fairtrade coffee newsletter issue 2 february 2016

7/24/2019 Fairtrade Coffee Newsletter Issue 2 February 2016

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For the Coffee ProfessionalThis newsleer contains technical and other informaon on the origins and supply chains of Fairtrade coee. We hope this will be of

interest to coee buyersand coee specialistsin retail and out of home, together with Fairtrade coee roasters and traders.

For more informaonconcerning this newsleer, please contact Anna Kiemen ([email protected]), Jos Harmsen([email protected] ) or Raf Van den Bruel ([email protected]).

* This newsleer is a joint iniave of the Naonal Fairtrade Organizaons (NFOs) Fairtrade Germany, Max Havelaar Nederland and Fairtrade Belgium.

NEWSLETTER

ISSUE 2FEBRUARY 2016

Fairtrade coee from Africa

Africas 25 coee producing naons today supply just 11.2

percent of the worlds coee. In the past, before 1990, it was

almost double.

In 2015 the ICO published a study on The sustainability of

the coee sector in Africa, which explores reasons for the

decline in African coee producon. Explanaons include low

producvity, problems with infrastructure, dicules with

instuonal frameworks, lack of nancing and weaknesses in

small-scale producer organizaons.

Fairtrade sales from Africa made up just 10% percent of

total Fairtrade coee sales in 2013 and 2014. The increase in

Fairtrade sales over the last few years is almost enrely from

Lan-American origins while many coee producers became

cered in Africa. Fairtrade has to achieve more than it is

achieving today.

Strengthening African coee organizaons is the focus

of the Fairtrade Africa Coee Plan 2016-2020. A special

aenon will be given to improving business and nanceadministraon, bringing more planning and accountability to

the use of the Fairtrade system. Where appropriate, Fairtrade

Africa will facilitate the introducon of good agronomic and

environmental pracces.

We believe that without strong organizaon, no real progress

can be made in any area of sustainable producon, higher

producvity or increased income for the small-scale coee

producer. Some relavely young and dynamic Fairtrade coee

producer organizaons are helping to show the way forward,

for instance the expanding Ankole Union in Uganda. These self-

reliant, strong producer-owned businesses do and will make a

great dierence.

The importance of increasing the sales gure is clear. From

the producers perspecve, small-scale African coee farmers

oen live in extreme povertyand can benet from the support

that Fairtrade can bring. On top of this, East Africa generally

produces high quality Arabica and Robusta. Arabica can be

of great value, bringing more intensity and a brighter avour

to coee blends. Climate change is already hing coee

growers dramacally in Africa, for instance in the Mount Elgon,

Kilimanjaro region and Karagwe region, yet recent studies

have shown that African coee will become more important as

producon regions at higher altudegain greater signicancein the marketplace.

Alfred Wincheslaus - Kagera Co-Operave Union, Bukoba - Tanzania
http://www.fairtrade.net/mailto:a.kiemen%40fairtrade-deutschland.de?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015mailto:harmsen%40maxhavelaar.nl?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015mailto:raf%40fairtradebelgium.be?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015http://www.ico.org/documents/cy2014-15/icc-114-5-r1e-overview-coffee-sector-africa.pdfhttp://www.ico.org/documents/cy2014-15/icc-114-5-r1e-overview-coffee-sector-africa.pdfhttp://www.ico.org/documents/cy2014-15/icc-114-5-r1e-overview-coffee-sector-africa.pdfhttp://www.ico.org/documents/cy2014-15/icc-114-5-r1e-overview-coffee-sector-africa.pdfmailto:raf%40fairtradebelgium.be?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015mailto:harmsen%40maxhavelaar.nl?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015mailto:a.kiemen%40fairtrade-deutschland.de?subject=Fairtrade%20Coffee%20Newsletter%20%7C%20Issue%201%202015http://www.fairtrade.net/


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NEWSLETTER / FEBRUARY 2016

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Tanzania

Historically, Tanzania was the most important origin of

Fairtrade Robusta but over recent years producon there has

been in crisis. The decline in producvity at Kagera is largely

the result of land degradaon, see IJRC, issue 3 - July 2014.

Recently the producon has also been hit by extreme periods

of drought linked to climate change.

The coee Fairtrade Supply Chain under pressure

Fairtrade denes a specic Fairtrade Minimum Price and Fairtrade premiumto enable producers to produce and sell their coee

in an economically, socially and ecological sustainable way. This can be challenging with erce price compeon further down the

chain. It creates parcularly pressure in the Fairtrade Coee Supply Chain in those days in which the New York Arabica prices are

at a level below or close to Fairtrade Minimum price (FTMP). Fairtrade is aware of the challengesand is working connuously on

protecng the FTMP and Fairtrade premium to the producers as well as a well-funconing supply chain.

