4c ar 2012 final eng

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Expanding the _ Community

Annual Report 2012


Vision The 4C Association aims to unite all relevant coffee stakeholders in working towards the improvement of the economic, social and environmental conditions of coffee production and processing to build a thriving, sustainable sector for generations to come.

Mission The 4C Association is the leading multi-stakeholder sustainable coffee platform, guiding the mainstream sector toward more sustainable production in a 足pre-competitive arena where all relevant stakeholders are enabled to participate.


4C ASSOCIATION

Last December, I had the chance to travel to Vietnam to participate in the 2nd Vietnamese Coffee Sustainability Forum in Ho Chi Min City. Being most familiar with the challenges of the African coffee farmers, learning about the experiences of the Vietnamese sector was very revealing and inspiring to me. A few months later, at the 3rd African Coffee Sustainability Forum in Uganda, it was the 4C Manager for Vietnam who shared his experience about the Vietnamese coffee sector with an African audience. Seeing how his input was highly appreciated by the participants in the Kampala Forum and recalling my own Vietnam visit in December made one thing only clearer to me. That though the coffee sector in general and producers in different parts of the world face many different challenges, such as climate change, low productivity or an aging tree population there are solutions out there. Cooperation and exchange are essential both to finding out about these solutions and implementing them! For instance, the African coffee sector, facing serious challenges regarding the very low yields of its farmers, can learn a lot from other coffee producing countries like Brazil and Vietnam where, sustainability challenges notwithstanding, average yields are higher. The sustainability forums I mentioned earlier are an example of the unique concerted effort I am referring to. The 4C Association led the organization of the Forums in Addis Abba and in Ho Chi Minh City in 2012. The 4C Association also led the launch of joint projects with key partners and funders such as the one to find alternatives to the use of the pesticide Endosulfan which was internationally banned last year. The elimination of Endosulfan represented a major obstacle for many coffee farmers around the world. It was therefore necessary to put in motion a collaborative project to help in identifying, communicating and providing access to viable alternatives to it. Collaborative exchange of this sort would not be possible without the existence of a global multi-stakeholder coffee platform. This is the leading role the 4C Association is playing. No other organi­ zation unites such a diversity of stakeholders from around the coffee world to exchange ideas and work together to advance sustainability in the sector. To make sure that the 4C Association continues to grow in the future and achieve common goals and other milestones as a global membership association, the General

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Assembly of members adopted some important decisions in September 2012: 1. A new adjusted governance structure to respond to the needs of 4C members while ensuring more effective and transparent decision making processes. 2. Election of new Council members to steer the organization’s ­development in the next two years. 3. Provide input into a three-year delivery plan, outlining the priorities and activities needed for the organization to deliver on its objectives. All these decisions of which you will read more about in this report are keeping the 4C Association on the right track to continue delivering benefits to all our members and achieve our joint vision. Moreover the Association is successfully implementing its new business model and optimising its budgetary use – all our 2012 projects depended on external funding, especially from the Sustainable Coffee Program (SCP) powered by IDH. Your Council has been busy over the year, strengthening the various aspects of governance and systems to ensure efficient and effective service delivery to membership. Rules for the Mediation Board and its Chair are in place, a new Technical Committee was appointed to undertake the critical task of revising the 4C Code among others. But it is important to remember that the 4C Association is not an abstract concept which operates on its own. The 2012 General Assembly demonstrated once again that the Association works because it is made up of highly committed individual members, companies, organizations and their people who make things happen. Therefore, on behalf of the entire 4C Council, I do not want to finish this message without thanking all our members and partners! Let us keep on the good work in 2013 and beyond! Best wishes,

Robert Waggwa Nsibirwa | Chairman of the Council of the 4C Association

Message of the Chairman


3

Message of the Chairman

5

Message of the Executive Director

6-7

Membership development

8-9

General Assembly 2012

10-15

Addressing critical issues as the Sustainable Coffee Platform

16-19

Collaboration with other Standards

20-21

Supply and demand figures of certified and verified coffees

22-27

Verification figures

28-29

Balance Sheet 2012 and Revenues and Expenses

30-31

Cash Flow Statement 2012 and Budget 2013

32-33 Members 34 Directory

Table

of  Contents


4C ASSOCIATION

In September 2012, the 4C Association celebrated its 3rd General Assembly. More than 70 member representatives from around the world gathered in Geneva to take stock of the development of the 4C Association during the last years and to plan the future development of the organization. Those that also participated in the previous General Assembly in 2009 recognized that the 4C Association has undergone a successful evolution in the last years which has led to the consolidation of the 4C system and the steep growth in membership. To give some examples, the number of 4C members more than doubled to 250 by the end of 2012, the verification system was revised to make it more efficient and credible, the supply and demand of 4C Compliant Coffee has grown remarkably and the 4C Association has successfully positioned itself as the global sustainable coffee platform.

Message

of the Executive Director

The last year has been testimony of many of these developments. For instance the amount of 4C Compliant Coffee received by 4C industry members in the coffee year 2011/12 reached 2.5 million bags, triple than the previous year. By the end of 2012, more than 800,000 farmers and workers in 21 producing countries were participating in the 4C system. The 4C Association welcomed the first members representing important service providers for the coffee supply chains or implementers in the Civil Society Chamber. These included Solidaridad, an international organization in the Netherlands dedicated to responsible food production and ecological energy solutions as well as TechnoServe, a US-based nonprofit organization that develops business solutions to poverty by linking people to information, capital and markets. Additionally, 4C membership expanded to new geographical areas, with the incorporation of members from Australia, China and Japan among others. Furthermore, the 4C Association as the global platform for sustainable coffee actively seeks collaboration with other partners to advance sustainability in the coffee sector. As such, the 4C Association has formalized a strategic partnership with the

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Sustainable Coffee Program powered by IDH with the aim of scaling up sustainability efforts and increasing synergies. This is especially with respect to stakeholder engagement, cooperation with standards and activities at the local level in Brazil, Vietnam, Ethiopia and Uganda. Joint efforts with the different sustainability standards thus continue to play a pivotal role in reaching the objective of advancing sustainability in the coffee sector and during 2012, the 4C Association did not stop at strengthening these links. For instance, the 4C Association welcomed Fairtrade International in its membership, worked with UTZ Certified on a steppingup project in Colombia and started an official benchmarking project between the 4C standard and Certifica Minas, a local, government-owned standards programme in Minas Gerais, Brazil. This increased collaboration is leading to more alignment and efficiencies between standards, something which is directly benefiting farmers and their supply chain counterparts. Of course all this would have been impossible without the effort and commitment of the former members of the 4C Executive Board who shaped the Association during this formative period from 2009 to 2012: Mr. Diego Pizano, Mr. Roel Vaessen, Mr. Albrecht Schwarzkopf, Mr. Patrick Leheup and Mr. Hein Jan van Hilten. I can only close this message by thanking them for their dedicated service over the last years.

Best wishes,

Melanie Rutten-S端lz | Executive Director of the 4C Association


Final Buyers 2012

Intermediary Buyers Producers Civil Society Associate Members 2010 2009

A growing and diverse

membership

Since its foundation at the end of 2006, the 4C Association has experienced a steep growth in all membership categories year after year. Membership growth was especially remarkable in 2012 with a total of 250 members by year’s end. This growth was driven by the increasing number of 4C industry members that are including 4C Compliant Coffee in their supply chains, resulting in a remarkable growth of new members from producers and local exporters from Vietnam, Indonesia, Central and South America and Africa. Important coffee supply chain service providers joined for the first time, such as Yara International, the world’s largest producer of mine­ral fertilizers, and Molenbergnatie, a leading supplier of supply chain management services for soft commodities. On the part of civil society, the 4C Association in 2012 welcomed two implementing NGOs, Technoserve and Solidaridad, as well as the global sustainability standard, Fairtrade International, plus a number of local NGOs. Moreover the geographical scope of 4C membership now also extends to Australia, China and Japan. These new additions have meant that 4C membership is now more diverse, thus further strengthening the 4C Association’s role as the global multi-stakeholder platform for sustainable coffee.

