sustainable coffee report
Post on 27-Mar-2016
237 Views
Preview:
DESCRIPTION
TRANSCRIPT
Sustainable Coffee
Report
Statistics on the main
Coffee Certifications
Joost Pierrot and Daniele Giovannucci
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 1
Foreword This “Sustainable Coffee Report: Statistics on the main coffee certifications” was written for the
International Trade Centre (UNCTAD/WTO)1 in Geneva/Switzerland by Joost Pierrot
2, coffee
consultant and by Daniele Giovannucci3, co-founder of the Committee on Sustainability Assessment
(COSA). The authors are also contributors to the ITC’s ‘Coffee: An Exporters’ Guide’.4
Leiden, the Netherlands – July 2010.
Suggested citation: Joost Pierrot, Daniele Giovannucci. 2010. Sustainable Coffee Report: Statistics on
the main coffee certifications. International Trade Centre: Geneva
Table of Contents
Introduction ................................................................................................................................ 2
1 - Trends in demand ................................................................................................................ 3
2 - Fairtrade (FLO) certified coffee ........................................................................................... 4
3 – Organic certified coffee ........................................................................................................ 5
4 – Utz Certified Coffee .............................................................................................................. 7
5 – Rainforest Alliance Certified Coffee ..................................................................................... 8
6 – Common Code for the Coffee Community ........................................................................... 9
7 - Conclusions ......................................................................................................................... 10
1 International Trade Centre (ITC) UNCTAD/WTO. www.intracen.org
2 Joost Pierrot Consultancy, the Netherlands. www.joostpierrot.com
3 Daniele Giovannucci. www.dgiovannucci.net
4 International Trade Centre UNCTAD/WTO. 2002. Coffee: An exporter’s guide. Geneva.
Available online: www.thecoffeeguide.org
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 2
Introduction
The aim of this market report is to present an overview of the growth trends, origins, and size of the
market for sustainable coffee. Coffee is the world's most important agricultural cash crop in terms
of trade volumes.5 It is exported by 60 countries and grown predominantly by smallholder farmers.
Increasingly, like many agricultural commodities, it is being affected by various trade standards.
These standards can have a positive impact on producers and the industry but, if not understood, are
likely to lead toward diminished competitiveness and declining terms of trade.6
The International Trade Centre is at the forefront of efforts to study the effects of standards and to
suggest viable approaches for developing country policymakers and businesses to best handle them.
In several areas they are providing valuable information on standards for products that are certified
as “sustainable”. For example, the Trade for Sustainable Development (T4SD) program is mounting a
broad platform for learning about sustainable trade and the ITC's Market News Service offers bi-
monthly market reports on organics. For coffee in particular, The Coffee Guide offers basic
information on such standards and is also available online.
While two private certifications are active and important, namely those used by Starbucks7 and
Nespresso8, the major, public certifications are used much more widely by thousands of roasters and
retailers. These include: Fairtrade, Organic, Utz Certified, and Rainforest Alliance and are the ones
that are primarily covered in this report. Another fast-growing verification-based sustainability
initiative, the Common Code for the Coffee Community (4C), is also covered in the report.
The purpose of this report is to offer the coffee trade and other stakeholders one single collection of
accurate statistics on those coffees that claim to be sustainable. Most of this coffee is certified and
the most widely accepted form of certification is conducted by independent third parties (4C uses a
simpler verification process). Although the data for these initiatives has improved in recent years,
none of it can be considered exact and some represents best estimations available.
Volumes shown are for each individual initiative and in most cases these numbers include coffees
that are certified by other initiatives as well. Taken in simple aggregate, the individual numbers
would actually overstate the total volume of these certified coffees. Care must be taken when
making global claims to ensure a reasonable accounting of the double and even multiple
certifications applying to the same coffee.
A recent study9 by the International Coffee Organization (ICO) examined the trends in overall
demand for seven of the world's major consuming countries. The countries studied represent the
more established and mature coffee markets. These include the U.S., Germany, Japan, Italy, France,
Spain, and Sweden, which together account for nearly 44% of total global demand. In contrast to the
robust levels of growth in some of the newer emerging markets, the conventional coffee markets in
these countries are not thriving.
