Adding Value: Certified Coffee Trade in North America

Giovannucci, Daniele and Byers, Alice and Liu, Pascal (2008): Adding Value: Certified Coffee Trade in North America. Published in: Value-adding Standards in the North American Food Market - Trade Opportunities in Certified Products for Developing Countries. : pp. 33-49.

Abstract

Coffee is the leading agricultural sector in terms of both the number and frequent use of social and environmental certification. This fast-growing category of certified sustainable coffees has emerged from almost negligible quantities in the late 1990s to approximately 4% of global green coffee exports in 2006 making it a multi-billion dollar segment of the industry. The US and Canada account for over one quarter of global coffee imports in value. Their consumers are increasingly attentive to the social, economic, and environmental aspects of coffee production as evidenced by the significant expansion of certified coffees into both gourmet and mass market channels. This chapter covers the market development and current statistics of all the certified sustainable coffees in North America including volumes, value, premiums, and their general trends at the global level.

• Item Type: MPRA Paper
• Language: English
• Keywords: organic; fair trade; eco-friendly; Rainforest Alliance; Utz; certified; coffee; commodities; supply chain; sustainable; markets
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise

References

Agra-Europe. 2004. Rising mango demand, but prices vary. World Organic News. London.

Agriculture and Agri-Food Canada. 2004a. Horticulture - Situations and Trends - Overview of Canadian Horticulture Industry (available at www.agr.gc.ca/misb/hort/trends-tendances/pdf/ov02_03_e.pdf).

Agriculture and Agri-Food Canada. 2004b. “Certified organic” - The status of the Canadian organic market in 2003, by A. Macey.

Bacon, C. 2005. Confronting the coffee crisis: Can fair trade, organic and specialty coffee reduce small-scale farmer vulnerability in Northern Nicaragua? World Development, Vol. 33, No. 3, Elsevier.

Bridges, T. 2006. Latin America finds the green in organic. The Miami Herald, 18 December 2006.

Busch, L. & Loconto, A. 2007. Networks of conformity assessment: challenges and opportunities for development. Institute for Food and Agricultural Standards: Michigan State University. Paper presented at USAID RAISE SPS Workshop, Washington DC.

Busch, L. & Bain, C. 2004. New! Improved? The transformation of the global agrifood system. Rural Sociology 69(3): 321–346.

FAO. 2007a. Technical regulations and standards for food exports and trust: the credence goods problem, by P. Liu & N. Cuffaro. Commodity Market Review 2007-2008. Rome

FAO. 2007b. Regulations, standards and certification for agricultural exports, by P. Liu, S. Casey, J. Cadilhon, J., P. Hoesjkov & N. Morgan. EST-RAP Publication. Rome.

FAO. 2005. Global trends in organic agriculture markets and countries’ demand for FAO assistance, by N. El-Hage Scialabba. Rome.

FAO. 2004. Voluntary standards and certification for environmentally and socially responsible agricultural production and trade, by P. Liu, M. Andersen & C. Pazderka. Rome (also available at www.fao.org/docrep/007/y5763e/y5763e00.htm).

FAO. 2003a. Environmental and social standards, certification and labelling for cash crops, by C. Dankers. Rome (also available at www.fao.org/DOCREP/006/Y5136E/Y5136E00.HTM).

FAO. 2003b. Fertilizer and the future, by L.O. Fresco. Agriculture 21 Magazine. Rome (available at www.fao.org/AG/magazine/0306sp1.htm).

FAO. 2003c. Plant Nutrients: what we know, guess and do not know. Global food security and the role of sustainability fertilization, by L.O. Fresco. IFA/FAO Agricultural Conference, March 2003. Rome (available at www.fertilizer.org/ifa/publicat/PDF/2003_rome_fresco.pdf).

FAO. 2003d. World markets for organic citrus and citrus juices - Current market situation and medium-term prospects, by P. Liu. Rome (also available at www.fao.org/es/ESC/common/ecg/28303_en_CitrusorganicEN.pdf).

FAO, ITC & CTA. 2001. World markets for organic fruit and vegetables. Rome (also available at www.fao.org/docrep/004/y1669e/y1669e00.htm).

FLO. 2007a. Fairtrade standards for coffee for small farmers’ organisations. Bonn, Germany (also available at http://fairtrade.net/pdf/sp/english/Coffee%20SP%20Dec%2005%20EN.pdf).

FLO. 2007b. Annual Report 2006/2007. Bonn, Germany (also available at www.fairtrade.net/uploads/media/Final_FLO_AR_2007_03.pdf).

FLO. 2005. Fairtrade standards for cocoa for small farmers’ organizations. Bonn, Germany (also available at www.fairtrade.net/fileadmin/user_upload/content/Cocoa_SF_Dec_05_EN.pdf).

Flores, M., Bratescu, A., Martinez, J.O., Oviedo, J. & Acosta, A. 2002. Centroamerica: el impacto de la caida de los precios del café, CEPAL Estudios Y Perspectivas, México, D.F.

