Efico 2023

COMMUNICATION ON PROGRESS YEAR 2023

COMMUNICATION ON PROGRESS YEAR 2023

BASED ON THE ENHANCED COMMUNICATION ON PROGRESS REQUIRED FOR MEMBERS OF THE UNITED NATIONS GLOBAL COMPACT

Mount Kilimanjaro, Tanzania

OPENING STATEMENT

This annual report is based on the Enhanced Communication On Progress (COP) reporting framework of the United Nations Global Compact (UNGC).

In 2022, EFICO reported to this framework already as Early Adopter Member. The updates made by the UNGC to the Enhanced COP throughout 2023 are now effective for all participant members.

The Communication on Progress (COP) is a required public and annual disclosure by business participants of the UN Global Compact to stakeholders with the following main objectives:

• Foster accountability on corporate sustainability performance to help safeguard the integrity of the UN Global Compact initiative;

• Promote continued learning and help drive corporate sustainability performance; Enhance stakeholder access to information regarding participants’ implementation of the Ten Principles and contribution towards the achievement of the Sustainable Development Goals (SDGs).

The enhanced COP therefore enables participating companies of the UN Global Compact to:

• Measure and demonstrate progress to stakeholders and the public on the Ten Principles and the Sustainable Development Goals in a consistent and harmonized way.

• Build credibility and brand value by showing their commitment to the Ten Principles and the Sustainable Development Goals.

• Receive insight, learn and continuously improve performance by identifying gaps, accessing guidance and setting sustainability goals. Compare performance against peers with access to one of the largest sources of free, public and comparable corporate sustainability data.

This report reflects our commitment towards the Ten Principles of the UNGC and the Sustainable Development Goals (SDGs) and reports our progress made in 2023.

At EFICO, we encourage this consistent and harmonized way of continuous improvement reporting and are convinced the UNGC’s enhanced platform acts as a strong tool to support sustainability performance advancement and transparency year over year.

As a global compact signatory since 2003, EFICO is committed to transparently report its progress and challenges, and share this with its partners.

We welcome feedback and ideas to continue learning and improving our sustainability journey, together with you.

Our COP report is published on www.unglobalcompact.org and on www.EFICO.com/about/sdg/

LOOKING BACK

Dear Stakeholders, Partners and Friends of EFICO,

In 2023, global challenges intensified with ongoing conflicts and new geopolitical tensions emerging. Events such as the Israel-Gaza conflict, rebel attacks in the Red Sea and issues at the Panama Canal added to the complexity. Furthermore, inflation, bankruptcies, and economic downturns worsened conditions.

Weather events linked to climate change further worsened these issues. We have already seen the lingering effects of this with the scorching heatwave in Brazil and with predictions that the ongoing El Niño could make 2024 hotter than 2023, it remains to be seen how this will impact coffee in South-America and beyond.

These factors disrupted coffee access and supply chains, causing port congestion, limited container options, and higher freight prices. Consequently, coffee shipments between Asia, East Africa, the Middle East and Europe experienced delays and increased expenses.

Amidst these challenges, the European Union Deforestation Regulations (EUDR) took effect on June 29, 2023. These regulations aim to halt the import of deforestation-linked goods, affecting multiple sectors including coffee.

2023 has been anything but quiet: a year marked by constant challenges and turmoil. Also a year brimming with enjoyable and fulfilling experiences. Not only have we been able to close many coffee deals, we have also traveled to the origins to touch base with our producers and exporting partners, we hosted and attended various trade shows and cupping sessions around the world and met up

with our roaster partners. We have also initiated and facilitated a number of panel discussions and presentations showcasing our team, our field partners and trading floor colleagues and the work they/we are doing in the coffee sector.

CONNECTING THE VALUE CHAIN

In 2023, we have expanded our operations in both importing and exporting countries, reaching an even greater number of people in the supply chain; EFICO has continued to grow and evolve.

In 2023 we have welcomed a number of professional green coffee colleagues in Spain (EFICO IBERIA) & Eastern Europe. Our quality control team and sustainability team were also expanded with new enthusiastic team members.

Everyone in the EFICO team (where senior expertise meets junior dynamics) has contributed to our ability to connect and serve partners and customers around the world.