5 B. Lewin, D. Giovannucci, P. Varangis. 2004. Coffee Markets: New Paradigms in Global Supply and Demand.
World Bank: Washington DC. Available online: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=996111 6 How New Agrifood Standards are Affecting Trade. (World Export Development Forum) UN International Trade
Centre. Geneva. Available online: http://www.intracen.org/TDC/EF-REFERENCE%20CENTRE/2008/40869.PDF 7 Starbucks is the world’s single largest seller of sustainable coffees.
8 Nespresso, the fast growing brand of the global food giant, Nestle, expects sales of SFr 3 billion in 2010.
9 ICO, 2010. Coffee consumption in selected importing countries.
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 3
Despite some modest overall growth, the per capita consumption in many of the traditional markets
has been flat or trending downward in the entire decade of the 2000s. Italy and Japan are
exceptions. For most of these countries neither price changes nor promotions are making much of a
difference. However, within these large markets there are segments of distinct growth.
Differentiated coffees, including specialty and certified coffees, are an important bright spot in
several of these markets. In fact, it appears that these differentiated coffees are attracting new
consumers, fetching higher prices, and buoying an otherwise stagnant industry.
1 - Trends in demand
Certified coffee is no longer a small market niche. In 2009, more than 8% of all the green coffee
exported worldwide had some form of certification or credible claim of sustainability.10
The
Netherlands is the leader in market share with almost 40% of its coffees now certified. The U.S.
market is second with 16% of all coffee imports certified. Certified coffees in Denmark, Sweden, and
Norway have passed 10% market share.11
This is likely the case also in smaller markets such as
Switzerland and Belgium. The market share in Germany is nearly 5%. Northern European markets
from the United Kingdom across to the Nordic countries tend to have higher levels of awareness and
demand for such coffees. Italy and France are both showing several percent shares while neighboring
countries such as Spain, Portugal and Greece have very low levels of penetration.
Certified coffees are growing in other markets as well. In South Korea, Australia and Singapore they
are already highly visible in retail market outlets. The same is true, but only in the largest urban
areas, for China, India, Mexico, Chile and Brazil. Japan, a major consuming country accounting for
approximately 6% of total global coffee demand, has seen the market share of certified coffees grow
faster than nearly any other segment.
No other segment of the global coffee industry has grown as consistently and as fast as the one for
coffees that are certified as sustainable. When compared to the findings in the first ever empirical
surveys of these coffees conducted at the beginning of the decade in North America (2000)12
, Europe
and Japan (2002)13
, the overall growth is notable and irrefutable. Perhaps even more importantly, it
has provided leadership to other commodity industries such as tea, cocoa, and cotton as they
explore their own paths to sustainability. The world of agriculture benefits from the innovation of the
coffee sector. It has been the primary driver for the availability of various types of certifications (and
a verification system), hundreds of inspection agencies, and many thousands of trained technicians.
Looking at certified coffees as a cohesive market segment facilitates an understanding of their overall
importance to the coffee industry. However, these certification and verification schemes are not
equally available or evenly distributed in consumer markets. Organic coffee is more important in
Germany, Canada, Australia, Italy and the United States. Fairtrade is dominant in the United Kingdom
and France (and now the U.S.).14
Rainforest Alliance is a leader in Japan and also important in
10
ICO World Coffee Conference/ Daniele Giovannucci (2010) Available online:
http://dev.ico.org/event_pdfs/wcc2010/presentations/wcc2010-giovannucci-e.pdf 11
Danskkaffenetvaerk 12
Daniele Giovannucci (2001). Sustainable Coffee Survey of the North American Coffee Industry. SCAA, CEC.
Available online: http://slk020.liberty3.net/SCAA/blobs/cfiles/2004/03/Sustainable_Coffee_Report_NA.pdf 13
Daniele Giovannucci and F.J. Koekoek (2003) The State of Sustainable Coffee: A Study of Twelve Major
Markets. ICO, IISD, UNCTAD. Available online: http://ssrn.com/abstract=996763 14
the single largest sustainability certification in the United States is a private one: Starbucks C.A.F.E. Practices®
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 4
Western Europe. Utz Certified coffee is dominant in the Netherlands and holds a strong position in
several northern European markets.
