Sustainable Coffee Report

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



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.



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®



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


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


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.



"bio" is regulated by law in many of the major markets. For some, this weight of law conveys an


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


levels of growth. In most markets, growth levels still outpace the growth of comparable


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


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



For some, this weight of law conveys an


Organic coffee is the most important category of sustainable coffees, both in quantity and value. In

Although it is the most


levels still outpace the growth of comparable


2010. At origin, the level of new organic

s slowing at the close of the decade. Other standards are recently growing at a faster




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”.



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


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


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.


advantage of online monitoring.


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


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



position in the Nordic countries as well as Belgium and Switzerland. Utz hopes to



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


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



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


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



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


ification. Instead, it offers a verification procedure that does not employ the rigor or cost of a


there are no price premiums associated with being a 4C farmer though the verification may make a


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



business concept.

provides a simple process that is accessible for many producers, even those who


ification. Instead, it offers a verification procedure that does not employ the rigor or cost of a


rmer though the verification may make a




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


total import figures from its members, but cannot give more detailed


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


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


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


derived from: D. Giovannucci. 2010. North

2006

2007

2008

2009



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

Documents

Sustainable Coffee Report