monitoring the scope and benefits of fairtrade: coffee Monitoring Report 10th Edition FAIRTRADE COFFEE Monitoring Report 10th Edition 2
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All rights reserved. None of the material provided in this The monitoring data in this report are based on data collected publication may be used, reproduced, or transmitted, in by FLOCERT, and reported in some cases by producer whole or in part, in any form or by any means, electronic or organizations through the audit process and in other cases mechanical, including photocopying, recording or the use by other supply chain actors. Fairtrade International is not of any information storage and retrieval system, without responsible for the accuracy of the data. The report has been permission in writing from Fairtrade International. compiled to the best of our knowledge and is provided for About Fairtrade International informational purposes only. Fairtrade International reserves The material presented here is for informational purposes the right to update the monitoring data as new information Fairtrade International is a non-profit, multi-stakeholder only. Fairtrade International grants permission to use the becomes available. The data are provided ‘as is’ and no association that promotes fairer conditions for international information for personal, non-commercial use, without any warranty of any kind is given for the accuracy and reliability trade, empowers small-scale farmers and workers, and right to resell or redistribute information or to compile or of the data. Fairtrade International will not be liable for any fosters sustainable livelihoods. create derivative works therefrom. claims or damages related to the quality and completeness of the data, as far as it is permitted under law. Fairtrade International develops and maintains the internationally-agreed Fairtrade Standards, owns the FAIRTRADE Mark, and supports the international Fairtrade Editorial and Data team: Harveen Kour, Verónica Pérez system. Three regional Fairtrade producer networks Sueiro, Peter Kettler, Emily deRiel, Gerrit Walter, Daniel representing 1.6 million farmers and workers co-own the Castro, Miyako Takahashi, and Luis Pastor international Fairtrade system, which also includes the independent certification body FLOCERT, and Fairtrade Design/layout: Alberto Martínez, Renderparty Cover Photo: organizations in more than 30 countries that promote Harvesting coffee beans at the Cooperativa de Producción Fairtrade to business and consumers. Proofreading: Laura O’Mahony Tzetzal, Tzotzil S.C.L, Mexico © CLAC For more information, visit www.fairtrade.net
About FLOCERT
FLOCERT is a global certification body offering verification and supply chain services to ensure social and environmental standards. Founded in 2003 as the single certifier for Fairtrade, the company has six international offices, 125 employees and more than 120 auditors worldwide.
For more information, visit www.flocert.net FAIRTRADE COFFEE Monitoring Report 10th Edition 3
582 coffee producer organizations 86 of all coffee farmer organizations representing more than fairtrade coffee received 84 million 762 392 fairtrade premium farmers in 32 countries comes from latin america and the caribbean
18 ofall fairtrade coffee 50 ofall fairtrade farmers farmers are women produce coffee FAIRTRADE COFFEE Monitoring Report 10th Edition 4
1. key data: fairtrade coffee Coffee in context
Coffee continues to be the most significant product within the Fairtrade product range in terms of production volume as well as the number of producers involved. Today, there are 582 Producer organizations 582 Fairtrade certified coffee producer organizations across ↑ 8% since 2016 32 countries, with a total of 762,392 farmer members. From 2016 to 2017, sales volumes (MT) have shown a growth of 15 percent. And there is still room for more growth. 762,392 farmers However, the coffee sector faces a wide range of ↓ 4 % since 2016 sustainability challenges, from record low market prices to the negative effects of climate change, from decreasing soil fertility to gender imbalances and aging coffee producers. 938,158 hectares Given these threats, deepening the benefits of Fairtrade and providing education on Good Agricultural Practices (GAP) ↓ 10% since 2016 have become more important than ever.
633,854MT of coffee produced by Fairtrade producer organizations ↑ 17% since 2016 214,335MT of coffee sold as Fairtrade ↑ 15% since 2016
€83,853,851 Premium earned ↑ 13% since 2016
Notes: Data from 2017. Numbers above 10,000 are rounded to the nearest hundred. Metric tonnes abbreviated to MT. FAIRTRADE COFFEE Monitoring Report 10th Edition 5
2. number of fairtrade certified coffee How Fairtrade drives sustainability producer organizations 2013-2017 in the coffee sector
The future of the coffee industry depends on a consistent supply of quality coffee that meets customer expectations. Earlier in 2019, prices for coffee on the commodities exchange dipped well below one US dollar. This led to many 600 582 smallholder producers selling their coffee at below the cost 537 of production. As the most important members of the global coffee supply chain, farmers must receive fair compensation 500 475 for what they produce. It’s clear that producing sustainable 439 445 coffee does come at a higher price, but we have to ask 400 ourselves: what is the cost of continuing to produce coffee in an unsustainable manner?
300 As the only certification system that requires buyers to pay a Minimum Price, Fairtrade recognizes the need to dignify people’s work with a fairer price and to provide farmers with 200 economic stability in an unpredictable and volatile market environment. If the market price exceeds the Fairtrade Minimum Price, farmers negotiate with buyers to sell at a 100 higher price based on quality and other factors. In addition, coffee farmers receive a Fairtrade Premium of 20 US cents per pound (US$0.20/lb) for conventional coffee and an 0 additional 30 cents per pound (US$0.30/lb) for organically- 2013 2014 2015 2016 2017 produced coffee. At least five cents per pound (US$0.05/ lb) of the Fairtrade Premium is dedicated to farm renovation initiatives aimed at boosting production, quality and sustainability.