Data for all of these initiatives has improved in recent years but still requires some estimation and
approximate calculations. The summary Figure in Chapter 7 offers a comparison of sales volumes for
the different certifications from 2004 to 2009.
2 - Fairtrade (FLO) certified coffee
Fairtrade coffee standards are set by the Fairtrade Labelling Organisations International (FLO).15
FLO-
Cert is a separate organization and by far the most important Fairtrade certification service globally,
serving clients in more than 70 countries.
The coffees certified as Fairtrade are the only coffees guaranteed to receive a
minimum price when sold and are produced exclusively by organized smallholder
farmers. The volume trends of FLO certified coffee from 2004 to 2009 are shown
below in Table 1.
Table 1. Total worldwide sales of FLO-certified coffee (green bean equivalent 60kg bags)
2004 2005 2006 2007 2008 2009
Europe 279,400 352,065 429,915 521,065 730,000 826,651
North America 123,385 210,685 430,600 504,565 615,967 664,940
Australia/NZ - 1,650 4,765 7,500 18,150 27,865
Japan 915 2,165 2,450 3,685 6,083 6,757
Total 403,700 566,565 867,730 1,036,815 1,370,200 1,526,213
Source: calculations based on FLO consumer country sales rather than coffee exported from origin (the latter is
a slightly lower number in 2009 and higher in 2008) with average distribution being roasted (97%) and soluble
coffees (3%).
NB: Due to reporting differences, the data from 2008-09 are green bean equivalent and from 2004-2007 are
not. Unlike other initiatives, FLO reports consumer country sales rather than coffee exported from origin (the
latter is usually higher). Calculations are based on conversions to green bean equivalence of FLO accounting for
both soluble and roast/ground.
Fairtrade is the only major certification system actively tracking dual certification or the amount of
FLO certified coffee that is also certified as organic. The combination of Fairtrade and organic has
been, by far, the most popular combined certification offered to the market. In 2009, 42% of all
Fairtrade sales also bore the organic certification, this is a decline from 2008 when 48% was organic
and 52% was conventional.
Worldwide sales of Fairtrade coffee increased in 2009 by just over 11%, compared with 2008. Major
markets include the U.S., UK, Germany, France and the Netherlands. The U.S. is the largest single
market with imports of 830,000 bags in 2009. Figure 1 indicates the origin of imports to the U.S.
15
http://www.fairtrade.net
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci
Globally, Peru is the largest exporter of Fairtrade coffee, followed by Colombia, Mexico
Nicaragua. Indonesia leads Asian exports
from Africa.
Figure 1. Origin of imports of Fairtrade coffee into the United States (2009)
Source: Transfair USA. 2010 Almanac
3 – Organic certified coffee
Official Organic Seals in EU, USA, Japan.
Organic17
is not only the first sustainability certification in agriculture, it is also the only standard that
has been codified into law in many countries. Using the word "organic" or its translations such as
"bio" is regulated by law in many of the major markets.
additional level of credibility since the consequences for violation or misuse of the standard are
clearly mandated.
Organic coffee is the most important category of sustainable coffees, both in quantity and
the first decade of the century, global sales have increased by
widely available certification, sales in recent years have begun to slow from their earlier considerable
levels of growth. In most markets, growth
conventional coffees even despite the considerably higher price of organics and even despite the
recent economic pressures during the recession of 2008
certification is slowing at the close of the decade. Other standards are recently growing at a faster
rate particularly with large mainstream roasters. Other standards may be preferred because most
16
http://www.transfairusa.org/pdfs/17
http://www.ifoam.org
Imports in the US
Sustainable Coffee Report: Statistics on the main coffee certifications
Peru is the largest exporter of Fairtrade coffee, followed by Colombia, Mexico
leads Asian exports and Ethiopia and Tanzania are the most
imports of Fairtrade coffee into the United States (2009)
Transfair USA. 2010 Almanac
16
ertified coffee
Seals in EU, USA, Japan.
