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Impact on organics and new certification strategies the - FAO

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					  Impact on Organics and
New Certification Strategies:

     The Role and
  Characteristics of the
    Coffee Markets
          Daniele Giovannucci, 2001
         Why is coffee so important?

 the world's second biggest
commodity
grown in more than 60
countries – 14 billion lbs
12 million hectares often in
environmentally sensitive
areas
more than 20 million
families depend on it
 How many TREES do you drink?

 2 cups/day = 34 gallons/year
       =18 coffee trees

If you drink conventional, those trees
    were treated with as much as 11
  pounds of chemical fertilizers and 8
         ounces of pesticides.
               High potential to
           promote Organic systems

Keystone crop
– people (consumer & prod.)
– places
– economies


Alliances
– NGOs
– government
– farmers
   North American
   Specialty Coffee Market
      the sustainable coffee survey

In collaboration with The Summit Foundation,
  The Nature Conservancy, Commission for
   Environmental Cooperation, SCAA, CCC,
               World Bank/GEF
                    Availability of Sustainable Coffees

  Sell one or more types          70.0%                                                56.1%

60%



50%
                                                              36.8%
                          34.4%

40%



30%



20%



10%



0%
           Shade coffee                   Fair trade coffee           Organic coffee
      Market Hurdles

 Consumer awareness: the
    stimulations to buy

yes to better flavor (94%)
yes to better health (pay more)
yes (sort of) to better environment
yes (sometimes) to social justice
     Responding to
     Market Demand
“Cause-related economic development
initiatives can't afford to be just issue
oriented. They must perform to market
standards.

      – horticultural products
      – agro-tourism
      – free range livestock
      – coffee


       “Quality is job 1”
What matters to coffee firms
 What is organic or sustainable?

Survey indicates that:

both coffee industry and consumers are
confused.
 – “How do you think the farmer feels?“


We are in danger of diluting the message!
– "sure it's natural man….yeah, sustainable too"
Coffee monocrop
coffee: one of the few forms of agriculture
        that can potentially conserve
vital habitat, biodiversity, and human health
  range of coffee growing conditions
from sun plantation to rustic jungle…
           Why certification?

marketplace credibility

captures incentives of niche market (demand,
competition, and price premiums)

"glues" participants to dual objectives: commerce and
conservation, by linking economic success to
monitored conservation principles
Next Steps: in the field

lessons indicate there are 3 critical
components to embed appropriate
incentives into a sustainable
framework :


Environment
Social
Economic
  Sustainable Coffee Definitions

Shade criteria for conserving/creating
biodiversity as well as soil and water
conservation
Organic criteria include soil health practices
and absence of synthetic agrochemicals
Fair Trade develops direct relationships
between an importer and smallholder
cooperatives that provides them with a
guaranteed price and pre-financing
Label Fatigue and the Super Seal


                  No answer
                      8%

  Little or Not
       26%

                                Very/
                              Somewhat
                                66%
Importance of Certification
        Conservation Principles for
           Coffee Production
     Align coffee production with
             biodiversity conservation

Ecosystem Soil, Water, and Wildlife Conservation
Pest And Disease Management
Waste Management and Energy Conservation
Sustainable and Just Livelihoods - # 1 challenge for
coffee sector
 Industry Expectations
for Sustainable Coffee

				
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