utz coffee statistics report 2017 · utz average coffee premium increased with 7%, with an increase...
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UTZ Coffee Statistics Report
2017
UTZ is the largestcertification program
in the world for sustainable coffee
More than 480,000coffee farmers and
workers benefit from the UTZ program
UTZ certified coffee is produced in
23 countries
In 2017, more than
43.8 billion cups of UTZ certified coffee were enjoyed
in 84countries
Introduction
The main goal of this report is to present the scope and scale of the UTZ coffee program in 2017 – calendar year. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency.
The statistics report focuses on the key indicators related to:
• Market uptake: sales of UTZ certified coffee
• Program reach: UTZ certified coffee production, premiums being paid
and multi-certification of this production
This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal.
We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at [email protected]
©2018 UTZInformation presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.
A stable supply base
UTZ supply remains stable with Arabica volume growing and compensating slight Robusta decline
More than 225 thousand farmers and over 250 thousand workers reached
43% of UTZ coffee certificate holders are also certified for one or more other schemes, being UTZ-Rainforest Alliance the most common combination. Multi-certification is most common in Africa
Increased demand for UTZ was reflected in 14% increase in first buyer sales; with higher sales of both Arabica and Robusta Coffee
Increasing commitments for certified coffee of European retailers
Significant growth of demand for UTZ soluble coffee
In 2017, farmers were able to sell 43% of certified coffee as UTZ
An increasing market demand for UTZ certified coffee
Summary
Content
1. Reach
2. First buyer sales
3. Premium
4. Estimated production
5. Supply-demand trend
6. Multi-certification
1.1 Geographical reachThe UTZ Coffee program reached 23 producing countries
Compared to 2016 El Salvador (1 group and 1 estate) and Panama (1 estate) weren’t anymore in the program
1.2 Program reach5% more land was reached by the UTZ coffee program in 2017, but there were 14% less workers. The number of farmers reachedremained fairly stable
The growth in area was mostly driven by Latin America, particularly Brazil and Colombia The number of farmers remained fairly stable. The decrease of 0.2% was mostly driven by
Africa The largest absolute decrease in the number of workers was seen in Vietnam and
Honduras
592,977
2013 2014 2015 2016 2017
Area (Ha)
255,647
2013 2014 2015 2016 2017
# of workers (seasonal and permanent)
Relative growth ‘16 – ‘17 5% -0.2% -14%
226,015
2013 2014 2015 2016 2017
# of farmers
2.1 Global first buyer salesThe UTZ coffee 1st buyer sales increased with 14% from 2016 to 2017
Increased demand coming mainly from:- Western Europe - driven by private labels- Northern Europe - driven by A- brands
Substantial volumes were sold to the coffee soluble industry
‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.Private labels are products under own company name manufactured by a third party. A-brands are own branded products.* From 2015 onwards volumes are reported in Green coffee equivalent
224,028
258,867 238,392
321,419
365,091
2013 2014 2015* 2016 2017
MT
Gre
en
Co
ffee
Eq
uiv
alen
t
14%
-8%
35%
2.2 First buyer sales per originMost UTZ coffee came from Brazil (38%), Vietnam (17%) andHonduras (13%)
9% increase in Latin America mainly due to more sales from Honduras, Nicaragua and
Guatemala
31% increase in Asia with all countries increasing their sales, except for China
31% increase in Africa with all countries increasing their sales, except for Ethiopia and Kenya
‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.*’Other' includes : Indonesia, Tanzania, Peru, India, Ethiopia, Costa Rica, Kenya, Guatemala, China, Papua New Guinea, Uganda, Mexico, Rwanda, Burundi, DR of Congo & Zambia
Relative growth ‘16 – ‘17 27%-6%
139,848
61,178
47,401
34,595
18,054
64,015
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Brazil Vietnam Honduras Colombia Nicaragua Other*
MT
Gre
en C
off
ee E
qu
ival
ent
2015
2016
2017
48% 9% 65% 31%
2.3 Split Arabica vs RobustaAlmost 40% increase in Robusta first buyer sales sales and 10% increase in Arabica
Robusta volume sold increased with almost 40% with all UTZ producing countries increasingtheir sales
Vietnam and India sold most of the UTZ certified Robusta coffee Almost 10% increase in Arabica sales mainly driven by increase in sales of Arabica coffee
from Honduras
‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas* From 2015 onwards volumes are reported in green coffee equivalent
77%
82%
18%
82%
188,755 183,776
274,272
299,380
70,113 54,615 47,147
65,711
2014 2015* 2016 2017
MT
Gre
en C
off
ee E
qu
ival
ent
Arabica Robusta
23%
85%
15%
18%
77%73%
27%23%
85%
82%
15%
2.4 First buyer sales per coffee quality classificationIncrease in sales for all coffee qualities except for the Brazilian Arabica sales which decreased with 6%
Brazilian and other natural Arabicas decreased with 6% Other Arabica Milds coffee qualities increased with 42% Robusta sales increased with 39% Colombian Milds increased with 9%