PARTNERSHIPS WITH PURPOSE

As a coffee value chain connector, EFICO’s goal was and is to create value, transparency and traceability from crop to cup. Ninetyseven years ago, we embarked on a dynamic sustainability journey that continues to evolve, even (or even more so) in these turbulent times.

At EFICO we believe that partnerships play an important role in achieving development impact. As a partner to organisations across the public, private and NGO/social sectors, we recognize and value the transformative power of cross-sector partnerships. Together we can build a more prosperous, inclusive, greener and more resilient future.

We are therefore proud to say that the year 2023 has also brought us once again purposeful partnerships with various partners in origin and partner coffee roasters in Europe and beyond. Partners who support EFICO’s mission: ‘bringing back value to farmers and putting our expertise at the service of coffee roasters’, and who endorse EFICO’s strategy: ‘creating value, transparency and traceability throughout the coffee chain’.

EFICO GROUP 2023 | MILESTONES, POSITIVE PURSUITS AND IMPACTS

Already in the first month of the year we were in the field with our boots on, planting trees. Only this time not at the origin, but in Belgium where we planted 2023 trees with impact. This positive pursuit is fully in line with the group’s slogan: ‘Better, Stronger, Greener, Smarter’.

From the very beginning, our logistics service center SEABRIDGE has been on a sustainable course. Year after year, sustainable goals are set and positive pursuits are linked to and achieved.

In 2023, SEABRIDGE was lauded in the 2020 Rainforest Alliance Certification Programme. Being awarded this certificate is a great endorsement; SEABRIDGE can rightly be considered a safe and sustainable haven for sustainable coffees.

Together with the City of Bruges and BOS+, SEABRIDGE planted a new forest of 12 hectares in Bruges. A few months later, SEABRIDGE partnered with GO Ocean and dived underwater to restore marine meadows and plant seagrasses.

In addition, the SEABRIDGE’s specialized and talented crew recommitted themselves to sharing their knowledge and skills; in the fall of 2023 they once again hosted a series of

well-attended and highly valued Q-grading training courses.

In 2023, our active presence was notable as we represented EFICO and CUPRIMA at various significant events including World of Coffee Athens, Paris Café Festival, Paris Coffee Show, SCA Portland, Sintercafé, 14th SCTA Coffee Forum & Dinner, and more.

At EFICO and CUPRIMA , we firmly embed the principles of sustainability and traceability into our daily operations. While a significant portion of this vital work has been conducted discreetly for many years, it continues to be a fundamental aspect of our company’s core values. When our team isn’t actively engaged in field trading, quality lab testing, or coffee events, they are addressing the less salient yet equally crucial administrative and legislative considerations.

Despite our proactive approach from 2023, numerous uncertainties remain within the EUDR regulations; lack of high resolution benchmarking data on deforested areas (cutoff date for deforestation status registration is December 31,2020) and due diligence ambiguities. Questions about costs of data collection and integration also linger. In addition, concerns arise about the controls in place to prevent data corruption and information leaks. We navigate these complexities with a watchful eye on the evolving landscape.

Sustainable sourcing isn’t just a practice for us; it’s ingrained in EFICO’s identity. In our 2023 logbook, we proudly highlight that 85% of our purchased volumes originate from local cooperatives and exporters. Moreover, 58% of our coffee holds certification or verification from recognized sustainable standards. Even for the 11% without a specific label, we maintain a personal connection, knowing the farmers

behind the coffee. All these figures are well above the sector average.

EFICO is right on schedule in its journey of smart digitalization. In view of the upcoming legislation and regulations, it is crucial that the fundamental elements are in place for a seamless transition.

2023 was also a year with several milestones: 20 years since EFICO became the first coffee trading company to sign the United Nations Global Compact and 20 years since the establishment of our EFICO FOUNDATION.

As a family business, we hold a fundamental belief that entrepreneurship should not come at the expense of people and the environment. Since its early years, EFICO has been steadfast in its support for partner coffee farmers, helping them realise their aspirations and fostering long-term prospects and hope for the future. In 2003, Patrick F. Installé, a dearly departed member of EFICO’s founding family, took the lead in organising and structuring this support. His vision was to make the investments as impactful as possible. Patrick extended an invitation to partner coffee roasters to join in this mission, creating closer connections with coffee farmers and giving rise to the EFICO FOUNDATION

Twenty year later, we take pride in reflecting on the far-reaching impact of 84 projects across 18 countries, all stemming from Patrick’s visionary approach. The foundation is dedicated to building a sustainable coffee supply chain, with a special emphasis on knowledge transfer, fostering sustainable income growth, and addressing the challenges posed by climate change.