is not only the first sustainability certification in agriculture, it is also the only standard that
has been codified into law in many countries. Using the word "organic" or its translations such as
"bio" is regulated by law in many of the major markets. For some, this weight of law conveys an
additional level of credibility since the consequences for violation or misuse of the standard are
Organic coffee is the most important category of sustainable coffees, both in quantity and
global sales have increased by almost 250%. Although it is the most
widely available certification, sales in recent years have begun to slow from their earlier considerable
levels of growth. In most markets, growth levels still outpace the growth of comparable
conventional coffees even despite the considerably higher price of organics and even despite the
recent economic pressures during the recession of 2008-2010. At origin, the level of new organic
s slowing at the close of the decade. Other standards are recently growing at a faster
rate particularly with large mainstream roasters. Other standards may be preferred because most
usa.org/pdfs/Almanac_2009.pdf
Imports in the US
43% - Central
America & Mexico
42% - South
America
10% - Asia
5% - Africa
5
Peru is the largest exporter of Fairtrade coffee, followed by Colombia, Mexico and
the most important origins
is not only the first sustainability certification in agriculture, it is also the only standard that
has been codified into law in many countries. Using the word "organic" or its translations such as
For some, this weight of law conveys an
additional level of credibility since the consequences for violation or misuse of the standard are
Organic coffee is the most important category of sustainable coffees, both in quantity and value. In
Although it is the most
widely available certification, sales in recent years have begun to slow from their earlier considerable
levels still outpace the growth of comparable
conventional coffees even despite the considerably higher price of organics and even despite the
2010. At origin, the level of new organic
s slowing at the close of the decade. Other standards are recently growing at a faster
rate particularly with large mainstream roasters. Other standards may be preferred because most
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 6
have less stringent requirements on the use of agrochemicals, offer faster conversion times to qualify
for certification, and command a lower premium for the producer.18
Table 3 offers estimates of the import volumes of certified organic coffee from 2004 to 2009.
Perhaps surprisingly, organic is one of the most difficult certifications for which to collect reliable
data. No government or customs agency effectively tracks organic coffee imports. Even cash register
data is incomplete. This is compounded by the many certifying agencies for organic coffee, most of
which do not share data on volume or value or, worse, do not collect it. The only alternative
therefore is to survey the significant organic coffee importers for North America19
and Europe20
whereas for Japan, statistics were secured from the All Japan Coffee Association. Import statistics for
the North American market (U.S. and Canada) are very reliable, coming from surveys covering about
95% of the industry, and collected annually since 2000. For Europe and Japan, the first statistics on
organic coffee sales were collected systematically in 2003.21
Table 3. Worldwide imports of certified organic coffee (green coffee in 60kg bags)
2004 2005 2006 2007 200822
200923
Europe 290,00024
725,000 754,000
North America 275,000 316,700 511,700 612,300 672,800 703,08025
Others 154,400 160,575
Japan 41,200 51,600 62,000 67,000 72,500 75,400
Total 700,00026
866,700 1,116,700 1,570,700 1,624,700 1,693,055
Figure 2 gives the worldwide origins of certified organic coffee supply in 2008; the situation was likely
similar in 2009. Organic is the most important certification for African producers who supply nearly
10% of global needs. The main exporters are Peru (about 15% of all coffee from this country is
certified organic), followed by Mexico and Honduras in Latin America. Indonesia leads in Asia and
Ethiopia is Africa’s dominant source
In the case of export statistics from origin, two sources were used: Primary data came from multiple
collaborators in the exporting countries that were contacted individually and secondary data, in
some cases, came from various reports and ICO export statistics, where these are available and
reasonably complete.
18
it should be noted that some non-organic standards have very substantial environmental requirements and
even certain social requirements that are more demanding than those of the majority of organic certifiers 19
D. Giovannucci. 2010. The North American Organic Coffee Industry Report. SCAA, USA. 20
J. Pierrot. 2010. International Trade Centre. Geneva. 21
D. Giovannucci, F.J. Koekoek. 2003. The State of Sustainable Coffee. ICO/IISD. Available online:
http://ssrn.com/abstract=996763 22
D. Giovannucci, J. Pierrot. 2010. The World of Organic Agriculture. FiBL and IFOAM. 23
With exception of North America, authors‘ estimate, based on modest 4% growth estimates 24
B.Lewin, D.Giovannucci, P.Varangis. 2004. Coffee Markets. New Paradigms in Global Supply and Demand.