2011

2008 2007 2006

Producers

Intermediary Buyers

Final Buyers

Civil Society

Associate Members

Total

2006

7

7

5

3

15

37

2007

14

13

11

5

27

70

2008

26

22

13

5

33

99

2009

30

24

23

5

43

125

2010

40

21

24

7

46

138

2011

41

37

25

7

40

150

2012

72

93

28

13

44

250


4C ASSOCIATION

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4C Membership by region (2012)

Brazil 12 %

“

Australia, Europe & US 32 %

Rest of Latin America 18 %

Vietnam 12 %

Africa 15 %

Members Percentage

Rest of Asia 11 %

Australia, Europe & US

Brazil

Rest of Latin America

Vietnam

Rest of Asia

Africa

Total

82

28

44

31

27

38

250

32%

12%

18%

12%

11%

15%

100%

As part of our CSR strategy, Strauss has chosen 4C Association as the most appropriate for cooperation as, like the 4C Association, we believe that encouraging sustainability for green coffee is a productive, competitive and efficient way to enhance the economic conditions of individuals working in the growing, post-harvest, processing and trading of green coffee. The approach held is a long-term one, handling the issues of social, environmental and economical sustainability within the entire supply chain and therefore is perfectly in line with our own Code of Ethics.

�

Peter Baumann, Senior Coffee Buyer, Strauss Commodities AG


Fresh Wind in Governance

at the well-attended 3rd General Assembly At the end of September 2012, the 4C Association held its highly participatory and interactive 3rd General Assembly. This was also made possible with the much appreciated support of 4C Member SUCAFINA and the Swiss Coffee Trade Association (SCTA). More than 70 member representatives from around the world, that is, approximately one third of the membership, gathered in Geneva to set the future direction of the 4C Association and outline plans to deliver increasing volumes of sustainably produced coffee. Since its last General Assembly in 2009, major companies, including Mondelēz International, Nestlé, Tchibo and Strauss, have made public commitments to purchase more coffee that meets, at minimum, the 4C baseline standard, or higher. In addition, more coffee producers became actively involved. To ensure continuous growth over the coming years and raise the bar for the entire coffee community, participants at the General Assembly agreed on the following actions: •

To adopt a new, simplified governance structure for the 4C Association to ensure faster and more effective processes while strengthening members’ participation in decision-making.

To set the basis for a Three-Year Delivery Plan to boost volumes of 4C Compliant Coffee while maintaining the credibility of the 4C system.

In an interactive working session, attendees provided their input and ideas to devise the Three-Year Delivery Plan. This input was essential to lay out the key deliverables for the 4C Association until 2015, and identify five main priorities: 1. To deliver the coffee on the ground. This includes creating an effective regional 4C infrastructure in new priority countries, scaling up existing resources to optimise demand and supply ratios of 4C Compliant Coffee, defining country strategies and effectively engaging with local partners. 2. To provide effective systems to deliver the right coffee. Central to this objective will be planning and developing a fully functioning IT system to track and report on the supply and demand for 4C Compliant Coffee by region and type of coffee and effectively managing the data needed for monitoring and evaluation. 3. To build and expand the membership of the platform. Efforts will go into ensuring that the 4C Association meets members’ needs and interests by efficiently delivering core and extra services. Additional activities will include enhancing membership access to communication channels and reaching out to new members such as in North America. 4. To strengthen credibility. This involves for example, revising the 4C Code of Conduct to better match realities of implementation and in line with the ISEAL Standard Setting procedure as well as establishing a Monitoring and Evaluation system. 5. To address critical issues as the platform for sustainable coffee. Building on the efforts of previous years, the 4C Association will define priority areas and mechanisms to effectively work with partners and address prioritised, critical sustainability issues such as child labour, pesticides or waste and water management in the coffee chains. The final Three-Year Delivery Plan was later ­approved by the 4C Council at its meeting in ­December 2012.


4C ASSOCIATION

The 3rd General Assembly was a unique event in the sense that it provided the opportunity for many members to meet other members in person for the first time, exchange ideas and make important decisions that will shape the future work of the 4C Association.

Robert Waggwa Nsibirwa, Chairman of the 4C Council and Board Member of the African Fine Coffees ­Association (AFCA)

New Governance Structure and New Council Representatives During the General Assembly, participants adopted a new governance structure for the 4C Association. The alteration led to an adjustment of the By-laws of the General Assembly and the Council as well as a change to the Statutes of the 4C Association. Under the new and simplified governance structure, the 4C Council, elected by the General Assembly, becomes the 4C Association’s only representative decision-making body thereby merging the previous functions of Council and Executive Board. In line with the tri-partite and participatory structure of the association, the Council is made up of 10 members who represent the three Chambers (producers, trade and industry and civil society) with the producer group holding the most seats. The new Council structure also reserves two additional seats for any member of the 4C Association, including individual and associate members. During the General Assembly, 11 Council representatives were elected as follows:

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Producer representatives •

Robert Waggwa Nsibirwa (African Fine Coffees Association - AFCA, Uganda) / Chair

Le Ngoc Bau (Vietnamese Coffee and Cocoa Association - VICOFA, Vietnam)

Adriana Mejía Cuartas (Federación Nacional de Cafeteros de Colombia - FNC, Colombia)

Joaquim Libânio Ferreira Leite (Cooperativa Cooxupé, Brazil)

Trade and Industry representatives •

Linda Butler (Nestlé) / Vice Chair

Cornel Kuhrt (Tchibo GmbH)

Mark Furniss (Volcafe)

Francesco Tramontin (Mondelēz International)

Civil Society representatives •

Albrecht Schwarzkopf (Christliche Initiative Romero e.V. - CIR) / Treasurer

Keith Tyrell (Pesticides Action Network - PAN UK)

Marcel Clement (Rainforest Alliance)


A Sustainable Coffee Platform The coffee sector is confronted with many pressing issues: climate change, lack of interest from the next generation of coffee growers, aging coffee trees, and inadequate finance or land. Others deal with issues of gender equity in coffee and the use of pesticides. The 4C Association offers all coffee actors a platform where they can address these and other challenges. Issues to be addressed are brought to the table by members of the 4C Association. The 4C Secretariat facilitates this by including topics of interest into the agenda of 4C meetings, by organizing forums, specific conferences, or by setting up and coordinating working groups, or pilot projects to identify practical solutions to the identified challenges. Results and lessons learned from forums, working groups and projects are then made available to enable members and partners to address issues themselves. To enhance its efforts, the 4C Association engages with key strategic public and private partners at different levels. One of these partners is the Sustainable Coffee Program (SCP) powered by IDH, an initiative started in 2011 together with founding partners Mondelēz International 1, Nestlé, D.E Master Blenders 1753 2, Tchibo GmbH, The Royal Dutch Coffee and Tea Association (KNVKT), the European Coffee Federation (ECF) and the development partner GIZ. More details on the Sustainable Coffee Program will be provided on page 16. In summer 2012, the 4C Association formalized the strategic partnership with the SCP to join forces and create synergies between the two initiatives. 2012 saw the 4C Association organise two successful sustainability forums in cooperation with local partners and supported by the SCP – one in Ethiopia, and another in Vietnam. In collaboration with Hivos, the topics of gender and youth in coffee where put on the agenda. Furthermore, two interesting projects aim at finding appropriate measures for eliminating the use of Endosulfan and developing a Product Category Rule (PCR) for the green coffee sector respectively.


4C ASSOCIATION

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Sustainability experts and coffee stakeholders put their heads together in Ethiopia and Vietnam Addis Ababa, Ethiopia: 2nd African Coffee Sustainability Forum

Ho Chi Minh City, Vietnam: 2nd Vietnamese Coffee Sustainability Forum

Following on the success of the first ever African Coffee Sustainability Forum of 2011 in Tanzania, the 4C Association and the African Fine Coffees Association (AFCA) in February 2012 invited stakeholders to meet again, this time in the legendary cradle of Arabica coffee. The Forum was organised with the support of the Sustainable Coffee Program powered by IDH.

Over 120 participants representing the main stakeholders in the Vietnamese coffee sector met in Ho Chi Minh City on 5 December 2012 for the second Vietnamese Coffee Sustainability Forum. The Forum was organized by the 4C Association in collaboration with the Ministry of Agriculture and Rural Development (MARD) and the Sustainable Coffee Program, powered by IDH.

Over 130 participants came together at the 2012 Forum in Addis Ababa. Besides those active in the African coffee sector, there was also an important presence of delegates from other regions, most notably Brazil. The aim was to present experiences from other countries and regions in order to increase cross-border and inter-regional cooperation. The Forum focused on the three main topics of coffee quality and productivity, climate change as well as capacity building and organizational development. Key expert speakers addressed these topics in plenary sessions while delegates attended parallel working groups for in-depth discussions. The event has established itself in the region as a must-attend meeting as the lively attendance at the third African Coffee Sustainability Forum in Kampala, Uganda in early 2013 shows.

