The document discusses various coffee certifications and sourcing methods, including their virtues and limitations. It begins with an overview of the speaker's education and experience studying the social and environmental impacts of the Bolivian coffee industry. It then provides details on certifications like 4C, UTZ, Organic, Shade Grown, Rainforest Alliance, and Fair Trade, explaining their requirements and goals. Direct trade is discussed as a newer sourcing model that forms direct relationships with farmers. Tips are provided for consumers to make informed choices.
1. Breaking Down the Certifications
Sebastian Martin: An Ethical Coffee Perspective
at Green Drinks China, Shanghai
9th January, 2014
2.
3. My Coffee Education
— Masters Dissertation (2011)
— The social and environmental
impact of the coffee
— Bolivian Coffee Industry
— Los Yungas Region
— Visits to Coffee Plantations
— Interviews with Coffee
Farmers, Exporters & Local
Community Members
4. My Coffee Education
— Environmental Issues
— Use of harmful chemicals
—
—
—
—
—
—
& pesticides
Soil Erosion
Irresponsible Water
Treatment
Irresponsible Waste
Treatment
Deforestation
Destruction of Animal
Habitats & Ecosystems
Carbon Footprint of
Import-Export
6. My Coffee Education
— Social Issues
— Generally poor rural
communities
— Lack of infrastructure, health care,
land ownership, job
opportunities, gender equality,
child welfare, education, technical
assistance & access to international
markets
— Agricultural Economy
— Often low income generation
— Coffee Prices subject to
International Market Price
Fluctuations
— Subject to Environment
— Disease & Climate Change
— Very Hard Labor
— Farmer Exploitation
7.
8. Cambio Coffee Launch (2012)
— Wanted to start a social enterprise
— Wanted to maximize benefits for marginalized
populations in developing countries
— Wanted to build a very cool product & brand
— Start an ethical coffee company- that could
improve the lives of growers in the best way
possible and encourage environmental
protection
— Questions?
— What kind of coffee to promote?
— How to source in the most ethically
responsible way?
10. 4C Association
— Since 2003
— A mainstream code of conduct for sustainability
— 10 Unacceptable Practices
— Rules of Participation & Coffee Trading
— Traffic Light System
— Membership driven organization
— Includes coffee farmers & buyers
— Promote more sustainable, socially responsible,
and transparent practices
— Member benefits: workshops, training & tools
— Requirements
— Third Party Auditing (ISO Standards)
— Membership Fees
11. 4C Association
— Virtues
— Minimal Fees to Producers
— Offer free training
— Limitations
— No product claim, seal or on-product labeling
— No minimum price for growers—
negotiation between 4C members.
— Driven by voluntary membership & goodwill
— Limited Market Recognition
12. UTZ Certified
— Since 1997
— Emphasis on traceability &
sustainability in supply chain
— Farm professionalism
— Standards to preserve wildlife & soils
— Worker Health & Safety
— Web-based traceability systems
— Requirements
— Third Party Auditing (ISO Standards)
— Certification Fees
13. UTZ Certified
— Virtues
— Certify cocoa, tea, soy, and palm oil
— Ensures price premium for farmers:
USD$0.05¢ per pound average for
Arabica
— Provided at very low cost to producers
— Technical assistance available worldwide
— Limitations
— Limited Market Recognition
14. Organic
— General Definition
— Agricultural products grown without the use of
chemical fertilizers and pesticides
— Producing food in harmony with nature,
supporting biodiversity, and enhancing soil
health.
— Benefits
— Healthier for consumers
— Better for the environment
— Better price premiums for farmers
— Requirements
— Organic Farming Practices (vary by country)
— Annual Inspections
— Fees
— More than 40 nations supplying the global
market with organic certified products
— More than any other certification
15. Organic
— Virtues
— Variety of agricultural products can be
certified
— Price premiums awarded
— For USDA certified coffee, average price
premiums of USD $0.255¢ per pound are paid
to producers.
— Limitations
— Certification costs vary by certifier, but
fees range from $700 to $3000 USD
annually.
— International Standards not applicable in
China
16. Shade Grown Coffee
— Since 1997
— Started by Smithsonian Migratory Bid
Center
— Research and education around migratory
bird populations
— Promote coffees grown under the shade of
trees to protect forests, soil, and habitats for
birds and other organisms.
