C.A.F.E. Practices Smallholder Scorecard Reference Document
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1 C.A.F.E. Practices Smallholder Scorecard Reference Document Intent This Smallholder Scorecard complements the C.A.F.E. Practices Generic Evaluation Guidelines and is intended for use with small farmers, cooperatives and Producer Support Organizations. This document is designed to be used in conjunction with the C.A.F.E. Practices Generic Evaluation Guidelines, particularly given the interaction between Smallholder supply networks and Producer Support Organization and service providers (suppliers and exporters). Definitions Smallholder: any farm smaller than 12 hectares is evaluated against the Smallholder Scorecard under C.A.F.E. Practices. Producer Support Organization (PSO): entity that helps organize, facilitate and/or collect or deliver coffee for smallholders. Producer support organizations include cooperatives, associations and networks of farms supplying coffee (in cherry or parchment, wet or dry) to a centralized processing facility. Scope This C.A.F.E. Practices Smallholder Scorecard is divided into four elements- Social Responsibility, Environmental Leadership (Coffee Growing), Environment Leadership (Coffee Processing), and the Producer Support Organization. The Smallholder Scorecard addresses the specific conditions and needs of farms smaller than 12 hectares. Many of these smallholders are also arranged in associations that can benefit individual farms through bundling services (such as processing, transportation and program implementation) and these concerns are addressed through the Producer Support Organization Scorecard. This document will be used for all verifications of Smallholders and Producer Support Organizations conducted after March 1, Reference Documents C.A.F.E. Practices Generic Evaluation Guidelines Provides detailed information on each of the different evaluation criteria, including Product Quality, Economic Accountability, Social Responsibility, Coffee Growing-Environmental Leadership, and Coffee Processing- Environmental Leadership. C.A.F.E. Practices Verifier Operations Manual Provides detailed instructions for verifiers on the processes and procedures for conducting evaluations against the C.A.F.E. Practices Generic Evaluation Guidelines. Evaluation of Smallholders and Producer Support Organizations This process of evaluating smallholders and Producer Support Organizations is replicated from the Verifier Operations Manual (v3.0). There are many different permutations of smallholder supply chains. Some smallholder farmers individually grow coffee then deliver coffee cherry to a local processing mill. Other smallholders Smallholder Scorecard Reference doc 01/03/07 page 1 of 5
2 are organized into groups that collectively manage both farming and milling resources, known as Producer Support Organizations or cooperatives. Smallholders cannot individually apply to C.A.F.E. Practices but must be represented within a more vertically integrated entity, either as part of a Producer Support Organization or as part of the supply network for a centralized milling facility. As with any C.A.F.E. Practices applicant, the entire supply network must be identified prior to verification. This can be a particularly daunting task with smallholders but is essential- if the entire supply network cannot be identified, then verifications cannot take place Once a complete identification of the supply network has been completed, then verifications may commence. There are significant interactions between the Smallholder Scorecard and the generic evaluation guidelines. Example 1 below illustrates at which points in the supply network this interaction occurs for a smallholder who grows coffee and either delivers the harvested cherry to a central milling facility or has the harvested cherry collected by such a facility. The smallholder farmer is assessed against the Smallholder Scorecard, Social Responsibility and Environmental Leadership. Verifiers must also document if there is a system of payments at this level of the supply chain. Processing the harvested coffee cherry into parchment then takes place at a centralized milling facility, either by the producer associations or an independent standalone mill. Because of this concentration, these mills are assessed against the C.A.F.E. Practices Generic Evaluation Guidelines for Environmental Leadership- Coffee Processing Criteria, as well as the Generic Evaluation Guidelines Social Responsibility Criteria. As these producer associations and milling facilities often provide the smallholders support in the form of technical advice and resources, they shall be assessed against the Producer Support Organization Scorecard - Environmental Leadership Criteria as well. Verifiers must also document if there is a system of payments at this level of the supply chain. Smallholder Scorecard Reference doc 01/03/07 page 2 of 5
