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Coffee Certification Data Report 2019Rainforest Alliance and UTZ programs

May 2020


2

Introduction

The main goal of this report is to present the scope and scale of the Rainforest Alliance and UTZ coffee certification programs in 2019 – calendar year. The report is created to inform our stakeholders and is part of our commitment to transparency.

The report focuses on the key indicators related to:

• Market uptake: sales of Rainforest Alliance Certified™ and UTZ certified coffee;

• Program reach: estimated Rainforest Alliance Certified and UTZ certified coffee production, premiums being paid and multi-certification.

This report is part of the Rainforest Alliance monitoring and evaluation system. Most of the data in this report is collected via our online Certification and Traceability systems.

We do our best to ensure that all the information in this report is accurate and reliable. As much of the data is collected by third parties, we are aware that there may be some shortcomings.


3

Summary

In 2019, the Rainforest Alliance coffee program saw a slight increase in terms of program reach and sales volume. The main growth was recorded in Ethiopia, Colombia and Guatemala. Overall the UTZ coffee program remains stable with increased demand and a slight decrease in estimated certified production. The expectation is that demand will continue to increase in the coming period, driving the supply chain to scale up certified supply.


Geographical program reach

Rainforest Alliance program

UTZ program

Rainforest Alliance and UTZ programs

The Rainforest Alliance and UTZ coffee programs reach farmers and workers in 26 countries worldwide.


5

Program reach: Rainforest Alliance and UTZ

Number of farmers

400+ K Area (hectare)

1+ Million

Combined estimated production area Combined number of farmers

Combined figures are calculated by subtracting the figures of dual certified producer groups and individual farms from the total of UTZ and Rainforest Alliance.

Coffee Certification Data Report 2019Rainforest Alliance programUTZ program

Rainforest Alliance Coffee program

Program reach

9


AsiaChinaIndia

IndonesiaLaos

Papua New GuineaVietnam

Latin AmericaBrazil

ColombiaCosta RicaEl SalvadorGuatemalaHondurasJamaicaMexico

NicaraguaPeru

AfricaBurundiEthiopiaKenyaMalawi

RwandaTanzaniaUgandaZambia

North AmericaUnited States

Coffee Certification Data Report 2019Rainforest Alliance program

With China added to the map and Sri Lanka dropping off, the number of countries with Rainforest Alliance Certified™ coffee producers remained at 25.


Program reach

0%

Relative growth 2018-2019:

-15%


+2%


-22%


Area (hectare)

470,611 Number of farmers

194,294

Estimated production (MT)

669,698 Number of workers

(seasonal and permanent)

286,461


Program reach

Area (hectare) Number of farmers

Estimated production (MT) Number of workers (seasonal and permanent)

The estimated production area remained stable with a slight decrease of 230 hectares vs. last year.

Decrease in number of farmers mainly in Africa (-20%) and Asia (-11%). Latin America saw a growth of 14%. The top 3 countries with most certified farmers are: Kenya (28% of the global number of farmers), Ethiopia (18%) and Rwanda (17%).

The estimated production had a stable growth vs last year. The top 3 producing countries are: Brazil, Colombia and Ethiopia.

Drop in number of workers due to social-political instability (e.g. Nicaragua), decreased seasonal worker availability (e.g. India), and policy changes (e.g. Tanzania). Low coffee prices and migration also play a role, especially in Central America.


Program reach382.114 387.265

411.519

470.841 470.611

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

218.508 226.850200.453

228.271

194.294

2015 2016 2017 2018 2019

485.699 508.631557.911

655.314 669.698

2015 2016 2017 2018 2019

0 0 0

369.087

286.461

2015 2016 2017 2018 2019


0%


-15%


+2%


-22%


No data available

Global sales


14

Global coffee sales

289.485328.082

393.550

2017 2018 2019

MT

gree

n co

ffee

equi

vale

nt

+13%

+20%

0

‘Global sales’ are all the confirmed volumes sold from a certified producer to the first buyer. Years are calendar years.

The global Rainforest Alliance coffee sales increased by 20%. This is mainly driven by purchases from Brazil, Colombia, and Guatemala.


15

Global sales per origin


The global sales increase is mainly driven by purchases from Brazil (42% of the global sales), Colombia (18%) and Guatemala (8%).

Latin America (+22%) is the largest contributor to the increased Rainforest Alliance coffee sales. Africa also experienced growth (+17%) while sales in Asia decreased (-1%).


