Coffee Sustainability Catalogue 2016

Transcription

1 Coffee Sustainability Catalogue 2016 Appendix A: current initiatives framework: overview of current sector strategies Coffee Sustainability Catalogue

2 Table of contents Appendix A: current initiatives framework: overview of current sector strategies Current initiatives framework Current collective desired impact Insights into outcomes Categories of activities Analysis of dependencies and assumptions Summary of dependencies and assumptions Coffee Sustainability Catalogue

3 Current initiatives framework Current individual sustainability strategies and theories of change are classified in a theory of change framework Enablers WHAT Activities taking place can be categorized in enablers (create a context that facilitates sustainability) and implementation (direct activities aimed at reaching out to farmers and production areas), each actor has their own strength and focus WHY Stakeholders are motivated by different things. The relation between WHAT and WHY is based on a number of assumptions. Assumptions and dependencies Coffee Sustainability Catalogue

4 Current initiatives framework Current individual sustainability strategies and theories of change are classified in a theory of change framework WHAT / Activities WHY / Motivations Enablers Policy / law Research Extension Business support Yield / productivity Quality Profitability Prosperity and well-being of producers Sustainability definition Platform Social and community Disaster relief Price Cost Forest, water and soil conservation Diversified farm & household Access to inputs Resilience Cashflow Sustained supply of coffee Access to finance Market access Logistics Inclusivity Incentives Labour conditions Traceability & assurance Ecosystem services Value addition in origin Green house gas reduction Demand generation Source: Matthew Quinlan, interview respondents, Valued Chain Coffee Sustainability Catalogue

5 Current collective desired impact People planet profit widely recognized as sustainable impact categories, largely overlap with global goals Prosperity and wellbeing of producers Forest, water and soil conservation Sustained supply of coffee No poverty Clean water and sanitation More coffee availability Zero hunger Affordable and clean energy Better coffee quality Good health and wellbeing Climate action Stable coffee prices Quality education Life on land Value addition for improved margins Gender equality Decent work and economic growth UN Sustainable Development Goal Coffee sector objectives Sector trusted by society Responsible consumption and production Coffee Sustainability Catalogue Source: UN, interview respondents, Valued Chain

6 Insights into outcomes Tangible outcomes should link our activities to our aims, but these are generally not explicitly defined by stakeholders Outcome Common description provided in interviews as a starting point Inclusiveness Labour conditions Inclusion of women and men, youth, and minorities in farming leads to prosperity of communities, as well as increases adoption of good practices for sustained supply Safe, healthy and appropriately rewarded labour contributes to prospering communities and eliminates unacceptable practices in line with international norms Profitability Coffee farming has a profit that represents a living income, following from yield / productivity, quality, price and cost Resilience Cashflow Market access Ecosystem services Green house gas reduction Source: interview respondents Greater social, economic and environmental stability by reducing impact from environmental factors on farm and market Income is distributed over time to allow a consistent livelihood and allow to invest in farms as a business Coffee farmers are linked to markets and are in a position to negotiate allowing them to make a profit Coffee farmers conserve soil, forests, water and biodiversity for their farms, communities and the landscape they are part of On farm reduction of emissions by implementing good agricultural practices or generating renewable energy Coffee Sustainability Catalogue

7 Categories of activities: implementation are direct activities aimed at reaching out to farmers and production areas 1. Agricultural extension services Knowledge transfer of good agricultural practices via training or other media, aimed at farmers directly or via extension/field officers 2. Business support Supporting farming as a business, by offering financial or business training, supporting producer organizations, organizational capacity building, enterprise development, farm performance monitoring, quality control, provision of market or weather info 3. Social inclusiveness and community welfare Creating awareness and adopting solutions for gender equality, minority inclusiveness, youth involvement, nutrition, hired labor conditions, community services and infrastructure 4. Disaster relief Emergency response to natural disasters and political crises unrelated to coffee but hitting coffee communities Source: interview respondents Coffee Sustainability Catalogue