In 2023, the initiatives undertaken by 9 projects under the EFICO FOUNDATION directly brought about a positive impact on the lives of 2.311 coffee entrepreneurs. Furthermore, this ripple effect extended to indirectly influence the lives of 8.049 coffee families. Such achievements were made possible through the collaborative efforts of our FOUNDATION partners, donors, supporters and ambassadors.

As part of the celebration for the 20th Anniversary of our EFICO FOUNDATION , we inaugurated a new flagship project in Tanzania: Kilimanjaro Water and Food for All - a pioneering initiative where coffee, climate change, water, and regenerative agriculture seamlessly converge. We extend a warm invitation for you to explore and engage with this impactful value chain project on page 44 and following.

We’re taking a step further by systematically integrating the efforts boosted by the Foundation into EFICO’s value chains. Moving ahead, our goal is to foster maximum synergies. Grateful for the journey, growth, and lessons learned, we eagerly anticipate continuing to fulfil our slogan: ‘Coffee for People, People for Coffee’.

Each day and each year, in partnership with our collaborators, we gather insights on ways to enhance our business. This report brings together our ambition, strategy, commitments, and contributions, all aimed at shaping a more prosperous future for coffee. We invite you to be inspired by EFICO GROUP’s 2023 logbook and join us in these endeavours.

STATEMENT OF CONTINUED SUPPORT

“

We are pleased to affirm EFICO’s continued support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

Since 2003, EFICO has been a signatory to the United Nations Global Compact and we remain as committed as ever in the implementation of those principles.

This annual Communication on Progress describes our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.

We are committed to sharing the details of our progress through our primary channels of communication and we invite stakeholder feedback.

Sincerely,

Michel Germanès Managing Director

Philip Van gestel Executive Chairman

EFICO Group works in support of following 6 SDGs

Mount Kilimanjaro, Tanzania

THE 10 UNITED NATIONS GLOBAL COMPACT PRINCIPLES

At EFICO we integrate the ten United Nations Global Compact principles in our strategies and actions: Additionally, we support the United Nations Guiding Principles on Business and Human Rights, following the Commodity Sector Guidance issued by the Swiss Government in November 2018.

HUMAN RIGHTS - PRINCIPLES BASED ON THE UNIVERSAL DECLARATION

§1 Businesses should support and respect the protection of international proclaimed human rights

§2 Businesses should ensure that they are not complicit in human rights abuses

LABOUR - PRINCIPLES RESULTING FROM THE INTERNATIONAL LABOUR ORGANIZATION’S DECLARATION

§3 Businesses should uphold the freedom of association and recognize effectively the right to collective bargaining

§4 Elimination of all forms of forced or compulsory labour

§5 Effective abolition of child labour

§6 Elimination of discrimination in respect of employment and occupation

ENVIRONMENT - PRINCIPLES DERIVED FROM THE RIO DECLARATION PRINCIPLES

§7 Businesses should support a precautionary approach to environmental challenges

§8 Undertake initiatives to promote greater environmental responsibility

§9 Encourage the development and diffusion of environmentally-friendly technologies

ANTI-CORRUPTION - PRINCIPLE BASED ON THE UN CONVENTION AGAINST CORRUPTION

§10 Businesses should work against corruption in all its forms including extortion and bribery

THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

The Millenium Development Goals were transformed into the post2015 Sustainable Development Goals. The UN Member States agreed on the proposed 17 goals at the UN Summit in September 2015; the new framework came into effect as from January 2016. These new goals give an overview on how to tackle the world’s most pressing problems, including poverty, inequality and environmental destruction:

End poverty in all its forms everywhere

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Ensure healthy lives and promote well-being for all at all ages

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Achieve gender equality and empower all women and girls

Ensure availability and sustainable management of water and sanitation for all

Ensure access to affordable, reliable, sustainable and modern energy for all

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Reduce inequality within and among countries

Make cities and human settlements inclusive, safe, resilient and sustainable

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalize the global partnership for sustainable development

EFICO GROUP | NETWORK OF COMPANIES

EFICO GROUP’s network of companies gives you direct access to the entire world’s coffee production. Our tailor-made services include sustainable sourcing, competitive price proposals & structuring, high quality assurance, smart logistics, current availability and forecasts, and much more.