The key theme “Rolling out sustainable coffee practices through public-private cooperation” underlined the presentations and discussions at the meeting. These included contributions from MARD, the National Agricultural Extension Centre (NAEC) and the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) on Vietnam’s coffee sector and national policies for improvement. Perspectives from coffee farmers, exporters and industry, including Nestlé and Mondelēz International were highlighted. IDH, UTZ Certified, Rainforest Alliance, Fairtrade and the 4C Association also shared lessons learned and recommendations for the implementation of coffee sustainability standards and public-private initiatives in Vietnam. The Forum therefore provided a platform to share information and practical experiences on the successes and challenges of sustainable coffee production, processing and trading in order to scale-up sustainable practices. Owing to its excellent reception, participants agreed to organize the event on a regular basis in Vietnam.

1 Formerly Kraft Foods 2 Formerly known as Sara Lee Corp.

In the last years, the ­Vietnamese coffee sector has made remarkable progress to advance sustainability but there are still a lot of challenges ahead of us. The Sustainability Forums offer an unique opportunity to bring farmers, exporters, industry, government and civil society organizations together to discuss the remaining challenges and look for joint solutions together. I look forward to this exchange to happen on a regular basis.

Mr. Le Ngoc Bau, Member of VICOFA, Director of The Western Highlands Agriculture and Forestry Science Institute (WASI) and 4C Council Member


Coffee Task Force, Vietnam Vietnam is currently ranked as the world’s second largest coffee producer and largest Robusta coffee producer. While the country’s coffee quality has generally improved in the last years, Vietnam still faces several sustainability challenges. Driven by the World Economic Forum (WEF), a public-private Coffee Task Force was set up in 2011 to define key strategic approaches for the sustainable development of Vietnam’s national coffee industry. By the end of 2012, the Task Force comprised of public sector and local government agencies, national and international private sector companies including Nestlé, Mondelēz International, D.E. Masterblenders 1753 and Tchibo, international institutions such as WEF, Rainforest Alliance, UTZ Certified and 4C Association as well as farmers and farmer associations. As a first step, two sustainable coffee development pilot projects with groups of farmers in the Lam Dong and Dak Lak provinces were created in 2011. Both farmer groups received training on good agricultural practices and sustainability principles and successfully passed 4C verification. As of 2012, an increase of 10.8% in coffee yield and 14% in profitability could be observed as a result of the PPP program. The Task Force, in cooperation with the National Agricultural Extension Centre (NAEC), is now in the process of scaling up efforts to the national level. Fifty demonstration plots are currently being set up in the Dak Lak, Lam Dong and Dak Nong provinces, where an agricultural extensionist will be assigned to each plot to guide farmer groups in the implementation of good farming

practices. Several other projects and approaches in Vietnam have been started or are being up-scaled, including some by 4C members in collaboration with partners. At the institutional level, possibilities to transform this public-private task force into a coffee coordination board are being assessed in the context of the cooperation between the Institute of Policy and Strategy for Agriculture & Rural Development (IPSARD) on behalf of the Vietnamese government and the Sustainable Coffee Program powered by IDH.

The Task Force is committed to scaling up the production of sustainable coffee in Vietnam. With the cooperation of all the partners, we have the ambition to reach out to all coffee farmers in the country and help them adopt better sustainability practices.

Mr. Vu Quoc Tuan, Project Coordinator Coffee Task Force/PPP


4C ASSOCIATION

Addressing gender and youth involvement in coffee Rather neglected in the past, gender and youth issues are gaining more and more attention in national and international coffee sector sustainability approaches. They are not yet adequately addressed by most sustainability standards however. As the coffee sector’s multi-stakeholder platform, the 4C Asso­ ciation in 2012 continued its dialogue with key players that are, similarly, looking for ways to position these global matters of concern higher on the sustainability agenda. On the topic of gender alone, the following organizations have made advancements in recent years: the International Trade Centre (ITC), the Gender Equity and Global Standards Initiative (made of a coalition of four Dutch NGOs: Solidaridad, Hivos, Oxfam Novib and the Royal Tropical Institute – KIT) or the International Women’s Coffee Alliance (IWCA). Already in 2010, the 4C Association engaged with the Gender Equity and Global Standards Initiative to assess women’s role in coffee in Africa and discuss ways in which standards can address gender in their work. There are three DVDs now available from different joint work streams while the individual NGOs continue their gender work: •

Gender & Certified Coffee Chains with a focus on Latin America, produced in 2009 with the facilitation of the 4C Association.

Gender & Certified Value Chains with a focus on Africa, produced in 2010 with the active participation and financial support of the 4C Association

Gender Equity in Certified Coffee, Cocoa & Tea Chains in Asia. The 4C Association was not actively involved in the project but participated in a concluding workshop in early 2012.

To continue increasing awareness, the 4C Association will be partnering with Hivos in 2013 /2014 in a series of coffee sustainability forums to be held across Africa, Asia and Latin

America. The forums are aimed at providing information about and anchoring gender and generation-sensitive approaches in coffee sustainability business strategies and policies. They will also be instrumental in triggering follow-up actions at national and regional level and within the international coffee sector. Ways forward include, for example, developing performance indicators and tools to assess gender equity among producer groups and enabling access to vocational training and youth groups for support and information or access to finance.

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Good practice project: “Growing Coffee without Endosulfan” Endosulfan, a broad spectrum organochlorine insecticide, was formally banned in October 2010 and has been listed by the Stockholm Convention as a persistent organic pollutant (POP) and targeted for global elimination since 2011. It is also listed by the Rotterdam Convention subject to the Prior Informed Consent (PIC) procedure. This is an important achievement in view of the risks of this highly hazardous chemical. However, in some countries coffee growers are facing real challenges in replacing Endosulfan with safer alternatives. This problem was identified by 4C members as one of the most pressing issues currently threatening sustainability of the coffee sector. For this reason, already in 2011, the 4C Association started looking into collaborative measures to deal with the issue and supported the creation of an Endosulfan Working Group under ISEAL’s Pesticide Working Group. The active participation in this group along with other standard organizations such as Rainforest Alliance, UTZ Certified and Fairtrade International helped to conceptualize a project idea together with Pesticide Action Network (PAN) UK. 4C Association’s efforts to acquire sufficient public-private funding culminated in the launch of the project “Growing Coffee without Endosulfan” at the beginning of 2013. Through this project, the 4C Association and PAN UK will engage with coffee growers and others in the coffee sector who are already successfully managing coffee pests without using Endosulfan. The lessons and information collected will be complemented by input from experts involved in research, national coffee organizations and other sustainability standards. Hands-on information and practical case studies on how individual growers have managed to phase out Endosulfan use will then be used to provide guidance for the coffee sector. This 12 month project is funded by the Sustainable Coffee Program (SCP) powered by IDH and the UN Food and Agricultural Organization (FAO), with additional support from the ISEAL Alliance. The project is complementary and closely linked to an Endosulfan Alternatives project in Brazil, also funded by the SCP powered by IDH.


4C ASSOCIATION

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Pesticide Action Network UK is very excited to be working with the 4C Association on our joint project Growing Coffee without Endosulfan, funded by the Sustainable Coffee Program powered by IDH, FAO and ISEAL. We will be collecting experiences from coffee farmers, large and small-scale, who are successfully managing the Coffee Berry ­Borer without Endosulfan, drawing on practical experiences from 4C Units, Rainforest, UTZ and Fairtrade colleagues. This project combines PAN UK’s expertise in pesticide issues and Integrated Pest Management with 4C’s platform role for the sustainable coffee sector to share the results and promote best practices. Dr Stephanie Williamson, Staff Scientist, PAN UK and technical coordinator for this project

Measuring the coffee carbon footprint As part of efforts to combat climate change and mitigate greenhouse gas (GHG) emissions from the coffee industry, the Sustainable Agriculture Initiative (SAI Platform) and its industry partners, including 4C Members such as Mondelēz International, Nestlé, Tchibo, or other partners like D.E. Master Blenders 1753, Illy and Lavazza, have initiated a project called “PCR Development for Green Coffee”. The project is financially supported by the Sustainable Coffee Program powered by IDH. This project is aimed at developing a Product Category Rule (PCR) for the calculation of the greenhouse gas emissions from green coffee production. A product category rule means a common and binding framework, publicly registered and accessible for the measurement of the

carbon footprint of a specific product, in this case coffee. The coffee PCR will therefore be the sector’s recognised method when quantifying the emissions associated with the production of green coffee. It will also help actors in the coffee chain to better understand the real impact of their mitigation actions. Once developed, sustainability standards are well placed to act as vehicles for rolling out the PCR and scaling up its implementation by using the already available structures and systems in terms of group approaches, data collection, internal monitoring, and auditing. In fact, carbon footprinting could be an addon to standard compliance. The 4C Association in its platform function therefore facilitated the agreement on a joint standards representative in the PCR steering committee. This enables the major sustainability standards Rainforest Alliance, UTZ Certified, Fairtrade International and the 4C baseline standard to effectively engage in the PCR development process. 4C Association is also represented in the technical working group.


