Fairtrade coffee swot analysis

1. SWOT
Analysis
Fair
Trade
=
Collabora9on
at
the
heart
of
a
true
trading
partnership,
sharing
and
partnering
values,
ideas,
risks,
rewards,
passion
and
purpose.
EK
–
05/05/11
Fairtrade
Coffee

2. Star9ng
from
the
beginning…

3. What
is
coffee
for
me?

4. For
me,
coffee
is
about
people…

5. …people
who
produce
coffee,

6. …people
that
handle
and
trade
coffee,

7. …and
people
that
consume
and
loves
coffee!

8. ➜
KEY
QUESTIONS
Are
we
having
the
posi1ve
impact
we
intend?
➜
In
this
new
market
scenarii,
how
do
we
actually
deliver
to
all
stakeholders
the
promise
of
Fairtrade
coffee?
➜
Given
the
current
global
context,
what
are
the
key
issues
and
the
right
coffee
price
policy
we
should
be
addressing
now?
➜
Are
our
solu1ons
oriented
towards
the
problems
of
15
years
ago,
versus
problems
of
today,
or
of
the
future?
➜
What
would
the
right
approach
look
like?
➜
What
ac1ons
should
be
implemented
to
meet
accelerated
growth
with
integrity?

9. Coffee
Background
&
Market
Fundamentals

10. “Coffee
price
vola9lity
is
not
a
recent
phenomenon.
Because
coffee
yields
are
vulnerable
to
temperature
or
precipita9on
changes
as
well
as
disease,
the
volume
of
produc9on
can
vary
widely
from
one
year
to
the
other,
which
causes
prices
to
spike.
The
vulnerability
is
enhanced
by
the
rela9vely
high
degree
of
dependence
the
world
coffee
supply
has
on
Brazil.
Vola9lity
is
also
the
result
of
the
‘natural
coffee
cycle.’
When
prices
increase,
farmers
are
encouraged
to
use
more
inputs
and
expand
plan9ng
to
take
advantage
of
higher
prices.
This
addi9onal
produc9on
contributes
to
depressed
prices
as
supply
expands.
When
prices
decline,
farmers
stop
using
inputs
to
reduce
produc9on
costs,
which
reduces
yields
and
contributes
to
price
increases.
This
is
exacerbated
by
the
lag
between
planta9on
and
harvest,
which
varies
between
18
and
24
months.
The
yield
of
the
coffee
tree
peaks
a_er
5
to
7
years.
While
the
investment
response
to
price
change
is
very
quick,
the
output
response
to
investment
is
slow.
As
a
result,
the
extra
supply
might
arrive
on
the
market
when
prices
are
on
the
decline,
magnifying
the
downturn
in
the
coffee
cycle.”
Oxfam:
Interna9onal
Commodity
Research
–
Coffee,
The
Coffee
Market,
a
background
studio

11. 20
years
of
coffee
prices
-­‐
supply/demand
cycle
The
regular
coffee
market
prices
scenarii:
Normal
coffee
prices
scenarii
for
cer0fied
coffee
farms

12. Actual
coffee
market
scenarii
–
1st
half
April
☝
Arabica
The
actual
facts:
Coffee
costs
90%
more
today
than
it
did
a
year
ago…
☂
Robusta
Climate
change
is
having
an
impact
on
areas
that
produce
coffee…
✄
Supply
is
strained…
☹
Social
problems
persist
and
paradoxically,
some
farmers
con9nue
to
grapple
with
basic
issues
such
as
food,
health,
educa9on,
etc.

15. Market
vola9lity
/
bull
run
The
regular
coffee
market
prices
scenarii:
World
coffee
prices
reached
14-­‐year
highs
in
the
first
quarter
of
2011.
The
March
monthly
average
of
the
ICO
composite
indicator
price
rose
by
3.8%,
from
216.03
US
cents/lb
in
February
to
224.33
US
cents/lb.
This
monthly
average
un9l
5
April
2011,
is
the
highest
recorded
since
June
1977.
Source
:
ICO
Monthly
Report

16. Consump9on
Produc9on
Stocks
Source:
FAO
Outlook
for
the
World
Coffee
Market
2010-­‐2019,
106th
Session
of
the
ICO,
28-­‐31
March
2011