EFICO GROUP

EFICO | A PASSION FOR COFFEE

EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique varieties delivered from around the world.

CUPRIMA | COFFEE WITH AN IDENTITY

CUPRIMA is the group’s specialty coffee division and an additional EFICO response to the growing need to promote flavour and origin diversity. CUPRIMA’s coffee range consists of extraordinary qualities, prepared for both the connoisseur and the regular market. Based on the organoleptic profile, traceability and physical quality assessment, roasters can choose within 3 categories; Prima, Autentica, and Terra.

EFICO FOUNDATION | COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through the EFICO FOUNDATION. Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively impact coffee farmer’s livelihoods, prosperity and environment.

SEABRIDGE | GREEN COFFEE LOGISTICS

SEABRIDGE is a sustainable green logistics service center and distribution platform dedicated to green coffee in the port of Zeebrugge, founded to meet the existing community needs and to define a sustainable benchmark for all companies within the sector.

2023 KEY FACTS AND FIGURES

EVOLUTION CERTIFIED & VERIFIED COFFEES *

2007 - 2023

58%

of our sourced coffees are certified or verified against sustainable standards

*In insight ‘Connecting the Dots throughout the Value Chain’ (p. 20), you can read what we understand as certified and verified coffee and how we translate these facts & figures into reality & practice.

53%

32% International exporter Cooperative

Local exporter

85%

directly sourced from local actors

• 9 projects created concrete impact in 5 different countries: Colombia, Guatemala, Honduras, Nicaragua and Tanzania

• with direct improved possibilities, empowerment and prosperity for 2,311 coffee entrepreneurs indirectly generating a positive impact on the lives of over 8,049 coffee families

At EFICO and EFICO FOUNDATION , we helped funding, developing, testing and finalising Equal Origin’s ‘Gender Equity Index’ tool. This tool is free to use and available in three languages.

Two different studies are available: one for Extension and Advisory Service Providers (EAS) and one for producer organisations.

Those curious about the tool and reports can sign up for an Equal Origins account via their website: equalorigins.org

Our goal is to further use the tool with other partners and multiply the positive trigger effect.

We highly suppport initiatives as The Global Coffee Platform ’s Sustainability Reference Code, the Commitment’s Hub of Sustainable Coffee Challenge, the programs and trials of World Coffee Research and Equal Origin’s Gender Equity Index Tool.

PARTNERSHIPS WITH

EFICO | A PASSION FOR COFFEE

EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique varieties delivered from around the world.

HIGHLIGHTS | 2023

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua, Tanzania,…

Fairs & Events | Hosting, Cupping, Networking

• Q1 & Q2/2023 | Koffieverbond, BVDAKIUPCAIC, ECF

• March 2023 | Producer & Roaster Forum, El Salvador

April 2023 | Specialty Coffee Expo

Portland

• May 2023 | SEABRIDGE

Guided Tour & Cupping

Local Projects

ClimCoff

Within ClimCoff partnership with the Botanic Garden of Meise, KU Leuven – Forest Nature & Landscape, CoffeeLab Independent and other institutions : quality potential evaluation follow-up of genetic Robusta lines from the Yangambi region in DR Congo.

In 2023, sensory and physical analysis was performed with a panel of 3 of our EFICO/ SEABRIDGE team to further evaluate the quality profiles and potential. During our 2022 analysis, the green grading revealed processing issues, which was to be expected given the basic equipment and sorting skills. New equipment and local training on green sorting reflected in our 2023 analysis: all cleaned samples show substantially better

• May 2023 | Le Paris Café Festival

• June 2023 | World of Coffee Athens

• July 2023 | Anacafé Guatemala

September 2023 | Paris Coffee Show

October 2023 | 14th SCTA Coffee Forum & Dinner, Basel

• November 2023 | Sintercafé

Costa Rica

results compared to all other – not cleanedsamples. The natural and honey samples score better than the washed sample. We therefore advised to keep focus on continuous improvement, as the results show that with the right attention goals are achieved and coffee quality improves.