World Bank, USA. Available online: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=996111 25
D. Giovannucci. 2010. North American Organic Coffee Industry Report. SCAA. USA 26
2002 figure from “Coffee, an Exporter’s guide. 2002. International Trade Centre. Geneva”.
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci
Figure 2. Worldwide supply of organic coffee in 2008.
coffee segment. Bird Friendly
Demeter28
certified coffee. These were among the earliest certifiers and are certainly among the
most stringent in their requirements, one of which is to be fully organic.
In 2008, about 1800 bags of Bird Friendly,
worldwide. 95% of this quantity
from Africa. In 2008, 61% was imported into North America and 3
to emerge in Canada and the Netherlands
The 2009 worldwide exports of
5000 bags. The main consumer markets for this
4 – Utz Certified Coffee
Utz Certified29
is the newest of the major certifications. Yet, s
strong growth, especially on the European market.
certification agency. It focuses on promoting better business practices as an important component of
achieving sustainabilit
for coffee and features
coffee growing practices and efficient farm management.
standard, after organic, to implement a system of full traceability and it has the
advantage of online monitoring.
Currently, around 30% of all coffee consumed in the Netherlands (its base) is Utz Certified and Utz
also has a dominant position in the Nordic countries as well as Belgium and Switzerland. Utz hopes to
27
http://nationalzoo.si.edu/SCBI/migratorybirds/coffee/28
www.demeter.net 29
www.utzcertified.org
Supply of organic coffee
Sustainable Coffee Report: Statistics on the main coffee certifications
Worldwide supply of organic coffee in 2008.
It is worthwhile mentioning two subcategories in the
certified by the Smithsonian Migratory Bird Center (SMBC)
These were among the earliest certifiers and are certainly among the
most stringent in their requirements, one of which is to be fully organic.
bags of Bird Friendly, sometimes also called shade-grown, coffee were imported
originated in Central and South America with the remainder coming
% was imported into North America and 36% into Japan
to emerge in Canada and the Netherlands.
The 2009 worldwide exports of Demeter, or bio-dynamic, coffee are estimated at approximately
ain consumer markets for this certification are Germany, Switzerland
Utz Certified Coffee
is the newest of the major certifications. Yet, since its start in 2003, Utz has shown
strong growth, especially on the European market. Utz was established to be a more mainstream
certification agency. It focuses on promoting better business practices as an important component of
achieving sustainability. Its standard fully incorporates the GlobalGAP standard
for coffee and features a set of social and environmental criteria for responsible
coffee growing practices and efficient farm management.
standard, after organic, to implement a system of full traceability and it has the
advantage of online monitoring.
Currently, around 30% of all coffee consumed in the Netherlands (its base) is Utz Certified and Utz
position in the Nordic countries as well as Belgium and Switzerland. Utz hopes to
lzoo.si.edu/SCBI/migratorybirds/coffee/
Supply of organic coffee31% - Central
America &
Mexico
46% - South
America
9% - Africa
7
It is worthwhile mentioning two subcategories in the organic
certified by the Smithsonian Migratory Bird Center (SMBC)27
and
These were among the earliest certifiers and are certainly among the
coffee were imported
and South America with the remainder coming
with sales beginning
are estimated at approximately
, Switzerland and the U.S.
ince its start in 2003, Utz has shown
Utz was established to be a more mainstream
certification agency. It focuses on promoting better business practices as an important component of
y. Its standard fully incorporates the GlobalGAP standard
a set of social and environmental criteria for responsible
coffee growing practices and efficient farm management. Utz was the first
standard, after organic, to implement a system of full traceability and it has the
Currently, around 30% of all coffee consumed in the Netherlands (its base) is Utz Certified and Utz
position in the Nordic countries as well as Belgium and Switzerland. Utz hopes to
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci
reach a worldwide sales volume of 1,666,000 bags in 2010.
Utz Certified coffee for different regions of the world.