In addition, the investment of Premium funds into social projects and infrastructure has proved an important tool for improving the living conditions of many Fairtrade certified coffee-producing communities (see the graph on Premium use on page 10 of this report ). FAIRTRADE COFFEE Monitoring Report 10th Edition 6
Beyond the Minimum Price and the Premium, Fairtrade’s 3. fairtrade coffee-producing countries regional producer networks have stepped up their efforts to provide coffee producers with technical support and ongoing training on Good Agricultural Practices, improving both the quality and volume of their production. Another priority i i d o o d i t d o o nt o area is the development and implementation of thematic programmes to address the challenges posed by climate change (see the Climate Academy case study on p. 14), Peru €21,809,066 55,819 157 51,644 and the opportunities brought about by youth and gender inclusion in the sector (see the case study on women in Honduras €15,516,233 39,710 38 9,083 coffee on p. 13). Colombia €11,658,077 29,831 86 69,819
Brazil €7,142,500 18,021 31 11,131
Nicaragua €5,276,316 13,515 33 19,657
Mexico €5,027,926 12,867 45 32,475
Indonesia €3,420,827 8,752 24 33,633 Guatemala €2,834,187 7,257 15 12,948
Ethiopia €2,820,531 7,219 7 162,245
Costa Rica €1,961,254 5,023 10 13,382
Tanzania €735,468 1,858 8 67,078
Vietnam €551,214 1,411 13 738
Rest of the €5,100,250 13,051 115 278,559 World ot €83,853,851 214,335 MT 582 762,392
Notes: · Data from 2017. · Where there are fewer than three Fairtrade certified producer organizations in a country, the data are aggregated into the ‘Rest of the World’ category to protect the organization’s data confidentiality. · Metric tonnes abbreviated to MT. · Producer Organizations abbreviated to POs. FAIRTRADE COFFEE Monitoring Report 10th Edition 7
There were a few new producer organizations that got 4. area under fairtrade coffee cultivation 2015-2017 certified in 2017 but due to the fact that they were small in terms of number of members as well as land size, coupled In 2017, the area of land under Fairtrade coffee certification was938,158 hectares (ha) - half as big as Wales with decertification of bigger cooperatives led to an overall decrease in the area under coffee cultivation.
1,400,000 ha
205,064 ha
1,200,000 ha
1,137 ha 167,072 ha 157,530 ha 1,000,000 ha
150,271 ha 1,512 ha 159,953 ha 89,645 ha 800,000 ha 1,385 ha 59,431 ha 156,542 ha 8,906 ha 154,131 ha 117,608 ha
33,122 ha 41,859 ha 600,000 ha 27,712 ha 88,257 ha 109,922 ha 19,019 ha 24,512 ha 33,916 ha 32,852 ha 207,975 ha 31,256 ha 27,034 ha 19,991 ha 19,999 ha 400,000 ha 66,742 ha 97,906 ha 26,933 ha 28,794 ha 27,161 ha 236,107 ha 213,382 ha 208,237 ha 200,000 ha
83,596 ha 80,160 ha 65,547 ha
0
2015 2016 2017
Brazil Colombia Costa Rica Ethiopia Guatemala Honduras Indonesia Mexico
Nicaragua Peru Tanzania Vietnam Rest of the World FAIRTRADE COFFEE Monitoring Report 10th Edition 8
5. fairtrade coffee sales volumes and premium earned 2015-2017 Growing the market for Fairtrade
Fairtrade is committed to increasing the share of Fairtrade coffee sales so that producer organizations can reap more benefits. The actions being taken to open up new market opportunities include enhancing the presence and recognition i t d o o o d i t d i i d of Fairtrade coffees in the specialty coffee sector. Fairtrade has been able to reposition its coffee in the specialty coffee
220,000MT market by hosting high quality coffee cuppings and tastings 214,335MT €83,853,851 at international trade fairs and through participation in €80,000,000 200,000MT industry discussion panels and at coffee events. In addition, €74,192,766 185,875MT €71,346,400 we have also invested substantially in quality improvement 180,000MT 179,585MT €70,000,000 programmes for coffee producers (see the perspective of a 160,000MT speciality coffee pioneer on page 12). €60,000,000 140,000MT Another strategy is to develop the south-to-south market for €50,000,000 120,000MT Fairtrade coffees by developing consumer demand in coffee- producing countries themselves. For example, Fairtrade 100,000MT €40,000,000 Coffee produced in Kenya and Rwanda can now even be bought locally. 80,000MT €30,000,000
60,000MT €20,000,000 40,000MT €10,000,000 20,000MT
0 0 2015 2016 2017 2015 2016 2017
Note: Data rounded to the nearest hundred. FAIRTRADE COFFEE Monitoring Report 10th Edition 9