Kom Op Tegen Kanker

EFICO supported Belgian NGO ‘Kom Op Tegen Kanker’ by purchasing a Ghent Azalea plant for all of its co-workers during the 29th Plant Weekend against Cancer on 15-17 September 2023. Kom Op Tegen Kanker will use this funding for support and care projects for cancer patients.

INSIGHTS | 2023

Encouraging and fostering a knowledge sharing culture

EFICO PLANTS 2023 TREES WITH IMPACT EFICO plants 2023 trees with impact in Belgium. This is completely insync with the Groups 2023 mission ‘Better, Stronger, Greener, Smarter’. Let 2023 be a year of positive impact.

Click and read the full story

INSIGHT INTO THE C-MARKET AND ITS INFLUENCE ON THE PRICE OF COFFEE

We were able to convince our seasoned veteran of the coffee trade Michel Germanès to demystify this tricky commodity.

Click and read the full story

EAST AFRICA | THE FABULOUS FLAVOUR DIVERSITY OF WORLD’S WILDEST COFFEES

Africa is the birthplace of coffee. From the forests of East Africa, coffee spread all around the world. Today the continent is famous for being home ...

Click and read the full story

INSIGHT INTO EFICO’S QUALITY POLITICS AND WHY EVERYBODY LOVES EFICO’S QUALITY LABO A Peek Behind the EFICO LABO Scenes.

Click and read the full story

EFICO | CONNECTING THE DOTS THROUGHOUT THE VALUE CHAIN

CONNECTING THE DOTS | THE CONTEXT

‘Connecting the dots’ in a value chain involves seamlessly integrating information and resources throughout the entire process, from suppliers to customers and vice versa. This includes understanding both upstream and downstream operations, as well as internal data from ERPs, distribution centers, and factories.

Rather than a one-sided flow of information, this approach emphasizes a collaborative relationship with suppliers and customers. It involves freely sharing information in both directions to establish a shared understanding of the situation. This shared knowledge enables the value chain to operate efficiently, facilitating timely adjustments as needed.

CONNECTING THE DOTS | THE VALUE

By linking all the different parts of our value chain, we enhance our ability to see what’s going on, making it easier to spot problems or opportunities quickly. For example, if one of

our suppliers faces a sudden issue, we’ll know about it sooner.

With up-to-date data and info at our fingertips, covering not just orders from that supplier but from all others too, we can swiftly run through different scenarios to figure out the best way forward. Moreover, in the event of unexpected changes such as fluctuations in coffee harvest cycles or logistical challenges, we can proactively inform our customers and devise innovative and professional solutions or alternatives.

EFICO | UNIFYING PURPOSE ACROSS THE VALUE CHAIN

The global economy is under pressure from multiple complex and interconnected crises. These challenges -which include inflation, climate change, the ongoing war in Ukraine and the Red Sea Crisis supply chain disruptions, to name a few- have coalesced into what experts have called a ‘polycrisis.’

In this age of disruption, doing business with deep purpose has never been more crucial. As a dedicated coffee value connector, EFICO is committed to creating value, transparency and traceability throughout the entire coffee journey, from cultivation to consumption.

As a family business, EFICO remains dedicated to a clear objective: to foster sustainable and strong partnerships across the value chain. Our mission is to empower farmers and leverage our expertise for the benefit of coffee roasters. For more than ninety-eight years, we’ve embarked on a dynamic sustainability journey, one that persists, adapts, and thrives even amid turbulent economic conditions.

EFICO | PROUDLY CONTRIBUTING TO LOCAL PARTNERSHIPS

As we navigate the coffee value chain, our main emphasis lies in cultivating strategic partnerships, leveraging the expertise of our collaborators to amplify value generation. Our sourcing approach hinges on fostering colla-

boration with cooperatives and local exporters, reinvesting in their communities.

We take pride in the fact that a considerable portion of our coffee, amounting to 32%, is sourced from cooperatives worldwide, with an additional 53% coming through local exporters. Our enduring relationships with many coffee suppliers have spanned decades, fostering organic growth rooted in mutual trust and shared values of food integrity, quality, and sustainability.

