ISSUE 2 FEBRUARY 2016

NEWSLETTER

For the Coffee Professional

This newsletter contains technical and other information on the origins and supply chains of Fairtrade coffee. We hope this will be of
interest to coffee buyers and coffee specialists in retail and out of home, together with Fairtrade coffee roasters and traders.
For more information concerning this newsletter, please contact Anna Kiemen ([email protected]), Jos Harmsen
([email protected]) or Raf Van den Bruel ([email protected]).
* This newsletter is a joint initiative of the National Fairtrade Organizations (NFOs) Fairtrade Germany, Max Havelaar Nederland and Fairtrade Belgium.

Fairtrade coffee from Africa

Africas 25 coffee producing nations today supply just 11.2
percent of the worlds coffee. In the past, before 1990, it was
almost double.
In 2015 the ICO published a study on The sustainability of
the coffee sector in Africa, which explores reasons for the
decline in African coffee production. Explanations include low
productivity, problems with infrastructure, difficulties with
institutional frameworks, lack of financing and weaknesses in
small-scale producer organizations.
Alfred Wincheslaus - Kagera Co-Operative Union, Bukoba - Tanzania

We believe that without strong organization, no real progress

can be made in any area of sustainable production, higher
productivity or increased income for the small-scale coffee
producer. Some relatively young and dynamic Fairtrade coffee
producer organizations are helping to show the way forward,
for instance the expanding Ankole Union in Uganda. These selfreliant, strong producer-owned businesses do and will make a
great difference.
Fairtrade sales from Africa made up just 10% percent of
total Fairtrade coffee sales in 2013 and 2014. The increase in
Fairtrade sales over the last few years is almost entirely from
Latin-American origins while many coffee producers became
certified in Africa. Fairtrade has to achieve more than it is
achieving today.
Strengthening African coffee organizations is the focus
of the Fairtrade Africa Coffee Plan 2016-2020. A special
attention will be given to improving business and finance
administration, bringing more planning and accountability to
the use of the Fairtrade system. Where appropriate, Fairtrade
Africa will facilitate the introduction of good agronomic and
environmental practices.

The importance of increasing the sales figure is clear. From

the producers perspective, small-scale African coffee farmers
often live in extreme poverty and can benefit from the support
that Fairtrade can bring. On top of this, East Africa generally
produces high quality Arabica and Robusta. Arabica can be
of great value, bringing more intensity and a brighter flavour
to coffee blends. Climate change is already hitting coffee
growers dramatically in Africa, for instance in the Mount Elgon,
Kilimanjaro region and Karagwe region, yet recent studies
have shown that African coffee will become more important as
production regions at higher altitude gain greater significance
in the marketplace.

www.fairtrade.net

NEWSLETTER /
Tanzania
Historically, Tanzania was the most important origin of
Fairtrade Robusta but over recent years production there has
been in crisis. The decline in productivity at Kagera is largely
the result of land degradation, see IJRC, issue 3 - July 2014.
Recently the production has also been hit by extreme periods
of drought linked to climate change.

John Nuwagaba, General Manager Ankole Union - Uganda

Uganda
Uganda is very ambitious for the future of the coffee industry
there. By 2020, they expect production will increase from
three million bags to five million bags, 80 percent of this
Robusta. At this moment, the country has approximately ten
Fairtrade certified Robusta producers and suppliers. John
Nuwagaba, General Manager of the Ankole Union, is aware
there are still a lot of challenges. Average production per
tree in our region is still two kg of dried cherries while, with
optimal practices, you can increase this to six kg in our region.
The strong Fairtrade cooperatives including Ankole that are in
pole position to achieve this, together with their farmers.