FoodNavigator-USA. 2006. ‘Aggressive increase’ in organic market predicted. The Organic Standard. 67:p.14 (available at www.foodnavigator usa.com/news/ng.asp?n=67844-ota-organic-ato).

FoodNavigator-USA. 2005. Organic market stunted by undersupply, says consultancy firm (available at www.foodnavigator-usa.com/news/ng.asp?n=64682-organic-monitor-organic-range-juice).

FreshInfo News. 2006. Friendly fruit from Ecuador (available at www.freshinfo.com/index.php?s=n&ss=nd&sid=39301&s_txt=organic&s_date= 1132617600&ms=3.5375728607178&offset=10).

Giovannucci, D. 2008. Trends toward differentiation and sustainability. In B. Bagley, ed. El futuro del café en Colombia: essays on the political economy of coffee. Federación Nacional de Cafeteros and Planeta. Bogotá.

Giovannuccci, D. & Villalobos, A. 2007. The state of organic coffee: 2006 US update. The Sustainable Markets Intelligence Center (CIMS), INCAE. San José, Costa Rica

Giovannucci, D. & Ponte, S. 2005. The Collective Formulation and Effectiveness of Public & Private Sustainability Standards: In special issue of Food Policy Journal, “Private Agri-food Standards: Implications for Food Policy and the Agri-food Systems”.

Giovannucci, D. & Koekoek, F.J. 2003. The state of sustainable coffee: a study of twelve major markets. International Institute of Sustainable Development, Winnipeg, Canada and International Coffee Organization, London.

Giovannucci, D. 2001. Sustainable coffee survey of the North American specialty coffee industry. Jointly published by The Commission for Environmental Cooperation and The Specialty Coffee Association of America (available in three languages online at www.cec.org/coffee).

Global Exchange. 2006. Fair Trade Coffee (available at www.globalexchange.org/campaigns/fairtrade/coffee/).

Green, C. & Calvin, L. 1997. Organically grown vegetables. US acreage and markets expand during the 1990s. Vegetable Situation and Outlook (5/97). Washington DC, USDA, ERS. ICCO. 2007. International Cocoa Organization Annual Report 2005/2006. International Cocoa Organization (available at www.icco.org/pdf/An_report/anrep0506english.pdf).

ICO. 2007. Letter from the Executive Director, October 2007 and presentation Ramacafe, Nicaragua, 3 September 2007.

ICO. 2006. Organic Coffee Export Statistics.

IFOAM. 2007. The world of organic agriculture, statistics and emerging trends 2007 by H. Willer & M. Youssefi Eds. International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany and the Research Institute of Organic Agriculture (FiBL), Frick, Switzerland.

IFOAM. 2006. The world of organic agriculture, statistics and emerging trends 2006 by H. Willer & M. Youssefi, Eds. International Federation of Organic Agriculture Movements (IFOAM), Bonn, Germany and the Research Institute of Organic Agriculture (FiBL), Frick, Switzerland.

Inter-American Development Bank, USAID & The World Bank. 2002. Managing the competitive transition of the coffee sector in Central America. Discussion Document prepared for the Regional Workshop: The Coffee Crisis and its Impact in Central America: Situation and Lines of Action, Antigua, Guatemala, 3-5 April 2002.

ITC. 2006. Demand for organic products from East Africa by R. Kortbech-Olesen. Geneva, Switzerland.

ITC. 2004. The Canadian market for organic food and beverages, by R. Kortbech Olesen. Geneva, Switzerland.

ITC. 2002. The United States market for organic food and beverages by R. Kortbech Olesen. International Trade Centre UNCTAD/WTO, Geneva, Switzerland.

Klein, N. .2000. No Logo. Picador. New York, USA.

Nutrition Business Journal (NBJ). 2007. (Available at www.nutritionbusiness.com/).

Nutrition Business Journal (NBJ). 2004. The NBJ/SPINS Organic Food Report 2004. November 2004.

Organic Agriculture Centre of Canada (OAAC). 2007. Retail sales of certified organic food products in Canada in 2006, compiled by A. Macey. OAAC, Nova Scotia, Canada.

Organic Monitor. 2006. The global market for organic food and drink: business opportunities and future outlook. London.

Organic Monitor. 2002. U.K. Future development of organic dairy sector. London.

Organic Trade Association (OTA). 2007. Organic Trade Association’s 2007 Manufacturer Survey (available at www.ota.com).

Organic Trade Association (OTA). 2006. Organic Trade Association’s 2006 Manufacturer Survey (available at www.ota.com/pics/documents/short%20overview%20MMS.pdf).

Oxfam. 2003. Mugged: poverty in the coffee cup. Oxford, UK.

Oxfam. 2001. The coffee market: a background study. London. Packaged Facts. 2007. U.S. Market for chocolate. (abstract available at www.marketresearch.com).

Ponte, S. & Daviron, B. 2005. The coffee paradox: commodity trade and the elusive promise of development. London. Zed Books.