Another development in Fairtrade coee supply chains is thatcoee exportersare increasingly involved in the Fairtrade supply chain

of coee. Fairtrade will take this into account in the auding system and standards as part of the improvement process on managing

Fairtrade supply chains.

Ugandan coee farmers beer o withFairtrade says report

Researchers from Germanys University of Gngen

conducted research among three cooperaves of

Ugandan coee farmers to compare the impact of

cercaon schemes. The three were all Utz Cered;

one also Fairtrade cered; and the other also

organic. Non-cered farmers were included as well

and altogether more than 400 farmers interviewed,

all in 2013. The report comes at a me when farmer

organizaons are developing strongly in Uganda, with a

rapid increase in numbers of cered groups.

Cercaon was found to increase consumpon

per person by up to 64 US cents a day. However no

signicant eect on living standards was noced at

the cooperave which only had Utz cercaon. Theper capita expenditure in Fairtrade farmer households

increased by 30 percent, while the eects for Utz and

Organic cercaon were insignicant. This meant

that for Utz and Organic, no poverty reducon was

found. The researchers conclude that the increase in

household expenditure was enrely driven by Fairtrade.

The study shows that Fairtrade farmers received a

much higher price for their Robusta coee, due in part

to the bonus the farmers received from the Fairtrade

Premium. Moreover, Fairtrade farmers mostly sold

their coee aer milling the dried coee beans, so they

beneted from this added value, unlike the others.

Fairtrade cooperaves were also seen as being in a

stronger posion to negoate prices.

Read the full report

Uganda

Uganda is very ambious for the future of the coee industry

there. By 2020, they expect producon will increase from

three million bags to ve million bags, 80 percent of this

Robusta. At this moment, the country has approximately ten

Fairtrade cered Robusta producers and suppliers. John

Nuwagaba, General Manager of the Ankole Union, is aware

there are sll a lot of challenges. Average producon per

tree in our region is sll two kg of dried cherries while, with

opmal pracces, you can increase this to six kg in our region.

The strong Fairtrade cooperaves including Ankole that are in

pole posion to achieve this, together with their farmers.

John Nuwagaba, General Manager Ankole Union - Uganda
http://www.fairtrade.net/http://www.ijrce.org/issue/july%202014/85-89.pdfhttps://www.uni-goettingen.de/de/document/download/120fb3d92b1d1b00a794d0f5f8529e4a.pdf/GlobalFood_DP27.pdfhttps://www.uni-goettingen.de/de/document/download/120fb3d92b1d1b00a794d0f5f8529e4a.pdf/GlobalFood_DP27.pdfhttp://www.ijrce.org/issue/july%202014/85-89.pdfhttp://www.fairtrade.net/


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Major impact study on Fairtrade coee

The studys full tle: Fairtrade Coee - A study to assess the impact of Fairtrade for coee smallholders and producer organisaons

in Indonesia, Mexico, Peru and Tanzania

Fairtrade has helped strengthen producer organizaons,

improve income and provide greater market access but further

scaling-up is needed, says the new Fairtrade coee impact

study.

Research was organized in Indonesia, Mexico, Peru and

Tanzania in 2013 by the Natural Resources Instute of the UKs

University of Greenwich. In each country two organizaons

of Arabica producers, cered for at least three years, were

compared with a non-Fairtrade cooperave or non-Fairtrade

farmers in the same community. Robust methodology,

including interviews with 800 farmers, is believed to allow for

some generalisaon of ndings and applying them to other

organizaons and communies.

It will shortly be published on the Fairtrade Internaonal

website www.fairtrade.net. Findings include:

Strengthened organizaons:Largely showing that democracy, transparency, leadership and

parcipaon have improved, allowing farmers to respond to

threats more eecvely.

Improved household income and livelihoods:Gross income for Fairtrade producers was higher, except in

Indonesia. In Tanzania income was 107% higher. In periods oflow coee prices the Fairtrade Minimum Price was shown to

be an important safety net for farmers.

More investment:The Fairtrade Premium has been essenal in business, forinstance by responding to the coee rust crisis. Pre-nance

from traders was limited but external support was more easily

obtained, thanks to the administrave ability at Fairtrade

cooperaves.