FEBRUARY 2016

Ugandan coffee farmers better off with

Fairtrade says report
Researchers from Germanys University of Gttingen
conducted research among three cooperatives of
Ugandan coffee farmers to compare the impact of
certification schemes. The three were all Utz Certified;
one also Fairtrade certified; and the other also
organic. Non-certified farmers were included as well
and altogether more than 400 farmers interviewed,
all in 2013. The report comes at a time when farmer
organizations are developing strongly in Uganda, with a
rapid increase in numbers of certified groups.
Certification was found to increase consumption
per person by up to 64 US cents a day. However no
significant effect on living standards was noticed at
the cooperative which only had Utz certification. The
per capita expenditure in Fairtrade farmer households
increased by 30 percent, while the effects for Utz and
Organic certification were insignificant. This meant
that for Utz and Organic, no poverty reduction was
found. The researchers conclude that the increase in
household expenditure was entirely driven by Fairtrade.
The study shows that Fairtrade farmers received a
much higher price for their Robusta coffee, due in part
to the bonus the farmers received from the Fairtrade
Premium. Moreover, Fairtrade farmers mostly sold
their coffee after milling the dried coffee beans, so they
benefited from this added value, unlike the others.
Fairtrade cooperatives were also seen as being in a
stronger position to negotiate prices.
Read the full report

The coffee Fairtrade Supply Chain under pressure

Fairtrade defines a specific Fairtrade Minimum Price and Fairtrade premium to enable producers to produce and sell their coffee
in an economically, socially and ecological sustainable way. This can be challenging with fierce price competition further down the
chain. It creates particularly pressure in the Fairtrade Coffee Supply Chain in those days in which the New York Arabica prices are
at a level below or close to Fairtrade Minimum price (FTMP). Fairtrade is aware of the challenges and is working continuously on
protecting the FTMP and Fairtrade premium to the producers as well as a well-functioning supply chain.
Another development in Fairtrade coffee supply chains is that coffee exporters are increasingly involved in the Fairtrade supply chain
of coffee. Fairtrade will take this into account in the auditing system and standards as part of the improvement process on managing
Fairtrade supply chains.

www.fairtrade.net

NEWSLETTER /

FEBRUARY 2016

Major impact study on Fairtrade coffee

The studys full title: Fairtrade Coffee - A study to assess the impact of Fairtrade for coffee smallholders and producer organisations
in Indonesia, Mexico, Peru and Tanzania

Meeting of Neknasi coffee producing members - New Guinea

Fairtrade has helped strengthen producer organizations,

improve income and provide greater market access but further
scaling-up is needed, says the new Fairtrade coffee impact
study.
Research was organized in Indonesia, Mexico, Peru and
Tanzania in 2013 by the Natural Resources Institute of the UKs
University of Greenwich. In each country two organizations
of Arabica producers, certified for at least three years, were
compared with a non-Fairtrade cooperative or non-Fairtrade
farmers in the same community. Robust methodology,
including interviews with 800 farmers, is believed to allow for
some generalisation of findings and applying them to other
organizations and communities.
It will shortly be published on the Fairtrade International
website www.fairtrade.net. Findings include:

Strengthened organizations:

Largely showing that democracy, transparency, leadership and

participation have improved, allowing farmers to respond to
threats more effectively.

Improved household income and livelihoods:

Gross income for Fairtrade producers was higher, except in

Indonesia. In Tanzania income was 107% higher. In periods of
low coffee prices the Fairtrade Minimum Price was shown to
be an important safety net for farmers.

More investment:

The Fairtrade Premium has been essential in business, for

instance by responding to the coffee rust crisis. Pre-finance
from traders was limited but external support was more easily
obtained, thanks to the administrative ability at Fairtrade
cooperatives.

Increases in training:

More than 75 percent of the Fairtrade farmers in Peru, Mexico

and Indonesia received training and technical assistance,
compared with 10 to 20 percent of non-Fairtrade. Training and
satisfaction among Fairtrade farmers in Tanzania was less.

Reinforcement of environmental conservation and

practices:
Fairtrade reinforced sustainable coffee cultivation and
protection of the environment. Fairtrade has helped to
lever further external funding for farmer training. However,
the scale of the challenges of sustainable agricultural and
environmental issues are huge and resources are limited.

Stronger voice:

The researchers see the Fairtrade Producer Networks as a

unique element of Fairtrade, strongly under-recognized.
The Producer Networks provided them greater influence on
national policy and local development programmes, especially
in Latin America.

www.fairtrade.net

NEWSLETTER /
Children leaving farming:

Seen as a problem that cannot be solved by Fairtrade alone.