Increasing collaboration between standards to harness supply and demand of sustainably produced coffee In 2011, the 4C Association began engaging with IDH - The Sustainable Trade Initiative during the process of setting up a coffee program. The Sustainable Coffee Program is a public-private partnership of IDH, Nestlé, Mondelēz International, D.E. Master Blenders 1753, Tchibo, the European Coffee Federation (ECF) and the Royal Dutch Coffee Association (KNVKT) on the Steering Committee. Further support on the Committee comes from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the World Wildlife Fund US (WWF-US). Intensifying the alignment and collaboration between the different coffee sustainability standards is one of the focus areas of the Sustainable Coffee Program to reach its ambition of driving sustainable green coffee sales up from 8% to 25% by 2015. Through its platform function, the 4C Association supports the Sustainable Coffee Program in addressing systemic sustainability issues and reaching out to the coffee community to advance coffee sustainability. Both organizations have also collaborated on different work streams and projects to drive cooperation between the different sustainability standards. Naturally, the 4C Association also continued reaching out to sustainability standards via other partnerships in 2012. More details are provided in the next few pages.


4C ASSOCIATION

Standards alignment and cooperation in the framework of the Sustainable Coffee Program powered by IDH In line with the 4C Association’s key function of promoting and cooperating with other coffee standards and initiatives, the association is partnering with the Sustainable Coffee Program (SCP) powered by IDH. Together they organized a work stream to discuss perspectives on the opportunities and challenges for scaling up sustainable production in the next few years. The process was facilitated by consultants and involved representatives of all major coffee-related voluntary sustainability standards (Rainforest Alliance, UTZ Certified, Fairtrade International and the 4C baseline standard), the four roasters engaged in the SCP 1, some key traders, ISEAL Alliance, as well as IDH and the GIZ as public development partners. The viewpoints of producers and implementing partners were also taken into consideration. In two workshops, participants discussed the challenges they face in scaling up from different perspectives, as well as roles, responsibilities and expectations of both standards and roasters as important allies. They identified possible cooperation areas as well as tabled a number of ideas to improve access to sustainability practices for coffee farmers and increase the availability of verified and certified coffees in the sector. The next step will be to further specify ideas and areas for joint activities and approach interested partners and donors.

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Stepping up project with UTZ Certified empowering farmers in Colombia Implementing the 4C baseline sustainability standard empowers farmers to undertake the additional compliance efforts required by certification standards in a next step. The 4C Association supports farmers that work with the 4C baseline standard in their efforts to move up the ladder of sustainability. Projects, tools and guides are being developed to assist farmers in stepping-up from 4C baseline level to compliance with other standards such as UTZ Certified. The 4C Association, with funding from 4C industry member Tchibo GmbH and IDH as public donor in the framework of the Sustainable Coffee Program Powered by IDH, partnered with 4C members UTZ Certified and the Federation of Coffee Growers of Colombia (FNC) in a pilot stepping-up project in Colombia in 2012. The project involves 180 coffee growers and their families from the Risaralda Department, who are members of two FNC-licensed 4C Units. The farmers received training from FNC agricultural extensionists on general sustainability issues, good agricultural practices, traceability requirements and implementation of the UTZ Internal Control System. By December 2012, a group of 90 farmers had received the UTZ Certificate. In the framework of the project, a Stepping-up Implementation Guide as well as a Project Report will be published. The Stepping-up Implementation Guide, adapted to the Colombian context, will include recommendations and activities needed for farmers to step up from the 4C compliance level to UTZ Certification. Experiences and lessons learned from this project will go a long way towards supporting steppingup activities and developing implementation guides for other countries. In addition, the comparison project will give interesting insights on how the two standards relate and can be used as a basis for other collaborations.

1 Nestlé, Mondelēz International, D.E. Master Blenders 1753 and Tchibo

It was an insightful experience to be part of this project. We found out which steps farmers that are already compliant with the 4C Code of Conduct need to take so as to reach UTZ Certification. Technical assistants in Colombia will now have a guide with practical advice to help them in the step-up process.

Britta Wyss-Bisang, Standards and Certification Director, UTZ Certified


The 4C Association and IMAFLORA intensify joint efforts in Brazil

Kenya: National Coffee Standard to enable benchmarking with 4C Code of Conduct

In late October 2012, the 4C Association and the Instituto de Manejo e Certificação Florestal e Agrícola (IMAFLORA), the leading conservation organization in Brazil, signed a Memorandum of Understanding (MOU).

In an effort to optimise the relevance of Kenyan coffee on the world market and produce coffee that is in line with internationally accepted sustainability requirements, the Coffee Board of Kenya (CBK), Kenya Bureau of Standards (KBS) and other partners have developed a national Kenya Coffee Standard (KCS).

The two organizations accorded to work together on promoting sustainable coffee practices and land use. They agreed to cooperate with other standard setting organizations, in particular the Rainforest Alliance and the SAN network, as well as with national and regional standard initiatives in Brazil in this aim. For example, the 4C Association and IMAFLORA will explore the potential for coffee farmers and their business partners to “step up” from the 4C baseline standard to the advanced Rainforest Alliance/SAN compliance level. In addition, joint efforts are being enhanced by plans to host the 4C Office Brazil at the IMAFLORA premises in the course of 2013. Further cooperation activities will include: •

Mapping priority regions and key sustainability challenges in coffee production/processing;

Identification of partners that can provide capacity building support and access to finance for coffee farmers;

Joint development and sharing of tools, manuals and capacity building services;

Jointly approaching donor organizations along with members of the 4C Association to cooperate in promoting sustainable coffee practices and the development of joint projects.

Various partners including key trade and industry actors such as C. Dorman Ltd., governmental agencies, research institutions such as the Coffee Research Foundation, producer and consumer bodies and the 4C Association were represented on a Technical Committee that was set up to guide the process. The KCS is comprised of two parts, namely a Code of Practice for coffee industry and a Standards section. Since May 2011, the 4C Association has accompanied the development of the KCS, providing input, support and guidance to enable benchmarking of, in particular, the Code of Practice against the 4C Code of Conduct once finalized. Benchmarking would enable those that already comply with another standard to benefit from participation in the 4C system without undergoing additional auditing procedures as a similar agreement with the Rainforest Alliance has successfully demonstrated in the past. A first draft of the Code of Practice was finalized in January 2013. The 4C Association will continue to support its members and partners in Kenya to bring the KCS to completion and in next steps geared towards its implementation to build a thriving sustainable coffee sector in the country.


4C ASSOCIATION

Faitrade International membership enriches the 4C Association In September 2012, Fairtrade International, the leading standard setting organization for Fairtrade labelled products, announced its membership in the 4C Association. By joining the 4C Association, Fairtrade now has the opportunity to participate in the leading multi-stakeholder platform for sustainable coffee and actively engage with all the other actors, including other sustainability standards. Both Fairtrade International and the 4C Association agree that by working together, standards organizations can offer better support to producers and companies with multiple certifications, strengthen programmes for producers, and ultimately increase the overall volumes of verified and certified sustainable coffees.

|

Annual Report 2012

|

19

We joined the 4C Association to continue making sure the voice of small coffee farmers is heard on a global stage. The 4C Association is an ideal forum for meeting with other important actors in coffee. We’re looking forward to joining the discussion on topics like climate change a­ ­daptation, quality and ­productivity investments, and more.

Lee Byers, Senior Adviser on Coffee and Tea at Fairtrade International


2012

128,000 116,706

104,458

136,752

120,994

152,000

188,096

2011

139,856

129,864

of verified and certified sustainable coffee!