— Requirements:
— Organic Certification is a prerequisite
— Inspections every 3 years to assess leaf
foliage, shade & biodiversity
17. Shade Grown Coffee
— Virtues
— Spearheads wildlife protection as well as
—
—
—
—
sustainable farming practices
Niche Market Appeal of Bird Watchers
Free training workshops for Certified
Ensures Price Premiums of USD $0.05 -.10¢
per pound on top of what they receive for
organic (usually 18% plus total)
Minimal add-on fee to organic inspection costs
for growers
— Limitations
— Hard for volumes to compete with ‘sun-gown’
coffee
— Only available to Organic Certified farms
18. Rainforest Alliance
— Since 1992
— Promote:
— Biodiversity & wildlife conservation
— Community development & workers’
rights and benefits
— Comprehensive sustainable farm
management.
— Requirements
— Annual audits
— More than 200 criteria points that are
field tested
— Fees for auditing Costs
19. Rainforest Alliance
— Virtues
— Global Scope
— Consumed in 44 countries on 6 different
continents
— Minimal Fees for Growers—often audit
costs are paid for by buyers
— Limitations
— No minimum price for growers—
negotiation between buyers & sellers.
20. Fair Trade
— Since 1997
— Promotes:
— Fair prices for Farmers
— Community Development & Environmental
Stewardship
— Access to International Markets
— Minimum Prices & Social Premium for
cooperatives
— Organic premium for organic coffees
— Empowers coops to compete in the global market
— Requirements
— Must be a Cooperative
— Adoption of Fair Trade Standards
— Coop Size, Democratic organization, Contractual
Transparency, Reporting & Environmental Standards
— Annual inspections by TransFair (USA) & FLO
(Internationally).
— Inspection Fees
21. Fair Trade Virtues
— Global Scope:
— FLO collaborates with 19 labeling initiatives around
the world
— Covers a variety of goods: tea, cocoa, bananas, sugar,
honey, rice, flowers, cotton, and even sports balls.
— For coffee, ensures a Price Premium of USD
$1.20 USD per pound (2013), and when
applicable , a social premium of USD$0.10 per
pound and an Organic Differential of USD
$0.20 per pound.
— Global Market Penetration
— Has raised the profile of ethical goods and consumer
following in Western markets especially
— Organizations funds awareness campaigns, media and
on-product labeling
22. Fair Trade Limitations
— Only Works with Coops
— Small Producers (land owners) that come together
to share contacts and resources, productive, beans
for blends, and importantly, container space to
export coffee in volumes.
— Usually democratically controlled equally by all of
its members
— Benefits & Higher Prices for all coop members
— Excludes:
— Social Estates
— Grower Owned
Micro-lots
— Poorest Coffee
Farmers (Hired)
23. Fair Trade Limitations
— Benefits Not Always Trickling Down
to Farmers
— FLO regulations require a great amount of record keeping
— Time-consuming
— Literacy Barriers (Fairtrade Forms only recently made available in
Spanish)
— Illiteracy among Coop Members
— Misappropriation of Funds
— Records kept by cooperatives have shown that premiums paid for
Fair Trade coffee are often used not for schools or organic farming
but to build nicer facilities for cooperatives or to pay for extra office
staff.
— ‘Even analysts sympathetic to the movement have suggested that
only 25 per cent of the premium reaches producers.’ (The
Telegraph)
24. Fair Trade Limitations
— It’s Too Expensive
— Costs approximately $2000
USD in the first year,
followed by annual auditing &
reinspection costs
— For many struggling coffee
growers and cooperatives,
this is a totally unaffordable.
35. Direct Trade Coffee
— Popularized since 2010
— Coffee companies going to visit coffee
plantations at origin
— Forming direct relationship with
Farmers & Communities
— Cutting out Intermediaries, offering
Premium Prices Directly to Growers
— Self-auditing responsible farms: not
relying on certifications
— Rewarding them for very high quality
Coffee (Specialty Coffee)
36. Specialty Coffee
80+
•
Specialty Grade Coffee
• Awarded 80+ Points according to SCAA Standards
• Teaching Growers that Producing High Quality Coffee is
More Valuable than Fairtrade
37. Direct Trade Coffee
— Virtues
— Specialty Grade Coffee ensures Price
—
—
—
—
Premiums up to 60% higher than
Fair Trade Coffees
Great Story & Marketing Materials
Freedom for coffee companies to
partner directly with social & ecofriendly farms
No need for certifications
Best quality product
— Limitations
— Cost & Time taken for Sourcing Trips
— Company must train for quality control
and social & eco auditing
38. Tips for Consumers
— Fairtrade & Certified is better than nothing!
— Read up on Labels & Certifications
— Get informed about Origins & Sourcing Practices of your
food
— Don’t put so much stock in Certifications—all have their
limitations
— Support Direct Trade if you can!