It requires a significant improvement in coffee returns and
access to land.

Productivity levels:

No big differences were found. In the Peruvian Fairtrade

cooperatives, productivity loss from coffee rust was slightly
less because farmers are investing more to deal with this. In
Mexico, production at Fairtrade farms increased during the last
two years while that of non-Fairtrade farms fell.

Little shift in gender equality:

Little evidence of Fairtrades impact on the position of

women was found. Membership of women is low and there
are no mandatory targets to improve this. However there

FEBRUARY 2016

were positives. Non-Fairtrade women in Mexico received

significantly lower prices than their male counterparts, while
female Fairtrade farmers received the same price.

Hired labourers not helped:

There was no evidence that the few hired labourers on

Fairtrade coffee farms were in a better situation than those on
non-Fairtrade farms.
The report concludes that the impact of Fairtrade is evident,
but further improvements are needed. Fairtrade should
continue to strengthen and support organizations to become
resilient businesses, for instance by improving leadership,
management and technical capacity, achieving greater
efficiencies, increasing accountability to members and
increasing market demand for Fairtrade.

The Coffee Development Plan

There are 25 million farmers and workers in the world who
depend on coffee production. Farmers have generations
of knowledge making them adaptable and resilient to the
uncertainties of agriculture. However, the coffee sector faces
vast challenges like changing climates and low investment,
and the impact of this is intensifying at a rate never seen
before by farming communities. This is putting the livelihood
and wellbeing of farming families at risk, as well as the
sustainability of coffee supply chains.
In 2016, Fairtrade will step up its response in the form
of the Coffee Development Plan. In addition to our core
Fairtrade work, the approach brings together producer-led
development, the power of Fairtrade networks and the
potential for supply chain partnerships. Fairtrade tracks
the progress of producer organisations through their
development plans, which allows Fairtrade to demonstrate
positive impact in specific supply chains, as well as recognise
the gaps. This means producer organisations can highlight
their own investment priorities that go beyond the Fairtrade
minimum price and premium. In 2016, Fairtrade International
and the Fairtrade Producer Networks will use this information
to scope three pilot partnership projects. The learnings from

these projects will shape and empower more producer-led

investments. Fairtrade will seek commercial and fundraising
partnerships and wider investment to upscale the approach.
This will direct funding into the heart of coffee communities,
and work towards a sustainable coffee future.

Fairtrade partnerships with businesses to support coffee farmers to adapt to climate

change. Pictured above is at Sonomoro cooperative in Peru where Fairtrade has partnered
with Twin (UK NGO) and Lidl (European supermarket) to build climate resilience.

Fairtrade International and its member organizations will be present at the major coffee events in 2016. For further information
please contact Rene Capote, [email protected].

DATE

LOCATION

EVENT

10 > 13 February 2016

Nrnberg, Germany

BioFach

3 > 5 February 2016

Dar Es Salaam, Tanzania

African Fine Coffee Association

14 > 17 April 2016

Atlanta, USA

Specialty Coffee Association of America

23 > 25 June 2016

Dublin, Ireland

Specialty Coffee Association of Europe

7 > 9 September 2016

Hamburg, Germany

COTECA

www.fairtrade.net

NEWSLETTER /
Fairtrade Coffee Statistics Supply
and Demand

FEBRUARY 2016

Fairtrade Arabica green coffee exports in MT, 2013-2014 :

Fairtrade Coffee is available from about 30 origins, supplied

by more than 500 Fairtrade certified small producer
organizations.
Fairtrade Coffee has experienced positive growth rates in most
markets, with a high percentage double certified Fairtrade
Organic in most markets. Distribution has increased both in
retail and out of home sector.
Fair Trade USA volumes are included in the supply figures as
transactions are checked through Flocert auditing procedures,
but are not included in sales figures

Fairtrade green coffee exports in MT, development 2013- 2014:

Estimated sales volume of coffee green bean equivalent by

consuming countries, development 2013-2014:

Fairtrade Robusta green coffee Exports in MT, 2013-2014:

Estimated sales volume of Fairtrade coffee green bean equivalent

conventional and organic by consuming countries, 2013-2014:

www.fairtrade.net

NEWSLETTER /

NAME OF
ORGANIZATION

FLO ID

CONTACT
DETAILS

E-MAIL

FEBRUARY 2016

ALTITUDE

TYPE OF
COFFEE

QUALITY

Robusta Cherry Bulk

Robusta Cherry AB

ELEMENTS HOMESTEAD
PRODUCTS PVT. LTD

5053

Tomy Mathew

[email protected]

900 m.a.s.l.

