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Coffee

The coffee industry is quite large. The total turnover is estimated at 70 billion dollars and it is still growing. One of the main reasons is China’s discovery of the boost drink. While this country was originally dominated by a genuine ‘tea culture’, it is now gradually switching over to coffee. Coffee is grown on large plantations and by small coffee farmers. The best sold coffee species are called Arabica and Robusta.

Did you know…

  • The words ‘coffee’ and ‘café’ are derived from the Arabic word ‘qahwa’, meaning something like ‘strength’ or ‘power’

Most important export countries

  1. Brazil
  2. Vietnam
  3. Colombia
  4. Germany
  5. Indonesia

Most important production countries

  1. Brazil
  2. Vietnam
  3. Colombia
  4. Indonesia
  5. Mexico

Production chain

After picking the coffee by hand, the coffee berries are peeled, washed and dried. Coffee beans are usually taken to the EU by ship where they enter the final process and the coffee acquires its increase in value. The beans are roasted, and in some cases they are grounded before selling.

Problems

In the coffee sector, half of all coffee pickers do not manage to earn minimum wage. Women are often paid less than men. Child labour is also an issue in the sector. One study estimates that in Kenya between 50 and 60 percent of the work force on coffee plantations is done by children In Brazil, children from lower income families are withdrawn from school and employed in coffee farms. Coffee production can also have negative effects on the environment. In Vietnam there are reports of soil erosion and water shortage because of water extracted from rivers to irrigate coffee plantations. Water pollution is caused by discharges from coffee processing plants or excessive use of nitrogen fertilizers. The intensive use of pesticide within the coffee sector employs chemicals that present serious health threats. Under-regulated pesticides use threatens farmers and other rural residents with exposure to toxic substances in the work place.

Major Chain Issues

In the coffee sector, Fairfood International has identified the following major chain issues:

Major chain Production stage
Insufficient income and income insecurity Production
Lack of access to financial services Production
Insufficient market-related infrastructure Processing
Harmful Agricultural or Aquafarming Practices Production
Child Labour Production

Solutions

The guide below shows certification schemes whose standards indicate a match with some or all of Fairfood’s researched major issues for this commodity. To learn more about the schemes, click on their logo.


Naturland
Global Gap
EU Organic Labels
Fairtrade
Rainforest Alliance
UTZ Certified
ProTerra Certified

Production
Production
Production
Entire chain
Production
Production
Entire chain
Customised sustainability initiatives
In addition to making use of standards and certification schemes, major issues in this commodity could also be addressed in a customised manner. The box below outlines a few examples of initiatives that deal with sustainability issues in this particular sector. Companies could join some of the platforms or roundtables mentioned below. These could serve as a stepping stone to increased sustainability. Other initiatives, in the form of corporate programmes and chain partnerships, could serve as inspiration for replication by other companies within the sector. To learn more about any of the initiatives, click on their logo. 

Corporate program
 Launched in 2004, The Starbucks Coffee and Farmer Equity (C.A.F.E) Practices were developed in collaboration with Conservation International and Scientific Certification Systems (SCS). The C.A.F.E. Practices are ethical sourcing guidelines used by Starbucks as an incentive to motivate farmers. With this program, Starbucks wants to improve the quality of their coffee while also enhancing their social and environmental practices. In 2009, Starbucks sourced eighty-one percent of its coffee under the auspices of the C.A.F.E. program and it seeks to increase this to one hundred percent by 2015. Compliance is verified by various auditing organisations accredited by SCS. Priority issues are addressed and verified by this initiative.
Corporate program
 In 2006, Green Mountain Coffee Roasters, Inc. (GMCR) developed key performance indicators to measure poverty and hunger in its coffee supply chains. The company developed these indicators in collaboration with the Sustainable Food Lab, the International Centre for Tropical Agriculture (CIAT) and several other stakeholders. With the help of these indicators, GMCR seeks to reduce seasonal food insecurity in coffee-growing communities by supporting socially and environmentally responsible projects in these regions.