Transcript UTZ CERTIFIED Good Inside

UTZ CERTIFIED - Good Inside
assurance of sustainable quality
2008
Our vision & mission
We want to achieve sustainable agricultural
supply chains, where:
– Farmers are professionals implementing
good practices;
– The food industry takes responsibility by
demanding and rewarding;
– Consumers can trust their brands and buy
products which meet their expectations
We aim to implement a worldwide program for socially and
environmentally responsible commodity production and sourcing
(coffee, cocoa, tea, soy, palm oil, cotton, sugar cane)
Certification enables markets to reward good practices!
UTZ CERTIFIED Good Inside
Sustainability in the coffee chain
• Farmers benefit from professional farming and meet market
requirements
• Governments require food safety, traceability and increasingly also
sustainable production practices
• Brands need continuous quality supply & assurance of good practices
in origin
• Consumers are better informed & expect their brands to take care
Brands / roasters assure quality coffee
UTZ CERTIFIED assures sustainable production
by professional farmers with care for their
product, the people & environment involved
UTZ CERTIFIED Good Inside
1. Meaningful impact
Code of Conduct
Business practices
Environment
Social
Traceability
and record
keeping
Minimized &
controlled
agrochemical
use
Access to
healthcare
Monitoring
business
processes
Reduced
water usage
and pollution
Worker health
and safety
Training
Food safety
No
deforestation
Decent
housing for
workers
Prevention of
soil erosion
Access to
education
UTZ CERTIFIED Good Inside
Impact on business practices
“UTZ CERTIFIED helps to get control over processes
and leads to more professional farm management.
Since we joined the program, for example, the
member farmers provide the factory with cleaner
coffee. This coffee only has to go through part of
the processing line. This reduces production costs.”
(Andrew Falconer, Managing Director Kawacom,
Uganda)
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•
Decreased in the average percentage of
defects from 11 to 3%. Production
increased from 2.8 to 4.5 million kgs
between harvest season 05/06 and 06/07 .
This is a 60% increase compared to a
national increase of 9% in the same period.
(Acatenango Cooperative-Fedecocagua farm
records, Guatemala)
Conventional coffee parchment
San Nicolas-Sogimex Honduras
Certified coffee parchment San
Nicolas-Sogimex, Honduras
43% productivity increase over 3 harvest
periods (compared to 2% national)
(Ever Reyes, Sogimex Farm Group records,
Honduras)
UTZ CERTIFIED Good Inside
Impact on environment
Waste water before implementing UTZ
way of working -Acatenango,
Fedecocagua, Guatemala
Before
Waste water after implementing UTZ
way of working -Acatenango,
Fedecocagua, Guatemala
After
“With the implementation of record-keeping and
good agricultural practices required for UTZ
certification we have been able to reduce our water
use by 50% and production cost by at least 12%.
This decrease was brought about by reducing
spraying and through cheaper insurance premiums
because of safety precautions.” - Mureithi Kieu,
General Manager Sasini, Kenya
•
Through their improvements to a wet mill as
part of obtaining certification, Acatenango
reduced water usage from 1 million to
18,000 liters per day. This is while they
increased production by 50%. The water it
uses is now also recycled and treated.
(Acatenango Cooperative, Fedecocagua
records, Guatemala)
•
Conversion of 59 tons of fresh pulp to
fertilizer and treating 145,274 liters of
residue water 9instead of releasing it into
the river). Replanting of 500 trees on 11.2
hectares of land.
(Sogimex Farm Group records, Honduras)
UTZ CERTIFIED Good Inside
Social impact
“Through UTZ CERTIFIED, the producers have
developed a culture of improvement of the
working conditions of all people involved in coffee
production. Also, the opportunity of the
certification has improved the relation between the
members of the cooperatives and has improved
the documentation of the activities and advances
of the producers.”
