Social, Economic and Environmental Results of UTZ Certification
Case studies on UTZ CERTIFIED coffee farms in ASIA, AFRICA and LATIN AMERICA
Vietnam, India, Kenya, Guatemala, Colombia, Brazil
October 2010 FOREWORD BY UTZ CERTIFIED 3 5. GUATEMALA: 26 SHARING EXPERIENCES Another problem with the data was that statements Finca Los Cerros Transparency and continuous improvement are key principles of compliance with the standard (‘output level’) were INTRODUCTION 4 of the UTZ CERTIFIED program. As UTZ CERTIFIED aims to sometimes mixed with results (‘outcome level’). Working 5.1 Introduction continuously improve its program, the objective of this with a research partner was also a learning experience METHODOLOGY 5 5.2 Results study, besides learning more about the ‘what’ (what are for us. Although there is a clear advantage in having an 5.2.1 Economic results the results of our program), was also learning more about independent party compile the case studies and write the CASE STUDY RESULTS 6 5.2.2 Environmental results the ‘how’ (how should we assess the results of our program). report, we experienced that it can be difficult to provide 5.2.3 Social results During this study we tested our monitoring indicators and the right amount of guidance whilst ensuring the report 1. VIETNAM: 6 5.3 Conclusion gained experience through conducting case studies. remains independent. Phuoc An Coffee Company and We would like to take this opportunity to share our Working in a field that requires very specific knowledge, Thai Hoa Lam Dong Limited Company 6. COLOMBIA: 30 experiences with the reader. With regards to the ‘what’, it is such as technical issues around certification processes, Cooperativa Anserma important to emphasize that this study does not aim to show voluntary standard initiatives and sustainable coffee 1.1 Introduction the impact of UTZ Certification. Instead of looking for long production, required some guidance. We also learned 1.2 Results 6.1 Introduction term impacts, we aimed to learn more about short and how important it is that the research partner is very well 1.2.1 Economic results 6.2 Results medium results of certification: how producers experience informed about the theory of change of the program. 1.2.2 Environmental results 6.2.1 Economic results UTZ Certification, what changes they have made, what Clearly defining our intended change, as is now required 1.2.3 Social results 6.2.2 Environmental results challenges they are facing and what benefits and achieve- by the ISEAL Code of Good Practice, will help to commu- 1.3 Conclusion 6.2.3 Social results ments they would like to share. nicate our long term goals and assumptions behind it to TABLE 6.3 Conclusion independent researchers in the future. FOREWORD OF 2. INDIA: 11 CHALLENGES AND LESSONS LEARNED Working with an independent party also made it more BY CONTENTS Amalgamated Bean Coffee 7. COLOMBIA: 35 A first and important challenge was selecting the producers. difficult to ask follow-up questions about the results. UTZ CERTIFIED Trading Company Limited Finca Borneo The certificate holders were selected in consultation with In some cases, findings of the data collectors such as the UTZ representatives in the field (strategic partner increased productivity and quality, raised questions about 2.1 Introduction 7.1 Introduction Solidaridad). In the case of group certifications, the group the mechanisms behind it: which good practices led to 2.2 Results 7.2 Results members were selected randomly by the data collectors, this increased productivity? Distance, time differences and 2.2.1 Economic results 7.2.1 Economic results however the number of producers selected was not always language barriers make it more difficult to communicate 2.2.2 Environmental results 7.2.2 Environmental results representative for the whole group. and for the research partner to follow up with the data 2.2.3 Social results 7.2.3 Social results Secondly, we experienced how difficult it is to instruct and collectors. A very positive learning was how, with limited 2.3 Conclusion 7.3 Conclusion guide data collectors from a distance. The data collectors time and resources, very interesting data can be collected were very experienced and were selected based on their about the results of certification. We also learned that 3. KENYA: 16 8. BRAZIL: 39 extensive knowledge of sustainable farming practices in quotes, pictures and images are very important to Rianjagi Farmers Rancho Fundo coffee production. However, despite the close communi- illustrate the results and strengthen the findings of the Co-operative Society Limited cation with UTZ CERTIFIED on the data collection process, report. 8.1 Introduction there was still quite a variance between the data received. 3.1 Introduction 8.2 Results This may be due to different cultural backgrounds and CONCLUSION 3.2 Results 8.2.1 Economic results language barriers. The use of semi-structured interviews Although the report has some methodological short- 3.2.1 Economic results 8.2.2 Environmental results instead of a full questionnaire also explains the differen- comings, we have decided to share the findings with our 3.2.2 Environmental results 8.2.3 Social results ces between the country reports. More prescription and stakeholders, using this report as a background document. 3.2.3 Social results 8.3 Conclusion guidance would have increased the consistency of the Thanks to these case studies we are able to show some 3.3 Conclusion report. Structuring the data and streamlining the tone of very concrete and practical examples of how UTZ Certifica- 9. BRAZIL: 41 voice in the document was a challenging task. The text tion can improve sustainable practices, cost efficiency and 4. GUATEMALA: 22 Ponto Alegre was sometimes repetitive and not always reader friendly. farm income. The findings and conclusions clearly show Cooperativa San José A text editor amended this as much as possible, whilst the extent to which social, environmental and economic Obrero-Fedecocagua 9.1 Introduction maintaining the original results. sustainability are interrelated. 9.2 Results A third important challenge was the lack of baseline data The case studies confirmed our assumptions about how 4.1 Introduction 9.2.1 Economic results and the difficulty to collect credible qualitative information. the UTZ program influences good agricultural, social and 4.2 Results 9.2.2 Environmental results Because of the lack of baseline data, the status of the environmental practices on certified farms. Most impor- 4.2.1 Economic results 9.2.3 Social results producers before participating in the program and the tantly, the studies do not only show how certification can 4.2.2 Environmental results 9.3 Conclusion changes they made could only be reconstructed through improve the way in which farms are managed, but they 4.2.3 Social results interviews. Although the interviews clearly show the also showed that producers understand and appreciate the 4.3 Conclusion SUMMARY & CONCUSIONS 44 farmers’ pride in their achievements, it would have added value of the good practices implemented during the strengthened the report if a set of baseline data was certification process. Conducting these studies was a very ADDENDUM: 46 available. Quantitative data collection itself proved to be useful exercise that again demonstrated the complexity of List of Key Indicators challenging, as sometimes results were reported without assessing the results of certification. Nevertheless the results the calculations behind it. are very interesting and confirm that UTZ Certification is a valuable tool to contribute to sustainability.
2 3 INTRODUCTION Coffee is the world’s largest commodity market, and UTZ CERTIFIED is dedicated to creating an open and OBJECTIVE The data collectors conducted semi-structured inter- METHODOLOGY after petroleum, the second largest globally traded transparent marketplace for sustainable agricultural The objective of this study is to assess the results of views with producers and workers, based on a list commodity. Today’s consumer is increasingly aware of products. UTZ CERTIFIED’s vision is to achieve UTZ Certification for a selection of UTZ CERTIFIED farms of key questions and key indicators. Producers were the concept of coffee quality. And, while taste is still sustainable agricultural supply chains; wherein farmers and producer groups in key production countries, by asked about the history of the producer group, why important, people are more and more interested in are professionals implementing good practices that looking at a number of key social-, economic- and they had decided to become certified and the main the conditions in which their coffee was produced. lead to better businesses; wherein the food industry environmental indicators The purpose of this study is changes they had to make in order to become certified. In Europe, America and Japan, food legislation is takes responsibility by demanding and rewarding to learn more about how producers experience UTZ In addition, the data collectors asked them about the moving towards transparency of origin and traceability sustainably grown products; and wherein consumers Certification in the short and medium term. This study main challenges and benefits of certification. The list of the final product. buy products that meet their standards for social- and does not aim to show the long term impact of UTZ of key indicators can be found in Addendum 1 of this environmental responsibility. Certification. document. A monitoring survey was also filled in by UTZ CERTIFIED was founded in 1997 by a Guatemalan every producer. The information in this report is based coffee producer and the Dutch coffee roaster Ahold UTZ CERTIFIED aims to create recognition for responsible SCOPE on these interviews, surveys and the data collectors’ Coffee Company as an organization that could stand coffee producers of all sizes and origins and to pro- The study includes UTZ CERTIFIED coffee producers observations and is based on qualitative rather than independently from the producers and the roasters. vide the tools for roasters and brands to respond to the in Asia, Africa and Latin America. It covers large quantitative data. They chose the name “UTZ Kapeh”, which means growing demand for assurance of responsibly produced farms as well as producer groups in six countries: “good coffee” in the Mayan language QuichÚ. The coffee. The UTZ CERTIFIED program assures buyers that Vietnam (two cases), India (one case), Kenya (one The data collection process was coordinated by the company opened its first office in Guatemala City in the coffee they’ve purchased meets criteria for efficient case), Guatemala (two cases), Colombia (two cases) Centro de Investigaciones Humanismo y Empresa (CIHE) 1999 and its head office in the Netherlands in 2002. farming and responsible production. UTZ CERTIFIED and Brazil (two cases). of the Universidad del Istmo of Guatemala (UNIS), In March 2007, UTZ Kapeh changed its name to UTZ coffee purchases are fully traceable throughout the which also conducted the data analysis and compiled CERTIFIED Good Inside. coffee chain, enabling buyers to know where their SAMPLING the full report. Centro de Investigaciones Humanismo coffee came from and how it was produced. Key producing countries have been selected in each y Empresa (CIHE) is the department at Universidad del UTZ CERTIFIED has grown within five years to region, based on production volumes. Case studies Istmo that focuses on generating information about become one of the leading coffee certification programs The UTZ CERTIFIED program is based on the UTZ were selected in each country in consultation with the relationship between economics and anthropology worldwide. It is attracting an increasing number of CERTIFIED Code of Conduct: a set of social- and the UTZ counterpart in the field (Solidaridad). For for use by the business- and academic worlds. players in the global coffee chain to participate in the environmental criteria for responsible coffee growing producer groups (organized smallholders), a random CIHE is funded through private sector donations and process of responsible coffee production, -processing practices and efficient farm management. Coffee sample was made within the group. It should be noted by providing services such as case studies related to and -trading. The organization is now expanding to producers who are UTZ CERTIFIED have to comply that those samples were not always representative for ethics, social responsibility and quality management. become a multi-commodity program, offering coffee, with this Code of Conduct. Annual inspections are the whole group. tea and cocoa certification programs. carried out by independent certifiers to ensure that For more information, visit: producers meet the requirements of the UTZ CERTIFIED DATA COLLECTION http://www2.unis.edu.gt/centro-de-investigaciones/ Code of Conduct. UTZ CERTIFIED hired independent local consultants to visit farms and producer groups and collect the data. The consultants were selected based on their know- ledge of the coffee sector, sustainable production practices and certification processes. UTZ supplied a Terms of Reference to guide the data collectors through the process.