‘First Buyer Sales’ are all the confirmed sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas*Coffee quality classification for a small volume of Arabica coffee is unknown
112,675
98,981
148,254
138,977
50,664 54,884
87,746
124,458
70,113
54,615 47,147
65,711
20,457 27,542
31,671 34,595
2014 2015 2016 2017
MT
Gre
en C
off
ee E
qu
ival
ent
Brazil and other natural Arabicas Other Arabica Milds Robustas Colombian Milds
87 supply chain actors joined the UTZ coffee program in 2017, a relative growth in members of 13%
First supply chain actors joined in Hong Kong and the Russian Federation In 2017, there were 1,609 new labeled coffee products on the market
2.5 Market uptake Sales growth was also reflected in new supply chain actors andlabeled packages
492
582
669
756
2014 2015 2016 2017
# of Licensed Coffee Supply Chain Actors
‘Supply Chain Actors’ include traders, roasters and retailers
13%
3.1 PremiumUTZ average coffee cash premium increased to 3.60 $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
UTZ average coffee premium increased with 7%, with an increase of 9% for Arabica to3.78 Cents/ lb and a decrease of 3% for Robusta to 2.77 Cents/ lb in 2017
UTZ premium calculations are based on transactions data recorded in the UTZ traceability system. Previous years values above 20 $c/lbs were excluded from the analysis. In 2017 values above 30 $c/lbs are excluded. This change will improve our analysis and understanding of the UTZ premium
3.373.60
3.46
3.78
2.87 2.77
2016 2017
Global average UTZ Cash Premium ($c/lbs)
Global Arabica Robusta
3.2 Premium per countryThere are significant differences in the UTZ average coffee cash premium among countries
Premiums differ per country, producer and buyer because of several aspects such as quality, proportion of in-kind premium, and negotiation powers
Largest absolute increase seen in India Largest absolute decrease seen in Indonesia
* UTZ premium calculations are based on transactions data recorded in the UTZ traceability system. Values above 30 $c/lbs are excluded from the analysis. Countries with less than 3 CHs not included
3.054.00
6.01
8.09
1.36
3.03
6.47
1.87
12.32
3.68
6.78
2.493.13
7.74
2.41 2.41
4.07
1.52
Average UTZ Cash Premium ($c/lbs)
2016 2017
Global averageUTZ Cash premium 2017
70% 70%72%
80% 83%
30% 30%
28%
20% 17%
2013 2014 2015 2016 2017
MT
Gre
en C
off
ee E
qu
ival
ent
Arabica Robusta
4.1 UTZ estimated productionUTZ estimated production remained stable despite a decrease in Robusta coffee
2% more certified Arabica volume, 15% reduction in Robusta volume Estimated production in Latin America and Africa remained quite stable with an increase of 2%
and 1% respectively Estimated production in Asia decreased by 11% mainly due to a decrease in production in
Vietnam
Estimated production is based on license information from licenses valid on December 31st 2017
-1%726,591 729,918
821,399870,102 857,803
6%
13%
4.2 UTZ estimated production per originGrowth in certified volume in Colombia compensated the decline in Vietnam
79% of UTZ certified coffee volume comes from 5 countries: Brazil, Vietnam, Honduras, Peru and Colombia
Largest absolute growth in Colombia because of an increase in the number of farmers and area Largest absolute decline in Vietnam because of a decrease in the number of group members and
weather conditions
Estimated production is based on license information from licenses valid on December 31st 2017*Other includes: India, Laos, Indonesia, Nicaragua, Costa Rica, Kenya, Mexico, Uganda, China, Tanzania, Papua New Guinea, Rwanda, Burundi, DR of Congo, Dominican Republic, Ethiopia, Guatemala & Zambia
295,547
141,610
101,814
73,525 69,393
175,913
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Brazil Vietnam Colombia Peru Honduras Others
MT
Co
ffee
Gre
en E
qu
ival
ent
2015
2016
2017
Relative growth ‘16 – ‘17 -18%-2% 37% -3% -16% 7%
5.1 Supply-demand trendProducers sold on average 43% of their estimated production as UTZ. Increasing trend since 2015
The share of estimated production that was sold as UTZ increased in 2017 for all regions Largest increase seen in Asia from 27% in 2016 to 40% in 2017 Latin America increased from 42% in 2016 to 45% in 2017 Africa increased from 18% in 2016 to 24% in 2017
Supply Demand is based on first buyers sales and estimated production 2017. It indicates a trend but not an absolute number.
35%
29%
37%
43%
2014 2015 2016 2017
% of estimated production sold as UTZ
45%40%
24%
Latin America Asia Africa
% of estimated production sold as UTZ per region in 2017
6.1 Multi-certification: Certificate holders43% of UTZ coffee certificate holders are also certified for one or more other schemes
Decrease in multi-certified CHs for all schemes included in the analysis Rainforest Alliance (RFA) was once again the most common scheme in combination with UTZ Multi certification is most common in Africa (78%), followed by Latin America (42%) and Asia (33%)
Multi-certified represents the number of UTZ coffee certificate holders that were also certified for one or more of the following schemes: Fair Trade; Rainforest Alliance; Organic are included in the analysis. 4C and ‘Other’ schemes are excluded from the total Multi-certification figures for UTZ since these are practices and not a certification schemes
45%
8%
30%
17%
48%
12%
32%
20%
43%
11%
28%
18%
Multi-Certified Fair Trade RFA Organic
2015
2016
2017