At the heart of our value chain connectivity are our purchasing offices in Ethiopia, Central America, and Brazil, strategically positioned right alongside our valued partner producers. These offices serve as vital hubs, both physically and symbolically, linking us directly to the source of our products. In other regions, we forge direct partnerships with trusted allies, ensuring a close alignment with the realities of the field.

EFICO 2023 | VERIFIED & CERTIFIED COFFEE FROM LOCAL COOPERATIVES & EXPORTERS

We’re thrilled to uphold the top-notch quality and ethical standards of our coffees. Despite a slight decrease in the percentage of certified and verified coffees, our share of certified coffees has actually risen. A remarkable 55% of our coffee offerings proudly bear prestigious certifications like ORGANIC, RFA (Rainforest Alliance) and FAIRTRADE. Moreover, an additional 3% undergoes rigorous verification and auditing by external, independent assessors. Our firm commitment to certification and verification positions us as frontrunners in the industry.

Guatemala

Nicaragua

Rest of Central America

Peru

Honduras

Colombia Brazil

Rest of S. America

Vietnam

Ethiopia

Rest of Africa

India

Rest of Asia

Certified | Coffee is compliant with and audited against internationally recognized sustainability standards

Verified | Coffee is compliant with and audited against company’s sustainability standards

Not Verified

2023 KEY FIGURES FROM OUR MAIN SOURCING AREAS

While the numbers provide a transparent view of where our certified and verified coffees come from, digging deeper reveals the fascinating complexities behind the ‘why’ and ‘how.’ The complex but very interesting interaction between factors specific to each country and the dynamics of the market are thus clearly demonstrated.

BRAZIL

Brazil proudly holds the top position as our primary sourcing country, with one in three coffee bags at EFICO originating from Brazilian soil. This distinction is no coincidence, as Brazilian Arabica beans provide an exceptional foundation for both blends and single-origin coffees. While EFICO’s sourcing profile may initially appear to feature a lower percentage of certified coffee from Brazil, at 54%, it actually

exceeds industry standards. When considering an extra 8% of verified coffee, the total proportion of labeled coffee rises to a commendable 62% for Brazilian verified and certified products. Significantly, a remarkable 98% of these coffees stem from local cooperatives and exporters within the region.

By working closely with our local allies, we achieve our full traceability goal and promote transparent, sustainable coffee practices. Efforts were consistently in progress to advance an additional 17% of our coffee towards verification against sustainable coffee standards. This ambitious undertaking propelled our percentage to an impressive 79%, marking a commendable increase of 12% compared to the year 2022.

CENTRAL AMERICA

An impressive 71% of our coffees sourced from Central America have already attained verification and certification. Within this vibrant region, a noteworthy 74% originates from local cooperatives and exporters. Despite making remarkable strides in certification, the region contends with formidable challenges, inclu-

ding migration, climate change, productivity issues, and security concerns.

We are proud of our local sourcing office in Guatemala City, and the strong local partnerships. With the backing of the EFICO FOUNDATION, we’re at the forefront of overcoming challenges. Our dedication to the region is evident as we invest in quality and sustainability projects, bringing about positive change and adding value to the value chain.

ETHIOPIA

Even though our certified Ethiopian coffee accounts for just 33%, it outperforms industry standards. Our direct operations in Ethiopia empower us to create transparent value chains extending to washing stations, offering significant benefits to farmers. Furthermore, 35% of our Ethiopian coffee volumes meet our internal sustainability standards. When combined with the certified portion, this paints a bright picture: 68% of our Ethiopian coffee is sourced sustainably, reflecting our commitment to positive impact and ethical practices.

EFICO’S FUTURE OUTLOOK | BEYOND CERTIFICATION

Moving forward, our strategy goes beyond traditional certification, aiming for carbon positivity and the delivery of premium-quality coffee sourced ethically from flourishing coffee communities.

Our commitment lies in cultivating a value chain where both coffee roasters and their customers understand each coffee’s unique journey, from cultivation to consumption.

SURFING THE GREAT WAVES OF COFFEE

Throughout its history, coffee culture has been riding a few waves. Describing the constant ebb and flow of the industry, these waves give insight to how the caffeinated beverage we hold near and dear has evolved. Ask anyone who dabbles in coffee to explain it and the floodgates will surely open up.

WHAT IS A WAVE OF COFFEE ?