8 Categories of activities: implementation are direct activities aimed at reaching out to farmers and production areas 5. Diversified farm and household support Supporting alternative income sources to reduce income volatility by providing training and tools, e.g. crop diversification, livestock, beekeeping, agroforestry, renewable energy, other household activities 6. Access to inputs Making available appropriate and safe seedlings, crop protection products, fertilizer and tools 7. Access to finance and risk management Improving the cashflow of farmers for short term (crop) and long term, and provide a safety net to manage risks, e.g. loans, inputs-for-coffee schemes, savings schemes, banking and payments, insurance, pensions 8. Logistics services Maintaining product quality and bringing the product to market, including collection, storage, transport Source: interview respondents Coffee Sustainability Catalogue

9 Categories of activities: implementation are direct activities aimed at reaching out to farmers and production areas 9. Incentives Financial and in kind incentives to promote adoption of practices and improve profitability, e.g. premiums, minimum price, price increase through direct trade, payment for environmental services, compensation for replanting, input subsidy 10. Traceability and assurance Monitoring of compliance with sustainable practices via product traceability, codes of conduct, internal audits, third party certification or verification 11. Value addition in origin Improving incomes by local value addition in origin, e.g. local processing, washing, local roasting 12. Demand generation and consumer awareness Market development and consumer education for sustainably produced coffee, e.g. trade shows, consumer outreach, product labeling, general marketing Source: interview respondents Coffee Sustainability Catalogue

10 Categories of activities: enablers Enablers are indirect activities that create a context that enables sustainability A. Policy / law Setting political, legal and regulatory frameworks that foster a competitive coffee sector, e.g. standards, taxes and tariffs, national coffee funds, public sector infrastructure B. Research Supporting research which can be agronomic or developmental in nature, e.g. development of varieties, composition and application of inputs, pest and disease monitoring, impact of climate change, inclusiveness and household economics C. Sustainability definitions A practical action-oriented definition of sustainability requirements based on research, stakeholder consensus or company policy, e.g. in a standard, national sustainability curriculum, or sustainable sourcing guide D. Platform Bringing together different stakeholders, physically or virtually, to coordinate, share lessons learned, and develop solutions Source: interview respondents Coffee Sustainability Catalogue

11 Analysis of dependencies and assumptions Current dependencies and assumptions between activities and aims are not always secured 1. Relations between enablers, implementation, outcomes and impact are defined 2. Dependencies and assumptions are made explicit 3. Current status of addressing dependencies and assumptions is assessed Example: agricultural extension builds on research, and aims for social, environmental and economic impact through increased profitability. Example: yield, quality, price and cost should be addressed in coherence. An increased yield is not adding to profitability if cost for inputs increase at the same rate. Example: this dependency is largely recognized: stakeholders understand the relation, although conflicting interests sometimes lead to a singular focus on only yields. Source: Valued Chain Coffee Sustainability Catalogue

12 Dependencies and assumptions 1. Extension services are often core to programs, and has major dependencies for content, effective execution and adoption Enablers Policy / law Research Extension Business support Yield Quality Profitability Prosperity and well-being of producers Sustainability definition Knowledge on general and local conditions and good practises Access to inputs and finance affect ability to adopt the knowledge? X The level of farmer organization affects which farmers can be reached Access to inputs Access to finance? Price Cost Resilience Market access Inclusivity Forest, water and soil conservation Sustained supply of coffee Yield, quality, price and cost should be addressed in coherence? Inclusion of women and youth leads to higher adoption of good practices? Incentives Adoption often requires motivational incentive or compensation income loss Increased yield and quality only has impact if combined with market access 12 Ecosystem services Additional profit is spent wisely if the program is inclusive? Safeguards need to be in place for producers to not encroach on forest areas.?