Increases in training:More than 75 percent of the Fairtrade farmers in Peru, Mexico

and Indonesia received training and technical assistance,

compared with 10 to 20 percent of non-Fairtrade. Training and

sasfacon among Fairtrade farmers in Tanzania was less.

Reinforcement of environmental conservaon and

pracces:Fairtrade reinforced sustainable coee culvaon and

protecon of the environment. Fairtrade has helped to

lever further external funding for farmer training. However,

the scale of the challenges of sustainable agricultural and

environmental issues are huge and resources are limited.

Stronger voice:The researchers see the Fairtrade Producer Networks as a

unique element of Fairtrade, strongly under-recognized.

The Producer Networks provided them greater inuence onnaonal policy and local development programmes, especially

in Lan America.

Meeng of Neknasi coee producing members - New Guinea
http://www.fairtrade.net/http://www.fairtrade.net/http://www.fairtrade.net/http://www.fairtrade.net/


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Children leaving farming:Seen as a problem that cannot be solved by Fairtrade alone.

It requires a signicant improvement in coee returns and

access to land.

Producvity levels:No big dierences were found. In the Peruvian Fairtrade

cooperaves, producvity loss from coee rust was slightly

less because farmers are invesng more to deal with this. In

Mexico, producon at Fairtrade farms increased during the last

two years while that of non-Fairtrade farms fell.

Lile shi in gender equality:Lile evidence of Fairtrades impact on the posion of

women was found. Membership of women is low and there

are no mandatory targets to improve this. However there

were posives. Non-Fairtrade women in Mexico received

signicantly lower prices than their male counterparts, while

female Fairtrade farmers received the same price.

Hired labourers not helped:There was no evidence that the few hired labourers on

Fairtrade coee farms were in a beer situaon than those on

non-Fairtrade farms.

The report concludes that the impact of Fairtrade is evident,

but further improvements are needed. Fairtrade should

connue to strengthen and support organizaons to become

resilient businesses, for instance by improving leadership,

management and technical capacity, achieving greater

eciencies, increasing accountability to members and

increasing market demand for Fairtrade.

The Coee Development PlanThere are 25 million farmers and workers in the world who

depend on coee producon. Farmers have generaons

of knowledge making them adaptable and resilient to the

uncertaines of agriculture. However, the coee sector faces

vast challenges like changing climates and low investment,

and the impact of this is intensifying at a rate never seen

before by farming communies. This is pung the livelihood

and wellbeing of farming families at risk, as well as the

sustainability of coee supply chains.

In 2016, Fairtrade will step up its response in the form

of the Coee Development Plan. In addion to our core

Fairtrade work, the approach brings together producer-led

development, the power of Fairtrade networks and the

potenal for supply chain partnerships. Fairtrade tracks

the progress of producer organisaonsthrough their

development plans, which allows Fairtrade to demonstrate

posive impact in specic supply chains, as well as recognise

the gaps. This means producer organisaons can highlight

their own investment priories that go beyond the Fairtrade

minimum price and premium. In 2016, Fairtrade Internaonal

and the Fairtrade Producer Networks will use this informaon

to scope three pilot partnership projects. The learnings from

DATE LOCATION EVENT

10 > 13 February 2016 Nrnberg, Germany BioFach3 > 5 February 2016 Dar Es Salaam, Tanzania African Fine Coee Associaon

14 > 17 April 2016 Atlanta, USA Specialty Coee Associaon of America

23 > 25 June 2016 Dublin, Ireland Specialty Coee Associaon of Europe

7 > 9 September 2016 Hamburg, Germany COTECA

Fairtrade Internaonal and its member organizaons will be present at the major coee events in 2016. For further informaon

please contact Rene Capote, [email protected] .

these projects will shape and empower more producer-led

investments. Fairtrade will seek commercial and fundraising

partnerships and wider investment to upscale the approach.

This will direct funding into the heart of coee communies,

and work towards a sustainable coee future.

Fairtrade partnerships with businesses to support coee farmers to adapt to climate

change. Pictured above is at Sonomoro cooperave in Peru where Fairtrade has partnered

with Twin (UK NGO) and Lidl (European supermarket) to build climate resilience.
http://www.fairtrade.net/http://www.fairtrade.net/


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Fairtrade Coee Stascs Supply

and Demand

Fairtrade Coee is available from about 30 origins, supplied

by more than 500 Fairtrade cered small producer

organizaons.

Fairtrade Coee has experienced posive growth rates in most

markets, with a high percentage double cered Fairtrade

Organic in most markets. Distribuon has increased both in

retail and out of home sector.