A wave of coffee essentially refers to a period of time within the coffee industry, where big changes and innovations have occurred. Many global cultural trends have also emerged throughout the waves, from consumer drinking habits/attitudes and how the high street looks to the manufacturing and growing processes. These changes are basically like mini Industrial Revolutions for the coffee industry, which has disrupted the norm but also made permanent changes and alterations to consumption and attitudes.

UNDERSTANDING THE DIFFERENT COFFEE WAVES

The term “Wave of coffee” refers to a period in time or stage in the coffee industry. Coffee waves represent significant transitions in coffee culture, with each movement focusing on a different appreciation or change.

The first wave represents the shift from novelty to commodity,

• the second wave represents a shift from commodity to culture, the third wave represents a shift from culture to consumer awareness,

• the fourth wave represents the shift from crafty to scientific,

• the fifth wave implies constantly scaling high quality to achieve a highly successful, customer-focused and sustained business outcome.

First, second, third wave… each approach has its own set of priorities and philosophies; each has contributed to the consumer’s experience and our livelihoods. Occasionally, the waves overlap; and one inevitably spills over to influence the next.

These waves can be caused by shifts in consumer attitudes and market dynamics, along with technological innovations, or can be

driven by of changed situations within the coffee industry itself (such as bean quality, sourcing practices,….) -> outside in/inside out.

The European and American coffee markets in particular have already experienced several waves of coffee. By learning more about these different coffee waves, you can clearly see how coffee is evolving and where it is going.

DEEPDIVING INTO THE DIFFERENT COFFEE WAVES

Click here for an in-dept analysis of the different coffee waves.

IS THERE SUCH A THING AS A 4TH & 5TH WAVE?

Analysing trends in the coffee industry using wave metaphors has its merits, but also its limitations. First of all, it applies to the western world and the United States in particular – and is not necessarily representative of the rest of the world. Subsequently, since the second wave, the analysis favours coffee shops, while most coffee is consumed at home.

There is no hierarchy between the waves, they kind of roll side by side and none is ended, but flaws in a trend lead to changes that may

eventually generate a new trend or wave. On the first three waves there is more or less consensus, but on the fourth and fifth there is not even unanimity that they exist, let alone what they consist of – this largely because we are in the middle of a process that has not yet been properly crystallised.

The most interesting about the analysis is that it shows that the coffee industry is constantly changing and one has to follow the changes to know the best way to participate in the market and get the most out of it.

The second wave has shown that it is possible to get out of the corset of supplying coffee as a commodity and sell a product that stands out for its quality.

The third wave has aroused interest in the entire process, from producer to consumer, in the people behind the coffee and in sustainability, in order to continue to offer a quality product in the future.

With the fourth wave begins the controversy in the analysis of trends in the coffee industry with the focus on waves. Does it exist? And if there is, what is it? The fourth wave, if it exists, is still developing and it is difficult to define the characteristics of a process that has not crystallized well yet. There are different versions of what the fourth wave is, which have in common to overcome the disadvantages of the third wave.

As we delved deeper into these coffee market(ing) trends, a poignant and interesting comment from our in-house Sustainability

Expert Katrien Delaet stuck with us:

‘The challenge is to extend these advancements to the general public and generate a response for producers that enables them to live a decent life and provide perspective for the next generation. This requires people to actively participate in shaping the fourth/ fifth wave, directly with customers and collectively, advocating for more transparency and sustainability in the purchase process, in exchange for a quality product. The waves are not events that just happen to us, they are movements in which we participate and which we can help shape.’

Some already announce the sixth wave that would have a focus on the connectivity between producer and consumer, an exchange mediated by the roaster. In this way the consumer gains an understanding of how production and the supply chain work, a personalized product can be offered and the basis for true sustainability is created. Sounds good, let’s see.

STAYING IN THE WAVE, CATCHING THE RIGHT OR NEXT WAVE

For anyone who has spent any time at the ocean or at a big lake, it’s easy to visualize the rhythm of the waves rolling in. And if you have ever surfed or watched someone surfing or riding the waves, you know the importance of staying in the wave or catching the right next wave at the right time.