Table 4. Worldwide imports of Utz Certified coffee
2005
Europe 437,650
North America 9700
Japan 2835
Rest of the world 28,815
Total 479,000
In 2009, the largest volume of imports came from Brazil (38%), Vietnam (22%), Colombia (12%) and
Honduras (8%). Figure 3 offers a picture of the
Figure 3. Worldwide supply of Utz Certified coffee in 2009.
5 – Rainforest Alliance Certified Coffee
Rainforest Alliance30
offers coffee certification
Network. This standard meets more than environmental
the rights and welfare of workers and communities
standards are based on integrated pest management (IPM)
uses of synthetic
this regard as well. Like organic and Fairtrade and u
which are primarily business
targeted more toward
The quantity of Rainforest Alliance certified coffee has increased rapidly
recently. Nespresso’s commitment to certify 80% of its coffee
will contribute to further growth. Rainforest
worldwide in 2010. Table 5 gives recorded imports of Rainforest Alliance certified coffee over a
number of years and in different regions of the world.
30
www.rainforest-alliance.org
Utz Certified: Supply
Sustainable Coffee Report: Statistics on the main coffee certifications
reach a worldwide sales volume of 1,666,000 bags in 2010. Table 4 indicates the recorded imports of
Utz Certified coffee for different regions of the world.
Worldwide imports of Utz Certified coffee (green coffee in 60kg bags)
2006 2007 2008
505,800 676,135 1,027,985
14,685 53,570 79,335
25,000 38,670 72,985
54,515 73,625 110,695
600,000 842,000 1,291,000
imports came from Brazil (38%), Vietnam (22%), Colombia (12%) and
offers a picture of the supply origins of Utz Certified coffee in 2009
Worldwide supply of Utz Certified coffee in 2009.
Rainforest Alliance Certified Coffee
offers coffee certification in partnership with the Sustainable Agriculture
more than environmental requirements; it is also designed to protect
the rights and welfare of workers and communities.
standards are based on integrated pest management (IPM)
synthetic agrochemicals and thus differ from the organic certification in
this regard as well. Like organic and Fairtrade and unlike Utz Certified and 4C,
primarily business-to-business models, the Rainforest Alliance seal is
targeted more toward consumer products.
The quantity of Rainforest Alliance certified coffee has increased rapidly at almost 50% per year
. Nespresso’s commitment to certify 80% of its coffee with the Rainforest Alliance
will contribute to further growth. Rainforest Alliance aims at a sales volume of 1,830,000 bags
Table 5 gives recorded imports of Rainforest Alliance certified coffee over a
number of years and in different regions of the world.
Utz Certified: Supply16% - Central
America & Mexico
54% - South America
26% - Asia
4% - Africa
8
Table 4 indicates the recorded imports of
2009
1,027,985 1,155,000
85,000
75,000
115,000
1,291,000 1,430,000
imports came from Brazil (38%), Vietnam (22%), Colombia (12%) and
Utz Certified coffee in 2009.
the Sustainable Agriculture
it is also designed to protect
. Rainforest Alliance
standards are based on integrated pest management (IPM) that allow for some
and thus differ from the organic certification in
nlike Utz Certified and 4C,
business models, the Rainforest Alliance seal is
almost 50% per year
with the Rainforest Alliance by 2013
Alliance aims at a sales volume of 1,830,000 bags
Table 5 gives recorded imports of Rainforest Alliance certified coffee over a
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci
Table 5. Worldwide imports of Rainforest Alliance c
2003 2004
Europe 36,000 73,000
North America 15,000 40,000
Japan 2000 10,000
Total 53,000 123,000
The worldwide supply of Rainforest Alliance
though supplies are increasing from other regions. Figure 4 indicates the
Figure 4. Worldwide supply of Rainforest Alliance coffee in 2009.
6 – Common Code for the Coffee Community
The Association of the Common Code for the Coffee Community (4C)
organisation that
provides the most basic requirements of any initiative covered in this report and by
targeting the most egregious practices it seeks to be a stepping stone for sustainable
practices across the industr
The 4C Association provides a simple process that is accessible for many producers, even those who
may not be willing or able to meet the more demanding requirements of certifications. It is not a
certification. Instead, it offers a verification procedure that does not employ the rigor or cost of a
certification process that would be typically conducted by independent third parties. Consequently,
there are no price premiums associated with being a 4C fa
buyer more likely to purchase the coffee than a conventional coffee that demonstrates no evidence
of sustainable practices.