17. ➡
Highlight
Producer
stocks
are
at
a
dangerously
low
level
as
the
market
is
heading
towards
the
Brazilian
off-­‐year
crop
2011/12,
and
the
situa9on
in
impor9ng
countries
is
also
strained
as
there
has
been
a
steady
decline
of
(registered)
stocks.
Total
ICE
cer9fied
Arabica
stocks,
including
those
in
the
three
European
ports
of
Antwerp,
Hamburg
and
Bremen,
at
the
end
of
January
2011
were
1.6
mln
bags,
down
from
2.9
mln
last
year
and
as
much
as
4.3
mln
two
years
ago.
Robusta
stocks
in
LIFFEE-­‐nominated
warehouses
fell
to
3.9
mln
bags
by
the
end
of
January
2011
from
5.0
mln
at
the
same
9me
a
year
ago.

18. ➡
New
York
ICE
futures
prices
have
averaged
273
c/lb
in
March
➡
LIFFE
prices
have
averaged
$2,492
per
tonne
in
March
so
far
➡
FORECAST
–
as
for
1st
quarter
2011
Global
output
is
expected
to
reach
129.0
mn
bags
in
2010/11
with
the
harvest
of
an
off-­‐year
Brazilian
crop
of
47
mln
bags
➡
Global
consump1on
is
forecasted
at
135.6
mln
bags
➡
This
means
a
deficit
of
6.6
mln
bags
for
arabica
and
robusta
➡
Es9mates
for
2011/12
suggest
that
the
9ghtness
in
the
overall
market
should
ease
with
Brazilian
output
cyclically
higher
➡
Colombian
produc9on
could
recover
to
almost
10
mln
bags
as
new
trees
from
the
replan9ng
program
of
last
few
years
start
to
come
into
produc9on
ICE-­‐US
Coffee
04/05/11
$294.50
cts/lb
High:
$308.90
cts/lb

19. ANSWERS
TO
THE
KEY
QUESTIONS
BRIEF
SWOT
ANALYSIS

20. Fairtrade
stakeholders
can
have
the
guarantee
that
the
cer9fica9on
system
do
well
the
right
things
through
ISO
Guide
65
Cer9fica9on
Cer1fica1on
Procedure
by
which
a
third
party
gives
wriXen
assurance
that
a
product,
process
or
service
conforms
to
specified
requirements.
Accredita9on
Procedure
by
which
an
authorita9ve
body
gives
formal
recogni9on
that
a
body
or
person
is
competent
to
carry
out
specific
tasks.
“The
fact
that
ISO
Guide
65
is
an
external
common
norm
and
not
Fairtrade
based
is
considered
advantageous
to
prevent
Fairtrade
from
being
arbitrary.
ISO
65
forces
the
system
to
be
transparent
and
impar9al,
and
for
decisions
to
be
repeatable;
and
it
requires
definite
descrip9on
of
the
related
measures.
Internally
implemen9ng
ISO
65
pushes
the
Fairtrade
movement
to
look
into
its
defini9on
in
order
to
harmonize
understanding
and
scope
Fairtrade
system”.
“Commitment
to
ISO
65
also
results
from
the
fact
that
Fairtrade
is
beginning
to
expand
beyond
a
niche
market.
Supermarket
chains
are
now
involved
in
trading
Fairtrade
labelled
products.
They
expect
Fairtrade
to
recognize
and
to
fulfill
well-­‐accepted
norms.
Important
market
players
are
asking
for
evidence
that
the
Fairtrade
system
is
reliable
and
robust.
ISO
65
accredita9on
provides
evidence
and
is
well
know
and
accepted,
specially
by
retailers.”.
Source:
Requirements
for
cer9fica9on
bodies
–
situa9on
and
scope
for
harmonisa9on
ITF,
a
joined
ini9a9ve
of
IFOAM,
FAO,
UNCTAD

21. Strengths
-­‐ Increasing
consumer
awareness
of
environmental
and
social
issues.
-­‐ Widespread
acceptance
towards
market
en99es
with
social
responsibility
appeal
to
the
masses
of
consumers,
with
highly
acceptance
in
supermarkets
and
specialized
groceries.
-­‐ Fairtrade
coffee
is
well
posi9oned
and
has
not
meet
heavy
consumer
resistance
in
the
high-­‐end
channel.
-­‐ Fairtrade
cer9fica9on
has
proven
with
results
and
facts
in
a
long
term
basis,
the
real
benefits
and
opportuni9es
for
a
bever
livelihood
that
offer
to
coffee
producers
through
global
experience
for
a
local
impact,
thanks
to
transparent
and
win-­‐win
trading
partnerships.
-­‐ Fairtrade
has
the
capacity
to
convey
this
coffee
crisis
in
a
lesson
learned
opportunity.
Source:
Oxfam,
Interna9onal
Commodity
Research
–
Coffee
&
COSA
Report

