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Upscaling Sustainability Initiatives in International Commodity Chains

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Upscaling Sustainability Initiatives in International Commodity Chains Wettelijke Onderzoekstaken Natuur & Milieu Upscaling sustainability initiatives in international commodity chains Examples from cocoa, coffee and soy value chains in the Netherlands WOt-technical report 67 V.J. Ingram, L.O. Judge, M. Luskova, S. van Berkum & J. van den Berg Upscaling sustainability initiatives in international commodity chains This WOt-technical report was produced in accordance with the Quality Manual of the Statutory Research Tasks Unit for Nature & the Environment. The ‘WOt-technical reports’ series presents the findings of research projects implemented for the Statutory Research Tasks Unit for Nature & the Environment by various centres of expertise. This report/publication presents the findings of a research project commissioned by PBL Netherlands Environmental Assessment Agency. PBL is an autonomous research institute in the fields of the environment, nature and spatial planning, as is safeguarded in the Protocol for the Policy Assessment Agencies (Aanwijzingen voor de Planbureaus), Staatscourant (government gazette) 3200, 21 February 2012. This document contributes to the body of knowledge which will be incorporated in more policy- oriented publications such as the National Nature Outlook and Environmental Balance reports, and thematic assessments. The research was funded by the Dutch Ministry of Economic Affairs (EZ). Upscaling sustainability initiatives in international commodity chains Examples from cocoa, coffee and soy value chains in the Netherlands V.J. Ingram, L.O. Judge, M. Luskova, S. van Berkum & J. van den Berg Statutory Research Tasks Unit for Nature & the Environment Wageningen, July 2016 WOt-technical report 67 ISSN 2352-2739 http://dx.doi.org/10.18174/389546 Abstract Ingram, V.J., L.O. Judge, M. Luskova, S. van Berkum & J. van den Berg (2016). Upscaling sustainability initiatives in international commodity chains; Examples from cocoa, coffee and soy value chains in the Netherlands. Statutory Research Tasks Unit for Nature & the Environment (WOT Natuur & Milieu). WOt- technical report 67. 125 p. 20 Figs.; 34 Tabs; 122 Refs. This study reports on the extent to which sustainability initiatives in the cocoa, coffee and soy value chains have been scaled up by companies. We have investigated how the private sector can be further stimulated to engage in, sustain and increase their involvement in actions to increase the sustainability of commodity chains with links to the Netherlands. The report analyses the motives for companies to join sustainability initiatives and their reasons for not engaging. It concludes with several recommendations on how government and value-chain stakeholders could further stimulate the scaling up of sustainability initiatives. Key words: value chains, soy, cocoa, coffee, policy, trade, development policy, sustainability, upscaling Referaat Ingram, V.J., L.O. Judge, M. Luskova, S. van Berkum & J. van den Berg (2016). Opschaling van duurzaamheidsinitiatieven in internationale handelsketens; Voorbeelden van soja-, cacao- en koffie-waardeketens in Nederland. WOT Natuur & Milieu, Wageningen UR. WOt-technical report 67. 125 p. 20 Figs.; 34 Tabs.; 122 Refs. Deze studie laat zien op welke wijze bedrijven duurzaamheidsinitiatieven in de cacao-, koffie- en sojawaardeketens hebben uitgebreid. We hebben onderzocht hoe bedrijven verder kunnen worden gestimuleerd om hun betrokkenheid in de verduurzaming van internationale handelsketens te behouden en te vergroten. De motieven van bedrijven om al dan niet te verduurzamen zijn geanalyseerd. Ten slotte doen we aanbevelingen hoe de overheid en betrokkenen bij de waardeketens duurzaamheidsinitiatieven verder kunnen stimuleren. Trefwoorden: handelsketen, soja, cacao, koffie, beleid, handel, ontwikkelingssamenwerking, duurzaamheid, opschalen © 2016 LEI Wageningen UR PO Box 29703, 2502 LS Den Haag Phone: (070) 335 83 30; e-mail: [email protected] The WOt-technical reports series is published by the Statutory Research Tasks Unit for Nature & the Environment (WOT Natuur & Milieu), part of Wageningen UR. This document is available from the secretary’s office, and can be downloaded from www.wageningenUR.nl/wotnatuurenmilieu Statutory Research Tasks Unit for Nature & the Environment, P.O. Box 47, NL-6700 AA Wageningen, The Netherlands Phone: +31 317 48 54 71; e-mail: [email protected]; Internet: www.wageningenUR.nl/wotnatuurenmilieu All rights reserved. No part of this publication may be reproduced and/or republished by printing, photocopying, microfilm or any other means without the publisher’s prior permission in writing. The publisher accepts no responsibility for any damage ensuing from the use of the results of this study or