congo by cooperating with local institutions to find solutions to the disease, quality and productivity issues that have confronted

farmers in recent decades.

—Dr. Ed Price, Howard G. Buffett Foundation Chair in Conflict and Development, College of Agriculture and Life Science,

Texas A&M University

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A LOOK AHEADRUST RESPONSE AND RECOVERY: Central America

At the onset of a severe rust disease outbreak in Central American producing countries, World Coffee Research stepped in to convene the sector to form a strategic response. With generous sponsorship from the private and public sectors – The J.M. Smucker Company, Green Mountain Coffee Roasters, Starbucks, S&D Coffee and Tea, ECOM, USAID, USDA, and R&G Coffee – and in partnership with local institutions, Promecafe and ANACAFE, a summit was held in Guatemala City in April 2013 to design strategies for dealing with the crisis. As a result of this activity, World Coffee Research is developing an innovative public-private project with United States Agency for International Development to help restore productivity and build even higher levels of quality, yield, and resistant varieties for the region. Work will commence in 2014 and deliverables include:- Run cup quality tests on all resistant varieties

- Help farmers select the right variety for their location to give best agronomic performance, rust resistance and quality

- Increase the volume of seed and seedlings of the best rust resistant varieties and make them accessible to farmers

- Help start up a Central American coffee breeding program to secure high quality coffee production into the future

- Train Central Americans in coffee breeding, genetics, economics, and agronomy to build the sustainable future needed to secure supplies and producers

- Conduct the first major socio-economic study on coffee farming in Central America and

what it will take to remain competitive, addressing gender issues, food security issues, livelihood issues and others.

INVEST in the RUST RECOVERY | We can greatly accelerate our impact with support from the industry. A number of companies have already made commitments, which are being matched by USAID, and we have the opportunity to build an even stronger base of funding behind the recovery strategy. If you’re interested in contributing, please review the check-off fund information on page 28 of this report. The first $2,000,000 raised through the check-off fund will be earmarked to address the rust crisis.

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Last year our farm lost 50% of its coffee planted area to the coffee leaf rust disease in Guatemala. I wish that the WCR program would have begun 10 years ago so that there

would already be great, new, high quality, rust-resistant varieties. As it was, I planted a rust susceptible variety in order to produce high quality, organic coffee that I could get certified.

The result was that I basically became vulnerable and lost a very big part of the farm.— Alex Keller, coffee producer, Guatemala

ATTRACTING PARTNERSHIPS: YemenYemini coffee has always attracted specialty coffee roasters for its unique and compelling taste attributes. Behind these unique flavors lies a source of genetic diversity that has gone unexplored. Approximately 1,000 years ago Ethiopian and Yemini traders brought Arabica coffee from Ethiopia to Yemin where hundreds of years of environmental, genetic and human selection pressures have likely produced different arabica varieties unique to Yemin. Especially relevant today are the extreme hot and dry climate of Yemin and the possibility of climate resiliency traits being used to help sustain coffee through the increasing climate change effects. However, to date, this source of genetic diversity has not been evaluated for its value to the industry. As such, World Coffee Research has seized an opportunity to partner with the Sana’a University department of plant breeding to conduct a genetic diversity study utilizing the exceptional land races from Yemen to determine if those land races offer special attributes like unique quality traits and climate resiliency to contribute to the improvement of Arabica coffee throughout the world.

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A LOOK AHEADBUILDING A DATA-BASIS:

Addressing key sustainability and livelihood issues World Coffee Research and the Specialty Coffee Association of America (SCAA)have partnered to engage PhD candidates at Texas A&M University in primary research to determine related factors and develop practical modeling for economic success in small scale coffee farming in Mesoamerica.

Global trends in climate change, coffee production, trading and consumption suggest that coffee growing in Central America needs to be re-thought as a major source of small farmer revenue. As such, SCAA and WCR are funding a major study to respond to concerns regarding the long term feasibility of coffee growing in Central America. The analyses will be based on current information including risks, costs, rewards and alternatives of various coffee production models, from simple open sun cultivation to various typologies of shaded systems. The study will help the industry to build a convincing strategy for the long term role of coffee in the region.

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Photos courtesy of S&D Coffee and Tea

THE POWER OF EXCHANGE: Brazil Post-Doctorate Posts

World coffee production would increase overnight if the seed industry would enter the sector. However, the biggest constraint preventing the seed industry from entering the coffee sector is the lack of technical protocols to scale up the production ‘en-masse’ of viable acclimatized plants from coffee embryos born from single cells.

Through the collaborative channels of World Coffee Research, two Brazilian biotechnological coffee scientists will work with world renowned scientists at the Borlaug Center for Biotechnology and Crop Improvement to unlock the door to the commercialization of coffee seed. The program is jointly funded by Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA), Empresa de Pesquisa Agropecuária de Minas Gerais (EPAMIG) and World Coffee Research. A patented technological protocol could also provide additional revenue streams for World Coffee Research and partner research institutions.