22. -­‐
Fairtrade
producers
must
be
struggling
to
fulfill
contracts
due
to
poor
harvest,
while
others
surely
signed
contracts
early
this
year
and
then
watched
prices
rise
to
unexpected
peaks,
provoking
confusion
and
a
lack
of
confidence
in
the
performance
and
per1nence
of
Fairtrade
coffee
prices
and
standards,
to
respond
efficiently
and
in
a
1mely
manner
to
coffee
price
vola1lity.
Also
provoking
in
origin
what
I
call
the
“toma
y
daca”
effect
(1t
for
tat).
-­‐
Loss
of
value
of
organic
cer1fica1on
due
to
high
prices.
-­‐
This
coffee
market
bull
run
caught
many
by
surprise
and
pointed
out
speculators
as
the
obvious
scapegoat,
but
sta9s9cal
surplus
are
not
sufficient
to
refill
depleted
stocks.
-­‐
Produc9on
for
the
Asia
&
Oceania
region
have
been
downward,
especially
Indonesia
where
the
impact
of
La
Niña*
phenomenon
has
been
more
severe
than
expected.
This
phenomenon
tradi9onally
arrived
every
5
or
6
years,
but
is
gaining
frequency
and
intensity
because
of
climate
change.
-­‐
La
Niña
weather
paverns
will
also
reduce
produc9on
in
East
Africa.
-­‐
Disappoin9ng
2009/10
crops
in
Colombia
and
Central
America
-­‐
The
Brazil
produc9on
correspond
to
an
off-­‐year
season
in
the
biennial
cycle
for
Arabica
produc9on,
but
is
important
to
men9on
that
even
a
record
crop
will
not
be
sufficient
to
cover
domes9c
consump9on
plus
export
demand,
so
that
already
run-­‐down
stocks
will
be
depleted
further,
so
there
is
even
the
possibility
of
a
forced
reduc9on
in
exports
next
season.
-­‐
Producer
stocks
are
at
a
dangerously
low
level
as
the
market
is
heading
towards
the
Brazilian
off-­‐year
crop
2011/12,
and
the
situa9on
in
impor9ng
countries
is
also
strained
as
there
has
been
a
steady
decline
of
(registered)
stocks
-­‐
It
is
possible
to
assume
that
a
global
deficit
will
return
in
2011/12
when
Brazil
will
be
faced
with
its
biennial
downswing
in
output
while
global
consump9on
will
con9nue
to
rise.
This
means
that
the
coffee
market’s
apparent
failure
of
a
significant
stock
build-­‐up
this
season
could
mean
that
it
is
headed
for
high
prices
for
years
to
come.
-­‐
Cameroon’s
coffee
farmers
have
diverted
land
to
food
crop
produc9on,
even
do
the
government
has
set
up
a
scheme
to
li_
the
Arabica
produc9on.
-­‐
Coffee
produc9on
in
North
&
Central
America
in
2010/11
is
seen
at
17.5
mln
60
kg
bags.
-­‐
High
coffee
prices
lead
to
the_
and
murder
with
severe
problems
with
hijacking
of
coffee-­‐
transpor9ng
trucks,
provoking
extra
security
costs.
-­‐
The
forecast
for
Mexico
was
cut
to
4.1
mln
bags
from
nearly
4.3
mln
previously.
Mexico’s
government
es9mates
5%
higher
crop
(!)
while
Mexican
coffee
producers
associa9on
(Amecafe)
doest
not
see
the
crop
significantly
below
from
last
year’s
ouvurn.
-­‐
Unseasonable
rains
and
cold
weather
in
Mexico
have
resulted
in
a
crop
that
is
ripening
at
an
uneven
pace,
exacerbated
with
a
shortage
of
labour
at
farms
where
workers,
paid
by
the
bucket,
have
not
found
enough
coffee
cherries
to
pick
to
make
it
worth
their
9me.
-­‐
Colombia’s
coffee
produc9on,
due
to
unfavourable
weather
condi9ons
during
flowering,
has
cur
marginally
the
forecast
to
9.5
mil
bags,
which
would
s9ll
be
up
sizeable
from
dismal
8.1
mln
produced
in
2009/10.
-­‐
Peru’s
2010/11
crop
is
raised
to
nearly
4.0
mln
bags.
-­‐
Unusual
and
con9nuous
raining
during
October
and
November
affected
harves9ng
and
processing
of
Arabica
coffee
in
India,
revising
downwards
its
previous
post-­‐blossom
es9mate
of
a
livle
more
than
5.1
mln
bags.
-­‐
Indonesia’s
crop
will
be
down
to
9.4
mln
bags
due
to
excessive
rains.
-­‐
Local
officials
of
Vietnam
claim
the
crop
to
have
fallen
from
2009/10
levels
at
18.9
mln
bags
from
19.6
mln
bags
as
forecasted.
*
Note
:
“La
Niña”
is
a
cyclic
meteorological
phenomenon
that
results
from
low
temperatures
in
the
Pacific
Ocean,
and,
“El
Niño”
is
the
increase
of
the
ocean
temperature
and
is
reflected
through
dryness
in
the
coffee
regions.
Weaknesses

