How does economic instability in coffee-growing regions affect sourcing?

Economic instability in coffee-growing regions directly affects sourcing by disrupting supply chains and impacting both the quality and availability of coffee. When a region experiences economic challenges, such as fluctuations in currency value, inflation, or political unrest, it can hinder the production and distribution of coffee.

For example, farmers may struggle to cover the costs of cultivation and processing, which can lead to reduced quality due to lack of investment in proper farming practices. Additionally, transportation networks may become unreliable or compromised, delaying shipments and resulting in inconsistent supply.

The ripple effects of this instability can create shortages or uneven quality in the coffee market, forcing companies like Starbucks to navigate these challenges carefully to ensure they can meet their customers' expectations for quality and availability. This highlights the importance of understanding the socio-economic conditions in coffee-growing regions when planning sourcing strategies.