4 5 1.1 INTRODUCTION The company’s plantations lie between 500 and 700 Phuoc An joined the UTZ CERTIFIED program for the Thai Hoa first became interested in participating in the meters above sea level, on a slightly undulating following reasons: UTZ CERTIFIED program in 2006, through Mr. Nguyen UTZ CERTIFIED has been active in Vietnam since 2004. plateau of two districts: Krong Pack and Krong Buck. Van Thiet and Café Control. Thai Hoa’s motivation As an internationally recognized program, UTZ CERTIFIED Plot sizes range from 0.5 to 1.0 ha. In general, the For the company: to implement UTZ and organize smallholders was to is seen as a credible instrument for farmers that want bottoms of the valleys are converted to paddy fields - To open up better market access, create a good create a stable supply of inputs for its processing plant to show their buyers that their coffee is professionally and the upper parts are used for seasonal crops, coffee business environment, and receive the UTZ premium; and strengthen its relationship with smallholders. Its and responsibly grown. UTZ Certification is viewed as a and residential area. The climate conditions are favo- - To enhance the company’s image in the market, give goal was to develop sustainable coffee production and valuable tool for Vietnamese growers to increase their rable, the soils are brown to reddish in color and the it access to more customers, and allow the company -business in the area, and to produce quality coffee recognition as a professional and responsible source of topsoil, which ranges in depth from 40 to over 150 cm, to develop its PHUOC AN COFFEE brand further; in a sustainable way. Thai Hoa believes that although quality coffee for the world market. is very suitable for many perennial tree crops, including - To promote responsible supply to the market, buyers coffee processing technology is of crucial importance UTZ CERTIFIED works with local and international part- coffee. The coffee type grown here is mainly Robusta. and social communities. for the quality of its end product, the input product is at ners to support these coffee growers in demonstrating For the producers: least as important - UTZ therefore appeared to be the improvement towards responsible production. Through - To improve practices in coffee production, especially perfect fit. The company has been certified since 2007. its partner organization Solidaridad, UTZ CERTIFIED sup- with regard to coffee quality and the environmental ports producers with technical assistance and training aspects of coffee production. Thai Hoa chose to participate in the UTZ CERTIFIED on the implementation of professional coffee growing “We applied fertilizer program for the following reasons: practices. They work closely with local organizations like according to the yield BRIEF HISTORY OF THE PRODUCER estimation to ensure Cafecontrol, the Vietnam Association for Coffee and enough nutrients for Thai Hoa – Lam Dong Limited Company is located For the company: CASE STUDY Cacao (Vicofa), the Provincial People’s Committee of the coffee trees for the in Dinh Van township, in Lam Ha district, Lam Dong - To improve the quality of its coffee; CASE STUDY Daklak, and numerous other departments and trading coming years”, said province, at the heart of Vietnam’s coffee production - To improve its management; RESULTS Mr. Ho Chi Dung, RESULTS companies in Vietnam. By implementing good practices, producer in An Thuan, area. Unlike Phuoc An, Thai Hoa is a private company. - To promote responsible supply to the market, buyers Phuoc An Company. 1. VIETNAM a large number of Vietnamese farmers are becoming It has a very good processing facility, but it does not and social communities. 1. VIETNAM more professional and complying with the evolving manage any coffee plantations like Phuoc An. Thai Hoa For the producers: PHUOC AN COFFEE PHUOC AN COFFEE requirements of the international market regarding The age of the coffee trees differ between Krong Pach and sources coffee cherries from smallholders to further - To improve its coffee production practices, especially COMPANY AND COMPANY AND quality, production methods and food safety. Krong Buk. Most of the coffee in Krong Pach was plan- process and export. the coffee quality and quantity and the environmental THAI HOA-LAM DONG THAI HOA-LAM DONG ted between 1987 and 1990 while those in An Thuan Through its participation in the UTZ program, Thai Hoa aspects of coffee production. LIMITED COMPANY LIMITED COMPANY RESEARCH METHODOLOGY (Krong Buk) were planted in 1995. Subsequently, the now organizes a large number of smallholders, providing Between April 25 and May 4, 2009, a consultant, expected yields are also different; in Krong Pack the technical support and training and managing groups 1.2. RESULTS together with assigned field officers from the producer expected yields are 2 MT of green bean per ha. while according to UTZ requirements. The group has around groups, collected data from a representative sample in An Thuan it is 3 MT of green bean (GB) per ha. 4500 certified members. 1.2.1. Economic Results Phuoc An on key results of UTZ Certification in Dak Lak and Lam Coffee companies like Phuoc An re-allocate or rent As mentioned above, Phuoc An joined the program in Dong provinces, in the Central Highlands of Vietnam. their coffee plantations’ land to local farmers or former 2005. It started with a registered area of 1,472 ha of In total, 14 farmers in Dak Lak and Lam Dong were workers. The leasing modes differ from one company Robusta coffee and a volume of 2,953 MT of Green interviewed individually, i.e. seven farmers from the to another, depending on the services the company Bean (GB). After four years of implementation, the total Krong Pach and Krong Buk districts, in Dak Lak provides, such as technical training and guidance, certified area was reduced by about 4.2% to 1,410 ha, province (registered under Phuoc An Coffee Company) production input supply, credit and production control because Phuoc An sold some of its land to farmers. and seven farmers in Lam Ha district, Lam Dong levels, etc. The people who cultivate the land have to However, the production volume increased to 3,500 MT. province (registered under Thai Hoa Coffee Company). pay the company back its investment on inputs, plus a Average productivity increased from 2.01 MT/ha to 2.48 lease fee and a management fee. A lease contract with MT/ha, an increase of 23.4%. For the 2008 - 2009 crop the company normally lasts a coffee tree cycle. year, 1,869 MT of coffee was sold as UTZ CERTIFIED, Phuoc An Coffee Company provides technical services Thai Hoa-Lam Dong Limited Company. gaining a premium of USD 85,500. On average, Phuoc like seedling selection, production materials and quality An receives between US$ 40-50 per MT of coffee sold control, training on farming techniques, and access to The company was established in 2000 and has grown under UTZ CERTIFIED. The quality of Phuoc An’s coffee credit for workers, paid back in coffee cherries. The group considerably in recent years. It now leads the region’s is among the best in Vietnam, as all of the coffee is wet has around 1100 certified members. modern technology application with a modern large- processed (i.e. the company applies no dry-processing All coffee from Phuoc An is produced through wet scale factory with high capacity drying drums and dry method), and the production management/monitoring processing. There are two modern wet processing mills pulping chains, as well as a soluble coffee production and technical support given to smallholders is excellent. (one in Krong Pach and one in An Thuan, Krong Buk), plant. Thai Hoa is currently setting up a compost instal- Phuoc An company also uses a rather low dose of Phuoc An Coffee Company. which enables Phuoc An to produce coffee of a very lation, so that the coffee husks can be used as a natural chemical fertilizer: 1,200 kg/ha. high quality. Thanks to its solid reputation, the demand fertilizer. Its modern processing facilities combined with BRIEF HISTORY OF THE PRODUCER for this coffee is presently higher than its capacity. the excellent meteorological and hydrological condi- Phuoc An Coffee Company is a state-owned entity, Currently, Phuoc An is one of the biggest UTZ suppliers tions, as well as fertile soil, result in high quality coffee formed from the initial Phuoc An state-owned farm in Vietnam. of which 85% is Robusta and 15% Arabica. Most of established in 1977. Phuoc An has participated in the coffee in the Lam Ha district was planted between the UTZ CERTIFIED program since 2004 and was UTZ 1996 and 1999. The average productivity in terms of Farm activities are CERTIFIED by 2005. green bean (GB) is rather high, at 3MT/ha. carefully recorded.
6 7 During harvest season, farmers collect the fresh coffee On-farm dried processing is applied in Lam Ha for Phuoc An has well set-up coffee processing-, drying- and During the interviews, the data collector observed that cherries and take it to be wet processed centrally at the their Robusta coffee. Farmers dry the cherry pods after storage facilities. The waste pulp from wet processing farmers in Lam Ha have very good drying and storage company’s two processing facilities. At least 95% of harvest and hull when the coffee is ready to sell. There is fully collected for further treatment. Presently, there facilities. Those without a concrete drying yard use the cherries have to be ripe. Producers receive a small are different forms of selling: farmers can hold onto is a pond system at Phuoc An’s wet processing mills. plastic canvas to separate coffee, preventing direct premium to cover the additional investment costs - their GB coffee and sell it to Thai Hoa when they need Waste water and waste pulp is caught in these ponds. contact with the bare soil, and thus avoiding mould mainly resulting from selective harvesting practices. cash or when the buying price is good or they can bring Phuoc An adds burnt lime to help with the digestion formation. Coffee husks are collected and composted Phuoc An’s contracted farmers have to return a their coffee to Thai Hoa’s warehouse and fix the selling of the waste water and the breaking-up process of the to apply as fertilizer in the coffee fields. This is done portion of their harvest to the company. They can sell price later. Either way, Thai Hoa supports farmers with waste pulp. Local farmers can register to receive the pulp through a simple production process that involves the remaining coffee to any buyer. However, most of VND 100 per kilogram of coffee for the transportation as a source of organic fertilizer. During the interviews, adding dung and mineral fertilizer into the husk pile them sell this remaining portion to the company to on top of the buying price. Eventually, farmers earn farmers indicated that sometimes when they registered, and allowing it to mature, before using it in the coffee receive a higher price (including a premium). There are about VND 600 premium per kilogram sold of GB. there was not enough to give to everybody. field. Thai Hoa is currently making large investments different forms of payment: instant payment upon Farmers feel motivated to join the program not only Dung/manure is used as additional source of organic in their processing facilities. Their goal is to become delivery or farmers can hold on to their coffee, register because they are paid a premium rate, but also fertilizer. It was off-season when the interviews were the biggest coffee processing complex in Vietnam, an amount of coffee with Phuoc An and come back later because they can learn about farm management, conducted, so there was not much to see other than the with facilities such as a soluble coffee factory; primary to agree upon the price (this is called fixing the price). coffee farming practices, coffee processing practices, location of the ponds and farmers collecting the last coffee processing facilities; a drying- and storage The fixed price will be the market based price at the quality issues, and they have a good and stable market pulp from the bottom of the ponds. “This is very good for system and a waste treatment system for both liquid fixing moment, plus a premium. for their product. our coffee garden” said one farmer (pictured below). and solid waste. Farmers are very happy to work this way, as this means CASE STUDY that the market for their coffee is very stable and they CASE STUDY RESULTS receive a higher price compared to the buying prices RESULTS offered by other local middlemen or buyers at the same 1. VIETNAM time Moreover, they also receive free training on good 1. VIETNAM agricultural practices for coffee farming. Through good PHUOC AN COFFEE “We feel secure PHUOC AN COFFEE record keeping, using a farmer field book, farmers learn COMPANY AND working with UTZ. COMPANY AND how to optimize their investments. It’s good from the THAI HOA-LAM DONG inside to the outside”, THAI HOA-LAM DONG LIMITED COMPANY said Pham Van Son, LIMITED COMPANY 1.2.1. Economic Results Thai Hoa farmer in An Lac, Thai Hoa was UTZ CERTIFIED at a later stage than Dinh Van, Lam Ha. A waste water pond system at Phuoc An’s wet processing mill. Farmers collect the coffee pulp to use as a source of organic fertilizer. Phuoc An, but has seen impressive improvements. An area of 484 ha and production of 1,500 MT was 1.2.2 Environmental results Phuoc An 1.2.2 Environmental results Thai Hoa The existing waste water treatment system is being certified in 2007. After two years, the total certified Phuoc An’s existing coffee farm set-up is well organized. Thai Hoa’s farmers are taught Integrated Pest Mana- renovated so that it will be able to cater to the demand area is 3,549 ha with a production of 12,200 MT. Generally, a plot is about 3.0-6.0 ha with wind-brake gement (IPM) techniques through training sessions of the nearby coffee processing factory for the coming Productivity has increased from 3.1 MT per ha to 3.4 MT trees forming clear boundaries. There can be more than organized by the company. These techniques help years. All of the waste pulp is collected for composting per ha, an increase of almost 10%. four farmers in one plot. In the registered area, there them to protect not only their coffee trees, but also the in a factory, which is being built near the main coffee are clear signs to differentiate the UTZ CERTIFIED coffee environment. Farmers have confirmed that they used processing complex. Every source of waste is fully plots. Few shade trees were observed, except for the chemical remedies against pest and disease before separated and treated. This could become an additional wind-brake trees at the plot boundaries (see picture). they participated in the UTZ program, but that they income source for the company in the near future, “In addition to applying At Phuoc An’s farms, 100% of the Robusta coffee Coffee farm set-up in Lam Ha, Lam Dong, registered once the whole set-up is operational. mineral fertilizer, we applied about 15 m3 cherries are processed centrally at the company’s two with Thai Hoa have not applied chemical pesticides in of manure per ha per wet processing lines. This means that farmers do not the last year(s). Field observation confirmed that no 1.2.3 Social results for Phuoc An and Thai Hoa year in order to ensure high yield production”, have to invest in on-farm processing, drying and storage chemical fungicide or pesticide is used on the farm. Producers are proud of their farms’ achievements. They said Ms. Tran Thi Hong, equipment/facilities. Meanwhile, central processing is also realize the importance of maintaining good relations producer in R’Lom, beneficial to the environment as the total negative with the company. Their commitment to the company Lam Ha, Thai Hoa Company. impact on the environment is reduced. has increased over time; consequently, higher volumes and a higher quality product are now produced. For the 2008-2009 crop year, 4.418 MT of GB was sold Interviewees confirmed that the company organizes as UTZ CERTIFIED, gaining US$ 177.000, - premium. annual training on good agricultural practices and On average, Thai Hoa earns more than US$ 40 per coffee quality. All producers, certified or not, value the MT of sold GB under UTZ CERTIFIED. According to importance of participating in training courses. They see Mr. Nguyen Nhat Tam, Project Management Unit them as necessary to improve their production practices. Director of Thai Hoa Lam Dong, the premium did not The company has also invested significantly in school cover the additional costs for the implementation of buildings and in health care for workers, including UTZ CERTIFIED. The additional cost for 2009 was about regular health checks. There is a health care center 4,47 billion Vietnamese Dong (VND), equivalent to and a school in the area, both of which allow access US$ 255.000, - according to the exchange rate at the to everybody. According to respondents, all children in Coffee plots & farm set-up in Phuoc An, Coffee farm set-up in Lam Ha, Lam Dong, time of writing this report. Dak Lak province. registered with Thai Hoa. the area attend school.