2010

114,884

Record figures

Purchases / Reception of verified and certified sustainable coffees in metric tonnes (MT)

23,160

Sales of certified sustainable coffees from 4C Members Fairtrade International, Rainforest Alliance and UTZ Certified have also been growing steadily over the last years. These increases demonstrate that the coffee sector is seriously committed to and has already made impressive strides towards mainstreaming sustainability.

48,617

In September 2012, the 4C Association reported that received amounts of 4C Compliant C ­ offee more than tripled in coffee year 2011/12 in comparison to the previous period. A total of 2,545,139 bags of 4C Compliant Coffee (approx. 152,000 tonnes) were received by industry ­members of the 4C Association during this period.

4C Baseline Standard 1

1 Reporting period is ICO coffee year (October – September)


4C ASSOCIATION

|

Annual Report 2012

|

21

Production / available supply of verified and certified coffees in metric tonnes (MT) 2011

2012 1,785,078

2010

“

646,469 429,000

393,000

330,000

476,903

394,003

377,757

260,702

219,337

715,648

906,348

After joining the 4C Unit in July 2011, I started receiving training on good agricultural practices and on environmental issues. I have been applying this knowledge to my coffee farm and my coffee trees are looking very good this year. Therefore I have been encouraging other farmers in my village to join in. My expectation is that I will keep learning from the 4C initiative and that companies will continue buying our 4C Compliant Coffee.

�

Mr. Nguyen Van Thai, one of the farmers of the 4C Unit in Dak Wer commune, DakrLap district, Dak Nong province, Vietnam

4C Baseline Standard 1


4C Units mushroom around the world: increased benefits for coffee-farming communities

Monitoring 4C Impact

Increasing demand for 4C Compliant Coffee has led to the rapid expansion of 4C Units (producing entities). At the end of 2012, there were 178 licensed 4C Units in 21 countries that had been successfully and independently verified against the principles of the 4C Code of Conduct. These 4C Units comprise more than 200,000 business partners1 and 600,000 workers.

The application of good agricultural practices, as well as the technical support provided by other supply chain actors, is helping farmers in the 4C Units reduce their costs, become more productive and improve social and environmental conditions through, for example, training on the correct application of least hazardous pesticides and Integrated Pest Management.

4C Units have to exclude ten unacceptable practices based on international conventions before they can apply for verification. For a successful verification and receive a licence, they are required to achieve an average yellow performance in each dimension of the 4C Code of Conduct principles, that is, the economic, social and environmental dimensions.

This in turn contributes to the long-term sustainability and viability of their farms. Over time, they also have to show continuous improvement in eliminating remaining red practices and moving step wise towards desirable “green� practices. 1 Within a 4C Unit, any person who comes in direct contact with the coffee cherries or green coffee is referred to as a business partner. This includes farmers, collectors or even external service providers such as transporters or chemical sprayers. Almost 99 per cent of business partners are farmers.

The 4C Association is committed to monitoring the effect compliance to its Code of Conduct has on the members and other stakeholders. For this reason the 4C Association, as a member of ISEAL Alliance, works to comply with the ISEAL Impacts Code. The Association is on the journey to full implementation and will be in full compliance by the end of 2013. This aims to improve ability of ISEAL members to demonstrate impact and to encourage internal learning. Requirements include: define intended change (Theory of Change), systematic on-going monitoring (input and output indicators), periodic outcome and impact evaluations, and internal learning and improvement. As part of this process, the 4C Secretariat has been monitoring who the 4C system is reaching with concrete figures on the numbers their production potential and hectares under 4C License.


4C ASSOCIATION

4C Verification Figures 2012 2012

178

1,785,078 (MT)

No. of 4C Units

Production Potential 2011 2011

2010

2010

2009

2008

Annual Report 2012

|

2012

2009

|

2008

2012

2012

1,033,041

203,651

No. of Business Partners

Hectares 2011

2011 2010 2010

2009 2009

2008

2008

23

4C Association’s small staff has made impressive strides in the last year towards building a meaningful monitoring and evaluation system for the association. 4C is one of the most active participants in ISEAL’s peer learning and support group on M&E and has clearly made the most of this opportunity to work with other ISEAL members on identifying important indicators and effective data collection approaches. The ISEAL Secretariat and other ISEAL members sincerely appreciate the energy 4C has put into this shared learning process. We are excited to see the 4C Association using this collective learning to advance its own internal process of M&E system development.

Kristin Komives, Ph.D. Senior Monitoring and Evaluation Manager , ISEAL Alliance


No. of 4C Units

1

2008

2009

2010

2011

2012

Ethiopia

1

1

1

0

0

Kenya

1

3

2

3

14

Rwanda

0

1

1

1

1

Tanzania

0

1

1

1

0

Uganda

2

3

2

2

2

Malawi

2012 grand total

1

Total Africa

4

9

7

7

18

Vietnam

8

12

10

16

48

Indonesia

3

3

3

4

9

Papua New Guinea

1

1

1

5

6

Thailand

1

1

1

4

8

China

1

India

5

Total Asia

13

17

15

29

77

Brazil

9

12

8

9

23

Colombia

3

7

12

13

16

Costa Rica

1

2

2

2

1

El Salvador

2

4

4

7

8

Guatemala

3

3

3

3

3

Honduras

1

2

1

3

13

Mexico

2

2

3

3

7

Nicaragua

1

3

4

3

3

Peru

2011

Latin America ASIA

2009

2010

2008

9

Latin America

22

35

37

43

83

Grand Total

39

61

59

79

178

Africa

1 The term 4C Unit refers to the producing groups that produce 4C Compliant Coffee. The 4C Unit is flexible in its set up. A 4C Unit can be a group of small-scale farmers who agree to register jointly, an already organised group such as a cooperative or a farmers’ association, a collecting station, a mill, a local trader, an export organization, or even a roaster (as long as it is based in a country where coffee is produced).


4C ASSOCIATION

Production Potential in metric tonnes (MT) 2012

2009

2010

2011

2012

392

392

392

0

0

1,086

6,435

5,349

5,955

4,247

0

215

215

215

129

Rwanda

0

964

964

964

0

Tanzania

1,042

1,318

337

1,522

2,351

Uganda

256

Malawi

2010 2009

2008 ASIA

Africa

|

25

Ethiopia Kenya

Total Africa

2,519

9,324

7,256

8,655

6,982

44,203

89,855

89,648

65,893

363,459

Vietnam

3,491

3,491

3,491

7,770

16,612

Indonesia

1,200

1,200

1,200

3,906

4,794

Papua New Guinea

276

276

276

7,702

18,538

Thailand

2,372

China

3,675

India

2011 2011

Annual Report 2012

2008

grand total

Latin America

|

Total Asia

49,170

94,823

94,616

85,272

409,450

275,090

333,745

277,768

504,761

980,096

Brazil

16,024

133,189

193,949

224,480

260,444

Colombia

3,849

3,960

3,960

3,808

3,315

Costa Rica

1,730

2,290

3,811

2,660

5,078

El Salvador

12,821

12,821

13,222

10,447

6,850

Guatemala

30

30

30

16,741

72,620

Honduras

4,458

4,458

38,439

36,936

7,190

Mexico

831

12,140

13,418

12,587

2,607

Nicaragua

30,445

Peru

314,833

502,634

544,597

812,421

1,368,645

Latin America

366,523

606,780

646,469

906,348

1,785,078

Grand Total


2008

2009

2010

2011

2012

1,001

1,001

1,001

0

0

Kenya

9

43

34

12,763

16,530

Rwanda

0

1,079

1,079

1,079

1,354

Tanzania

0

1,829

1,829

1,829

0

5,842

6,660

3,344

5,471

7,536

Ethiopia

Uganda Malawi

No. of Business Partners

1

2012 grand total

3,126

Total Africa

6,852

10,612

7,287

21,142

28,546

Vietnam

6,857

15,173

16,262

11,551

57,325

Indonesia

2,485

2,485

2,485

4,032

9,637

Papua New Guinea

111

111

111

2,156

3,255

Thailand

515

515

515

2,699

5,054

China

19

India

86

Total Asia

9,968

18,284

19,373

20,438

75,376

Brazil

3,512

4,522

4,414

12,846

20,126

Colombia

2,968

27,721

38,480

40,236

57,837

Costa Rica

1,135

1,150

1,150

977

882

El Salvador

36

64

347

319

231

Guatemala

1,934

1,934

1,935

565

570

Honduras

29

29

29

1,015

6,383

Mexico

139

139

903

1,502

4,084

Nicaragua

123

529

688

565

171

Peru

9,445

Latin America

9,876

36,088

47,946

58,025

99,729

Grand Total

26,696

64,984

74,606

99,605

203,651

2011 Latin America 2010 2009

ASIA

2008 Africa

1 Within a 4C Unit, any person who comes in direct contact with the coffee cherries or green coffee is referred to as a business partner. This includes farmers, collectors or even external service providers such as transporters or chemical sprayers. Almost 99 per cent of business partners are farmers.