Robusta
Washed
Robusta
Natural

FAIR TRADE PRODUCERS

ASSOCIATION (FTPA),
PAZHAMPALLICHAL:
ADIMALI

25884

Mrs. Rachel John

[email protected]

760 m.a.s.l.

Robusta
Washed
Robusta
Natural

Robusta Cherry Bulk

Robusta Parchment

270 m.a.s.l.

Robusta
Washed
Robusta
Natural

Robusta Cherry Bulk

Robusta Parchment

FAIR TRADE PRODUCERS

ASSOCIATION (FTPA):
WAYANADU

25886

Mrs. Rachel John

wayanad.ftrade@gmail.
com

FAIR TRADE PRODUCERS

ASSOCIATION: KUMILY

25885

Mrs. Rachel John

[email protected]

760 m.a.s.l.

Robusta
Washed
Robusta
Natural

Robusta Cherry Bulk

Robusta Parchment

Robusta
Washed
Robusta
Natural

AB, C14 Screen

INDIAN ORGANIC FARMERS

PRODUCER COMPANY LTD.

MALENADU SAVAYAVA
KRISHI PARIVAR(R)

6001

Jerin George

[email protected]

1200
m.a.s.l.

29015

RAGHAVENDRA P
SHASTRY

raghavendrashastry@
yahoo.in

1500
m.a.s.l.

Arabica
Washed
Robusta
Washed

Robusta Cherry A, AB

Washed Arabica:
Plantation PB/A/B/Bulk
Unwashed Arabica:
Cherry AA/BB/PB/AB/C/
Bulk.
Washed Robusta:
Parchment PB/AB/AA/C/
Bulk.
Unwashed Robusta:
Cherry PB/AB/C/Bulk

MANARCADU SOCIAL
SERVICE SOCIETY

19619

Kurien Bijumon

[email protected]

1100
m.a.s.l.

Arabica
Washed
Arabica
Naturals
Robusta
Washed
Robusta
Naturals

PRASANNA GANAPATHI
FARMERS FOUNDATION

29273

Prasannakumar
G.N.

[email protected]

900 m.a.s.l.

Robusta
Washed
Robusta
Natural

Robusta Clean bulk

Robusta AB
Robusta A
Robusta B

900 m.a.s.l.

Arabica
Naturals
Robusta
Naturals

Robusta AB, B

SAHYADRI ORGANIC SMALL

FARMERS CONSORTIUM

20381

Biju Kadapur

pdsorganicspices@gmail.
com

SUMINTER INDIA ORGANIC

FARMERS CONSORTIUM

21815

Mathew Jeswin

[email protected]

760 m.a.s.l.

Robusta
Washed
Robusta
Natural

Robusta Cherry B, AB

THANDIGUDI COFFEE
SIRUVYVASAYIKAL
ABHIVRIDHI SWAYAM
SEVAY AMAYPPU

32031

KRM
Ravichandran

[email protected]

1500
m.a.s.l.

Arabica
Washed

Plantation bulk

Plantation bulk

Robusta coffee Cherry

A,AA,AB
Cleaned Bulk and
Washed Coffee

THE SMALL & MARGINAL

TRIBAL FARMERS
MUTUALLY AIDED
COOPERATIVE SOCIETY
LIMITED

6095

Karothu Satish

[email protected]

900-1200
m.a.s.l.

Arabica
Washed
Arabica
Naturals
Arabica Honey
Dried

WSSS ORGANIC FARMERS

FAIRTRADE ASSOCIATION
(WOFFA)

20255

Vineesh Mathew

[email protected]

900 m.a.s.l.

Robusta
Washed
Robusta
Natural

www.fairtrade.net