24. Opportuni9es
-­‐
Occasion
for
the
Fairtrade
movement
to
connect
more
meaningfully
with
coffee
drinkers
concerned
with
social
and
environmental
issues.
-­‐
Opportunity
to
develop
a
“Coffee
Crisis
CommiXee”
(as
the
Product
Advisory
Council)
to
deepen
through
dialogue
and
insight
into
the
roots
of
long
las1ng
solu1ons,
in
order
to
improve
and
design
tailored
standards,
prices,
premiums
and
policies,
adding
the
possibility
of
crop
pre-­‐financing.
-­‐
Increase
of
global
consump9on
even
throughout
the
world
economic
crisis
because
consumers
in
established
markets
usually
perceive
their
daily
intake
of
caffeine
as
a
non-­‐changeable
habit.
-­‐
Nestle,
S.A.
is
set
to
spend
$70.3
mio
USCY
on
a
new
produc9on
line
to
double
output
as
its
Nescafe
Dolce
Gusto
site
in
Girona,
Spain.
The
new
line
will
double
produc9on
to
more
than
2.5
bln
coffee
capsules
a
year
by
2012
for
export
to
more
than
20
European
countries
and
overseas
des9na9ons.
(Trend)
-­‐
The
Nespresso
brand
expects
con9nued
double-­‐digit
growth
in
2011,
leading
the
“coffee
capsule
bavle”
(Trend)
-­‐
Starbucks
Corp.
has
turn
its
non-­‐binding
Memorandum
of
Understanding
with
Tata
Coffee
for
sourcing
and
roas9ng
premium
coffee
beans
in
India
into
a
joint
venture,
in
which
will
ini9ally
hold
26%
stake,
and
the
JV
will
open
outlets
in
all
major
Indian
ci9es
and
Starbucks
will
raise
its
stake
in
the
new
company
to
51%
within
a
year.
-­‐
Starbucks
announced
on
April
26
its
inten9on
to
increase
from
450
to
1,500
the
number
of
stores
in
China,
and
the
expand
of
Via
instant
coffee
aiming
to
get
into
more
people’s
homes
by
offering
coffee
through
grocery
stores
and
introducing
simple-­‐cup
brewing
machines.
-­‐
Colombia
looks
to
be
recovering
from
two
years
of
disappoin9ng
crops.
-­‐
Coffee
produc9on
in
Africa
in
2010/11
is
es9mated
to
rise
to
14.6
mln
bags,
up
from
13.2
mln
the
previous
year,
and
Arabica
output
is
seen
up
at
7.8
mln
bags
from
6.9
mln
in
2009/10
due
to
a
higher
forecast
for
the
con9nent’s
top
producer
Ethiopia
whose
output
is
seen
at
5.1
mln
bags.
-­‐
Peru’s
2010/11
crop
is
raised
to
nearly
4.0
mln
bags.
-­‐
Rodolfo
Trampe
Taubert,
mexican
coffee
producer
from
Chiapas,
actually
Execu9ve
Coordinator
of
the
AMECAFE
(Mexican
Coffee
Associa9on)
is
nominated
for
the
post
of
Execu9ve
Director
(2011-­‐2016)
of
the
ICO.
The
next
stage
will
be
presenta9ons
to
the
Council
in
September
2011.
Mr.
Trampe
can
increase
support
to
coffee
organiza9ons.

