One of the objectives of the International Coffee Agreement 2001 is to encourage Members to develop a sustainable coffee economy. This is reinforced by Article 39, which refers to the principles of Agenda 21 agreed at the United Nations Conference on Environment and Development, requiring sustainability to be considered in the context of economic, social and environmental aspects.
On the environmental side coffee is an evergreen shrub, hence an important contributor to carbon sequestration, and is effective in stabilizing soils. It also permits the preservation of much of the original bio-diversity in planted areas. The main problem is probably water pollution arising from wet processing, but this is only the case in some regions. Coffee also contributes on the social side to maintaining substantial rural employment and stable communities. In fact it is difficult to envisage in many coffee producing regions and countries any alternative economic activity that makes such a positive impact.
The main problem area in recent years has been economic sustainability, in view of the coffee price crisis from 2000 to 2004. It is self-evident that farmers cannot continue to produce coffee indefinitely at a loss and there is substantial evidence of the problems caused by indebtedness, abandonment of farms, and reduction in cash income during the crisis period.
It follows from this analysis, and it has been specifically emphasized by producing countries in the ICO, that the most urgent priority is to work for economic sustainability. With regard to the other elements it is laudable to work for improvements but it is also vital to convey to the public and the media the very real contribution that coffee growing already makes to the environment. For instance it could be contrasted with the impact of livestock raising, annual crops, or mining, to give just a few examples.
This is important in order to avoid the risk that the promotion of sustainability initiatives might create a public perception that coffee creates environmental and social problems while the opposite is the truth. The ICO will continue to facilitate the dissemination of the fullest possible information on sustainability issues and initiatives so that Members may be equipped to analyse and assess the contribution that such initiatives can offer.
The Organization is working to promote an awareness of the need for a sustainable coffee economy by making stakeholders in the coffee sector aware of the threat to sustainability posed by negative economic conditions for producers, and proposing measures in areas such as quality, promotion and diversification to restore greater balance to the world coffee market.
The ICO submission to the Johannesburg Summit “The global coffee crisis: A threat to sustainable development” has been widely disseminated to Member Governments and international organizations.
The effects of the coffee crisis in increasing poverty in producing countries are outlined in document ICC-89-5 Rev.
1, and the impact of low prices on sustainability indicators in the coffee economy is outlined in document EB-3864/04.
Initiatives to address sustainability
The ICO has facilitated the dissemination of information about a number of initiatives to address various aspects of sustainability, including the Common Code for the Coffee Community as well as the Sustainable Commodity Initiative which was developed by the International Institute for Sustainable Development (IISD) and UNCTAD. The ICO launched in 2005 an important study in collaboration with the IISD, UNCTAD and the World Bank entitled “The State of Sustainable Coffee – A study of 12 major markets” represents a significant contribution towards understanding the scope and outlook for such products and their role in the future sustainability of an entire industry. It has also identified a number of other initiatives of relevance (see document WP-Council No. 143/06).
The Organization has, with the United Nations Environment Programme (UNEP), also defined a series of studies, one of which has been completed as an initial approach to the analysis of environmental issues in the coffee supply chain using a life-cycle approach. Funding is still sought for studies to determine:
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Quantified scenarios for the environmental impact of coffee production
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Environmental impact of coffee compared with other agro-industrial products;and
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Multilateral regulations affecting trade and environmental quality
Optimal models of coffee production
Although its environmental impact is almost always positive it is important that coffee production and processing should take into account environmental needs to ensure optimal physical sustainability. But it is even more necessary that the economic environment should be such as to encourage stability and reasonable living standards for the populations involved with coffee, and to ensure that adequate care may be given to ensure the maintenance of quality. Through coffee development projects, the Organization wishes to encourage the improvement and diversification of old coffee plantations where feasible towards dynamic market segments such as organic and gourmet coffee. It also works towards a balanced market through supporting initiatives to encourage demand. Finally it seeks to promote the use of optimally friendly environmental technologies through the production and processing chain, with integrated biological pest control and improved technology for the washing process.