8 9 2.1 INTRODUCTION FARM MANAGEMENT Making compost from coffee husks. OBJECTIVE a) Pruning This study aims to assess the key social-, economic- and The company’s coffee trees are pruned immediately environmental impacts of UTZ Certification pertaining after harvest, before the onset of the monsoon. Pruning to the selected certified producer, Amalgamated Bean involves the removal of the vegetative growth up to a Coffee Trading Co. Ltd., in Bangalore, India. 15 cm radius from the center and up to the first node Coffee husk storage. of all primary branches (centering), and the removal METHODOLOGY of orthotropic branches arising from the main trunk Interviews were carried out with the people in charge (desuckering). Children do sometimes help on the farms outside school • Farmers are happy that the market for their coffee is of UTZ certification, including top management officials, hours. Annual holiday trips are organized for the more stable and that they receive a higher price com- the Quality Systems Manager, general managers and b) Shade management employees. Generally, living conditions are not an issue pared with other buyers’ announced buying prices. the certified producer’s estate managers. ABCTCL’s coffee plants are grown in the shade of various - everybody has a good place to live. During harvest • Farmers have learned IPM techniques to control types of trees, in line with the UTZ Code of Conduct, season, farmers in Lam Ha often invite relatives from pests and diseases. BRIEF HISTORY OF THE PRODUCER which requests the use of shade trees whenever this their homeland in the North of Vietnam to come work • Waste water from the wet processing mill is collected The Amalgamated Bean Coffee Trading Company is compatible with local coffee production practices. for them. They all live in the same place as the owner. and treated. Coffee by-products, such as husks and Limited (ABCTCL) was established in 1993 by Optimum shade maintenance is important for ensuring pulp are composted and used as a source of organic Mr. V.G. Siddhartha, who owns the majority of the good quality coffee and high productivity. CASE STUDY 1.3 CONCLUSIONS fertilizer. company’s shares. In November 2003, Amalgamated CASE STUDY RESULTS • Social improvements were made, including a health Bean Coffee Trading Co. Ltd. became the first Indian RESULTS • According to the companies interviewed, the care center and a school in the area that allows free UTZ CERTIFIED producer. ABCTCL is the second largest 1. VIETNAM benefits of being certified include the improvement access. All the children in the area attend school. plantation company in India. It has well-maintained 2. INDIA of coffee quality, better business practices and estates at altitudes up to 4,500 feet above sea level. PHUOC AN COFFEE THE AMALGAMATED the opportunity to promote responsible production The company’s coffee plantations are located in the COMPANY AND BEAN COFFEE TRADING practices to the market. As a result, market condi- Chikmagalur and Mudigere regions of Western Ghats THAI HOA-LAM DONG COMPANY LIMITED tions have improved. in India. The Kathlekhan Estate is located adjacent to LIMITED COMPANY • Producers are proud of their farms’ achievements. the Bhadra Wildlife Sanctuary, a major National Park Their commitment to the company has increased and Tiger Reserve with a diverse range of wildlife. over time; consequently, higher volumes and better ABCTCL is a fully integrated coffee producer, involved qualities are now produced. in all sectors of the coffee industry - from plantations to • Farmers feel motivated to join the program not only retail and export. In fact, it is India’s largest integrated because they receive a premium and have a good coffee company, involved in purchasing, roasting and and stable market for their product, but also to learn selling high quality coffee and specialty beverages about farm management, coffee farming practices, across multiple food-service channels. The company coffee processing practices, and quality issues. has an expanding network of coffee vending machines • Both the quality and productivity of coffee have and Café Coffee Day outlets. A two-tier shade canopy, consisting of permanent shade improved. At Phouc An, productivity increased by trees like ficus, albizzia, jackfruit, etc. 23.4% between 2004 and 2009. At Thai Hoa, overall Brief History of the Certification productivity increased by almost 10%. The producer first learned of UTZ CERTIFIED from an Plantations maintain a two-tier shade canopy, • The production management/monitoring and tech- article on different sustainable agriculture standards consisting of temporary Dadaps (Erythrina indica) and nical support given to smallholders are appreciated. published in an international coffee journal in 2003. permanent shade trees like ficus, albizzia, jackfruit, Through good record keeping, using a farmer field At the time of first certification, ABCTCL had a total and plenty of leguminous Gliricidia sepium, which book, farmers learn how to optimize their invest- area of 1,409.40 ha under UTZ Certification, spread serve as a shade and a good source of green manure. ments. across 18 estates. The total certified production Approximately 395 shade trees are maintained per was 1,102,140 kg of green coffee per year. This has hectare, of which about 185 to 198 are silver oak trees grown to 1,645,000 kg of green coffee per year from and the remaining are native forest trees. The borders 2,341.73 ha of area under UTZ Certification spanning of the plantations are protected by a living fence, made 25 different estates, registering a 49.26% growth in of native hedge plant species. terms of total certified production from 2003 to 2008. c) Weed control Weeds are primarily controlled through regular weed slashing operations and optimum shade management. Planting Drimeria cordata also smothers weeds and helps to fix atmospheric nitrogen to the soil.
10 11 d) Pest and disease management e) Planting material The main costs are the payment for the audit to the Major pests include the white stem borer (Xylotrechus The company maintains its own nurseries for growing certification body (approximately Euro 2,874 per quadripes), mealy bugs (Planococcus citri & P. lilacinus) different varieties of seedlings, which have been annum) and the costs related to the establishment and green scale (Coccus viridis). Among the diseases, produced from seeds selected from the plantations or and maintenance of records and management systems coffee leaf rust (Himeleia vastatrix), black rot (Koleroga from external sources. One to two year old seedlings specifically required for the UTZ Code (approximately noxia) and root diseases are the major cause of crop are transplanted to the field. The company practices Euro 7,184 per annum). losses. the single stem system of coffee cultivation. The plants The main challenge in becoming UTZ CERTIFIED was The producer has implemented an effective Integrated are trained to maintain their required shape and height. changing the mindset of the people living and working Pest Management (IPM) system - another requirement on the estates towards adopting the code, and helping of the UTZ Code of Conduct. Proper technical advice f) Quality and food safety them to understand the importance. The workers are on the effective management of pests and diseases Though there is no history of OTA at ABCTCL, the given regular training and awareness sessions on UTZ is sought from an experienced technical advisor, who company has implemented special measures and Code, good hygiene practices and health care. Training Maintenance of a buffer zone along water streams. The sign restricts spraying of agrochemicals in this zone. visits the plantations every 20 days and has been very good hygiene practices to prevent any occurrence of is given at least once in a year or whenever there is a helpful with the implementation of IPM techniques OTA. The company’s own Research and Development change in the UTZ Code. Special varieties of grasses have also been planted in and the promotion of organic fertilizers. The company Laboratories, located at Chickmagalur, also evaluate The certification helped the company to obtain UTZ the highly prone slopes to prevent soil erosion. The is also getting technical guidance on various aspects and monitor different quality aspects related to coffee. premiums. The producer received a premium for last company maintains a buffer zone of 20 meters from of coffee production and processing from the Indian The facility also directly supports local coffee growers year’s entire exported coffee production. However, the banks of natural streams. Spraying agrochemicals Coffee Board and the Central Coffee Research Institute and planters in the region. the producer was not willing to disclose further is prohibited here. Signs are also placed in these areas CASE STUDY of India (CCRI). According to Mr. Hussain, ABCTCL is committed to information on premiums received, as this is classified instructing workers to avoid spraying agrochemicals. CASE STUDY RESULTS quality. Its vertically integrated infrastructure ensures information according to their company policy. RESULTS that its coffee never has to leave the premises until the 2. INDIA final dispatch/shipment, which guarantees the Chain of 2.2.2. Environmental Results 2. INDIA Custody. ABCTCL has won two Fine Cup awards from Detailed risk assessments have been carried out for THE AMALGAMATED THE AMALGAMATED the Indian Coffee Board, in recognition of its quality. water pollution, nutrient management, and pest BEAN COFFEE TRADING BEAN COFFEE TRADING management at different facilities and the producer’s COMPANY LIMITED COMPANY LIMITED 2.2 RESULTS plantation, to evaluate the probability and mitigation of risks and hazards. As per the UTZ Code, pesticides 2.2.1. Economic Results and other agrochemicals are kept under lock and key Amalgamated Bean Coffee Trading Co. Ltd. has been in designated areas, and only authorized persons are growing steadily over the years. In the last year, allowed to handle these items. Used pesticide drums
Pheromone traps are used to control and monitor six new estates were included under UTZ certification. and containers are sent back to the supplier who Grass is planted on slopes to prevent soil erosion. the white stem borer. As stated above, the total certified area was 1,409.40 ultimately disposes it according to applicable national ha at the time of the first certification, which has now regulations. The pulp produced during coffee proces- Water used in the pulping process is re-used once to Stem borer attack is controlled by manually tracing grown by 66% to reach the present total certified sing is fully converted to compost in special compos- conserve water. The Code of Conduct requires that affected plants and then uprooting and burning them. area of 2,341.73 ha. Total production has increased ting yards and recycled as manure. contaminated water coming out of the wet processing Pheromone traps are also used to monitor and control by 49.26% from the first certification figures. There plant is treated. The waste water produced as a result stem borers. Up to 25 pheromone traps per ha are has not been any significant change in productivity. of different activities, such as the pulping process, is installed in the highly infested areas. Scrubbing the The productivity at first certification was 782 kg of green discharged only after proper treatment and pH neutra- stem with a coir brush before the hatching of eggs is coffee per ha, per year, which is now 702 kg of green lization. Sufficient waste water treatment facilities have also found to be effective. Neem oil is swabbed on the coffee per ha, per year. Productivity depends on many been created at waste water sites. stems if there is a major outbreak. Before, the company factors, such as climate and types of varieties, in addition Treated water is used to irrigate the coffee plantations. used Lintane (now banned) to swab the stems. to the crop management practices that are uniform The local Pollution Control Board, a government agency, Mealy bugs are associated with black ants, which also across the company’s estates. Similarly, the company also monitors the release of treated water from the help to spread these bugs. Black ants can be controlled has not seen any direct change in its production costs. plantations and processing facilities. Water samples by red ants - their natural enemy - and black ant However, there has been an 8% reduction in the use Coffee pulp are collected regularly from different water sources composting. colonies can be manually traced and destroyed by fire. of inputs. In addition, UTZ CERTIFIED has helped the inside the plantations and are analyzed for chemical Workers are given an incentive of Rs. 25 for each black company to penetrate newer markets and to establish residues. Test results so far indicate that the residues ant colony they trace out and destroy. a better relationship with existing buyers. The soil in the sloping areas of the plantations is highly are undetectable or well below the maximum residue Fungal diseases are controlled by spraying a 0.5% According to Mr. S. R. Hussain, Quality Systems Manager, prone to soil erosion. According to the UTZ Code, pro- levels allowed. Bordeaux mixture. Fungal diseases are also controlled most of the systems and practices were in place at ducers should take measures to prevent soil erosion. Amalgamated Bean Coffee Trading Co. Ltd. encourages through shade management and farm hygiene practices. ABCTCL before the company adopted the UTZ Code. Special cradle pits (trenches) were dug in a staggered the efficient use of natural resources. It has established Chemical pesticides are applied only in unavoidable Therefore, the implementation of the UTZ Code did not manner across slopes in established fields to conserve many rainwater harvesting facilities at the plantations circumstances and administered only to affected spots. require a major investment. soil and moisture. to utilize rainwater better. So, for instance, at Kathlekhan Estate, the company has invested about Rs. 8,000,000 (US$ 169,062) to establish a large reservoir with a 12 crore (120 million) liter capacity.
12 13 The rainwater is harvested from the estate’s slopes in The company has also raised awareness of sexual QUOTES the rainy season and guided to the reservoir through harassment in the work place and displays the special channels. The harvested water is used to irrigate Supreme Court definition of sexual harassment and the “UTZ CERTIFIED HAS MEANT A SIGNIFICANT STEP the coffee plants in the dry season. Coffee husks, a by- recourse/assistance available to harassed employees, FORWARD IN OUR EFFORTS TO ADDRESS THE ISSUES product of hulling, are sold to third parties who convert at appropriate locations. The company’s integrated OF BETTER RETURNS FOR THE GROWER COMMUNITY, it into fire briquettes, which are used as fuel. Coffee pulp activities generate direct and indirect employment WHILE BRINGING OUT A PRODUCT THAT SUITS is composted for use as organic fertilizer. for local communities. At present, ABCTCL employs THE PRESENT AND FUTURE NEEDS OF OUR BUSINESS 2,300+ people at different skill levels and their ENVIRONMENT.” The company takes special care to protect pollinating number is on the rise as many expansion projects are Mr. S. R. Hussain, Quality Systems Manager insects such as butterflies and wild honey bees. These under way. ABCTCL employees receive above average insects aid proper pollination and better fruit setting pay and are given extensive training in modern work “UTZ CERTIFICATION HAS REALLY HELPED US TO in coffee plants, which ultimately translates to better Workers’ living quarters. practices. The employees also benefit from social EXPAND TO NEWER MARKETS IN EUROPE. coffee yields. In order to conserve the native flora and security measures, such as health/accident insurance IT PROVIDES BETTER MARKET PENETRATION.” fauna, small patches of native forest vegetation is main- and bonus pay. In order to provide better employment Mr. Thomas Mathew, Senior Manager - Exports tained inside the estates. Since some of the company’s for qualified people on the company’s estates, ABCTCL plantations are located near nature reserves, there is runs a Vocational Training College (VTC) at Chikmagalur a risk of wild animals entering the coffee estate and in Karnataka, where the plantation workers’ children and 2.4. Addendum damaging the crop. Therefore, boundaries are protected locals are given a free six month vocational training CASE STUDY with thick, thorny hedges that prevent certain animals on café brewing, tailoring, micro financing and retail CASE STUDY RESULTS from entering the estate. The company and its workers management. A spoken English course is also offered Coffee Shop Experience: Coffee Day Company RESULTS are aware of the importance of protecting wild animals. to the students, which aids their career development. ABCTCL’s Coffee Day is the largest integrated coffee 2. INDIA The part of Western Ghats where the plantations On average, the company spends about Rs. 60,000 company in India. The group owns plantations and 2. INDIA are located is home to many endangered species of (US$ 1,268) per student. Some 200 students graduate retails coffee through café outlets. The Coffee Day THE AMALGAMATED Primary school for workers´ children. THE AMALGAMATED animals and plants, including tigers. The endangered from the VTC per year. Most of them are absorbed into group owns 10,000 acres of coffee plantations across BEAN COFFEE TRADING BEAN COFFEE TRADING Indian giant squirrel (Ratufa indica or Malabar giant Free education is provided for workers’ children. the company’s café network. They are also free to take 20 prime properties located in and around 100 sq km COMPANY LIMITED COMPANY LIMITED squirrel) is frequently spotted enjoying the wild ficus Workers are encouraged to provide better education up other external jobs after the successful completion of the finest coffee growing area in India - in the fruits and other fruits.in the plantations’ shade trees. for their children. Child labor is strictly prohibited in of the training. Chikmagalur District of Karnataka State. All estates Monkeys, wild boars, porcupines, peacocks and other the producer’s plantations. It is also prohibited under are UTZ CERTIFIED for the best management and animals are commonly sighted inside the plantation, the Plantation Workers Act of India. Special crèche (day traceability practices. which goes to show that these animals do not feel care) facilities are provided free for the young children In order to capitalize on the enhanced spending power threatened by man inside the estate. and babies of workers during work hours. Workers have of India’s emerging urban youth, ABCTCL opened its free access to a dispensary, with trained medical staff. first café at Brigade Road in Bangalore in 1996, 2.2.3 Social Results A good communications network is available on the and today has the largest coffee retail chain in India. As working and living conditions were already of a plantations and roads connect the estates to major cities First aid station. The cafés are strategically located in shopping malls, high standard, the company did not face any major in the state. Recreational facilities and places of wor- high pedestrian traffic areas, airports, railway stations, difficulties or require any major investment in order ship are also provided for the workers. There are stores 2.3 Conclusion gas stations and medium density middle-class suburbs. to implement the UTZ criteria. The employees of inside the estates to provide workers with groceries Today, they have cafés outside India, including places Amalgamated Bean Coffee Trading Co. Ltd. (ABCTCL) and other basic consumable items at subsidized rates. Amalgamated Bean Coffee Trading Co. Ltd. (ABCTCL) like Vienna, Austria and Karachi and they are planning were very proud to receive UTZ Certification. They was the first UTZ CERTIFIED producer in India. Its total to open more cafes in the Middle East, Eastern Europe, understand the important provisions and benefits The company issues gloves, masks and ear defenders certified production of green coffee has grown by Eurasia, Egypt and South East Asia in the near future. of the UTZ Code and its importance in promoting to workers that spray pesticides, to minimize the risk of 49.26% from that at the time of first certification in Coffee Day now owns more than 700 Café Coffee Day sustainable/ethical agriculture and trade. ingestion, inhalation and dermal contact. The workers 2003. Similarly, the company has registered a growth stores in 100 cities serving 300,000 guests every day. ABCTCL provides various facilities to help maintain the are given training on occupational health- and safety of 66% in terms of total certified area from 2003 to All the stores are company owned and operated. standard of living on the estates. Each worker is provi- risks and preventive measures. 2008. UTZ CERTIFIED has helped ABCTCL to achieve ded with an accommodation on a plantation (one room, better market penetration and premiums. It has also plus a kitchen, bathroom and toilet). The company helped to improve the company’s monitoring of costs, provides equal wages, as per local regulations, along environmental management practices and conserva-
with Employee State Insurance coverage, free electri- tion of natural resources. Head Office, city and free medical care. Men and women are given Amalgamated equal work opportunities on the plantations. It is worth The company has achieved an 8% reduction of its input Bean Coffee Trading Co. Ltd. noting that about 60% of the plantation’s workers are use. Since many of the good practices or systems were female. Fire wood is provided to workers (waste wood in place prior to UTZ Certification, ABCTCL did not face from the plantations). Piped spring water is supplied as any major difficulties in adopting the UTZ Code on its drinking water. Water quality parameters are regularly farms. The producer feels that there is still room for monitored to ensure that the drinking water meets Use of protective improvement and is looking forward to a long lasting appropriate standards for potable water. clothing. relationship with UTZ CERTIFIED.