25. Coffee
capsules
bavle
between
Sara
Lee,
Kra_,
Nespresso
and
United
Coffee

26. Trends
-­‐
Although
crop
year
2010/11
is
s9ll
under
way
in
many
expor9ng
countries,
and
in
countries
like
Brazil,
Indonesia,
Papua
New
Guinea
and
Peru
has
just
begun,
the
available
informa9on
indicates
a
volume
of
approximately
133
mln
bags,
represen9ng
an
increase
of
the
preceding
crop
year
according
to
ICO
numbers.
-­‐
Tight
market
fundamentals
will
con9nue
to
support
high
price
levels
in
comparison
to
the
previous
years.
-­‐
Current
prices
are
remunera9ve
to
growers
and
will
help
s9mulate
produc9on
growth
in
the
future
(future
coffee
low
price
cycle).
-­‐
In
the
short
term,
growth
will
probably
come
from
improved
husbandry
and
greater
use
of
fer9lizer.
In
the
medium
to
long
term
coffee
growers
are
likely
to
rejuvenate
exis9ng
planta9ons
and,
to
a
lesser
extent,
open
new
areas
of
produc9on.
-­‐
Growers
inves9ng
in
new
plan9ng
must
bear
in
mind
that
current
highs
price
levels
will
not
persist
indefinitely,
although
demand
con9nues
to
grow
at
a
fast
rate
and
will
lens
support
to
the
market.
-­‐
The
strong
export
performance
in
the
first
five
months
of
coffee
year
2010/11
is
unlikely
to
be
maintained
in
coming
months,
especially
in
light
of
reduced
availability
in
Brazil.
-­‐
World
stocks
con9nue
to
fall
and
the
volume
of
opening
stocks
in
crop
year
2010/11
is
around
13
mln
bags,
reflec9ng
market
9ghtness
-­‐
Coffee
consump9on
is
growing
more
rapidly
in
expor9ng
countries,
par9cularly
in
Brazil,
Ethiopia
and
Vietnam,
while
consump9on
in
tradi9onal
impor9ng
markets
is
forecasted
to
grow
at
a
lower
rate,
however,
impor9ng
countries
like
Canada
and
emerging
markets
have
recorded
increase
in
coffee
consump9on
in
2010.
-­‐
Supermarkets
and
other
mul9ple
store
opera9ons,
because
of
their
increasing
market
dominance,
have
a
very
direct
influence
on
the
nature
of
coffee
demand,
even
if
they
are
rarely
considered
in
most
discussions
about
the
problems
of
the
coffee
industry,
they
are
one
of
the
most
influen9al
stakeholders.
-­‐
Strong
compe99on
between
supermarket
chains
and
among
coffee
shop
chains.
-­‐
Revolu9on
in
household
brewing
technology
as
reflected
by
booming
sales
of
high
tech
household
coffee
machines
in
recent
years.
-­‐
Colombians
are
expected
to
drink
about
1.3
mln
bags
of
coffee
this
year
thanks
to
a
program
by
the
Na9onal
Federa9on
of
Colombian
Coffee
Producers
(Fedecafe)
launched
last
March.
-­‐
Colombian
differen9als
droped
to
just
over
20
c/lb
in
February
2011
compared
to
more
than
60
c/lb
in
July
2010.
-­‐
The
Mexican
Associa9on
for
Coffee
Produc9on
(Amecafe)
distributed
10,000
brochures
in
2010
to
medical
associa9ons
about
coffee’s
health
benefits
in
an
avempt
to
eradicate
the
idea
that
the
drink
is
unhealthy.
-­‐
About
75%
of
the
coffee
consumed
in
Mexico
is
instant
coffee,
which
has
contributed
to
the
idea
that
there
is
not
anything
special
about
Mexican
coffee
–
a
mindset
that
industry
leaders
say
is
finally
beginning
to
change.
-­‐
Nestle,
S.A.
is
set
to
spend
$70.3
mio
USCY
on
a
new
produc9on
line
to
double
output
as
its
Nescafe
Dolce
Gusto
site
in
Girona,
Spain.
The
new
line
will
double
produc9on
to
more
than
2.5
bln
coffee
capsules
a
year
by
2012
for
export
to
more
than
20
European
countries
and
overseas
des9na9ons.
-­‐
The
Nespresso
brand
expects
con9nued
double-­‐digit
growth
in
2011
and
is
targe9ng
coffee
culture
countries.
-­‐
Starbucks
Corp.
raised
the
price
of
its
packaged
coffee
sold
at
US
grocery
stores
by
nearly
12%.
-­‐
A_er
a
disastrous
earthquake
and
tsunami
hit
Japan
on
March
11,
the
effects
on
coffee
imports
and
domes9c
price
levels
are
seen
limited.
Most
coffee
imports
are
handled
at
ports
in
Yokohama,
Kobe
and
Nagoya,
which
were
untroubled
by
the
devasta9ng
events.