4C ASSOCIATION

Hectares 2012

2011

2010 2009 2008

2009

2010

2011

2012

903

903

903

0

0

940

4,922

3,982

5,646

6,756

0

183

183

183

242

Rwanda

0

4,018

4,018

4,018

0

Tanzania

4,879

5,329

1,813

4,032

9,849

Uganda

980

Malawi

|

27

Ethiopia Kenya

6,722

15,354

10,898

13,879

17,827

Total Africa

13,494

27,844

28,075

19,778

98,832

Vietnam

3,846

3,846

3,846

5,974

14,094

Indonesia

1,451

1,451

1,451

2,910

4,168

Papua New Guinea

2,005

2,005

2,005

7,424

16,435

Thailand

1,224

China

3,285

India Total Asia

20,796

35,145

35,377

36,086

138,038

153,773

191,084

210,029

277,843

568,746

Brazil

5,427

102,929

142,283

192,234

204,983

Colombia

3,797

3,877

3,877

4,946

4,515

Costa Rica

2,141

3,143

6,195

4,704

5,772

El Salvador

12,808

12,808

13,121

7,779

7,400

Guatemala

138

138

138

9,665

38,967

Honduras

2,761

2,761

4,503

5,190

12,115

Mexico

960

13,184

14,647

13,687

2,178

Nicaragua

32,500

Peru Latin America

ASIA Africa

Annual Report 2012

2008

grand total

Latin America

|

181,805

329,924

394,793

516,048

877,176

209,322

380,423

441,068

566,013

1,033,041

Grand Total


Balance

Sheet 2012 During 2012, income generated by 4C membership fees grew by the size of 147k due to the large number of new membership commitments. Additionally, payments from demand for paid extra services by 4C members increased considerably. Together with the fees charged for the organization of workshops, they contributed to 150k in income. Receivable write-offs did not do any damage to financial health of the organization. On the contrary, half of this total (€ 48k) consisted in an invoice for a project subsidy that the donor later on decided to back otherwise. Backing instead took the form of non-restricted funds allocated to the 4C Association.

Assets A. Fixed assets I.

Intangible assets

II.

Tangible assets

B. Current assets

2011

€ ´000

€ ´000

181

211

105

129

I.

76

82

924

685

I.

Receivables and other assets

114

120

II.

Cash

809

565

Total

Property & Liabilities

2012

1105

896

2012 2011 € ´000

€ ´000

889

674

Statutory Reserves (Equivalent)

500

500

II.

Revenue Reserves

174

37

III.

Operational Result

215

137

157

187

59

35

0

0

A. Association property

B. Accruals (Provisions) C. Liabilities I.

Liabilities to banks

II.

Payables

41

22

III.

Other liabilities

18

13

1105

896

Total


4C ASSOCIATION

Revenues & Expenses Account 2012

The financial situation of the 4C Association was further strengthened during 2012 - reflecting on the healthy and sustainable growth of the past year. Net assets of the Association could be increased by € 215k.

REVENUES

This result is put into perspective by the following Cash Flow Statement, which shows that cash funds could be increased by 245k.

2012

EXPENSES

€ ´000 1.

Membership fees

2.

2012 € ´000

1548

1.

Salaries, Bonuses

843

Project Subsidies & Grants

61

2.

Office, Telcom/IT

122

3.

Services & Workshop Fees

150

3.

Services (Comms, Finance)

102

4.

Interest & Other Income

9

4.

Travel, Meetings

188

1767

5.

Consultancy

102

6.

Field Project Subsidy

20

7.

Write-offs Receivables

93

8.

Depreciation

80

9.

Other Costs

3

Total Income

Total Expenses 10. Net income for the year

Balance income

1767

Balance expenses

1552 215

1767

|

Annual Report 2012

|

29


CASH FLOW STATEMENT 2012 Cash Flow

2012

€ ´000 Net Revenues Depreciation Decrease in receivables (& other assets)

215 80 6

Increase in liabilities

24

Decrease in provisions

-30

Net cash flow from operating activities

295

Investment activities (outflow)

-50

Net increase in cash

245


4C ASSOCIATION

BUDGET 2013 The Council of the 4C Association approved the organization’s budget for 2013 at its meeting on 17th February in Kampala, Uganda. The table below breaks the budget 2013 down into different expense categories.

REVENUES

EXPENSES

2013

€ ´000 1.

Membership fees

2.

Services & Workshop fees Total revenues

3.

Loss in Net Assets

Total

2013

€ ´000

1689

1.

Employment Costs

140

2.

Office, Telcom/IT

160

1829

3.

Services (Comms, Finance)

110

116

4.

Travel, Meetings

159

5.

Consultancy

266

6.