13 Dependencies and assumptions 2. Business support is key to sustainability of intervention, and depends on macro economic context and value chain relations Enablers Policy / law Business support Quality Profitability Prosperity and well-being of producers Sustainability definition Price Business relations require a consistent and enforced legal framework Economies of scale require? longer term chain relationships and trust Communication and infrastructure enable value chain relations? Access to finance Availability of appropriate business support tools and materials? Access to finance affects ability to adopt business practices X X Cost Cashflow Market access Involvement of exporters or buyers can secure market access Sustained supply of coffee 13

14 Dependencies and assumptions 3. Social inclusiveness and community welfare has dependency on enabling environment and relies on incentives for adoption Enablers Policy / law Research Extension Prosperity and well-being of producers Sustainability definition Social and community Inclusive legal framework (land rights, equality, labour conditions) X Social interventions joined with agricultural extension for scale and impact Community infrastructure (education, health) needs to be in place? Enabling environment to provide appropriate inclusion tools? Incentives Adoption often requires motivational incentive or compensation extra cost Inclusivity Labour conditions 14

15 Dependencies and assumptions 4. Disaster relief is a short term response to alleviate urgent needs and requires sector organization for quick response Enablers Policy / law Social and community Platform Disaster relief Government and platforms need to be able to respond Resilience quickly? Disaster relief combined with rebuilding activities for long term impact 15

16 Dependencies and assumptions 5. Diversified farm and household support is opportunity for inclusiveness and conservation if enablers are in place Enablers Policy / law Research Extension Prosperity and well-being of producers Platform Social and community A sustainable farm yields food, consistent cash flow and long term profit? Forest, water and soil conservation National and international incentives for environmental services X Diversified farm & household Diversification builds on extension and includes other household members Incentives Resilience Cashflow Inclusivity Ecosystem services Sustained supply of coffee A financially sustainable farm is a pre-requisite for sustained supply of coffee? Social and environmental impact of diversification depends heavily on type of diversification implemented? Green house gas reduction 16

17 Dependencies and assumptions 6. Access to inputs is complex with potential undesired outcomes if not regulated or applied correctly Enablers Policy / law Research Extension Yield Quality Profitability Prosperity and well-being of producers Sustainability definition Price Cost Forest, water and soil conservation Understand and regulate inputs to be safe for people and environment, and economically effective? Access to inputs Resilience Sustained supply of coffee Extension and appropriate? Access to finance Market access products are key to ensure Cost of inputs should be offset inputs are applied correctly from increased revenue Logistics Mechanisms for inputs finance and logistics need to be in place? Yield increase leads to conservation if land is spared from clearing?? 17

18 Dependencies and assumptions 7. Access to finance is a major challenge and vicious circle with professionalizing farming as a business Enablers Policy / law Public policy affects availability of credit and interest rates X Business support Business support and farmer organization is needed to make farmers bankable? Profitability and a safety net need to be achieved before farmers get into debt? Profitability Prosperity and well-being of producers Resilience Cashflow Sustained supply of coffee Access to finance 18

19 Dependencies and assumptions 8. Logistics is affected by public infrastructure and affects mainly market access Enablers Policy / law Public infrastructure affects how coffee is moved from farm to port? Sustained supply of coffee Logistics from farm to port are key to market access Market access Logistics 19

20 Dependencies and assumptions 9. Incentives are commonly aimed at adoption of good practices but different perspectives exist and little research is done Enablers Research Profitability Prosperity and well-being of producers Sustainability definition Research to determine value of incentives for profitability and sustainability? Different mechanisms for the role of incentives exist in certification Market based incentives depend on demand and assurance, and premiums are currently low? Price Cashflow Forest, water and soil conservation Sustained supply of coffee Incentives Labour conditions Traceability & assurance Ecosystem services Green house gas reduction Demand generation 20

21 Dependencies and assumptions 10. Traceability and assurance is now a requirement for market access in several markets with a challenge in value chain cost Enablers Business support Sustainability definition Different mechanisms for traceability and assurance exist in certification Cost effective traceability and assurance requires farmer aggregation and (IT) tools? Market access Roaster commitments made certification a license to operate but funding remains a challenge X Traceability & assurance 21

22 Dependencies and assumptions 11. Value addition in origin can increase coffee profitability for farmers and others, depends on business capacity and demand Enablers Policy / law Export, processing and tax policy affect incentives for local processing X Extension Business support Quality Price Profitability Prosperity and well-being of producers Processing builds on extension and includes other household members Market access Sustained supply of coffee Inclusivity Value addition in origin Demand generation Domestic and global demand determines opportunities for local processing and roasting? 22