3 Dry milling must also be assessed in this supply network and is covered by the C.A.F.E. Practices Generic Evaluation Guidelines for Environmental Leadership- Coffee Processing, Dry Milling Criteria. Verifiers must also document if there is a system of payments at this level of the supply chain, unless it is a contract milling facility that provides the dry milling service but does not take ownership of the coffee. For smallholders that grow coffee and process the harvested cherry into parchment, example 2 demonstrates which components verifiers use to evaluate which portion of the supply chain. The smallholder farmer is assessed against the Smallholder Scorecard, Social Responsibility and Environmental Leadership, including the processing criteria. Verifiers must also document if there is a system of payments at this level of the supply chain. These Producer Support Organizations provide the smallholders support in the form of technical advice and resources and will also be assessed against the Producer Support Organization Scorecard - Environmental Leadership Criteria as well. Verifiers must also document if there is a system of payments at this level of the supply chain. Dry milling must also be assessed in this supply network and is covered by the C.A.F.E. Practices Generic Evaluation Guidelines for Environmental Leadership- Coffee Processing, Dry Milling Criteria and also Social Responsibility Subject Area. Verifiers must also document if there is a system of payments at this level of the supply chain, unless it is a contract milling facility that provides the dry milling service but does not take ownership of the coffee. For smallholders that grow coffee, process cherry in parchment, and then send the parchment to a centralized dry mill, Example 3 demonstrates which components verifiers use to evaluate which portion of the supply chain. Smallholder Scorecard Reference doc 01/03/07 page 3 of 5
4 The smallholder farmer is assessed against the Smallholder Scorecard, Social Responsibility and Environmental Leadership, including the processing criteria. Verifiers must also document if there is a system of payments at this level of the supply chain. These Producer Support Organizations provide the smallholders support in the form of technical advice and resources and will also be assessed against the Producer Support Organization Scorecard- Environmental Leadership Criteria as well. Dry milling must also be assessed in this supply network and is covered by the C.A.F.E. Practices Generic Evaluation Guidelines for Environmental Leadership- Coffee Processing, Dry Milling Criteria as well as the Social Responsibility Subject Area. Verifiers must also document if there is a system of payments at this level of the supply chain, unless it is a contract milling facility that provides the dry milling service but does not take ownership of the coffee. Scoring of Smallholders Scoring smallholders against the Smallholder Scorecard is fairly straightforward- each indicator is scored Comply, Not Comply or Not Applicable. All indicators are worth one point. Smallholder producers are scored out of a total of 80points - 29 points for the Social Responsibility section, 42 points for Environmental Leadership- coffee growing, and 9 points for Environmental Leadership-coffee processing. Producer Support Organizations are scored out of a total of 38 points. In the event of non-applicable indicator, the indicator is scored Not Applicable and 1 pt is subtracted by the reporting system from the denominator. When indicators are non-applicable, the qualitative evidence provided in the verifier reporting system must explain why an indicator is non-applicable. The Smallholder scorecard contains 3 criteria that contain Zero Tolerance indicators. These are in SR-HP1 Wages and Benefits, SR-HP4 Child Labor/Non Discrimination/Forces Labor and PS- MT1* Management and Tracking Systems (Producer Support Organization). A rating on Not Comply with any of the Zero Tolerance indicators results in a score of 0 for that criterion and non approval in the program. Smallholder Scorecard Reference doc 01/03/07 page 4 of 5
5 *For 2007 only, since the PS-MT1 criterion is a new additional to the Smallholder supplement V2.0, the Not Comply in the zero tolerance indicators PS-MT1.1 and PS-MT1.3 will NOT result in non approval in the program, however, they will result in 0% compliance for that criterion. Smallholder Reporting Every smallholder, evaluation must be submitted to Starbucks Coffee Agronomy Company (SCAC) via the verifier reporting system. Integration of Smallholders Scorecard with Generic Guidelines Smallholder and Producer Support Organization scores are automatically integrated with the C.A.F.E. Practices Generic Evaluation Guidelines via the online verifier reporting system. Smallholder Scorecard Reference doc 01/03/07 page 5 of 5
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