from the implementation of the recommendations contained in this report. F-0031 UK vs 1.2 (2016) Project WOT-04-011-036.80 WOt-technical report 67 – July 2016 Preface We are grateful to and thank all the representatives of the companies, NGOs and the Dutch ministries who were contacted for this study and who shared their ideas and information. We are highly appreciative of the collaboration with Mark van Oorschot of the Netherlands Environmental Assessment Agency (PBL) and guidance given by Frank Veeneklaas of WOT Natuur & Milieu - Wageningen UR, on this study. Verina Ingram Lucas Judge Martina Luskova Siemen van Berkum Jolanda van den Berg Contents Preface 5 Abbreviations 9 Summary 11 1 Introduction 13 2 Conceptual approach and methods 17 2.1 Concepts 17 2.1.1 Upscaling 17 2.1.2 Market and chain transformation 20 2.1.3 Policy instruments 20 2.1.4 Value chains 21 2.1.5 Governance 22 2.2 Research methods 24 2.2.1 Case studies 24 2.2.2 Value chain analysis 24 2.2.3 Literature review 24 2.2.4 Structured interviews 24 2.2.5 Informal discussions and meetings 25 2.2.6 Verification meeting 25 3 The cocoa value chain 27 3.1 Value chain structure 27 3.1.1 Cocoa value chain context 27 3.1.2 The Netherlands and the cocoa value chain 28 3.1.3 Production 28 3.1.4 International trade 30 3.1.5 Stakeholders and chain consolidation 30 3.1.6 Asia and the cocoa value chain 31 3.2 Overview of sustainability initiatives 32 3.2.1 Platforms, networks and associations 33 3.2.2 Voluntary sustainability standards 34 3.2.3 Corporate initiatives 35 3.2.4 Interlinking initiatives 36 3.3 Motives to upscale 37 3.4 Policy instruments to increase value chain sustainability 39 4 The coffee value chain 43 4.1 Value chain structure 43 4.1.1 Coffee value chain context 43 4.1.2 Characteristics of the global coffee value chain 44 4.1.3 The Netherlands and the coffee value chain 46 4.2 Overview of sustainability initiatives 46 4.2.1 Introduction 46 4.2.2 Platforms, networks and associations 47 4.2.3 Voluntary sustainability standards 48 4.2.4 Corporate initiatives 49 4.2.5 Interlinking initiatives 50 Upscaling sustainability initiatives in international commodity chains | 7 4.3 Motives to upscale 51 4.4 Policy instruments to increase value chain sustainability 52 5 The soy value chain 55 5.1 Value chain structure 55 5.1.1 Soy value chain context 55 5.1.2 The Netherlands and the soy value chain 56 5.1.3 Production 56 5.1.4 International trade 57 5.1.5 Stakeholders and chain consolidation 58 5.1.6 China and the soy value chain 58 5.2 Overview of sustainability initiatives 59 5.2.1 Platforms, networks and associations 59 5.2.2 Voluntary sustainability standards 60 5.2.3 Corporate initiatives 61 5.2.4 Interlinking initiatives 62 5.3 Motives to upscale 63 5.4 Instruments to increase value chain sustainability 64 6 Synthesis of major findings 65 6.1 Value chain structure and (most important) players 65 6.2 Overview of sustainability initiatives 68 6.2.1 Platforms, networks and associations 68 6.2.2 Voluntary sustainability standards 70 6.2.3 Corporate initiatives 71 6.3 Motives to upscale 72 6.3.1 What explains the differences in the upscaling of sustainability initiatives? 72 6.3.2 Why do companies choose not to engage in sustainability initiatives? 75 6.4 Policy instruments to increase value chain sustainability 75 6.5 Medium-term expectations 77 6.6 Lessons and recommendations 79 6.7 Key findings summarised 81 6.7.1 Value chain structure and the upscaling of sustainability initiatives 81 6.7.2 Overview of sustainability initiatives 81 6.7.3 Motives to upscale 82 6.7.4 Instruments to increase value chain sustainability 83 6.7.5 Recommendations 84 7 References 87 8 Justification 93 Annex 1 Stakeholder questionnaire 95 Annex 2 Respondents 99 Annex 3 Sustainability initiatives in the cocoa value chain 100 Annex 4 Sustainability initiatives in the coffee value chain 107 Annex 5 Sustainability initiatives in the soy value chain 113 8 | WOt-technical report 67 Abbreviations ABIOVE Brazilian Association of Vegetable and Oil Industries CAOBISCO Association of Chocolate, Biscuit and Confectionery Industries of Europe CBI Centre for the Promotion of Imports from Developing Countries CBL Centraal Bureau Levensmiddelenhandel/Dutch Food Retail Association CEN European Committee for Standardisation CSO Civil society organisations DZ Duurzame Zuivelketen / Sustainable Dairy Chain ECA European Cocoa Association FAO United Nations Food and Agriculture Organisation FEFAC European Feed Manufacturers Federation FNV Federatie Nederlandse Vakbeweging/Dutch Trade Union Federation GAP Good Agricultural Practice GlobalGAP Private sector voluntary standards setting body for certification of agricultural products ICCO International Cocoa Organisation ICO International Coffee Organisation ICI International Cocoa Initiative ICRAF World Agroforestry Center IDH Initiatief Duurzaam
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