14 15 3.1 Introduction Cooperative Performance Table 1: performance before UTZ Certification before Certification BRIEF HISTORY OF THE PRODUCER The coffee sector in Kenya suffered major blows after Year Membership Share capital Cherry production Gross sales Net payments Net paid Payment rate Rianjagi Coffee Farmers Cooperative Society (RFCS) the International Coffee Organization (ICO) stopped Male Female Total Ksh ’000 Kgs ’000 Ksh (M) Ksh (M) % Ksh/kg is a coffee growing-, processing- and marketing soci- regulating international coffee prices. The increased ety. It is located about 160 km North of Nairobi city supply of coffee into the global market, as a result of 1997/1998 457 108 565 80.8 234.9 11.022 7.833 83 33.35 in the Embu District of Eastern Province, near Mount entry by more producers, such as Vietnam, has caused 1998/1999 573 155 728 148.2 434.9 9.955 7.107 72 16.60 Kenya. The area lies at an altitude of 1700 m above sea global coffee prices to slide further, which has had an 1999/2000 623 195 818 161.6 652.7 14.065 9.329 70 16.65 level in the agro-ecological zones Upper Midland zone adverse impact on the Kenyan coffee industry. The 2000/2001 638 210 848 167.6 157.7 2.688 0.828 31 5.25 1 and 2 (UM1 and UM2). country’s coffee production therefore decreased from 2001/2002 682 223 905 181.0 651.1 9.152 4.668 54 7.15 The cooperative was founded in 1998, with a mem- a high of almost 130,000 metric tons in 1989/89 to the 2002/2003 707 236 943 188.6 251.2 5.301 2.276 65 9.05 bership of 565 smallholder coffee growers. Mem- current level of less than 50,000 metric tons. 2003/2004 820 347 1167 233.4 608 15.705 10.751 68 17.65 bership has grown steadily to 1,373. RFCS owns one RFCS faced the same problems as the rest of Kenya’s 2004/2005 857 376 1233 246.6 558.6 13.894 8.990 65 18.55 wet mill, where high quality cherry from the farmers’ coffee farmers. Initially, Rianjagi was part of the lar- 2005/2006 890 392 1282 256.4 563.5 18.205 13.623 82 20.95 farms goes through primary processing. It also has a ger Kapingazi Cooperative Society, which split at the huller that mills the under-grade cherry, which farmers height of liberalization in 1998. The table below shows First results since UTZ Certification The management had to convince its farmers of the dry on their farms. the performance of that organization from the 1997/99 RFCS’s management decided to become UTZ CERTIFIED need to produce good quality coffee, as prices at coffee season to 2006/07, when CSN/Solidaridad laun- when they were actively looking at additional services the auction were also pegged on quality. Solidaridad CASE STUDY ched the UTZ Certification project. The table also shows they could offer for the benefit of their farmers. On a agreed to partner with the cooperative and provide CASE STUDY RESULTS that the cooperative’s membership has been growing, visit to the coffee auction in Nairobi City, they realized funding to improve production and processing through RESULTS which has had a direct effect on its production growth. that the coffees that fetched the highest prices were farmer capacity building, factory renovations and 3. KENYA The percentage paid to farmers is directly proportional certified. Although many of the certified producers at organizational development, and via improved docu- 3. KENYA to production, with increased production leading to the time were plantations, another producer group, mentation and governance practices. The cooperative RIANJAGI FARMERS RIANJAGI FARMERS a higher payment percentage. This is because of the Ndumberi Cooperative, was also fetching better prices received UTZ Certification on April 2, 2008. CO-OPERATIVE CO-OPERATIVE effect of economies of scale on the cost of operations. because they were UTZ CERTIFIED. They contacted the Table 2 shows some statistics, ranging from the start SOCIETY LIMITED SOCIETY LIMITED Production has fluctuated as a result of poor weather UTZ CERTIFIED regional representative, who explained of the process to one year after UTZ Certification. The conditions and in some years low prices have caused a them how to start the certification process. table shows that the membership has grown, and that lack of motivation to produce the following year. the payment rate to the farmers has increased.
Sign of the organization showing commitment to quality There are more male members in the cooperative, and productivity. because more men own land. The recent increase in Table 2: performance since UTZ Certification female membership is mainly the result of transfers of Brief History of the Certification land after the death of husbands, and the changing Year Membership Share capital Cherry production Gross sales Net payments Net paid Payment rate In 2006, Rianjagi Coffee Farmers Cooperative Society trend of female empowerment. Male Female Total Ksh ’000 Kgs ’000 Ksh (M) Ksh (M) % Ksh/kg started to participate in a program of UTZ’ partner or- ganization Solidaridad, called Coffee Support Network. Challenges 2006/2007 897 395 1292 258.4 600.3 15.461 10.796 78 18.00 The objective of the program was to build capacity - Cost of inputs is quite high due to high inflation rates. 2007/2008 908 402 1310 262.0 265.0 10.747 8.267 90 33.00 among the farmers and their organization for better - Unreliable weather conditions have a big impact on 2008/2009 945 428 1373 603.9 21.444 18.116 30.00 coffee farming and organizational management. The production levels. objective was that this would lead to sustainable cof- - Audit costs for recertification are as high as the costs Expected 35.00> fee production and that farmers would become sensi- of the initial audits. tive to the environmental-, social- and economic issues - Pests and diseases are affecting the quality of the - Membership growth continued (both male and female). - Statistics for 2008/2009 are incomplete. The interim and start keeping records, thus assuring traceability produce. - After certification in April 2008, the payment rate was production of 603,000 kgs of cherry have been from the farm to the cup. This process resulted in UTZ - Some requirements of the Code of Conduct are diffi- high because of additional income from better quality processed and sold. Total production as per April 30, Certification in April 2008. cult to achieve because of costs - e.g. storage facilities coffee and premiums paid for UTZ CERTIFIED coffee. 2009 stood at 790,000. The cooperative has since successfully been audited and for fertilizers and agrochemicals. - The organization expects to be able to pay more than - Please note that in the 2007/2008 coffee season recertified in April 2009. It outsources milling services - Pruning is a big challenge for the producers and Ksh. 35 per kg by the end of the coffee season, which production decreased because of a prolonged to the Central Kenya Coffee Mills for the secondary more training is required, as the practice has a direct will amount to about 90% payout to the farmers from drought. processing of its parchment coffee, which complies with relationship to quality and production volume. gross proceeds. the UTZ CERTIFIED Chain of Custody requirements. The green and graded coffee is then marketed by Coffee Management Services, which was appointed by the cooperative as their marketing agent.
16 17 3.2 Results b. Cost Improvement Table 3: CLASS DISTRIBUTION (classification on a scale of 1-10 based on superior quality) The production increases have improved the overall 3.2.1 Economic Results cost of processing and wet mill operations (econo- Year Cherry Kgs 3 4 5 6 7 Total kgs clean mies of scale). Recent coffee price rises, coupled with a. Production training in good agricultural practices have led to an 2006/2007 600,250 0kg 23,084kg 35838kg 15985kg 13564kg 88484kg The table and graph below show production figures increased yield of better quality coffee that fetch bet- 0.0% 26.1% 40.5% 18.1% 15.3% 100% and trends for the years 2006/2007 to 2008/2009 and ter prices in the market, which in turn has improved 2007/2008 264,997 26835kg 6361kg 4493kg 414kg 2830kg 40933kg projections for the year 2009/2010. Please note that producers’ and farmers’ incomes and given farmers the 65.6% 15.5% 11% 1% 6.9% 100% the production decrease in the 2007/2008 season was ability to purchase coffee inputs. 2008/2009 603,850 9007kg 66649kg 2056kg 10761kg 0kg 88621kg caused by a prolonged drought. 10.2% 75.2% 2.3% 12.1% 0.0% 100% c. Quality Table 1: PRODUCTION VOLUME Solidaridad has invested in factory renovations and 140 Business Management Practices (conversion rate cherry/green bean =1:6/1:7) improvements of the processing equipment. It also 120 trained factory personnel on good processing practices 100 80 2008/2009 Year Cherry % Change Green Bean % Change and the management team on corporate governance. 60 2007/2008 2006/2007 Kgs (cherry) Kgs (green bean) The implementation of an Internal Control System (ICS) 40
ensures that all processes and procedures that create 20 2006/2007 600,250 88,484 a quality product are followed. Everyone’s role in the 0 CASE STUDY 2007/2008 264,997 -56 40,933 -53 cooperative is spelled out in the ICS - from its manage- class 3 class 4 class 5 class 6 class 7 CASE STUDY RESULTS 2008/2009 603,850 128 88,621 117 ment to the farmers and workers - ensuring that the • There is a good proportion of class 3 coffee, which RESULTS 2009/2010 850,000 41 125,000 41 cooperative is run in a professional manner. The com- was not produced before. 3. KENYA bination of these factors has led to the production of • The percentage of Class 3 and 4, which fetch better Farm record book. Filing cabinet. 3. KENYA better quality coffee (see table below). It is important prices, is on the increase, with 80% receiving this RIANJAGI FARMERS RIANJAGI FARMERS to note that the parameters that indicate quality grade since certification, compared with only 26.1% Good Agricultural Practices CO-OPERATIVE CO-OPERATIVE improvement depend on the proportion of coffee of class 4 in 2006/2007. SOCIETY LIMITED SOCIETY LIMITED grades and classes. The premium grades that fetch the Ms. Felistas highest prices are AA, AB and PB. The total percentages d. Organizational management costs applies mulch. of these grades for the three relevant seasons were: • Certification Costs - Solidaridad paid for the initial • 2006/2007 - 72.9% audit required for certification. It is expected that the • 2007/2008 - 79.2% cooperative will be able to pay for future re-certifi- • 2008/2009 - 73.5% cation audits from its increased income as a result These projections are based on a harvest estimate and have of better prices and premiums. The producers are been confirmed by the external inspector. concerned however, that the certifying bodies will • The figures show a positive trend in the growth not reduce audit costs, despite the fact that their of production volume from the time management farmers have complied with the Code in almost all started to campaign for quality improvement and aspects; they feel that the recertification audit is less Mr. Ndwiga prunes his coffee bushes. UTZ Certification, despite the drop caused by drought work than the first certification audit. in the 2007/2008 season. • The overall condition of the office- and processing • The growth in production volume can be attributed equipment at the wet mill is good and maintenance to the training on good agricultural practices that costs can be easily met by the organization. farmers received via Solidaridad’s assistance. • Energy costs are not too high, as the coffee is sun • The increased production volume has proportionally dried. However, electricity costs for pumping water increased farmers’ total income. Sign with the organization’s rules. from the river and running the machinery at the wet mill continue to increase. Table 2: GRADE DISTRIBUTION (grading on the size, shape and density of the bean) e. Other indicators
Year Cherry Kgs AA AB C PB E T TT UG1 Green Beans • Record keeping has led to improved business management practices, all the way from the farm
2006/2007 600,250 11177kg 45759kg 5767kg 7593kg 79kg 1518kg 4273kg 12309kg 88484kg level to the cooperative level. 12.6% 51.7% 6.5% 8.6% 0.1% 1.7% 4.8% 13.9% 100% • Improved agronomic practices include pruning, 2007/2008 264,997 10737kg 19232kg 4790kg 2446kg 86kg 610kg 518kg 2514kg 40933kg erosion control, weeding, and disease- and pest 26.2% 47% 11.7% 6% 0.2% 1.5% 1.3% 6.1% 100% control methods. 2008/2009 603,850 15938kg 44805kg 10581kg 4332kg 0kg 1457kg 2056kg 9304kg 88621kg • Farmers see the importance of technical assistance 18% 50.6% 11.9% 4.9% 0.0% 1.6% 2.3% 10.5% 100% and have adopted good agricultural practices. • Farmers are more informed about coffee prices and market information in general.