31
www.4c-coffeeassociation.org
Rainforest Alliance: Supply
Sustainable Coffee Report: Statistics on the main coffee certifications
Worldwide imports of Rainforest Alliance certified coffee (green coffee in 60kg bags)
2004 2005 2006 2007
73,000 89,715 188,785 331,115
40,000 95,035 193,850 265,115
10,000 25,000 69,900 95,335
123,000 209,750 452,535 691,565
Rainforest Alliance Certified coffee comes primarily from Latin America
though supplies are increasing from other regions. Figure 4 indicates the breakdown for 2009.
Worldwide supply of Rainforest Alliance coffee in 2009.
Common Code for the Coffee Community
The Association of the Common Code for the Coffee Community (4C)31
is a membership driven
that aims towards the mainstream parts of the coffee industry
provides the most basic requirements of any initiative covered in this report and by
targeting the most egregious practices it seeks to be a stepping stone for sustainable
practices across the industry. It is designed as a business-to-business concept
provides a simple process that is accessible for many producers, even those who
may not be willing or able to meet the more demanding requirements of certifications. It is not a
ification. Instead, it offers a verification procedure that does not employ the rigor or cost of a
certification process that would be typically conducted by independent third parties. Consequently,
there are no price premiums associated with being a 4C farmer though the verification may make a
buyer more likely to purchase the coffee than a conventional coffee that demonstrates no evidence
Rainforest Alliance: Supply24% - Central
America & Mexico
69% - South America
6% - Asia
1% - Africa
9
(green coffee in 60kg bags)
2008 2009
577,500 801,415
335,900 432,035
124,850 226,265
1,038,250 1,459,715
Certified coffee comes primarily from Latin America
breakdown for 2009.
is a membership driven
the mainstream parts of the coffee industry. It
provides the most basic requirements of any initiative covered in this report and by
targeting the most egregious practices it seeks to be a stepping stone for sustainable
business concept.
provides a simple process that is accessible for many producers, even those who
may not be willing or able to meet the more demanding requirements of certifications. It is not a
ification. Instead, it offers a verification procedure that does not employ the rigor or cost of a
certification process that would be typically conducted by independent third parties. Consequently,
rmer though the verification may make a
buyer more likely to purchase the coffee than a conventional coffee that demonstrates no evidence
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci
The Association has total import figures
about regional distribution or about origins yet. Most of the verifications have occurred in Latin
America and Vietnam but are expanding in Africa and elsewhere.
Table 6. Total worldwide imports of 4C verified coffee (
Total
7 - Conclusions
The sustainable coffee segment has been
verifications). If recent rates of growth continue,
of nearly 20-25% by 2015. Although growth is rarely linear, this scenario is quite plausible in light of a
growing interest among the major corporations in this fast
mass is reached in the marketplace, many consumers will likely expect the
"sustainable" and consumer products companies will not want to risk their reputations by being the
last to get on board.
Figure 5. Worldwide sales of certified coffee (in
NB: estimates allow for comparisons but do
32
-Sales of organic coffee in 2009 is a forecast: growth of 4%, compared to 2008
-Sales of FLO in 2006 and 2007 are authors’ estimate
-Sales of 703080 bags organic coffe
American Organic Coffee Industry Report.
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
1,8
FLO Organic
Sustainable Coffee Report: Statistics on the main coffee certifications
total import figures from its members, but cannot give more detailed
about regional distribution or about origins yet. Most of the verifications have occurred in Latin
America and Vietnam but are expanding in Africa and elsewhere.