16


164.480

70.110

30.829 28.32317.088 16.632 16.138 13.692

5.476 5.315 4.950 4.348 4.282 3.955 7.914

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

MT

Gre

en C

offe

e Eq

uiva

lent

2017

2018

2019

Relative growth 2018-2019: +18% +40% 30% +34% +3% -18% +22% +35% -11% +7% -12% -12% -7%+28% +38%


Most Rainforest Alliance Certified coffee sales came from Brazil (42%), Colombia (18%) and Guatemala (8%).


17

Global sales – Arabica / Robusta


Increase of 20% in global Arabica sales and 12% increase in Robusta.

Arabica/Robusta ratio has been stable since 2017.


18

Global sales - split Arabica and Robusta

274.856

308.134

371.219

14.629 19.948 22.330

2017 2018 2019

MT

Gre

en C

offe

e Eq

uiva

lent

ArabicaRobusta

94 %

94 %

6 %5 %

95 %

6 %


Increase of 20% in global Arabica sales and 12% increase in Robusta.

Arabica/Robusta ratio has been stable since 2017.


19

Registered supply chain actors

957

1278

1673

2068

2475

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include traders, roasters, brand owners, and retailers.

In 2019, the number of supply chain actors within the program increased by 407 (+20%).

Most of the increase comes from Latin America and Europe.

From the new supply chain actors, 69% are traders, 23% are roasters, 5% are brand owners and 3% are retailers.

Estimated Production


508.631557.911

655.314669.698

2016 2017 2018 2019

MT

gree

n co

ffee

equi

vale

nt

21

Global estimated coffee production

+17%+2%

+10%

0

Estimated production is based on information from certificates valid on December 31, 2019.

The estimated global certified volume remained stable with a growth of 14,384 MT (+2%) vs. last year.

Arabica/Robusta ratio remains the same and aligned with ratio in sales.


22

Estimated production – Arabica / Robusta





23

Global estimated production

2016 2017 2018 2019

MT

Gre

en C

offe

e Eq

uiva

lent

RobustaArabica

+ 10%

+ 17%+ 2%

94 %

92 %

92 %

81 %

6 %8 %

8 %

92 %

8 %

508.631557.911

655.314 669.698





24

Estimated production per origin

Top 3 producing countries are: Brazil (33% of the global production), Colombia (16%) and Ethiopia (8%).



25

Estimated production per origin221.283

110.330

50.698 44.588 43.02532.933 31.995 27.279 26.696 26.090

13.658 9.601 8.144 5.641

16.681

0

50.000

100.000

150.000

200.000

250.000

MT

Gre

en C

offe

e Eq

uiva

lent

2017

2018

2019

Relative growth 2018-2019: -6% +9% +87% +14% -3%+28% +3% +20% -11%-17% +4% -53%+10%-6% -38%

Top 3 producing countries are: Brazil (33% of the global production), Colombia (16%) and Ethiopia (8%).

Ethiopia: large increase due to several new certificate holders joining the program, favorable policy changes and climate variations.

Tanzania: large decrease due to abrupt policy change (number of farmers dropped by 96%).


Supply and Demand ratio


27

Supply – Demand ratio

52% 50%

59%

2017 2018 2019% of estimated certified production sold as Rainforest Alliance CertifiedTM

Producers sold on average 59% of their estimated certified volume as Rainforest Alliance Certified™.

This is based on producer sales and estimated production. It indicates an estimation, not an absolute number.


28

Supply – Demand per region

Supply

Demand% of estimated certified production sold as Rainforest Alliance Certified™ per region in 2019

The supply and demand ratio for the Rainforest Alliance coffee program increased by 17%.

Africa and Asia saw an increase too, while in Latin America the ratio remained stable.

However, Latin America has the highest share of certified sales with 68% of certified production sold as Rainforest Alliance Certified™.

This is based on producer sales and estimated production 2019. It indicates a trend, not an absolute number.

Multi-certification


30

Multi-certification

31% UTZ

16% Organic

11% Fairtrade

18% Other

Multi-certified represents the number of Rainforest Alliance CertifiedTM coffee producer groups and individual farms that were also certified for one or more of the following schemes: UTZ, Organic, Fairtrade and other schemes.