18 19 3.2.2 Environmental Results Good Environmental Practices 3.3 Conclusions
a. Water • The payment percentage to farmers has increased Coffee processing uses a great deal of water. With the because of additional income from better quality and implementation of the UTZ Code of Conduct, a recircu- premiums and economies of scale. lation system was installed that has helped the factory • Quality has improved: the percentage of premium to reduce its water use by an estimated 25%. Waste grade coffees that fetch higher prices has increased; water from processing is trapped in soak pits to prevent • Business management practices have improved as a it from running into the neighboring Kapingazi River. result of better record keeping. The waste water is treated with EM1 (effective micro- Training certifícate in sustainable coffee production. • Farmers receive technical assistance and have organism) concentrate, which hastens the microbial adopted good agricultural practices like pruning, reactions and removes bad smells from the effluent. erosion control, weeding, and better disease- and Rivers and water streams on the farms are protected pest control methods. from contamination by run-off of pesticides and ferti- • With the implementation of the UTZ Code of lizers, through the conservation of native vegetation Water streams are well protectedby a strip of Conduct, a recirculation system was installed that and the planting of indigenous trees on its banks. native vegatation. has helped the factory to reduce its water usage by an estimated 25%. b. Waste recycling • Waste water from processing is trapped in soak CASE STUDY All the waste pulp from the factory is collected by the pits to prevent the contamination of water sources. CASE STUDY RESULTS farmers to be used as organic manure on their farms First Aid training certificate. The waste water is treated with microorganisms. RESULTS after decomposing. This practice was not followed • Vegetation on river banks is conserved and indige- 3. KENYA previously. Husks from the dry cherry huller are also c. Access to education (practices to stimulate nous trees are planted to protect water streams from 3. KENYA collected by the farmers. It is used for cooking instead children’s education, transport, schools) contamination and run-off. RIANJAGI FARMERS RIANJAGI FARMERS of firewood. Empty containers of crop protection pro- Education for all children under 15 is free and manda- • Pulp from the factory is collected by the farmers, and CO-OPERATIVE CO-OPERATIVE ducts are taken back to the store for proper disposal. tory by law. However, increased income has allowed used as organic manure after decomposition. Coffee SOCIETY LIMITED SOCIETY LIMITED Farmers are showing care for the environment when many farmers’ children access to secondary schools husks are also collected by the farmers and used as disposing of waste. Good practices to slow down water run-off and tertiary colleges. an energy source. and prevent soil erosion. • Soil erosion is prevented and shade trees have been c. Soil conservation d. Access to training planted. Farmers use the following methods to control soil erosion: Almost all the farmers have received training on good • Farmers have access to training on good agricultural building terraces, water trap basins, trash lines and grass agricultural and processing practices and on broader and processing practices. strips and using mulch and cover crops. Shade trees also issues, like HIV/AIDS, public health, environmental • Training has been conducted on issues like HIV/AIDS, help to improve soil structure. Farmers conduct a soil issues, health and safety, and gender- and child labor health, environmental issues, healthy- and safety analysis to determine the type and quantity of fertilizer issues. production practices, gender issues and child labor. to use, ensuring effective and efficient use. Quality and food safety measures d. Biodiversity Farmers have started planting shade trees in their coffee plots to enhance biodiversity and have learned bee keeping which is valuable for pollination. Farmers have shown improved husbandry practices with other crops, A waste water pit with a warning sign. including planting indigenous trees;
3.2.3 Social Results
a. Pride of achievements Farmers sort their coffee to meet quality criteria. Turning of coffee beans (parchment) for even drying. Farmers are proud of their renovated factory and the higher prices they are fetching for their coffee. They are highly motivated and keen to produce more and better quality coffee to earn more money.
b. Access to healthcare (Coop members and community) The improved coffee prices have given farmers better This producer invested extra income in a solar panel access to health care. Cleaning a pulping machine after processing for quality Coffee beans (parchment) are covered in water-proof on his roof. and food safety. material to prevent it from getting wet.
20 21 4.1 Introduction • Changing certified members’ traditional way of Productivity Management Results working to avoid child labor issues. Increased productivity has been the biggest result of a) Being certified allows for better control of coffee BRIEF HISTORY OF THE PRODUCER • Members need to make time to attend the trainings becoming UTZ CERTIFIED. This affects not only coffee production activities and traceability. The Cooperative and Certification Fedecocagua, if they want to become certified. sales but also the economic income of the producer. b) There are better records of the activities that take is the overarching Federation of Guatemalan Coffee • Switching from traditional production techniques place during coffee production and -harvest. Cooperatives, took the initiative to become certified to more professional production techniques. For Some examples of productivity increases among c) Producers receive ongoing training, which teaches and handle all the coordination for its members. instance, producers used to harvest more unripe members include: them to manage their coffee business even further and It informed its members about the program and coffee than they do now. more professionally. coordinated the training and technical assistance • Some investment was required: member training, “In the beginning (2006), we produced d) Ongoing training in harvest- and post harvest prac- during the process. building tanks for waste water from the wet proces- 1500 pounds of parchment. Our latest harvest tices has taught producers about the profits and losses sing unit, signs for the farm and better wages for produced 5000 pounds.” and quality problems related to picking unripe cherries. workers who pick coffee to stop them from picking (Leonora Isabel Cobon, member) unripe coffee cherries. • Producers have expressed that the certification “In the beginning, I had a productivity of program should be more flexible with small 50 pounds of parchment coffee per cuerda producers and should adapt more to their situation. (0.04 hectare); today my productivity • Coffee is sometimes sold without the UTZ CERTIFIED stands at 150 pounds of parchment.” label. However, producers expressed that UTZ Certifi- (Gilberto Recinos, member) CASE STUDY cation can be used to implement other certifications CASE STUDY RESULTS easier and faster, due to all the improvements that have “When I first began the certification process, RESULTS to be made to comply with the Code of Conduct. I had a production of 50 pounds of coffee 4. GUATEMALA Sustainability is the basis of these certifications, per cuerda (0.04 hectare), now I am producing 4. GUATEMALA and buyers rely on the traceability achieved through 75 pounds of parchment, but my goal is Cooperativa Cooperativa control points in the Code of Conduct. to improve my productivity even further.” San José El Obrero- San José El Obrero- The main reasons Fedecocagua wanted its members • Producers have commented that they would like (Porfirio Recinos, member) Fedecocagua Fedecocagua to become certified was to have better terms of trade more frequent training programs. and market access. Coffee prices were too low and the “Before becoming certified, I had a total organization wanted to increase its members’ income. 4.2 Results productivity of 7,000 pounds. Today, I have a The cooperatives realized that certification would productivity of 11,000 pounds of parchment. improve coffee quality, which would allow them to get 4.2.1 Economic Results That also represents an increase in income.” premiums and better sales prices. Certification would (Inerio Recinos, Record keeping and also allow them to become more competitive and gain Benefits of Selling/Commercialization Vice-President of the Board of Directors) administration. better access to the market and new markets, enabling • Increased commercialization has been one of the them to sell their coffee easier. Another reason for main benefits of being certified. “At the beginning of the certification process, joining the program was that they were interested • Producers are able to sell their coffee faster. Before the farm’s total productivity was 2,400 pounds. in environmental conservation, but lacked sufficient certification, it was very hard to sell their coffee due In later harvests we reached a productivity knowledge on the topic. The first steps towards to quality issues and inadequate control of produc- of up to 5,000 pounds of parchment. getting certified were taken in 2004 and certification tion- and mill activities. Our goal is to increase even more to further was achieved on November 16, 2005. • Producers have better access to the market and are increase our income.” The cooperative aims to have 100% of its members paid in advance. This frees up working capital to (Ofelia Recinos Martínez, certified. At first certification, 40 of its 135 members reinvest in the next harvest. Producers no longer need Chairman of the Education Committee) became certified. Now it has 76 certified members. to take out expensive loans, saving them money. Certification has brought about some important impro- • The UTZ Code of Conduct can be used as platform Other economic benefits vements and better terms of trade, which has helped to achieve other certifications and further improve a) One of the technical recommendations is shade A filing cabinet used for record keeping. to gain new members. commercialization. management, which regulates the optimal amount • Purchasers prefer UTZ CERTIFIED coffee because of of shade throughout the farms. This may require that Challenges during the certification process its standards for traceability and good agricultural shade trees be planted in some areas while trees are • Compliance with some of the requirements has been practices. Certification requires the implementation cut down or pruned in other areas. The wood that is difficult to manage through the Internal Control of good practices for harvest-, mill- and post harvest collected can be used either as firewood or can be sold System, and producers have had some trouble management, which is rewarded with a higher as extra income. implementing them. market price. Traceability gives buyers the confidence b) According to the producers, UTZ’s Code makes it • The recordkeeping requirements to ensure traceabi- that the product they buy complies with certification easy to identify lot numbers and the plot the coffee lity were difficult for the producers to implement. standards. comes from (origin) and to trace where the coffee has • Educating members about the importance of caring • More and more producers are becoming interested been. This means that when there is a claim, they do for the environment through responsible by-product in joining the Cooperative, which translates to higher not have to discard all the coffee or return all products, management (pulp and waste water). export volumes. thus minimizing losses. Map of the farm.
22 23 Quality and Productivity Results The criteria of the UTZ Code of Conduct, together with ongoing training and technical assistance, have impro- ved coffee quality and productivity. Specifically: a) Producers have noticed that technical assistance and ongoing training have improved plant health and productivity, crop production management and harvest- and post-harvest practices. b) Control points in the Code of Conduct and ongoing training of producers has enabled producers to over- come incorrect practices in the processing, drying and A waste water pond with a warning sign. Fire extinguisher. First Aid Kit. storage of their coffee. c) The implementation of good agricultural practices and food safety management has improved the quality 4.2.2 Environmental Results 4.2.3 Social Results 4.3 Conclusions of the coffee. UTZ Certification has had the following environmental Certification has improved producers’ awareness of d) Before certification, the coffee crop was managed benefits: their social responsibility towards farm workers. There UTZ Certification has had important quality-, economic-, without a technical basis. Now soil analyses have been a) Improved waste water management has been the have been many improvements: administrative-, environmental- and social benefits for made by technical personnel and the correct fertilizers are main environmental change. This involves treating a) Producers have changed their traditional ways of members: CASE STUDY applied according to the recommended date and dose. contaminated water from the wet processing in tanks, working. Members are now more aware of child labor a) Producers receive ongoing training and technical CASE STUDY RESULTS Improving the use of fertilizers and input management preventing contaminated water from entering local issues. assistance in farm management, which has helped RESULTS has resulted in increased productivity. rivers and streams. b) The Cooperative has created incentives and edu- them to implement good agricultural practices. 4. GUATEMALA e) Producers now use shade management and improve b) Before being certified, by-products and farm waste cational grants so that members’ children can attend Producers have expressed that their training has led 4. GUATEMALA soil fertility through organic fertilizers. They control were not managed. Now the producers have tanks school. to an improvement of plant health, coffee quality, Cooperativa Cooperativa pests, diseases and weeds through the correct use for the sedimentation of waste water and classify c) Social conditions for workers have been improved. and farm productivity. San José El Obrero- San José El Obrero- of crop protection products, with the right dose and waste as organic and inorganic. Special waste pits Workers are now paid higher wages and have b) Commercialization has been one of the main Fedecocagua Fedecocagua frequency, allowing producers to minimize losses and are used, organic waste is used for compost and better quality housing. Increased wages result in improvements. Having more controls and achieving a use inputs efficiently. worm composting. better performance, especially during harvest, which better quality product has resulted in improved market f) Producers are implementing many practices to ensure c) The producers have become more conscious of is when small producers (usually family-owned) have access, with better prices. a high quality of coffee. There is more control during the environment. They now work to protect wildlife. to hire more workers. c) Streams and rivers, forests and wildlife are protected. harvest to prevent the picking of unripe coffee cherries Hunting is forbidden. d) Producers now have first aid kits for emergencies. Sedimentation tanks are used for waste water, waste is that would affect quality and price. Special baskets are d) Reforestation has become a priority. The producers e) More and more producers are becoming interested classified and organic waste is re-used. Reforestation is used for harvests to keep the coffee cherries uncon- are working with Inab (National Institute of Forests) in joining the Cooperative. taking place and hunting is forbidden. taminated. Coffee is washed on time and different on a reforestation program. d) There is more awareness about social responsi- qualities of coffee beans are not mixed together. e) Better shade management has been implemented. bility towards workers. Children are not hired as workers and are stimulated to attend school instead. Social conditions for workers have improved: they are paid higher salaries, have better housing and are treated with respect.
Protective clothing and instructionsc
Composting. Mulching.
Warning signs.