27. ➜
RESPONSES
Are
we
having
the
posi1ve
impact
we
intend?
Yes,
we
s1ll
do.
But
we
have
to
defend
Fairtrade
principles
and
act
and
re-­‐act
fast
and
precisely
according
to
market
condi1ons.
First
listening
carefully
to
all
stakeholders
to
take
into
account
all
the
factors
and
condi1ons
of
the
coffee
business
reality,
and
then,
gather
them
into
a
commitment
to
co-­‐discover
solu1ons
together,
providing
tools
and
all
exper1se
possible
to
achieve
a
common
vision.
Partnership
Partnering

28. ➜
RESPONSES
In
this
new
market
scenarii,
how
do
we
actually
deliver
to
all
stakeholders
the
promise
of
Fairtrade
coffee?
As
far
as
I
understand
through
the
available
informa1on
in
internet,
the
Fairtrade
Coffee
Ac9ons
announced
the
mee1ng
of
a
Product
Advisory
Council
to
respond
to
the
high
coffee
price
crisis.
So
I
suppose
that
as
a
result
of
this
mee1ng,
all
the
knowledge,
experience,
and
open
discussion
of
the
people
involved
as
united
minds,
has
mapping
opportunity
and
give
visible
results
that
now
need
to
be
implemented
to
be
opera1ve
to
succeed.

29. ➜
RESPONSES
Given
the
current
global
context,
what
are
the
key
issues
and
the
right
coffee
price
policy
we
should
be
addressing
now?
I
think
that
the
right
price
is
always
the
one
that
results
of
a
win-­‐
win
transac1on.
Coffee,
traded
as
a
commodity,
tries
to
minimize
risks
and
maximize
opportunity
but
due
to
supply/demand
condi1ons
and
signed
future
contracts,
producers
have
to
face
a
buy-­‐high/sell-­‐low
scenarii,
struggling
locally
with
their
compe1tors
to
fulfil
and
cover
physical
coffee
needs.
This
situa1on
jeopardize
the
organiza1on
because
for
the
small
scale
farmer,
is
much
more
profitable
to
sell
his
coffee
to
the
local
middle-­‐man
(coyote)
than
to
the
producers
organiza1on.
At
this
point,
pre-­‐financing
is
vital
to
assure
coffee
delivery
from
the
producer
to
the
organiza1on.
Also
is
the
moment
when
“promises
made-­‐promises
kept”
come
true.

30. ➜
RESPONSES
Are
our
solu1ons
oriented
towards
the
problems
of
15
years
ago,
versus
problems
of
today,
or
of
the
future?
Every
coffee
crop
is
different,
and
we
grow
up
through
experience
and
lesson
learned
situa1ons.
This
bull
run
in
coffee
prices
is
an
unique
opportunity
to
improve
the
Fairtrade
standards
and
pricing,
challenging
everyone
involved
to
beXer
understand
the
nature
of
producing,
trading,
roas1ng
and
selling
Fairtrade
coffee.
Also,
measures
taken
will
prevail
and
provide
new
tools,
knowledge
and
hidden
talents
to
redevelop
standards
and
procedures
to
enable
coffee
growers
groups
to
beXer
interact
and
manage
risk
facing
vola1lity,
helping
to
provide
more
and
beXer
customized
services
to
their
members.

31. ➜
RESPONSES
What
would
the
right
approach
look
like?
I
understand
that
the
first
necessary
measures
have
been
made
increasing
the
Minimum
Price
and
the
Organic
Price
Differen9al.
This
ac1on
might
mi1gate
the
pain
but
of
course,
does
not
solve
the
situa1on.
I
think
that
now
the
next
step
is
a
pedagogical
effort
to
co-­‐create
and
co-­‐find
solu1ons
with
dialogue
and
comprehension,
with
a
high
perspec1ve
and
long
term
vision,
on
behalf
of
the
Fairtrade
movement.
Roundtables,
strategic
thinking
and
planning,
and
redefining
a
“build
trust”
program
within
and
outside
the
organiza1on,
must
be
launched
to
engage
key
stakeholders,
sa1sfy
customers
at
all
levels,
nourish
coffee
communi1es
needs
and
demands,
to
finally
deliver
sustainable
and
profitable
growth.

