Grounds for optimism – Northland’s emerging coffee growing industry

Kiwis drink a lot of coffee–but what most don’t know is that we grow it too. Northland is home to a nascent but vibrant coffee-growing industry, and the impact of climate change is accelerating its prospects for growth.

A changing landscape

The vast majority of the world's coffee is grown in the coffee bean 'belt' that straddles the equator. However, growers in these regions are facing increasing challenges. Climate change is driving up temperatures and altering rainfall patterns, making many existing sites unsuitable for coffee. These climatic changes are forcing growers to look for sites at higher altitudes, where less land is available. Climatic changes also create ideal conditions for diseases and pests, which can devastate crops. This ‘perfect storm’ has led to reduced production and rising global prices.

However, Te Tai Tokerau Northland’s warm, humid and increasingly frost-free summers have sparked growing interest in the potential for a commercial industry. As our climate shifts, Northland is beginning to mirror the conditions historically found in traditional coffee-growing regions.

Boutique and special

That interest is reflected in the establishment of the Tai Tokerau Specialty Coffee Project, which has developed a business case for landowners and a roadmap for establishing a specialty coffee industry in the region. (The business case can be accessed by registering on the Coffee New Zealand website.)

Project co-leaders Justine Stuart and Sue Dobbie explain that while most coffee is traded in commodity markets, there is a growing and lucrative specialty market for boutique, high-end coffee–this is where the opportunity lies.

"Specialty coffee is defined as coffee that scores 80+ points out of 100 on the internationally recognised Coffee Quality Institute's Q grading scale. Grown in small volumes, it's rare, often traded directly with growers–which means small growers can access that market–and coffee connoisseurs are willing to pay premium prices for a high-quality product."

The good news? The quality of Northland-grown coffee is already evident.

Feel the quality

Stu Hargie knows a thing or two about coffee. AS New Zealand's only Coffee Quality Institute Q Grader Instructor–one of just 70 worldwide—he brings a wealth of expertise. He also roasts and sells organically grown specialty coffee from his Whangarei-based roaster, Turning Point Coffee.

Even at this early stage, Northland coffee beans are already scoring over 80 points on the Q grading scale.

"That's extremely promising because that's essentially just the raw product," says Stu. "The beans are only one part of what goes into a great cup of coffee. Processing plays a massive role, and there’s huge potential to improve scores further through refining techniques–from perfecting the basics to exploring more experimental processing methods.

"This shows that Mother Nature provides the raw materials in Northland for truly high-quality coffee. But there is plenty of scope to make it even better and to deliver exactly what the market wants.

"The Q grading system evaluates physical and sensory qualities like bean quality, taste and complexity. Beyond that, the market is now interested in coffee's extrinsic qualities—where the coffee comes from, the farmers’ stories, sustainability and traceability. The specialty coffee market prizes these values, and New Zealand already has a compelling story in many of these areas. If we can get the quality right, we have a real opportunity to build on those strengths."

While the potential is high, it's important to remember that the industry is still in its infancy. Many are trialling crops, but only one commercial grower currently offers Northland-grown coffee to the market.

Flying high: Ikarus Coffee

Rob Schluter founded Ikarus Coffee in the Pekerau Hills above Doubtless Bay around 12 years ago, driven by a passion for making the best use of his land. After trialling different coffee varietals, he found success with Bourbon Pointu, a very rare Arabica varietal that offers a consistent, annual bean set.

With a mild, delicate taste and low caffeine content, Bourbon Pointu appeals to people seeking a coffee that is easier on their digestive system. Its flavour profile is particularly attractive to Asian markets, offering exciting export potential. Currently, Ikarus coffee is sold domestically and internationally via the company’s website.

Growing the future

While the industry is still small, and there's still a lot to learn, there's a sense of excitement about the future. Rob Schluter believes that as coffee drinkers are becoming more discerning, the market will only continue to expand. Stu Hargie highlights the willingness of international buyers to pay sometimes staggering sums for boutique, high-quality coffee. Justine Stuart and Sue Dobbie draw parallels to the early days of the New Zealand wine industry and note opportunities to boost viability through co-cropping and coffee by-product processing. For instance, coffee cherries contain bioactive properties that make them valuable for nutraceutical applications.

There's still a long road ahead, but the Northland coffee industry may be on the cusp of brewing up a storm.

Climate change and your business

This article is part of a series exploring the potential risks and opportunities presented by climate change. Find out more about assessing the potential impacts on your business.