24 25 5.1 INTRODUCTION program had to be a good match with their types of Traceability farms, production systems, soil conditions, weather, Traceability is attractive to purchasers. It assures them Brief History of the Producer coffee cultivation altitudes and the quality of coffee of the origin of the coffee, because they can identify COSSERSA, part of the Metrocorp Corporation, was they wanted to produce, and had to include social- it by production plot, date of production, physical founded by German immigrants in the mid-18th cen- and environmental aspects concerning workers and location of the farm, etc. Therefore traceability impro- tury. These coffee farmers were among the first to be the environment. After receiving a referral from larger ves market access. registered in ANACAFE (The Guatemalan Coffee Asso- local exporters, UTZ CERTIFIED was found to be the ciation). Besides Los Cerros, it includes the following best choice. Certification was obtained on October 12, Productivity coffee farms: El Conacaste, El Horizonte, La Abundancia 2007. The changes and improvements achieved through better and La Torre. These farms have a total production of management practices, record keeping, correct appli- Agrochemical storage with labeling and safety instructions. 18,000 bags (46 kilos per bag) of parchment coffee, Challenges cations of agrochemicals and increased commitment of including export-ready Extra Prime and Semi Hard Bean. Los Cerros wants to be an example among the UTZ the people have lead to a productivity increase. All farms offer the following services: electrical energy CERTIFIED farms in Guatemala and would like to be a) In the 2006-2007 crop period, Grupo Cosersa repor- generation for the farm, schools, churches, health care recognized worldwide for the work they are doing, ted a production of 12,533.07 quintals of parchment centers (with scheduled medical visits), sport areas, including winning prizes under the UTZ CERTIFIED coffee, compared with a production of 21,408.60 quin- and housing for workers. label. Wanting to be the best is a challenge in itself, tals of parchment coffee in the 2007-2008 crop season. but the overall challenges certification brings motivates This represents a 70.81% increase. the producers to do better work each day. Their biggest challenge is to achieve compliance with PRODUCTION PRODUCTION INCREASE CASE STUDY GRUPO COSERSA (parchment) (percentage) CASE STUDY RESULTS 100% of the control points in the Code of Conduct and RESULTS to manage the water recirculation system adequately. YEAR 2006-2007 12,533.07 quintals Training certificate for the safe use and handling of pesticides. The implementation of a recirculation system has been 5. GUATEMALA YEAR 2007-2008 21,408.60 quintals 70.81% 5. GUATEMALA difficult because of the location and construction of the Finca Los Cerros Finca Los Cerros wet mill. The farm has been designed according to the (0ct 2007: certification start date) 1 quintal = 100 pounds traditional system which means that water supply is managed through gravity. Therefore the construction b) In 2007, the Finca Los Cerros farm produced of a recirculation system has been difficult. 8 quintals (800 pounds) of green coffee per ‘manzana’ (1.74 acres); this increased to 16.2 quintals (1620 Characteristics of Los Cerros in brief 5.2 RESULTS pounds) in 2008. • Location: The property is situated at San Jose el c) Before certification, 5% of the total harvest consisted Rodeo, within the region of San Marcos, one of the 5.2.1 Economic results of unripe cherry. The percentage of unripe cherry eight coffee regions established by ANACAFE. picked now stands at 0.5%. This has a positive effect Examples of provisions for the safe handling of pesticides. • Ranking: Number 7 in the Anacafe registry. Prices on bean quality and cup flavor. • Altitude and size: 3,200 feet above sea level, 274 ha. In 2008, eight containers of UTZ CERTIFIED coffee were Management Improvements • Climate: Mild and humid. sold through the exporter entity Exportadora Café de Farm management is now better organized, which • Wet Milling: The traditional fermentation method is Origen, at a premium of US$ 0.02 cents per pound of facilitates better order and controls, making adminis- used, the coffee is dried using the sun dried method green coffee, for a total of US$ 2.00 per quintal. This trative- and field work easier; combined with Guardiola drying. was in addition to the negotiations that were agreed a) Warehouses where phytosanitary products, fertilizers • Coffee varieties: Caturra, Catimor, Pache colìs, with the purchaser, in which more differentiated prices and other inputs are kept are now more organized and grafted with Robusta. were fixed. managed more efficiently; • Production: 6,000 bags of parchment. b) The distribution and coordination of field activities • Property description: Clayish soil, with a high content Cost Reduction has improved, which has increased efficiency of labor. of organic matter. Uneven landscape. Diverse water a) Before being certified, the administration staff was c) Better administration has improved the logistical sources: the property has its own hydroelectric made up of 10 people. After certification, it was redu- management of inputs, agrochemicals and fertilizers. facility and the rivers Cabuz, Ixlamà and Mopa cross ced to five. Computers, systems, and the internet were Healthy coffee plant. d) Traceability and record keeping has been improved. the property. It has houses for workers and seasonal introduced for better management and control of the Before certification, there were no adequate methods workers (rancherías). operation, representing a monthly saving of Q8,000 for managing information, and activities were not (around US$ 1,000). recorded. With better record keeping, it is easier to Brief History of the Certification b) Inputs are applied more efficiently and applications take well-informed and timely decisions. The main purpose for the producers to become certified are more controlled. For example, before certification f) Before certification, safe working conditions were was to improve the quality of their coffee, implement a significant amount of fertilizer was wasted because not a priority. The criteria required for certification have good agricultural practices and develop their approach of inefficient application. After the implementation improved safety conditions for workers and workers to social responsibility and environmental aspects. of new control systems, a soil analysis was made, have been trained in the safe pesticide management. With this in mind, they investigated various certifica- which permits better performance and a 25% cost Pesticides management is now much safer. tion programs to see which would be the most suitable reduction as a result of applying the right amount for the Cooperation’s needs. The ideal certification the plant needs. Coffee nursery.
26 27 Quality Improvements 5.2.3 Social Results 5.3 Conclusion New equipment was bought for the purpose of b) The new coffee agro system is a production system Certification has raised consciousness about showing improving coffee quality in both the wet and dry that has a positive impact on the environment and the more social responsibility towards farm workers. The UTZ Certification has given Finca Los Cerros global mills. In the wet mill, equipment is now used to grade conservation of the soil and fertility structure. People following social results have been achieved: acknowledgement. According to the producers inter- the product, while special driers (guardiolas) were on the farms used to cut trees to obtain firewood. a) A hospital clinic was opened for farm workers and viewed, having a UTZ coffee certification is comparable acquired to manage the humidity of the coffee in the Now, there are controls in place to prevent this. local people. A full-time person is in charge of the clinic with an ISO 9000 in industry. dry mill, in order to ensure quality and food safety. c) Hunting has been forbidden. and the available medicines. Certification requires them to comply with criteria b) A transportation service allows the children of concerning quality, traceability, sustainability and social permanent workers to attend school. responsibility - and is recognized by the industry. c) Latrines have been built, improving the farm workers a) Buyers acknowledge the importance of certification. sanitary conditions. Having the UTZ CERTIFIED label guarantees purchasers d) Housing conditions have been improved for the that the coffee has been produced on farms that temporary workers. This includes installing electricity comply with a global standard. This creates more sales and water facilities. opportunities. b) The cup quality of the coffee has improved thanks to the installation of new equipment in the wet and dry mills and better harvest practices (e.g. the percen- tage of unripe cherry harvested decreased from 5% to 0.5%). CASE STUDY Processing equipment. Biological control implemented in the field. CASE STUDY RESULTS c) Agricultural activities on the farm are more efficiently RESULTS planned. Improved yields are a clear result of achieving 5. GUATEMALA better agricultural control. The returns from coffee 5. GUATEMALA cherries to coffee parchment have improved. Finca Los Cerros Finca Los Cerros d) Fertilizer is applied according to a fertilizer program. Applying the right doses at the right time, has lead to drastic yield improvements and a 25% cost reduction in fertilizers. e) Control systems have been implemented for the management of the warehouse and the wet and dry mills. This has led to savings in time and production Research on Biological pest control. Access to healthcare. costs. 5.2.2 Environmental Results f) There is a more efficient and adequate use of crop The following environmental benefits were achieved protection products (Rational Pesticide Use). through certification: g) Workers have been given protective clothing and a) Water is now re-circulated, minimizing water safety equipment. consumption in the processing facility. This has reduced h) Housing and sanitation have been improved. Farm water use from 2,000 liters per quintal (100 pounds) of workers and their families have access to education parchment used in the traditional system, to 150 liters and health care facilities. using this new technique. i) A water recirculation system has been implemented to minimize water consumption. Water use has been reduced from 2,000 liters per quintal of parchment Signs at the entrance of the farm: coffee used in the traditional system to 150 liters per Conservation area. ‘We do not discriminate’ and ‘We allow free association.’ quintal of parchment coffee.
Waste water treatment at the wet mill.
28 29 6.1 Introduction • Producers received training on coffee quality by a Producers were asked to give their feedback. Management Results Food Quality Engineer, Germán Ruiz (a Cooperative • Farm administration has improved, which has helped Brief History of the Producer staff member) and training by Agricultural Engineer Enrique Villada “The most complex aspect was to raise producers to gain better control over their producti- The Anserma Coffee Growers Cooperative decided called Andrés Marín (extension service of the Coffee consciousness among workers to do things on and over their profits and losses. Keeping records to participate in a sustainable coffee program for the Growers Committee). well and to comply with the points of the has enabled them to define schedules for farm tasks following reasons: • The cooperative received some subsidies, e.g. for Code, mainly the ones related to the use of and make informed decisions. • To promote better quality coffee production on the building septic tanks. protective clothing.” • Separate warehouses are now used to store coffee associates’ farms. • The certification audit was conducted by the certifi- more optimally. This protects the coffee from the rain Willinton Morales “There were no economic resources to make • To seek better market opportunities for their coffee. cation body Biotropico. and other environmental influences, and restricts the some of the changes requested.” • To receive a better price for their coffee. access of pests (rodents, cockroaches). Platforms are The producers emphasize that the support given by the Orlando Ospina “Before certification, there was great used so that coffee is not in contact with the ground. In 2005, the Coffee Growers Committee of Caldas Cooperative has been very important in the certification disorder in some parts of the farm, mainly in Proper stacking of coffee prevents it from falling invited cooperative representatives to a meeting at process and to improve farm management. The training the warehouses where they kept everything. down or being in contact with walls. Hacienda Venecia (a certified farm) to tell them about and consultancy received have been very useful. Becoming organized and having everything Enrique Villeda “Keeping records makes it possible to know the process of becoming UTZ CERTIFIED. After this in its place was a challenge.” visit, the cooperative management began to evaluate Interviewed producers indicated that their motivations whether the farm has profits or losses at the the advantages of the program and the opportunities for becoming certified were: Silvio Ríos “To raise awareness among people who lived end of each year. There are production that could be created by becoming certified. Later that on the farm to begin the improvement records expressed in kg of dry parchment per year, they decided to begin the certification process Enrique Villada: “The Code has many of the same objectives process. An attitude change.” produced hectare, there are records of CASE STUDY as we have for the farm, e.g.: fertilizer applications and agrochemicals per CASE STUDY with one farm in the Anserma area. Meetings were Omar Orozco “In the beginning there was a lack of RESULTS to produce high quality coffee, to receive plot and doses/ha applied.” RESULTS held with those associates that had the right profile for knowledge on how some of the points of the certification process. By 2006, seven farms were better prices for our coffee, to be a frontrunner 6. COLOMBIA the Code should be implemented. Willinton Morales “Using records, we have begun to define 6. COLOMBIA certified and by 2007, 30 farms. in coffee production, to conserve the Cooperativa Audits were very rigid at first.” standards for the tasks on the farm. It allows Cooperativa environment of the farm.” Anserma us to know how much money a task in one Anserma Brief History of the Certification Willinton Morales: “The owner of the farm was motivated to 6.2.1 Economic Results lot costs and how long it takes. It serves as a The certification process involved the following become certified for the following reasons: • Interviewees report that they have received a point of reference when hiring labor.” activities: She is interested in preserving the premium for the coffee they have sold, up to Silvio Ríos “Thanks to the documentation required for • Farms were visited and assessed against the UTZ environment, she is aware of the fact that US$ 0.04 per pound of green coffee, on top of the certification, we now have historic records that CERTIFIED Code. coffee is a product for human consumption, normal selling price of their coffee. This is seen as allow us to take better decisions and evaluate • Producers interested in certification made a formal she is interested in producing high quality an acknowledgment of the effort they have made the economic performance of the farm.” request to join the group. coffee.” to produce a higher quality coffee. • Producers attended trainings on good agricultural • One of the producers, Enrique Villada, explained that practices and the main topics of the Code of Conduct: Silvio Ríos: “When I became aware of the possibility to after conducting a soil analysis and adjusting his traceability, crop management, food safety, social- become certified, the farm had cash flow fertilizer plan, a saving of US$ 39 per ha was made. and environmental sustainability, etc. These training problems due to low productivity. Before certification, he fertilized three times a year sessions were very productive, thanks to the support I saw it as a good opportunity to start a with 80 gram per tree, now he fertilizes two times a network established by the Cooperative leadership. process of improvement on the farm.” year and applies 100 gram per tree. This has created Among the institutions that supported the process savings in labor and fertilizer costs, while farm are the municipal hospital, the fire brigade, the Challenges productivity has not been affected. National Service for Education (SENA), the Extension The interviewed producers affirmed that the process Service of the Coffee Growers Committee of Caldas was productive and that there were no obstacles that Enrique Villada “Taking advantage of the decomposed and the Ecological Coffee Growers Foundation. could not be overcome. Their main challenges: organic material has helped to produce • The producers received advice from the Cooperative • Realizing an attitude shift and raising consciousness seedlings of excellent quality.” on how to implement the Code criteria. On this point, among workers about the importance of complying Willinton Morales “Soil analysis has allowed us to tailor the education, quality and commerce departments with the Code, mainly with reference to the use of fertilization plans that are appropriate for were involved. protective equipment. the specific soil and crop needs.” • The Cooperative appointed a staff member, Jhon • Gaining access to the finance required to build the Fredy Arias (a Agro-industrial Engineer) for the infrastructure necessary for certification. Orlando Ospina “Organic material is used to fertilize the management of the Internal Control System and • Improving the organization of the warehouse. plants in the seedbeds and in new sowings.” also two supervisors on specialty coffee. • Uncertainty about how to implement the Code. Omar Orozco “The use of shade management and inter- Many meetings were organized to discuss and cropping with plantain, allows a reduction of analyze the Code with members of the Cooperative. up to 25% of the amount of chemical fertilizer
that has to be applied to coffee plants.” Records.