23 Dependencies and assumptions 12. Demand generation can aim at roasters, retailers or consumers and facilitates market access and investments Enablers Policy / law Consuming country governments and platforms can generate demand for sustainability? Platform Prosperity and well-being of producers Forest, water and soil conservation Sustained supply of coffee Market access Certification is one tool to generate sustainability demand in specific segments Traceability & assurance Demand generation In many markets, consumer buying behaviour is little influenced by sustainability X 23

24 Summary of dependencies and assumptions Good agricultural practices, extension, incentives and market access are commonly well embedded in sustainability programs Dependencies that are addressed Knowledge on general and local conditions and good agricultural practises is available Social and diversification interventions are combined with agricultural extension for scale and impact Motivational incentives or compensation for extra cost or income loss is applied Different mechanisms for the role of incentives, traceability and assurance exist in certification Certification is a tool to generate sustainability demand in specific market segments Market access is secured by involvement of exporters or buyers and logistics Disaster relief is combined with rebuilding activities for long term impact 24

25 Summary of dependencies and assumptions Farmer organization, inclusiveness, access to inputs and public infrastructure are only partially addressed Solutions known but not always applied Yield, quality, price and cost addressed in coherence. A sustainable farm yields food, consistent cash flow and long term profit The level of farmer organization affects which farmers can be reached, and many farmers are not organized Partial availability of appropriate tools and materials for business support, inclusion and diversification Dependency between extension and inputs. Understand and regulate inputs to be safe for people and environment. Inclusion of women and youth not always explicit, but leads to higher adoption of good practices and profit spent wisely Social and environmental impact of diversification depends heavily on type of diversification implemented Market based incentives depend on demand and assurance, and premiums are currently low Research to determine business models in relation to different farmer segments Domestic and global demand determines opportunities for local processing and roasting Business relations require a consistent and enforced legal framework, communication and infrastructure Community infrastructure (education, health) needs to be in place Government and platforms need to be able to respond quickly Consuming country governments and platforms can generate demand for sustainability Safeguards need to be in place for producers to not encroach on forest areas. Cost effective traceability and assurance requires farmer aggregation and (IT) tools 25

26 Summary of dependencies and assumptions Access to finance is largely unaddressed, public policy is often insufficient, and sector does not have real long term incentives Frequent gaps and challenges Roaster commitments made certification a license to operate but funding remains a challenge In many markets, consumer buying behaviour is little influenced by sustainability and prices paid do not cover the investments needed Inclusive legal framework to protect human rights (land rights, equality, labour conditions) is not available in several origins National and international incentives for environmental services are currently mainly implemented on small scale Access to finance affects ability to adopt practices and requires professionalization to make farmers bankable mainly in Asia and Africa Public policy affects availability of credit and interest rates. Export, processing and tax policy affect incentives for local processing Economies of scale require longer term chain relationships and trust, while commodity trade is organized and incentivized on short term results 26

27 Coffee Sustainability Catalogue 2016 We have a way to go, but a good foundation to build on Coffee Sustainability Catalogue

28 Notes on interpretation of this study A reliable catalogue but not exhaustive, as input for further sector discussion Study summarizes the current initiatives in coffee sustainability. This is on overview of what we are currently implementing. It does not specify what the agenda forward should be, this is up for sector discussion. Study has focused on organizational strategies not individual projects. Findings are based on a sample of respondents from the membership and network of the organizations in the steering committee that were willing to provide input. The overview is not exhaustive. The participation of respondents is however sufficiently large and representative to allow for interpretation. We have consulted 36 respondents in interviews and 51 organizations participated in a survey. Perspectives from producing countries are possibly underrepresented following the membership and network of the steering committee, and the decision to conduct this study in English only. Any bias is mentioned in the applicable section of this report. Historical data on investment, output and impact is rarely available. Furthermore, most sustainability work is done in partnerships of public and private organizations who all report on investment and outreach, so there is overlap in the numbers reported. We have used mainly data from donors and roasters. Donors and roasters most commonly collect data, and partnerships rarely contain more than one donor and more than one roaster. Coffee Sustainability Catalogue