Fair Trade USA volumes are included in the supply gures as

transacons are checked through Flocert auding procedures,

but are not included in sales gures

Fairtrade green coee exports in MT, development 2013- 2014:

Fairtrade Arabica green coee exports in MT, 2013-2014 :

Fairtrade Robusta green coee Exports in MT, 2013-2014:

Esmated sales volume of coee green bean equivalent by

consuming countries, development 2013-2014:

Esmated sales volume of Fairtrade coee green bean equivalent

convenonal and organic by consuming countries, 2013-2014:


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NAME OF

ORGANIZATIONFLO ID

CONTACT

DETAILSE-MAIL ALTITUDE

TYPE OF

COFFEEQUALITY

ELEMENTS HOMESTEAD

PRODUCTS PVT. LTD 5053 Tomy Mathew [email protected] 900 m.a.s.l.

Robusta

Washed

RobustaNatural

Robusta Cherry Bulk

Robusta Cherry AB

FAIR TRADE PRODUCERS

ASSOCIATION (FTPA),

PAZHAMPALLICHAL:ADIMALI

25884 Mrs. Rachel John [email protected] 760 m.a.s.l.

Robusta

Washed

Robusta

Natural

Robusta Cherry Bulk

Robusta Parchment


ASSOCIATION (FTPA):WAYANADU

25886 Mrs. Rachel Johnwayanad.rade@gmail.

com270 m.a.s.l.

Robusta

Washed

Robusta

Natural

Robusta Cherry Bulk

Robusta Parchment


ASSOCIATION: KUMILY25885 Mrs. Rachel John [email protected] 760 m.a.s.l.

Robusta

Washed

Robusta

Natural

Robusta Cherry Bulk

Robusta Parchment

INDIAN ORGANIC FARMERS

PRODUCER CO MPANY LTD.6001 Jerin George [email protected]

1200

m.a.s.l.

Robusta

Washed

Robusta

Natural

AB, C14 Screen

MALENA DU SAVAYAVA

KRISHI PARIVAR(R)29015

RAGHAVENDRA P

SHASTRY

raghavendrashastry@

yahoo.in

1500

m.a.s.l.

Arabica

Washed

Robusta

Washed

Robusta Cherry A, AB

MANARCADU SOCIAL

SERVICE SOCIETY19619 Kurien Bijumon [email protected]

1100

m.a.s.l.

Arabica

Washed

ArabicaNaturals

Robusta

Washed

Robusta

Naturals

Washed Arabica:

Plantaon PB/A/B/Bulk

Unwashed Arabica:

Cherry AA/BB/PB/AB/C/Bulk.

Washed Robusta:

Parchment PB/AB/AA/C/

Bulk.

Unwashed Robusta:

Cherry PB/AB/C/Bulk

PRASANNA GANAPATHI

FARMERS FOUNDATION29273

Prasannakumar

[email protected] 900 m.a.s.l.

Robusta

Washed

Robusta

Natural

Robusta Clean bulk

Robusta AB

Robusta A

Robusta B

SAHYADRI ORGANIC SMALL

FARMERS CONSORTIUM20381 Biju Kadapur

pdsorganicspices@gmail.

com900 m.a.s.l.

Arabica

Naturals

Robusta

Naturals

Robusta AB, B

SUMINTER INDIA ORGANIC

FARMERS CONSORTIUM21815 Mathew Jeswin [email protected] 760 m.a.s.l.

Robusta

Washed

Robusta

Natural

Robusta Cherry B, AB

THANDIGUDI COFFEESIRUVYVASAYIKAL

ABHIVRIDHI SWAYAM

SEVAY AMAYPPU

32031KRM

[email protected]

1500

m.a.s.l.

Arabica

Washed Plantaon bulk

THE SMALL & MARGINAL

TRIBAL FARMERS

MUTUALLY AIDED

COOPERATIVE SOCIETYLIMITED

6095 Karothu Sash [email protected]

m.a.s.l.

Arabica

Washed

Arabica

Naturals

Arabica HoneyDried

Plantaon bulk

WSSS ORGANIC FARMERS

FAIRTRADE ASSOCIATION(WOFFA)

20255 Vineesh Mathew [email protected] 900 m.a.s.l .

Robusta

Washed

Robusta

Natural

Robusta coee Cherry

A,AA,AB

Cleaned Bulk and

Washed Coee

fairtrade coffee newsletter issue 2 february 2016

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