Double-certification Rainforest Alliance and UTZ is the predominant combination with 31%.

of the Rainforest Alliance producer groups and individual farms were

certified for at least one other standard

41%

Certification data

31

32


Country 2017 2018 2019

Global 557.911 655.314 669.698 Brazil 194.005 235.214 221.283Colombia 81.144 101.313 110.330Costa Rica 27.843 32.070 26.696El Salvador 9.731 7.393 8.144Ethiopia 18.133 27.150 50.698Guatemala 33.127 33.579 43.025

Honduras 28.478 27.886 26.090

India 31.566 32.995 31.995

Indonesia 7.459 5.505 4.793

Jamaica 63 37 42

Kenya 12.755 15.336 13.658

Mexico 7.582 9.272 9.601

Nicaragua 22.899 22.765 27.279

Peru 39.821 39.087 44.588Rwanda 3.262 6.827 3.733Tanzania 8.613 12.056 5.641Uganda 7.081 7.969 3.153Vietnam 21.109 31.941 32.933Other* 2.612 6.463 4.960

Estimated production (MT) Global sales (MT)

2017 2018 2019

Global 200.453 228.271 194.294

Africa 155.464 183.360 146.845Asia 14.323 14.771 13.015Latin America 30.666 30.139 34.433North America 0 1 1

Number of farmers

2017 2018 2019

Global - 369.087 286.461

Africa - 77.730 80.379Asia - 84.414 36.068Latin America - 206.751 169.822North America - 192 192

Number of workers (permanent & seasonal)

2017 2018 2019

Global 411.519 470.841 470.611

Africa 96.401 143.333 120.372Asia 46.432 49.969 45.114Latin America 268.686 276.413 303.999North America 1.126 1.126

Area (Hectare)

Country 2017 2018 2019

Global 289.485 328.082 393.550Brazil 125.939 138.722 164.480Colombia 48.772 49.601 70.110Costa Rica 16.468 20.215 16.632El Salvador 4.959 4.932 5.315Ethiopia 1.843 3.310 4.282Guatemala 19.707 23.637 30.847

Honduras 16.952 21.123 28.323

India 4.694 4.253 3.955

Indonesia 8.182 5.647 4.950

Jamaica 13 3 8

Kenya 3.869 4.948 4.348

Mexico 7.067 6.059 5.476

Nicaragua 5.635 10.131 13.692Peru 12.525 13.154 16.138Rwanda 590 742 1.936Tanzania 1.232 2.156 2.155Uganda 701 1.630 2.465Vietnam 9.738 16.660 17.088Other* 584 1.161 1.351

*Other countries are Burundi, China, Laos, Malawi, Papua New Guinea, the United States of America and Zambia

UTZ Coffee program

Program reach

35


AsiaChinaIndia

IndonesiaLaos

Papua New GuineaVietnam

Latin AmericaBrazil

ColombiaCosta RicaEl SalvadorGuatemalaHondurasMexico

NicaraguaPeru

AfricaBurundiCongoEthiopiaKenya

RwandaTanzaniaUgandaZambia

Coffee Certification Data Report 2019UTZ program

The number of countries with UTZ certified coffee producers decreased from 25 to 23.

Dominican Republic and Panama no longer have UTZ certificate holders.


Program reach

Area (hectare)720,250

Number of farmers309,048


1,083,649Number of workers

(seasonal and permanent)

201,779

-6.5%


+9%


-2.4%


+4.5%



Program reach

Area (hectare) Number of farmers

Estimated production (MT) Number of workers (seasonal and permanent)

The estimated production area decreased by 6% (50,000 hectares) vs. last year. Decrease mainly due to Rwanda, Burundi, and Indonesia. Largest increase in Asia, mainly due to Vietnam.

Increase in number of farmers mainly driven by Africa (Kenya, Congo and Ethiopia) and Asia (China). The number of UTZ certified farmers Latin America remained stable.

The estimated production remained stable with a slight decrease of 2%. The top 3 producing countries are: Brazil, Vietnam and Colombia.

Increase mainly in Congo, Colombia and Guatemala. There were also drops due to social-political instability (e.g. Nicaragua), and decreased seasonal worker availability (e.g. India).


Program reach

549.030 567.336 592.977

770.423720.250

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

188.627226.424 226.015

283.487309.048

2015 2016 2017 2018 2019

821.399 870.102 857.803

1.102.826 1.083.649

2015 2016 2017 2018 2019

257.248296.208

255.647

193.158 201.779

2015 2016 2017 2018 2019


-6.5%


+9%


-2.4%


+4.5%


Global sales


40

Global coffee sales

238.392

321.419

365.091

518.807

589.522

2015 2016 2017 2018 2019

MT

gree

n co

ffee

equi

vale

nt

+35%

+14%

+42%+14%

0

The global UTZ coffee sales increased by 14%, largely driven by European retailers and specialty/high end brands in Europe and North America.