PromPerú. 2007. Reporte comercial de productos orgánicos (available at www.prompex.gob.pe).

Raynolds, L., Murray, D. & Heller, A. 2007. Regulating sustainability in the coffee sector: A comparative analysis of third-party environmental and social certification initiatives. In Agriculture and Human Values.

Sauvé, E. 1998. The global market for organic bananas, INIBAP, Montpellier, France.

SENASA. 2005. Situación de la producción orgánica en la Argentina durante el año 2004. Servicio Nacional de Sanidad y Calidad Agroalimentaria, SENASA. Buenos Aires.

Sippo, FIBL & Naturland. 2002. Market overview: organic coffee, cocoa and tea. Zürich/Frick, Switzerland (available at www.sippo.ch/files/publications/bio-kakao_a.pdf).

Smith, A. 2007. Fair-trade challenges the status quo, unpublished paper

Statistics Canada. 2006. Fruit and vegetable production. Statistics Canada, Agriculture Division, Horticultural Crops Unit.

Sustainable Markets Intelligence Center (CIMS). 2005a. Sustainable pineapple market profile.

Sustainable Markets Intelligence Center (CIMS). 2005b. Sustainable banana market profile.

Sustainable Markets Intelligence Center (CIMS). 2004. Sustainable mango market profile.

Sustainable Markets Intelligence Center & ECOMERCADOS (CIMS/EM). 2005. El mercado Norteamericano para cacao orgánico e comercio justo by B. Kilian. CIMS, ECOMERCADOS, Secretaría de Estado para Asuntos Económicos de Suiza (SECO) and INTERCOOPERATION (Fundación Suiza para el Desarrollo y la Cooperación Internacional).

The Green Guide. 2005. The Green Guide Product Report: Coffee, by E. Pollin, & A. Sloan (2002). Updated by P.W. McRandle (2005). National Geographic (available at www.thegreenguide.com/products/Food%20&%20Drink/Coffee).

The Green Guide. 2002. The Green Guide Product Report: Coffee. by E. Pollin. National Geographic (available at www.thegreenguide.com/reports/product.mhtml?id=10&sec=2).

The Packer. 2002. Fresh Trends: profile of the fresh produce consumer.

TransFair USA. 2007. Fairtrade Almanac 1998-2006.

TransFair USA. 2006. Fair Trade Almanac (available at www.transfairusa.org/pdfs/2006FairTradeAlmanac.pdf).

UNCTAD. 2006. UNCTAD Trade and Environment Review 2006. United Nations, New York and Geneva, UNCTAD/DITC/TED/2005/12.

USDA. 2006a. Outlook for U.S. Agricultural Trade. Electronic Outlook Report from ERS and FAS (available at http://usda.mannlib.cornell.edu/usda/ers/AES//2000s/2006/AES-11-22-2006.pdf).

USDA. 2006b. Fruit and Vegetable Backgrounder, by G. Lucier, S. Pollack, M. Ali & A. Perez. Electronic Outlook Report from ERS.

USDA. 2005a. U.S. Market Profile for Organic Food Products. Commodity and Marketing Programs – Processed Products Division, International Strategic Marketing Group. (available at www.fas.usda.gov/agx/organics/USMarketProfileOrganicFoodFeb2005.pdf)

USDA. 2005b. North America Moves Toward One Market, by S. Zhaniser. Amber Waves, June 2005.

USDA. 2005c. Price premiums hold on as U.S. organic produce market expands, by L. Oberholzer, C. Dimitri & C. Green. Electronic Outlook Report from ERS, USDA (available at www.ers.usda.gov/publications/vgs/may05/VGS30801/).

USDA. 2004. Global trade patterns in fruits and vegetables, by S. Wu Huang. Electronic Outlook Report from the ERS, USDA.

USDA, ERS. 2003. Briefing room – Organic farming and marketing: questions and answers, June

USDA. 2001. Changing structure of global food consumption and trade, by A. Regmi, ed. Market and Trade Economics Division, ERS, USDA, Agriculture and Trade Report. WRS-01-1 (available at http://usda.mannlib.cornell.edu/reports/erssor/international/wrs-bb/2001/wrs011.pdf).

Utting, P. 2005. Corporate responsibility and the movement of business. Development in Practice 15 (3&4): 375-388.

Vandeman, A. 1998. Price premiums for organic fresh and processed foods. Organic farming and Marketing research: new partnerships and priorities, workshop proceedings, USDA, Cooperative State Research.

Varangis, P., Siegel, P., Giovannucci, D. & Lewin, B. 2003. Dealing with the coffee crisis in Central America: impacts and strategies. World Bank Policy Research #2993. Washington, DC.

World Bank. 2004. Coffee markets, new paradigms in global supply and demand. World Bank Agriculture and Rural Development Discussion Paper 3, by B. Lewin, D. Giovannucci & P. Varangis. World Bank, Washington DC.