30 31 Quality Results 6.2.2 Environmental Results Quotes from certified producers 6.2.3 Social Results • The mill’s infrastructure was improved at all the The following environmental results have been • Worker housing has been improved in terms of farms visited. The new mills are built with cement, reported: Enrique Villada “Organic waste is placed in composter sinks ventilation, sanitary facilities, showers and sinks. have chutes made of hygienic material, and the tubes • Storage conditions of crop protection products have to produce fertilizer. All our organic waste is are made of easily washable materials. The produc- improved: These products are now stored in sepa- managed in this way.” tion process in the mills has improved. People are rate warehouses, built of noncombustible materials. “There are covered composters for coffee pulp more aware that it is a food that is being produced Products are stacked properly (e.g. powder products composting. We have learned to manage the and that hygiene is required. above liquid ones). All warehouses have physical pulp and all coffee by-products correctly. • Coffee is stored in separate warehouses or sites; barriers to prevent leaks from seeping outside. Sand Before certification, the incorrect handling of reducing the risk of contaminating the product and shovels are available to manage leaks. by-products often caused bad smells.” with other articles that were stored there before. • Systems for the treatment of residual waters have “The use of herbicides to manage weeds has The warehouses are built to prevent animals and been installed to reduce water contamination. been reduced. Today, we manage weeds non-authorized personnel from entering and are Chemical evaluations were not conducted by the through mulching and selective application of well-ventilated. data collector, but producers state that the water herbicides, and leave less damaging species.” looks clearer and no longer emit bad odors. “Shade trees and plantain are intercropped Orlando Ospina “More attention is now paid to coffee quality • The by-products from the mill (pulp and waste water) with the coffee. There are up to 500 plantain • To reduce the risk for workers, personal protection and producers are aware that a poor mill can are managed better. All farms have composters for plants/ha and between 30 and 35 trees/ha.” equipment is available for the safe handling of result in inferior product quality.” worm cultivation. These by-products are used to fertilize “Environmental management has improved. pesticides. nursery plants, new plantings and other crops. Today, trash is not treated as trash, we reuse it.” • All areas are adequately signposted and infrastruc- CASE STUDY Silvio Ríos “Certification has facilitated professionali- CASE STUDY • Areas with native vegetation are maintained along tural changes have been made to reduce the risk of RESULTS zation on the farm, which has allowed us to Silvio Ríos “Good waste management minimizes RESULTS the borders of water streams. work-related accident. obtain higher quality products.” contamination and we reuse what’s possible.” • Soil erosion prevention practices are implemented. 6. COLOMBIA “Pest and disease management is done with 6. COLOMBIA Cooperativa permitted products that have a low toxicity. Cooperativa Anserma We use category III products.” Anserma
Omar Orozco “Thanks to shade management, intercropping with plantain and environmental improvements, we now have birds on the farm.” “Soil on the farm has been greatly improved, thanks to intercropping with plantain.”
Willinton Morales “Improvements to our environmental management have resulted in less water contamination.” Quality lab. Waste water treatment.
- Handrails have been installed in the mill’s staircases; - Stairs have been built at steep inclines; - Access to agrochemical warehouses has been restricted with doors and locks; - Non-slip floors have been installed in warehouses Prevention of and mills. soil erosion. • There are first aid kits and trained personnel to manage work-related accidents.
Sample. Conservation of areas that are not used for production.
32 33 • Improvement of working conditions on the farms, 7.1 Introduction Challenges Enrique Villada “Working conditions have improved. mainly in terms of housing, sanitation, showers and The technical manager expressed that there were no Information about the importance of being wages. Brief History of the Producer major obstacles to obtaining the certification, nor any certified is now shared with workers and • Worker health and safety has been improved via The owners of the Finca Borneo farm have always major challenges to prevent them from being recertified the owner says that workers are realizing training, first aid facilities and accident prevention strived for a more entrepreneurial approach to the each year. It has been relatively easy for the company to that there are people in the world who care measures. management of their plantation. From the outset, access and maintain the certification process, because about them.” • Safer management of agrochemicals. This reduces they tried to incorporate a culture of continuous they have always strived to manage the farm with Willinton Morales “There are explanatory posters and clear the risk of environmental contamination and protects improvement. Therefore the management searched technical and entrepreneurial criteria in mind. instructions about what workers have to do. workers’ health. for a program that would allow it to: This has improved communication.” • Measures such as soil analysis, intercropping and • Improve their production system in order to access The following situations posed the greatest challenges: “Workers are paid more, which motivates shade management have led to savings in fertiliza- better market conditions. them. They are also receiving social security tion costs, in some cases up to 20-25%. • Improve the organizational structure to become First certification and bonus payments for good work.” • Fewer agrochemicals are needed for pest mana- highly efficient in the management process. • Some of the regulations were so general that they gement and diseases as inputs are used more • Receive good prices for the coffee produced on the required more interpretation. Orlando Ospina “Conditions for workers have improved. efficiently. farm. • Some technical adjustments had to be made to the They are paid a fair wage. Workers are now • Less herbicide is required because good weed mana- mill. taking better care of the farm and are doing gement practices are applied, such as selective • They could no longer use the empty fertilizer packages a better job. Social security is paid to application of herbicides and mulching. to collect the harvested coffee cherries. permanent workers.” CASE STUDY • Better management of pulp and mill by-products. CASE STUDY RESULTS Omar Orozco “We are now more aware that the people By-products from the mill are composted and reused To continue certification RESULTS who work on the farm should be treated well as a source of organic fertilizer. All farms have • They had to convince workers of the importance of 6. COLOMBIA and receive fair wages. Bonuses are used to composters or use worm cultivation. using personal protection equipment for the safe 7. COLOMBIA • Waste water from the mill is treated to prevent management of agrochemical products. Cooperativa reward workers at the end of the year. Finca Borneo contamination. • They felt limited in the use of products that are Anserma Up to US$190 has been distributed among workers as a commitment prize.” not registered for use in coffee plantations, which Annex: QUOTES FROM THE COFFEE GROWERS Office. previously had been effectively used for the mana- gement of their pest problems (such as ‘Broca’). Omar Orozco “The certification allows for production, Brief History of the Certification while taking care of nature.” When they were informed about the UTZ CERTIFIED 7.2 Results “With the certification we can produce more program by certified coffee producers in the region coffee that meets the quality levels that and Agricultural Engineer, Francisco Bustamante, they 7.2.1 Economic Results today’s buyer demands.” contacted the organization and began the certification • The farm has received a premium for the certified “Environmental- and working conditions have process in 2004. coffee it has sold. The premium for certified coffee is been improved.” At first, certification appeared difficult because of US$ 0.051/pound of green coffee, on average, over problems in their mill process. After conversations with the price that is normally sold by the farm. Enrique Villada “The certification is a tool to speak to workers field representative Francisco Bustamante it became • Mill by-products such as pulp and waste water are about what needs be done on the farm. clear that it was possible to access the certification composted by worms to produce organic fertilizer. With the certification, I become more convinced program by making some adjustments. They also This is sold (180.000 COP/ton or 86.70 US$/ton), each day that I have to produce better coffee. received advice of social worker Gloria Inés Franco, creating additional revenue for the farm. The certification program provides continual who continues to support the process. BCS was the • Better market conditions for the certified coffee. improvement challenges. Waste is no longer 6.3 Conclusion certification body in charge of auditing the process. • Certification has improved productivity on the farm, treated as waste; we can take advantage of it.” First certification was obtained in 2006. a long-term goal of the owners and managers. “Today there are more records and infor- • Improvement of the mill infrastructure and technolo- During the interview, the technical coordinator ex- • Applications of crop protection products for the mation about the farm. In the words of Maria gy has reduced negative impacts on the environment plained that it was not hard to obtain the certification, control of weeds, pests and diseases have been del Carmen (the producer’s wife): We now and increased product quality and food safety. Better because many of the criteria in the Code had already optimized, reducing production costs. know if we have made profits or losses.” mill processes has improved hygiene conditions. Mill been adopted. The farm intends to show leadership chutes, tanks and floors are made from easily washable Silvio Ríos “The certification allows us to produce in its region and country. Most of the administration’s Quotes from the interviewees materials. Stricter periodic cleaning routines have been quality coffee guided by social-, economic- ideas and proposals are driven by the objective to make instituted (weekly, where coffee is handled). and environmental parameters.” the farm more efficient, productive and sustainable. ‘’Certification means: improve everything.” • Improved storage conditions and the use of separate warehouses for agrochemicals, machinery, equip- “The certification program is a continuous ment and coffee has reduced the risk of product improvement challenge.” contamination. • A premium of up to US$ 0.04/pound of certified “The requirements of the program are green coffee has been paid to the producers, on well adapted to the logistics of production average, over the usual price. on a coffee farm.”
34 35 Management Improvements and Results Quality Improvements and Results • Traceability records are kept. This has improved the • There are documented processes to guarantee that farm’s ability to detect failures in the production the product is managed in a safe way, minimizing the process. Records are kept by lot. All of this available risk of contamination and guaranteeing food safety. information allows management to take more infor- • The measures that result from certification make it med decisions. possible to maintain product quality, while reducing - Production records are available the risk of quality loss and food safety issues. (kg of dry parchment/ha produced); • There is more quality control in the production - Records of fertilizer and agrochemical applications process. Because of process documentation, the are taken by lot. The dose/ha applied is recorded; plans can be verified against the results. Moreover, - Labor and activity records are kept, with indexes for there is follow-up and control of the production plan. labor costs; The farm also has a complaints and claims procedure - Soil analyses are conducted by coffee plot. This helps that helps to fix errors. Vegetation at the borders of water streams protect against run-off and contamination. to define fertilization plans. 7.2.2 Environmental Results • Waste management has been improved, with contai- • Crop protection products are handled and stored ners to classify different types of waste. with less risk of contaminating the environment. • Better conservation of water streams: Indigenous The disposal of surplus application mix (left over trees and bushes have been planted along water CASE STUDY after spraying) and empty agrochemical containers streams. Filtration fields filter contaminated water CASE STUDY RESULTS is well managed, reducing the possibility of environ- and minimize the contamination of water streams. RESULTS mental contamination. • Reforestation has been implemented at the borders 7. COLOMBIA • The mill process has been greatly improved. Water of waterways and there has been an 80% increase in 7. COLOMBIA consumption in the wet mill has been reduced by general reforestation. Finca Borneo Finca Borneo almost 80%, from 40 liters/kg of dry parchment to • Better soil conservation practices are implemented eight liters of water/kg of dry parchment. in the coffee plots, e.g. the use of terraces and cover Record keeping. • Better management of mill by-products: pulp and crops contributes to sustainable soil management. waste water are now composted by worms to • Wood is no longer cut down on the farm for firewood. • Measurement equipment is calibrated, allowing for produce organic fertilizer. Instead, gas is used for cooking, which is cleaner and better administrative control of products going in conserves wood. and out of the farm (inputs, coffee). • Good working conditions mean that it is easier to hire workers. • Keeping tabs on pesticide applications per lot enables management to track its effectiveness; and if there are any problems managing a plague or disease, there is a record of exactly what has been done to date. • There is documentation on the seed quality and the seedbed material, which helps to improve Washing tanks. production.
Soil- and farm maps.
Worm composting of coffee pulp. Waste water filtration fields.
36 37 7.2.3 Social Results 7.3 Conclusion 8.1 Introduction 8.2 RESULTS • Protection equipment is provided to protect workers. Pesticides are managed better, reducing the risk of Certification has exceeded initial expectations, according Brief History of the Producer 8.2.1. Economic results exposure for workers and contamination of the to the interviewees. It has achieved many benefits, Rancho Fundo (MEIA LUA; PASTO DA IRIA) is a large • Certification has made it easier to expand to new environment. including: mechanized farm that is individually certified. Rancho markets, acquire new partnerships, purchase inputs • All zones are signposted and infrastructural changes • A premium for certified coffee (US$ 0.051/pound of Fundo choose for UTZ Certification because at the time and sell coffee under better conditions. have been made to minimize the risk of accidents at green coffee, on average). of first certification it was considered the only viable • In Brazil, some manufacturers of chemical fertilizers work. • Documented processes provide producers with and trustworthy sustainability program. The first and pesticides allow producers to purchase inputs in • Worker housing has been improved with better important information that allow them take better contact with UTZ was made through Soren Knudsen, exchange for bags of coffee. Because certification ventilation. management decisions. Recordkeeping and calibration a consultant. improves the value and quality of the coffee, more • Gas stoves have been provided for the preparation of have made the application of pesticides more efficient. inputs are now received in exchange for the same food. This makes cooking easier, but it is also cleaner Documentation of the seed quality and of the seedbed amount of coffee. It has also opened up new and more environmentally friendly than firewood. materials contributes to better production. partnerships for the purchase of inputs. • First aid kits are available and there are trained • Environmental aspects have been greatly improved. • Cost reductions have been made. personnel to attend to work-related accidents. By-products of mill processing are composted and • A local organization called ‘El COPASO’ (Comité used as fertilizer. Surplus organic fertilizer is sold, Management Improvements and Results Paritario de Salud Ocupacional) supports the creating additional income for the farm. The new farm- and cost management processes allow company and its workers with the management of • Available water resources are conserved and less the producers to have total control over their costs and CASE STUDY health and safety risks - ARP (Administradora de water is used (water use been reduced by 80% in the the production process. Certification has opened new CASE STUDY RESULTS Riesgos Profesionales). wet mill). Waste water is filtered in filtration ponds markets and the competitive position the farm has RESULTS • Better working conditions make it easier to hire to prevent the pollution of water streams. Water acquired as a result of being certified, is reason enough 7. COLOMBIA workers. streams in the fields are protected by planting trees to continue the program. UTZ Certification creates well 8. BRAZIL • Workers are trained in technical aspects, such as and bushes along the banks. organized farms that are more ready to face the Finca Borneo Rancho Fundo safety measures. • Storage conditions of agrochemicals have been challenges of production and changing markets. improved to prevent contamination and damage to the environment. Quality Improvements and Results • Better soil conservation practices are used in the lots. Brief History of the Certification Agricultural practices and -management, has improved For example, terraces and cover crops contribute to Rancho Fundo was first interested in certification efficiency of input use and the quality of their coffee. sustainable soil management. because this would give them the chance to sell their • The banks of waterways have been completely coffee at higher prices, but they have since come to replanted and there has been an increase in refore- recognize that it has improved their productivity and station. Gas is now used for cooking instead of efficiency, too. Mechanized producers can produce wood, which is cleaner and prevents wood from at lower costs because they only need to hire extra being chopped down for firewood. workers in harvest season. According to the producer, Cooking facilities (gas stoves). • There have been important improvements in working the biggest impact of certification has been the conditions. This makes it easier to hire workers. improved management of the property, especially the • Health and safety conditions for workers have significant upgrading of the quality of the work that improved and training is given on first aid and the certification demanded. accident procedures. Challenges First aid training. The implementation of the environmental criteria was one of the main challenges. The producers commented that the coffee certifiers’ auditors need more technical knowledge. They are concerned that auditors pay too much attention to insignificant aspects of the Code, to the detriment of really important points.