Most UTZ coffee sales came from Brazil, Vietnam and Honduras.



41


The global sales increase is mainly driven by purchases from Brazil (43% of global sales), Vietnam (15%) and Honduras (13%).



42

Global sales per origin256.321

90.73975.350

54.992

22.922 20.388 14.774 12.694 8.100 6.537 6.166 4.813 2.816 2.07110.837

0

50.000

100.000

150.000

200.000

250.000

MT

Gre

en C

offe

e Eq

uiva

lent

2015

2016

2017

2018

2019

Relative growth 2018-2019: +23% -4% 0% +27% +30% -9% +12% +37% +399% +123% -31% -46% +59%-8% +19%


Most UTZ coffee sales came from Brazil (43%), Vietnam (15%) and Honduras (13%).

Coffee from Africa also saw higher sales, due to Ethiopia. This is driven by a higher demand of Ethiopian coffee from China, as buyers start to switch due to decreased availability from some Latin American origins.


43

Global sales - split Arabica / Robusta

Arabica sales makes up 85% of all global coffee sales.

Global Robusta sales makes up 15% of total coffee sales.



44

Global sales - Arabica and Robusta

183.776

274.272299.380

426.840

500.612

54.615 47.14765.711

91.976 88.910

2015 2016 2017 2018 2019

MT

Gre

en C

offe

e Eq

uiva

lent

ArabicaRobusta

77 %

85 %82 %

82 %

23 % 15 %18 %

18 %

85 %

15 %

Top countries selling Arabica: Brazil (50% of all Arabica), Honduras (15%), Colombia (11%).

Top countries selling Robusta: Vietnam (79% of all Robusta), Brazil (9%) and India (8%).

85%



45

Registered supply chain actors

582

669

756

824869

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include various actors, including traders, roasters, and retailers

In 2019, the number of supply chain actors within the program increased by 45 (+5%).

Majority of increase in Europe (+33), mostly due to Italy and Finland, and company partners in four new countries: Kosovo, Serbia, Slovenia, and Luxembourg.

Also a large increase in Asia (+23), due to Vietnam, and China, and company partners in five new countries: Kuwait, Laos, Qatar, Philippines, and Turkey.


46

Premium

2.74

3.373.6

2.81

2.13

3.03

3.463.78

2.96

2.151.82

2.87 2.77

2.111.93

2015 2016 2017 2018 2019

Global average UTZ Premium ($c/lbs)

Global Arabica Robusta

UTZ global average coffee premium decreased to 2.13 $c/lbs.

The UTZ premium is an additional cash amount paid above the market price for a similar conventional (non-certified/non-verified) product. It is mandatory and agreed upon between the certified group or producer and the first buyer.

Highest premium is paid for Arabica as in previous years, but difference with Robusta decreased.


47

Premium per country – per continent

2.27 2.54 2.2

1.33

3.32

2.12 2.29

5.15

3.56

2.3

4.94

1.08

2.53.26

1.98

4.464.89

1.17

0

2

4

6

8

10

12

142018 2019

Average UTZ Premium ($c/lbs)

2019 Global weighted average UTZ premium

Overall we see a decrease in global average UTZ premium, though the average premium per country differs a lot.

Estimated Production


49

Global estimated coffee production

821.399870.102 857.803

1.102.826 1.083.649

2015 2016 2017 2018 2019

MT

gree

n co

ffee

equi

vale

nt

+29% -2%

-1%+6%

0

The estimated global certified volume remained stable with a slight decline of 29,000 MT (-2%) vs. last year.



50

Estimated production – Arabica / Robusta

Total certified volume Arabica decreased by 6% (51,000 MT) and makes up 77,5% of total certified volume.

Total certified volume Robusta increased by 12% (25,000 MT), due to growth in Vietnam India, and Uganda. Robusta makes up 22,5% of total certified volume.



51


2015 2016 2017 2018 2019

MT

Gre

en C

offe

e Eq

uiva

lent

RobustaArabica

+ 6% - 1%

+ 29% - 2%

72 %

80 %

83 %

81 %

28 %20 % 17 %

19 %

78 %

22 %

821.399870.102 857.803

1.102.826 1.083.649

The estimated global certified volume remained stable with a decline of 29,000 MT (-2%) vs. last year.

Minor shift from Arabica to Robusta, due to the Arabica volume decrease in Latin America (mainly Brazil and Honduras) and Robusta volume growth in Asia (mainly Vietnam and India).