Manuel Romero, Central de Cooperativas
Cafetaleras de Honduras, Honduras
•
Reduction in employee accidents due to
safety precautions
(Independent audit reports Brazil and
Colombia)
•
Groups have been more active in raising
awareness among their members about
health and education. This has lead to
access to first aid, building or improvement
of sanitary facilities and better waste
management.
(Independent audit report, Peru)
First aid training -Ndumberi Cooperative, Kenya
UTZ CERTIFIED Good Inside
Meaningful impact
From conventional to Good inside
UTZ CERTIFIED Good Inside
Meaningful impact
UTZ CERTIFIED farms are better businesses
•
Professionally managed farms
–
Care for product: focusing on higher productivity, better
coffee quality and cost efficiency
–
Care for people: training, water, housing, healthcare
–
Care for environment: Good soil and water management
•
Proud farmers, passion for coffee
•
Bridging the knowledge gap:
UTZ CERTIFIED support network in origin
•
Match with roaster’s demand: good yields and coffee
qualities in the short and long term
UTZ CERTIFIED Good Inside
Meaningful impact
Smallholder groups, continuous improvement
•
Inclusion of smallholder farmer groups
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Many smallholder projects certified
–
Specific support for Internal Control Systems (ICS) by
the Coffee Support Network to set
–
•
Specific implementation tools (Group Guidance Manual)
Continuous Improvement
–
Focus of the support in origin
–
New version 2009 of the UTZ Code of Conduct includes
a continuous improvement scheme
–
Stakeholder involvement (participatory approach) in
Code Development and Revisions
UTZ CERTIFIED Good Inside
Meaningful impact
UTZ CERTIFIED farms are better businesses
•
Professionally managed farms
–
Care for product: focusing on higher productivity, better
coffee quality and cost efficiency
–
Care for people: training, water, housing, healthcare
–
Care for environment: Good soil and water management
•
Proud farmers, passion for coffee
•
Bridging the knowledge gap:
UTZ CERTIFIED support network in origin
•
Match with roaster’s demand: good yields and coffee
qualities in the short and long term
UTZ CERTIFIED Good Inside
2. Credibility
•Independent annual auditing (ISO 65): Code & Chain of Custody
•
based Good Agriculture Practices
•Surprise audits & ‘shadow’ checks at farms & coops
•Chain of Custody: physical & administrative separation
•Logo use: minimum of 90% certified content
•Traceability: from growers to roaster 
On-line real-time trace & tell!
UTZ CERTIFIED Good Inside
Credibility
Traceability in 4 steps
UTZ CERTIFIED nr:
Sales announcement
Enjoy & trust
1-123-04-890
Sales Record
Trader
‘First buyer’
Roaster
‘Final buyer’
UTZ CERTIFIED Good Inside
Real-time: Trace & Tell
UTZ CERTIFIED Good Inside
Meet the growers – share the stories
UTZ CERTIFIED Good Inside
4. Added value: positive cycle
+
+
Impact in
developing
countries
Better terms of
trade
+
+
The Value cycle
“Markets recognizing
and rewarding good
practices”
Added value
for
companies
+
Credible audit
system
UTZ CERTIFIED Good Inside
Different programs –
shared sustainability goal
• Branding of the label
• Consumer recognition
• Cost of program
Consumer labels
Fairtrade
Organic
Rainforest Alliance
CSR Program –
Sustainable Quality Label
UTZ CERTIFIED
Industry Round Table
4C
Box Volume:
(Potential) Market share
UTZ CERTIFIED Good Inside
UTZ in a nutshell…
•
Sustainability: People, Planet & Profit
•
Meaningful impact in coffee origin, open to all farmers
•
Credible assurance & unique online real-time traceability
•
Efficiency: market orientation
•
Added value for all stakeholders
THANK YOU FOR YOUR
ATTENTION!
UTZ CERTIFIED Good Inside
Questions are welcome!
UTZ CERTIFIED Good Inside