32. ➜
RESPONSES
What
ac1ons
should
be
implemented
to
meet
accelerated
growth
with
integrity?
The
Ac1on
Plan
to
find
solu1ons/ac1ons
according
to
my
experience
is:
• Intense
dialogue
between
stakeholders
to
determine
all
factors,
constraints
and
“get
out
of
this”
opportuni1es,
along
with
in-­‐field
workshops
and
gatherings
with
decision
takers.
• Promote
and
if
possible,
ensure
Pre-­‐financing
(micro-­‐credit)
to
small-­‐scale
farmers
to
avoid
or
minimize
high
price
impact.
• Dual
cer1fica1on
acceptance
along
with
pre-­‐cer1fica1on
cost
loans
according
to
grower’s
condi1on
and
historical.
• Accentuate
the
capacity,
func1on
and
performance
of
the
Quality
Control
System
within
the
coffee
growers
group.

33. CONCLUSION
➜ Only
a
“insight-­‐outsight”
approach
will
solve
the
puzzle.
The
historical
posi1ve
results
of
the
Fairtrade
Labelling
Organiza1ons,
since
the
founda1on
of
the
Fairtrade
movement
in
the
beau1ful
coffee
region
of
Oaxaca,
has
proven
from
ground-­‐up,
that
no
maXer
where
you
look,
you’ll
see
an
opportunity
to
nourish
an
idea
to
provide
hope
and
act
for
a
beXer
world,
and
finally,
share
passion,
values
and
purpose
towards
coffee
people,
and
this
can
be
done
again.

34. Photo
credits
:
-­‐
Alicia
Ahumada,
David
Maawad,
Patricia
Mar{n,
Antonio
Turok,
(Mexican
Orgánic
Coffee,
Cepco,
Uciri,
Unión
Majomut,
Edición
FONAES,
SEDESOL)
-­‐
Internet:
Michael
Bryant
and
NYT
photo.
-­‐
Personal
photos,
Stéphanie
de
Malherbe
pain9ng
“Tomando
café”,
ESAG
infinite
cup
affiche
“Café
Philo
Paris”.
Bibliography
&
Sources
:
-­‐
Requirements
for
cer9fica9on
bodies
(Dra_
document)
–
situa9on
and
scope
for
harmonisa9on
ITF/Interna9onal
Task
Force,
a
joined
ini9a9ve
from:
IFOAM,
FAO,
UNCTAD
-­‐
Seeking
Sustainability,
COSA
(Commivee
on
Sustainability
Assessment)
Preliminary
Analysis
of
Sustainability
Ini9a9ves
in
the
Coffee
Sector
–
Daniele
Giovannucci
and
Jason
Povs,
2008
-­‐
World
Coffee
Balance,
Volume
25,
Issue
19,
March
2011
report
by
F.O.
Licht
-­‐
Interna9onal
Coffee
Report,
F.O.
Lochts
Vol.25
Nº21,
April
5,
2011
-­‐
LMC
Int.
Report
March
2011
-­‐
The
Outlook
for
the
World
Coffee
Market
2010-­‐2019,
106th
Session
of
the
ICO,
28-­‐31
March
2011
-­‐
ICO
Monthly
Reports
2011
&
Execu9ve
Director
Levers
-­‐
The
market
for
organic
and
Fair-­‐Trade
Coffee,
Study
prepared
in
the
framework
of
FAO
project,
Ellen
Pay,
2009
-­‐
Oxfam:
Interna9onal
Commodity
Research
–
Coffee,
The
Coffee
Market,
a
Background
studio
by
Oliver
Brown,
Celine
Charveriat
and
Dominic
Eagleton
-­‐
Futuresource.com
(graphics)
-­‐
The
World
Bank
-­‐
Coffee
Markets,
New
Paradigms
in
Global
Supply
and
Demand,
by
Bryan
Lewin,
Daniele
Giovannucci
and
Panos
Varangis
-­‐
Complete
Coffee
Coverage
(April
2011),
Coffee
Publica9ons,
Inc.

35. Thank
you
for
your
1me
and
aXen1on!