52


The top 3 producing countries are: Brazil (31% of the global production), Vietnam (19%) and Colombia (11%).



The top 3 producing countries are: Brazil (31% of the global production), Vietnam (19%) and Colombia (11%).

Africa: increase by 28%, mainly due to Ethiopia (+40%)

Asia/Pacific: increase by 11%, mainly due to Vietnam (+16%).

Latin America: decrease by 8%, mainly due to Brazil (-16%) and Honduras (-16%).

53


336.815

205.046

115.17889.122 85.577

46.812 45.632 35.431 27.684 21.050 15.742 12.635 9.917 7.976 6.29722.736

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

MT

Gre

en C

offe

e Eq

uiva

lent

20152016201720182019

Relative growth 2018-2019: -16% +16% +4% +15% -16% +1% +8% +40% +19% +15% -18% +18% +106%+18%-35% +1%


Supply and Demand ratio


55

Supply – Demand ratio

% of estimated certified production sold as UTZ

37%

43%47%

55%

2016 2017 2018 2019

Producers sold on average 55% of their estimated certified volume as UTZ.

The share of certified volume sold in relation to certified supply continued to increase globally, driven by higher sales from Latin America.

This is based on producer sales and estimated production. It indicates an estimation, not an absolute number.


56

Supply – Demand per region

Supply

Demand% of estimated certified production sold as UTZ per region in 2019

Supply and demand ratio increased from 49% to 63% in Latin America (mainly due to Brazil, Colombia, Honduras).

Also in China, Burundi and Rwanda we saw a large increase.

This is based on producer sales and estimated production 2019. It indicates a trend, not an absolute number.

Multi-certification


58

Multi-certification

19% Rainforest Alliance

12% Fairtrade

10% Organic

12% Other

of the UTZ producer groups and individual

farms were certified for at least one other standard

Multi-certified represents the number of UTZ coffee producer groups and individual farms that were also certified for one or more of the following schemes: Rainforest Alliance, Fairtrade, Organic, and 4C. Other schemes are excluded from the total Multi-certification figures.

Double-certification UTZ and Rainforest Alliance is the predominant combination with 19%.

37%

Certification data

59


60

Estimated production (MT) Global sales (MT)

2017 2018 2019

Global 226.015 283.487 309.048

Africa 127.654 164.245 190.290Asia / Pacific 44.889 55.653 54.932Latin America 53.472 63.589 63.826

Number of farmers

2017 2018 2019

Global 255.647 193.158 201.779


Number of workers (permanent & seasonal)

2017 2018 2019

Global 592.977 770.423 720.250


Area (Hectare)

Country 2017 2018 2019

Global 857.803 1.102.826 1.083.649

Burundi 2390 4270 2464

Brazil 295.547 402.936 336.815

China 2.048 8.435 9.917

Colombia 101.814 110.782 115.178

Congo 1.963 3.062 6.297

Ethiopia 15.775 25.232 35.431

Guatemala 14.175 23.225 27.684

Honduras 69.393 101.828 85.577

India 40.148 42.241 45.632

Indonesia 12.116 19.337 12.635

Kenya 4.581 6.741 7.976

Mexico 17.758 17.512 15.742

Nicaragua 35.769 46.439 46.812

Peru 73.525 77.773 89.122

Rwanda 1.372 2.761 3.276

Tanzania 3.419 3.451 3.558

Uganda 17.044 18.306 21.050

Vietnam 141.610 176.406 205.046

Other* 6.951 10.894 13.438

Country 2017 2018 2019

Global 365.091 518.807 589.522

Burundi 1.464 1.302 2071

Brazil 139.848 208.225 256.321

China 361 1.623 8.100

Colombia 34.595 43.437 54.992

Congo 38 1.293 1.255

Ethiopia 2.716 2.925 6.537

Guatemala 12.311 9.298 12.694

Honduras 47.401 75.314 75.350

India 12.964 13.177 14.774

Indonesia 5.323 8.944 6.166

Kenya 1.079 1.313 1.939

Mexico 4.263 5.196 2.816

Nicaragua 18.054 17.683 22.922

Peru 15.546 22.328 20.388

Rwanda 665 874 2.000

Tanzania 704 1.534 1.093

Uganda 4.484 5.211 4.813

Vietnam 61.178 94.156 90.739

Other* 2.099 4.975 4.550

*Other countries are Costa Rica, El Salvador, Laos, Papua New Guinea and Zambia

rainforest-alliance.org

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