Depreciation

80

1945

Total Investing Activities

1170

1945 44

|

Annual Report 2012

|

31


Members (As of 1st June 2013) Agroindustrial y Comercial Arriola e Hijos (AICASA) (Peru) | Agrotora Reflorestamento Pecuaria e Cafe Ltda. (Brazil) | Ajinomoto General Foods (AGF) Inc. (Japan) | ALDI Nord GmbH & Co. oHG (Germany) | ALDI Süd GmbH & Co. oHG (Germany) | Alois Dallmayr Kaffee OHG (including Azul Kaffee GmbH & Co.KG, Heimbs Kaffee GmbH & Co.KG) (Germany) | Amazonas Trading Peru (Peru) | Anh Minh Company Ltd. (Vietnam) | Armajaro Trading Ltd. (United Kingdom) | A Rural Corretora de Café e Cereais SS (Brazil) | Atlântica Exportação e Importação (Brazil) | Benecke Coffee GmbH & Co. KG (Germany) | Beyers Koffie (Belgium) | Bun Pty Limited Trading as Bun Coffee (Bun Coffee) (Australia) | CAFECO S.A. de C.V. (El Salvador) | Cafe de Exportacion S.A. (CADEXSA) (Honduras) | Cafes Finos de Exportacion S. de R.L. (Honduras) | Café Tres Coracoes S.A. (Brazil) | Cat Que Trading and Production Company (Vietnam) | C.A. Wille Handels- und Verwaltungsgesellschaft mbH (Germany) | Coex Coffee International Inc. (United States (USA)) | Coffee Management Services Limited (CMS) Ltd. (Kenya) | Coffee Planet Corporation S.A. de C.V. (Honduras) | Coffy Handels-Gesellschaft Bremen mbH (Germany) | Colombian Commodity Group, C.I. S.A.S. (Colombia) | Comercio & CIA (Peru) | Comexim Ltda. (Brazil) | Compañia Hondureña del Café (HONDUCAFE) S.A. de C.V. (Honduras) | Compañia Jinotegana del café (COJCAFE) (Nicaragua) | Cong Ty TNHH MTV Nguyen Huy Hung (Vietnam) | Cong Ty TNHH MTV Thuong Mai Dich Vu Hoang Quyen (Vietnam) | Cong Ty TNHH MTV TM Minh Huu (Vietnam) | Cong TY TNHH Thuong Mai - Dich Vu - Xuat Nhap Khau - Long Khang (Vietnam) | Cong Ty TNHH Thuong Mai Phuc Minh (Vietnam) | Cong Ty TNHH Tong Cong Ty Tin Nghia (Vietnam) | Coop Genossenschaft (Switzerland) | CV. Antara Saudara (Indonesia) | Dai Loc Co. (Vietnam) | Dehong Hogood Coffee Co. Ltd. (China) | Deutsche Extrakt Kaffee (DEK) / CAFEA GmbH (Germany) | Ecom Agroindustrial Corp. Ltd. (Switzerland) | EFICO S.A. (Belgium) | EKAF Industria Nationale del Caffe (Italy) | Elias International (the Netherlands) | Exata Corretora (Rodrigo Pelucio de Lima e Cia Ltda) (Brazil) | Exportadora de Café Guaxupé Ltda. (Brazil) | Exportadora El Volcán S.A. de C.V. (El Salvador) | Exportadora Romex S.A. (Peru) | Fichaux Industries (France) | Gimoka S.R.L. (Italy) | Gustav Paulig Ltd. (Finland) | Hamburg Coffee Company HACOFCO (Germany) | Ho Phuong Co. Ltd. (Vietnam) | HVC Exportaciones S.A.C. (Peru) | Ibericafé Import (Spain) | Icatu Comércio Exportação e Importação (Brazil) | I & M Smith (Pty) Ltd. (South Africa) | Iniciativas Comerciales Navarras (ICONA) S.A. (Spain) | Instantina GmbH (Austria) | Intimex Daknong (Vietnam) | Intimex Group (Vietnam) | Intimex My Phuoc (Vietnam) | Intimex Nha Trang Import-Export Coffee (Vietnam) | Inversiones Agroindustriales S.A. (INAGINSA) (Honduras) | Inversiones Café Moreno S.A.C. (Peru) | J. Hornig GmbH (Austria) | JR Comércio e Exportação de Café (Brazil) | J. Th. Douqué’s Koffie BV (the Netherlands) | Julius Meinl Industrieholding GmbH (Austria) | Kjeldsberg Kaffebrenneri AS (Norway) | Koffie F. Rombouts N.V. (Belgium) | Mondelēz International (United States ) | Krüger GmbH & Co.KG (Germany) | Lanço - Comércio de Matérias Primas, LDA (Portugal) | Legender Coffees Comercio de Cafes (Brazil) | Lidl Stiftung & Co. KG (Germany) | Löfbergs Lila (Sweden) | Louis Dreyfus Commodities S.A. (Switzerland) | Machu Picchu Foods S.A.C. (Peru) | Marubeni Corporation (Japan) | MC Coffee do Brasil Ltda. (Brazil) | Melitta Europa GmbH & Co.KG (Germany) | Menegueli & Garcia Comércio e Exportação de Café (Brazil) | Mercon Coffee Group (United Kingdom) | Minh Nhat Vina Coffee Co. Ltd. (Vietnam) | Minh Tien Coffee Private Enterprise (Vietnam) | Monpi Coffee Exports (Papua New Guinea) | Nam Nguyet Trading Co. Ltd (Vietnam) | NB Tealdo & Co. (Peru) | Nedcoffee B.V. (the Netherlands) | Negociaciones Agroindustrial Arévalo (NARSA) (Peru) | Negociaciones y Exportaciones Llacta SRL (Peru) | Nestlé S.A. (Switzerland) | Neumann Gruppe GmbH for and on behalf of Neumann Kaffee Gruppe (Germany) | Noble Brasil S.A. (Brazil) | Noble Resources Vietnam Co. Ltd. (Vietnam) | Olam International Ltd. (Switzerland) | OVM S.A.C. (Peru) | Perales Huancaruna (Perhusa) S.A.C. (Peru) | Peruvian Coffee S.A.C. (Peru) | Petec Coffee JSC (Vietnam) | PRATAPEREIRA Comercio Exportação e Importação de Café Ltda. (Brazil) | PT Asal Jaya (Indonesia) | PT Asia Makmur (Indonesia) | PT Sarimakmur Tunggal Mandiri (Indonesia) | PT Taman Delta Indonesia (Indonesia) | PT Ulubelu Cofco Abadi (Indonesia) | Pu’er Arabicasm Coffee Trading Co. Ltd. (China) | Puer Kefei Coffee Co. Ltd. (China) | Puer Livesun Trading Co. Ltd. (China) | Racafe & CIA S.C.A (Colombia) | Rashid Moledina & Co. (MSA) (Kenya) | Röstfein Kaffee GmbH (Germany) | Santora Kaffee-Systeme (Austria) | Simexco Dak Lak Ltd. (Vietnam) | SOCADEC S.A. (Switzerland) | Sopex Asia Pte. Ltd. (Singapore) | Strauss Commodities AG (Switzerland) | Sucafina S.A. (Switzerland) | Supremo N.V. (Belgium) | Tchibo GmbH (Germany) | Terra Forte Exportação e Importação de Café Ltda. (Brazil) | Tong Teik Pte. Ltd. (Vietnam) | Touton S.A. (France) | Tristão Cia. de Comércio Exterior (Brazil) | Tristão Trading (Panama) S.A. (United Kingdom) | Unicafé Companhia de Comércio Exterior (Brazil) | United Coffee (Switzerland) | Valorização Empresa de Café S.A. (Brazil) | VOLCAFE International Ltd. (Switzerland) | Walter Matter S.A. (Switzerland) | Xi Nghiep Tu Doanh Hoa Trang (Vietnam) | YL Coffee & Tea Ltd. (China) | Yunnan Bobang Coffee Co. Ltd. (China) | Yunnan Coffee Processing Plant Ltd. (China) | Yunnan Simao Beigui Coffee Co. (China)

African Fine Coffees Association (AFCA) (Uganda) | Anacafe (Asociación Nacional de Café) (Guatemala) | Asociación Mexicana de la Cadena Productiva del Café, A.C. (AMECAFE) (Mexico) | Consejo Salvadoreño del Café (CSC) (El Salvador) | Conselho dos Exportadores de Café do Brasil (CECAFE) (Brazil) | Conselho Nacional do Café (CNC) (Brazil) | Deutscher Kaffeeverband (DKV) (Germany) | European Coffee Federation (ECF) (the Netherlands) | Federal Ministry for Economic Cooperation and Development (BMZ) (Germany) | Flanders International Cooperation Agency (FICA) (Belgium) | Molenbergnatie (Belgium) | National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE) (Uganda) | Norwegian Coffee Association (NCA) (Norway) | Pacorini Vietnam S.A. (Vietnam) | Reseau Ivorien Agriculture Durable (RIAD) (Ivory Coast ) | Swiss Coffee Trade Association (SCTA) (Switzerland) | The British Coffee Association (BCA) (United Kingdom) | Thanh Ha Joint Stock Company (Vietnam) | Unión de Cooperativas de Cafetaleros de El Salvador (UCAFES) (El Salvador) | Vietnamese Coffee and Cocoa Association (VICOFA) (Vietnam) | Yara International ASA (Norway)

Trade and Industry

Associate Members


4C ASSOCIATION

|

Annual Report 2012

|

33

Agro Xicotepec 2000 (Mexico) | Apo Cooperative Society (Papua New Guinea) | Asociacion de Productores Agrícolas de Timana (ASPROTIMANA) (Colombia) | Asociación De Productores De Café De Alta Calidad Del Sur Occidente Del Huila (OCCICAFE) (Colombia) | Asoyariguies (Colombia) | Associação de Cafés Especiais do Norte do Pioneiro do Paraná (ACENPP) (Brazil) | Bali Exotic Beans / CV Raisa Forever (Indonesia) | Baoshan Gaolaozhuang Agricultural & Sideline Products Development Co. Ltd. (China) | Baoshan Longyang Jinlu Agricultural Products Co.Ltda. (China) | Baoshan Yunlu Coffee Production and Development Co. Ltd. (China) | Busaanyi Farm (Uganda) | CAFENOR PERU S.A.C. (Peru) | CEDROS Café S.A.C. (Peru) | Central de Cooperativas Agrarias Cafetaleras (COCLA) Ltda. (Peru) | Cocaes Ltda. (Brazil) | Cooperativa de Cafeicultores e Agropecuaristas (COCAPEC) (Brazil) | Coffee a Cup Cooperative (Uganda) | Coffee Management Services Ltd. (CMS) - Thiriku FCS (Kenya) | Cooperativa Agraria Cafetalera Tahuantinsuyo de Pichanaki Nº 5 (Peru) | Cooperativa Agrícola Industrial Victoria R.L. (Costa Rica) | Cooperativa Agropecuaria Regional Unión Chinacla (Caruchil) Ltda. (Honduras) | Cooperativa Cuzcachapa de R.L. (El Salvador) | Cooperativa dos Cafeicultores da Região de Lajinha (COOCAFE) (Brazil) | Cooperativa dos Cafeicultores da Zona de Tres Pontas (COCATREL) (Brazil) | Cooperativa dos Cafeicultores da Zona de Varginha (Minasul) (Brazil) | Cooperativa dos Cafeiculturos do Sul do Estado do Espírito Santo (CAFESUL) (Brazil) | Cooperativa Regional de Cafeicultores em Guaxupé (Cooxupé) (Brazil) | Cooperativa Regional dos Cafeicultores em Sao Sebastiao do Paraiso (Cooparaíso) (Brazil) | Deep River Estate (Kenya) | Eakmat Co. Ltd. (Vietnam) | Ecologic Harvest Chanchamayo (Peru) | El Saitillal S.A de CV (El Salvador) | Expocaccer - Cooperativa dos Cafeicultores do