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Photo courtesy of S&D Coffee and Tea

Industry fundedINDUSTRY DRIVEN

World Coffee Research is the outcome of an industry banding together in the face of new and increasing supply chain challenges. Those involved believe science and research is a fundamental way to address risks related to limited genetic diversity, climate change threats, and the underlying economic uncertainty for farmers in sustaining supplies of high quality coffee.

This isn’t a new idea—most agricultural crops have collaborative global research programs—but prior to World Coffee Research, coffee, as valuable of a sector as it is, has not. In fact, coffee is rather anemic in the area of research. Industry involvement is critical to ensure coffee doesn’t fall further behind and the sector takes full advantage of the scientific knowledge, tools, and technology to protect and advance its goals.

Thanks to all the companies and organization that have endorsed this approach and invested in World Coffee Research.

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BOARD OF DIRECTORS (as of October 2013)

Executive CommitteeMs. Lindsey Bolger, Green Mountain Coffee Roasters / Chairperson

Mr. Brett Smith, Counter Culture Coffee / Vice Chairperson and Secretary

Mr. Shawn Hamilton, Java City / Treasurer

Mr. Ric Rhinehart, Specialty Coffee Association of America

MembersMr. Kevin Jackson, The J.M. Smucker Company

Mr. Mike Keown, Farmer Brothers Coffee/Coffee Bean International

Mr. Ben Pitts, Royal Cup Coffee

Mr. Nigel Hargraves, MARS Drinks

Dr. Furio Suggi Liverani, illycaffè, s.p.a.

Mr. Steve Macatonia, Union Hand Roasted Coffee

Mr. Matt Saurage, Community Coffee Company

Ms. Christy Thorns, Allegro Coffee Company

Mr. Doug Welsh, Peet’s Coffee & Tea

Ms. Tracy Ging, S&D Coffee and Tea, Inc.

Ex-Officio MembersDr. Timothy Schilling, CEO, World Coffee Research

Dr. Vincent Pétiard, World Coffee Research Technical Advisory Chair

Mr. Murray Ross, Louis Dreyfus Commodities

A special acknowledgement for Patrick Criteser, our founding Chairperson. World Coffee Research would not have come into existence and flourished the way it

has without the tremendous leadership of Mr. Criteser. We are deeply grateful.

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World Coffee ResearchFINANCIAL STATUS REPORT

FISCAL YEAR 2013

Contributing to World Coffee Research

CORPORATE CONTRIBUTIONS = $1,012,000.00

2012-2013TOTAL EXPENSES

Research Funding($633,000.00)

Finance and Administration ($180,000.00)

Program Expenses($39,000.00)

Fundraising($84,000.00)

World Coffee Research relies on commitments from the coffee industry to fund research aimed at maintaining healthy global coffee supplies well into the future.

Contributions are generally made in the form of direct investment and long-term funding agreements or alternatively, through the World Coffee Research Check-Off Program. The Check-Off Program provides roasters and importers a convenient way to support the effort by incorporating contributions into green coffee purchases. There are a number of participating importers and many have even agreed to match each dollar donated by roasters. The incremental donation system fostered by the Check-Off Program is designed to allow manageable contributions and expand the funding base.

Roasters can register through the Check-Off Program by clicking on “Get Involved” at worldcoffeeresearch.org.

By registering in the program, roasters will designate that their importers add a half cent (50 basispoints) per pound to their coffee contract. The importer will submit the contribution to WorldCoffee Research on the roaster’s behalf and will include the additional cost on the roaster’s quarterlyinvoice. The additional cost to the roaster is eligible for tax write-offs as a cost of doing business.

4%

9%

68%

28%

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THANK YOUWorld Coffee Research Donors

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Thank you to S&D Coffee and Tea for generously underwriting this report

Allegro Coffee CompanyBrewed Behavior

Cakalackly Coffee RoastersCommunity Coffee Company

Counter Culture CoffeeDunn Bros Coffee

Ecom Agroindustrial Corporation Ltd.Farmer Brothers

Green Mountain Coffee Roasters, Inc.illycaffè

Java City, IncThe J.M. Smucker Company

MarsMikatajuku

OQ Coffee Co.Pacific Espresso

Peet’s Coffee & TeaRoyal Cup CoffeeS&D Coffee & TeaSalt Spring Coffee

SCAA Starbucks

Sweet Maria’s Swiss Water Decaffeinated Coffee Company, Inc.

Terarosa (Haksan Co Ltd)Toa Coffee Co. Ltd.

Union Hand-Roasted Coffee