Total worldwide imports of 4C verified coffee (green beans in 60kg bags
2008 2009
194,000 492,500
gment has been increasing by about 20-25% each year
verifications). If recent rates of growth continue, then certified coffees might have a worldwide share
Although growth is rarely linear, this scenario is quite plausible in light of a
growing interest among the major corporations in this fast-growing segment. Once a certain critical
mass is reached in the marketplace, many consumers will likely expect the
"sustainable" and consumer products companies will not want to risk their reputations by being the
Worldwide sales of certified coffee (in million 60kg-bags)32
NB: estimates allow for comparisons but do not correct for multiple certifications
is a forecast: growth of 4%, compared to 2008
nd 2007 are authors’ estimate
Sales of 703080 bags organic coffee in USA/CDN in 2009 (+ 4.5%) derived from: D. Giovannucci. 2010. North
American Organic Coffee Industry Report.
Organic Utz Certified Rainforest
Alliance
4C
10
its members, but cannot give more detailed figures
about regional distribution or about origins yet. Most of the verifications have occurred in Latin
beans in 60kg bags)
25% each year (even excluding 4C
certified coffees might have a worldwide share
Although growth is rarely linear, this scenario is quite plausible in light of a
growing segment. Once a certain critical
mass is reached in the marketplace, many consumers will likely expect their coffee to be
"sustainable" and consumer products companies will not want to risk their reputations by being the
derived from: D. Giovannucci. 2010. North
2006
2007
2008
2009
Sustainable Coffee Report: Statistics on the main coffee certifications
Pierrot and Giovannucci 11
This market progression is already beginning to raise two important questions or concerns. First,
given the differences among the standards (or certifications) which, if any, actually provide
measurable impacts in terms of sustainability? Second, can certifications reliably meet growing
demand as they grow beyond the capacity of farmers who are considered the easier to certify, i.e.,
“the low hanging fruit”?
Concern 1: It is very important to demonstrate whether certification actually benefits coffee farmers.
Saying it is one thing and showing it is quite another. As sustainability issues have become more
popular, a number of noted researchers have looked into their impacts. Several authors have already
made respected contributions but we are still far from understanding what works and what does not
in this field.33
Although more research today goes well beyond mere anecdotal evidence, much of it is limited in
statistical relevance or lacks adequate control groups. In some cases, the assessments made are one-
time case studies or difficult to replicate and are not comparable with other studies or sectors or
countries. Very few are followed for multiple years. So, we can certainly learn from these, but there
is much more that we need to know.
In order to improve sustainable performance among producers, accelerate the efficiency of
standards (certification) systems, and improve transparency all the way to the consumer, we need
better information. The Committee on Sustainability Assessment (COSA)34
is committed to working
with partners in the countries of origin and with leading researchers to address these issues. COSA is
conducting assessments using a well-developed set of indicators to yield statistically significant data
that is globally comparable across countries and sectors. The work is conducted by gathering data in
a time series with good control groups to ensure reasonable attribution of findings. These range
across the spectrum of economic, social, and environmental concerns. The data from many
thousands of surveys will be available to the public as part of the International Trade Centre’s Trade
for Sustainable Development (T4SD) Web-based platform.
Concern 2. It is increasingly common for certification agencies to certify farmers and farmer groups
that have already been certified to another standard. Of course, it is easier to certify these than to
certify farmers who have never before met the requirements of a standard. This is partly because
many of the more difficult requirements, such as record-keeping, traceability, and good agricultural
practices, are commonly shared among the different certifications. Producers who have multiple
certifications are likely to improve their opportunities to access diverse markets and satisfy different
buyers.
For example, African producers may well have some of the greatest needs and yet the continent
provides only a small proportion of the world supply of certified coffees. Most of the certification
bodies find it understandably difficult to operate there and have focused more on quickly developing
supplies from producers that are often more capable and better financed such as those in many parts
of Latin America.
As demands for sustainability increase, other farmers will need to seek certification for the first time.
These farmers may be more likely to have fewer skills and be more remote. How will they be
trained? How will this be financed? Will their relative costs and benefits of being certified differ from
those of the "first-movers" who are already participating? As the supply base necessarily expands to
include more producers, we may be learning new lessons in how to cost-effectively bring the benefits
of these standards and certifications to a broader audience.
33
In coffee, noted researchers have made valuable contributions and some of those with multiple studies
include: Bacon, Baker, Blackman, Daviron, Haggar, Perfetto, Ponte, Raynolds, Rice, Ruben, Utting, and Warning. 34
www.sustainablecommodities.org/cosa
top related