Producers

Cerrado (Brazil) | Fairview Estate (Kenya) | Fazenda Iracema (Brazil) | Federación de Cooperativas Agrícolas de Productores de Café de Guatemala (FEDECOCAGUA) (Guatemala) | Federación Nacional de Cafeteros de Colombia (FNC) (Colombia) | Finca el Platanillo (Guatemala) | Finca Nuevo Mexico (Mexico) | Gatunyo Kigio Farmers Cooperative Society (Kenya) | Githaka Estate (Kenya) | Green Hills Bolaven Co. Ltd. (Laos) | Honduran Quality Coffee S. de R.L. (Honduras) | Irrigithathi Estate (Kangema Farmlands Ltd.) (Kenya) | Itapuan Coffees (Brazil) | Jose Miguel Antonio Menendez y Jaime Roberto Menendez Avelar (MACANCE) (El Salvador) | Kabonera Coffee Farmers’ Association (Uganda) | KADERES Peasants Development Public Limited Company (Tanzania) | Kagera Cooperative Union (KCU) (Tanzania) | Kangoriaki Farmers Cooperative Society (Kenya) | Kawethei Farmers Cooperative Society (Kenya) | Kigutha Estate (Kenya) | Kihuri Estate (Kenya) | Kofinaf Co. Ltd. (Kenya) | La Esperanza Coffee Farm (Colombia) | Lam Vien Coffee Cooperative (Vietnam) | Mabira Coffee Farmers’ Association (Uganda) | Machure Coffee Estate (Kenya) | Magumu Plantations (Kenya) | Maji Mzuri Estate (Kenya) | Manira Estate (Kenya) | Mihando Estate (Kenya) | Muhugu Estate (Kenya) | Mukasa Estates (Uganda) | Mzuzu Coffee Planters Cooperative Union (Malawi) | Nsangi Coffee Farmers Association (NCFA) (Uganda) | Phuoc An Coffee One Member Co.Ltd. (Vietnam) | Pronatur (Peru) | Pueblos en Acción Comunitaria (PAC) (Nicaragua) | Satemwa Tea Estates Ltd. (Malawi) | Sociedad Cooperativa de Cafetaleros de Ciudad Barrios (CAFECIBA) R.L. (El Salvador) | SOCPROCPCAM (Cameroon) | State-operated Xincheng Farm (China) | Tade GG Highland Forest Coffee Producer PLC (Ethiopia) | Union Régionale Victoire (UIREVI) (Ivory Coast)

Civil Society Individual Members

Café Africa Uganda (Uganda) | Christliche Initiative Romero e.V. (CIR) (Germany) | Community Development Center (CDC) (Vietnam) | Fairtrade Labelling Organizations (FLO) International (Germany) | Fair Trade Organization Kenya (FTOK) (Kenya) | Fundación Nacional para el Desarrollo (FUNDE) (El Salvador) | North Sumatera Coffee Forum (NSCF) (Indonesia) | ONG Aidons les Deplacés (Ivory Coast) | Pesticide Action Network (PAN) UK (United Kingdom) | Rainforest Alliance (RA) (United States) | Solidaridad Network (the Netherlands) | TechnoServe (United States) | UTZ Certified (the Netherlands)

Ada Hartmann (Switzerland) | Albrecht Schwarzkopf (Germany) | Annemieke Wijn (Germany) | Bernardo van Raij (Brazil) | Carsten Schmitz-Hoffmann (Germany) | Diego Pizano Salazar (Colombia) | Appukuttan Nair Damodaran (India) | Erwin R. Roetert Steenbruggen (the Netherlands) | Filtone Chinyemba Sandando (Zambia) | Heidi Feldt (Germany) | Hein Jan van Hilten (South Africa) | J.A.J.R.Vaessen (the Netherlands) | Jan de Smet (Belgium) | Joppe Vanhorick (the Netherlands) | Louis Ban-Koffi (Ivory Coast) | Markus Fischer (Costa Rica) | Morten Scholer (Switzerland) | Olivier Naray (Switzerland) | Patrick Leheup (Switzerland) | Ramaz Chanturiya (Russian Federation) | Robert Waggwa Nsibirwa (Uganda) | Ryota Ito (Japan) | Sri Saroso (Indonesia) | Surendra Kotecha (United Kingdom) | Viviana Jiménez (United Kingdom)

Note: Founding members are highlighted in white


Directory Council Members (as of September 2012) Producer representatives Robert Waggwa Nsibirwa AFCA, Uganda, Chair Le Ngoc Bau VICOFA, Vietnam Adriana Mejía Cuartas FNC, Colombia Joaquim Libânio Ferreira Leite Cooperativa Cooxupé, Brazil

Imprint 4C Secretariat (as per 1st June 2013)

Publisher

Executive Director Melanie Rutten-Sülz

4C Association | Adenauerallee 108 | 53113 Bonn | Germany The 4C Association is legally registered with the Register of Commerce in Geneva, CH-660-2928006-4. The 4C Association c/o CR Gestion & Fiduciaire SA Route des Jeunes 9 1227 Carouge-Geneva, Switzerland

Director Sustainability Innovations Annette Pensel ADMINISTRATION OFFICER John Hurd Communications Manager Verónica Pérez Sueiro FINANCE Manager Thomas Müller-Bardey Governance and Membership Officer Angela Stölzle

Trade and Industry representatives Linda Butler Nestlé, Vice Chair Cornel Kuhrt Tchibo GmbH Mark Furniss Volcafe Francesco Tramontin Mondelēz International

ICT & OPERATIONS Manager

Vasilios Kotitsas

Monitoring & Evaluation Manager George Watene PROJECT Manager Lars Kahnert Key Account Manager Andrea Brüstle Verification Manager Cao Thanh Van Verification Officer Franziska Bringe

Responsible for content Melanie Rutten-Sülz Editor Verónica Pérez Sueiro 4C Communication PHONE +49 (0)228 850 50 15 EMAIL communication@4c-coffeeassociation.org Concept & Design David Drexler Studios | Munich, Germany

Manager Brazil Luis Flavio Nascimento de Andrade

Civil society representatives Albrecht Schwarzkopf CIR, Treasurer Keith Tyrell PAN UK Marcel Clement Rainforest Alliance

Manager Latin America Guillermo Belloso Manager Vietnam Do Ngoc Sy OFFICER Vietnam Vu Dinh Khiem

PHOTOGRAPHY Didier Gentilhomme (front cover, pages 14 & 22) Bernd Arnold (portraits, pages 3 & 5) Pierre Michel Virot (pages 8-9) Jeremy Stephenson (page 10) Tran Duc Tai (page 12, back cover) Claire Hogg (pages 13, 18 & 21) David Bonila (pages 15 & 29) Keren Riley (pages 16 & 17) 4C Association (all other pictures)


4C Worldwide 1

4C Secretariat

4C Office Brazil

Adenauerallee 108 53113 Bonn, Germany PHONE +49 (0) 228 850 50 0 FAX +49 (0) 228 850 50 20 EMAIL info@4c-coffeeassociation.org

Imaflora Instituto de Manejo e Certificação Florestal e Agrícola Estrada Chico Mendes, 185 Piracicaba - SP | Brazil CEP 13426-420

4C Office East Africa c/o EAFCA Plot 4, Bazarabusa Drive, Off Luthuli Avenue, Bugolobi, Kampala, Uganda PHONE +25 - 47 20 88 34 53 EMAIL ea@4c-coffeeassociation.org

4C Office VIETNAM Nam Nguyen Hotel Room 407, 4th floor No. 30 Tran Quang Khai Street Buon Ma Thuot city DakLak province, Vietnam PHONE +84 (500) 3977579 EMAIL vietnam@4c-coffeeassociation.org

PHONE +55 (19) 9319 8100 EMAIL brazil@4c-coffeeassociation.org

4C Representation foR Central America Currently based in San Salvador, El Salvador EMAIL ca@4c-coffeeassociation.org

QUESTIONS ON 4C ACTIVITIES IN INDONESIA EMAIL indonesia@4c-coffeeassociation.org 1 The 4C Office Brazil will be located at IMAFLORA premises from 1st July 2013 onwards.

© 2013 | 4C Association All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers.


www.4c-coffeeassociation.org


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