Weed Management.
Sleeping and eating areas.
38 39 9.1 Introduction 9.2 Results
Brief History of the Producer 9.2.1 Economic results The Ponto Alegre farm is a large, individually certified • Certification has allowed the owner to use fertilizers producer, situated in the mountains. Plantations located and agricultural chemicals more efficiently. As he in the mountains have high transportation and pro- did not control these costs prior to certification, the duction costs. They require extra workers during the producer is unable to assign a value to these savings. harvest and their rotation costs are high. • The producer now complies with Brazil’s environ- Coffee waste water recycling. mental laws. Brief History of the the Certification • Ongoing training has made employees more efficient, The producer chose for UTZ Certification because the resulting in better quality work. These trainings cost farm was a member of BSCA, who recommended UTZ approximately R$ 1,000.00 (or US$ 550.00) per as the best certification program. The producer was employee per year. However, the owner reported initially most interested in the economic benefits of that trained teams can execute a task three times certification, i.e. the high prices paid for certified coffee. more efficient than the unqualified labor he used Certification was also seen as a way to improve the prior to certification.
Waste management. Reforestation area. quality of work on the farm. However, experience showed that the most important positive impact of the Management Results CASE STUDY 8.2.2 Environmental Results • Workers who complete their studies are rewarded. certification was on the socio-environmental mana- • Certification is seen as a powerful management tool. CASE STUDY RESULTS The main environmental results are: If they go back to school and pass their basic educa- gement of the farm, including worker training and The biggest impact of certification was the general RESULTS • Water recycling. tion (many leave school at an early age), they receive adherence to national legislation. organization of the farm and the management of 8. BRAZIL • Better waste management. a 10% raise, if they pass their secondary school the property. According to the producers, this has 9. BRAZIL • Reduced energy use and lower energy costs. education, they receive a further increase of 10%, Challenges improved greatly and they are doing well. Rancho Fundo Ponto Alegre • Establishment of conservation and reforestation areas. and if they continue studying and complete college, • One of the main challenges of certification was to • Certification requires the adoption of measures to • Compliance with environmental laws. they are promoted to a senior position, where the make workers aware of the principles. Ongoing improve operating procedures, control inventories, increase in salary can reach 50%. training is needed. Without systematic reinforcement record applications and improve traceability. Staff 8.2.3 Social Results • Many farms prefer to hire male rather than female of the principles, the team will not practice them. training is an important part of this. IPM (integrated According to the farmer, the certification has had signi- workers, and when women are hired they receive • The initial investment in infrastructure was very high. pest management) and rational pesticide use mini- ficant and valuable social impacts, which he considers lower wages for the same work. Discrimination is at • Stimulating the marketing of certified coffee has been mize contamination as well as costs, as pesticides and bigger than the environmental or economic ones: not allowed at UTZ CERTIFIED farms and it is also difficult. The producer has a hard time identifying the fertilizers are used more efficiently. • Workers now recognize the improvements and they forbidden by Brazilian law. At Rancho Fundo, women purchasers, and organizing visits with the final pur- feel more appreciated. Workers are becoming more are not discriminated against. The farmer has had chasers (roasters) to the certified farms. The producer These management improvements allow the farm to qualified through on-going training. good experiences with hiring female workers and feels a need for support to identify and gain access achieve better financial control and to produce better now prefers to hire them over male workers. Women to markets that are interested in certified coffees. quality coffee. are even trained to become tractor operators, a • Different members have different levels of engage- traditionally male dominated job. ment with UTZ. Although most producers believe in Quality Improvements and Results the program, a few certified farms have expressed Certified coffees are produced under excellent hygiene 8.3 Conclusion their concerns about the level to which other farms conditions, resulting in better quality products. have adapted to the standard. Producers have also Optimizing the use of inputs and improving the quality Training has had a strong positive impact on workers. expressed that they have not received a higher price of labor have also resulted in an improvement of the They have been able to learn new skills, which are for their coffee. quality of produced coffees. recognized and valued by the producer. The producer
also stimulates schooling and social development, Quality and food safety Quality control, by paying better wages to workers that acquire are important issues during laboratory testing. Workers training. knowledge through formal education. The producer post-harvest handling. is satisfied with the changes brought by certification. He especially recognizes the social impacts, such as education, which he considers to be valuable for the farm and its workers. He recognizes that the farm has improved and that production risks have diminished. The farm has become more competitive, with better access to markets, improved market relations, and better access to inputs. The farm is therefore able to face challenges better. Waste management, reduced water and energy consumption and other factors School transportation. have made cost reductions possible.
40 41 9.2.1 Environmental Results 9.2.3 Social Results 9.3 Conclusion • The producer now meets Brazil’s environmental laws. • Housing conditions and lodging for harvest time • Efforts have been made to preserve water springs workers have been improved. Working conditions The benefits of being certified and other nature areas on the farm. The farm has are now well above the national average, especially • Certification has helped to reduce the high cost of registered 18 water springs and implemented a the housing, bathrooms and dressing rooms. being located in the mountains. It has improved project of recovery and conservation for all of them. • Workers receive ongoing training. This has helped management practices, especially in terms of cost • Waste generated on the farm is managed better. workers to do a better job and has reduced rotations. control and procedures. The materials used to produce organic fertilizer on • Ponto Alegre has launched a digital inclusion program • Higher quality coffee beans are a direct result of im- the farm are: (training on how to use computers), in partnership proved hygiene conditions and better quality labor. - Coffee pulp (coffee by-product from processing); with the local union of workers. This program serves • The ongoing training of workers has helped them to - Coffee pulping waste water; not only local workers, but also local society at large. do a better job and has reduced rotations. Trained - Sugar cane bagasse; Living in a rural area, they would otherwise not have employees are able to execute a task three times fas- - Cattle manure; access to computers. Digital inclusion teaches them ter than untrained workers. - Agricultural lime; new skills that allows them better opportunities in • Working conditions have improved on the farms, - Wood powder; the labor market. mainly in terms of housing, sanitation, showers and - Single phosphate. wages. The conditions are well above the national average. • The farm has a program of digital inclusion (training CASE STUDY on computer skills) in partnership with the local CASE STUDY RESULTS union of workers that serves not only local workers, RESULTS but also the local community. 9. BRAZIL • Contamination by fertilizers and chemicals has been 9. BRAZIL reduced and the use of agrochemicals has become Ponto Alegre Ponto Alegre more efficient. • Organic materials that were considered waste prior to certification are now being reused to produce Waste management. organic fertilizer. • A program has been implemented to protect and conserve the water springs on the farm.
Wildlife. Lodging. Sanitary facilities.
Training Room with Digital Inclusion social project.
Organic compost.
42 43 SUMMARY & Reasons for producers to obtain A third challenge that was expressed was changing • Many of the producers have seen an increase of • The use of shade management and intercropping has SUMMARY & CONCLUSIONS certification group members’ and workers’ traditional way of wor- income, due to premiums, improved productivity, improved the soil fertility and structure and reduced CONCLUSIONS king, making them aware of the Code and motivated quality and alternative sources of income. In most of erosion. Reforestation is practiced at most sites and The main reason for cooperatives and farms to become to implement its criteria. In some cases, it was difficult the studied cases, producers have obtained a higher deforestation is controlled. certified is to get better terms of trade and market to convince workers of the need to use protective price or premium as a result of being certified. • Environmental benefits sometimes interrelated with access. Producers expressed that certification would clothing, and to take into account the effects of • Commercialization and improved market conditions economic benefits. For example, in a few cases, enable them to improve their sales prices and allow activities on the environment. have also shown to be one of the main benefits of composted coffee pulp is sold as fertilizer and wood them to become more competitive. In addition, many being certified. Producers expressed that it is easier from the pruning of shade trees is used or sold as producers mentioned they wanted to improve their Results to sell their product. Selling the product faster means firewood, leading to additional sources of income. production practices, farm management and overall more cash flow to reinvest in the next harvest and efficiency, and especially the quality of their coffee. Economic results less financial costs as they have no need for a loan. Social results: Other reasons for certification are the aim to be a • One of the main findings of these studies is that • Producers and workers have been trained on good frontrunner and to learn more about environmental almost all cases show an increase in productivity. Environmental results: agricultural practices, quality and food safety. conservation and other sustainable practices. Producers expressed that they see a relationship • An important environmental result that was found in • Living and working conditions have been improved. The Asian and African farms expressed that being between better farming practices and productivity most cases is the reduction of water use at the coffee This includes better housing, facilities such as UTZ CERTIFIED is also important to enhance the image improvements. processing facilities. In most of the cases, installation clean water and electricity and improved sanitation of their coffee. • Use of inputs such as pesticides and chemical of a water circulation system at the processing facili- facilities. fertilizers is reduced in most of the cases, leading to ties has strongly reduced water usage. • Producers and workers have better access to educa- Challenges reduced production costs. The reduction is mainly • The use of waste water treatment systems in wet tion and healthcare, for example providing healthcare a result of training on efficient use of inputs and mill processing has reduced the pollution of water facilities and arranging transportation to schools. Many producers found the implementation of some integrated pest management (IPM) techniques, and streams. Producers use various methods to filter and • Health and safety has improved due to training, criteria in the Code of Conduct challenging, especially making informed decisions based on record keeping, treat the waste water. Pulp from coffee processing is warning signs, instruction posters, protective clothing management requirements such as the separation management plans and soil samples. often used as organic fertilizer. Most farms reuse all and -equipment and better access to first aid. and traceability of certified coffee, record keeping and • Better harvesting- and post-harvesting practices and their pulp and coffee by-products to make organic • Managers are more aware of the importance of having a well-functioning Internal Control System. facilities have improved coffee quality. Many of the fertilizer. showing social responsibility towards farm workers. Another challenge that was mentioned a few times interviewed producers improved harvesting practices • Water streams are protected by planting trees and It is easier to hire workers and the quality of labor was the cost of certification – both audit costs and and invested in new processing equipment. bushes along the border of water streams. In many has improved. Workers have expressed that they implementation costs. In most cases some investments • Record keeping has led to better farm management, cases, the banks of waterways have been reforested feel more appreciated and receive higher wages were necessary to obtain certification, such as improved including overviews of expenses and income, making to protect the water streams from run-off. and bonus payments. The education of workers and storage facilities for fertilizers and agrochemicals. it possible to make better informed decisions, for • Waste is reduced, managed, separated and recycled. their families is stimulated. Investments also had to be made in the processing example about labor needs and input use. Better handling and storage of agrochemical products • Social improvements are also interlinked with facilities, such as improving the wet mill and installing has reduced environmental damage from spilling or economic improvements. Some cases showed that a water circulation and/or water treatment system. leaking. if there are good working conditions, it is easier to Some producers expressed that it was difficult to find hire workers. It was also found that training made access to finance to invest in such infrastructure. employees more efficient and caused workers to perform better, resulting in higher productivity and better quality.
44 45 Addendum Economic Environmental Social List of • Cost benefit: cost vs. income • Minimize water consumption • Pride of achievements Key Indicators - Income (productivity, quality, (percentage, volume, ratio) (self-esteem) price, premiums) • Waste water treatment • Access to healthcare - Production costs (equipment, (percentage, volume or ratio) (coop members and fertilizers, CCPs, labor, energy) • Pulp re-use community) - Certification costs (practices, volume) • Access to education - Other costs and benefits • Control agrochemical use (practices to stimulate • Increased volume/productivity (type) the education of children, • Reduce production costs and use of IPM transport, schools) - Reduction inputs/agrochemical (techniques) • Access to training use (fertilizer, CCPs) • Reforestation and shade trees • Living conditions • Quality improvements (number or percentage) (housing, latrines, potable (decrease of defects) • Energy management water) - Professionalism (discipline and (coffee by-products) • Workers health and safety consistent quality) • Protection of water streams (protective clothing, - Procedures (quality (kinds of practices) first aid) regulations, etc.) • Biodiversity conservation • Working conditions - Investments (equipment, (practices, endangered species, (wages, benefits) training, infrastructure) conservation areas) • Gender equality • Price, premium • Waste management • Child labor (include case study auction price (practices) (practices) Kenya) • Storage, handling and • Food safety • No. of coop members disposal of agrochemicals (OTA prevention, residues (growth) (practices and procedures, and hygiene practices) • Farming practices facilities) • Awareness of importance (pruning (percentage or area), of coop new planting, fertilization) (loyalty) • Professionalism (use of records for cost management) • Stable relationships with buyers (no. of new buyers, contracts) • Technical assistance
46