Geoffrey Schepens - Green Coffee Trader at EFICO quickly picks up on this and explains:

‘Timing is everything. With green coffee buying business decisions, as with surfing, choosing the right opportunity at the right time is the key to success. You position yourself in front of a wave and if you get up at the right time, it will carry you forward. At the same time, you can’t survive just chasing trends and you cannot become and run a successful business without good line-up of trusted partners. At EFICO we strive to catch and ride the right waves every time, to be original and timeless every day, so that our partners can surf every right wave with us. Whether you surf the first, second, third, fourth, fifth or none at all, when it comes to the impact of the market on your business and buying options, our EFICO team is always here to answer any questions you may have.’

EFICO ’s seasoned coffee veteran and CEO Michel Germanès rounds off this market(ing) exercise nicely:

‘There is a surfing saying that draws a nice parallel with entrepreneurship: “You can’t stop the waves, but you can learn to surf”. As a coffee entrepreneur, roaster, or buyer,… you also encounter many (sometimes unpredictable) waves, where you can see the largest waves as a crisis or recession, for example. Such things are often unstoppable, but luckily you can learn to deal with them. Our EFICO team can help you with that. We can’t teach you how to surf, but we can teach you how to do the best possible coffee business.’

CUPRIMA | COFFEE WITH AN IDENTITY

CUPRIMA is EFICO Group’s specialty coffee division and an additional response to the growing need to promote flavour and origin diversity, and foster stable and sustainable supply chains that make sense in today’s challenging environment.

A dedicated CUPRIMA team of coffee experts and Q graders takes care of the selection, sourcing, logistics and sales of specialty coffee. Outstanding coffee qualities are selected, directly sourced and fully traceable down to washing station or farm level, while building win-win partnerships and connecting farmers and craft coffee roasters

For more information visit our website

Terra Prima

• SCA: 86+

• Exceptional coffees

• Unique sensory experiences

• Exclusive

• Optimal traceability

Autentica

• SCA: 84-86

• High quality coffees

• Authentic

• Available according to the crop calendar

SCA: 82-84

• Typical of the organoleptic profile of its region

• Available all year

• Traceable to the region

With CUPRIMA , we sourced 359 different coffees from 14 countries in 2023, promoting flavour diversity whilst ensuring the future of coffee.

Guatemala

El Salvador

Nicaragua

Costa Rica

Peru

Dominican Republic

Honduras

Colombia

Brazil

HIGHLIGHTS | 2023

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua …

Fairs & Events | Hosting, Cupping, Networking

• March 2023 | Producer & Roaster Forum, El Salvador

• March 2023 | Amsterdam Coffee Festival

• April 2023 | Specialty Coffee Expo Portland, USA

• May 2023 | SEABRIDGE, Zeebrugge

• May 2023 | Le Paris Café Festival –presenting a keynote on ‘Terroir’

Collabs

• June 2023 | World of Coffee, Athens

• July 2023 | Anacafé, Guatemala

• September 2023 | Paris Coffee Show

• November 2023 | Sintercafé, Costa Rica

• November 2023 | Daterra Masterpieces

Cupping

Teaming up with SCA France Sponsoring ‘Le Championnat de France de Torréfaction’

Teaming up with World Coffee Research Paris Coffee Show facilitating Key Note WCR

INSIGHTS | 2023

Encouraging and fostering a knowledge sharing culture

LET’S PLANT OUR FUTURE TOGETHER

We are happy to plan(t) 2023 trees together with you. Let 2023 be a year of positive impact !

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WHY COFFEE VARIETIES MATTER

Biodversity is important among any and all plant species, and coffee is no exception.

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TERROIR, WHY COFFEE IS (NOTHING) LIKE WINE

Terroir, that magical, elusive word is usually associated with wine, but applies just as well as with coffee.

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RECENT DEVELOPMENTS IN COFFEE PROCESSING UNLOCKING FLAVOURS

Everything you always wanted to know about postharvesting techniques, coffee processing, fermentation, modulations.

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RECENT DEVELOPMENTS IN COFFEE PROCESSING THE IMPACT EDITION

What’s the impact on the cup, on the livelihoods of the farmers, on the (future of the specialty) coffee industry?

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CUPRIMA FIELDTRIP COLOMBIA: INSIGHTS,

FORESIGHTS

& LESSONS LEARNED

Recently we travelled through Colombia with our Colombian partner InConexus and some of our fellow roasters. This time, our trip was dedicated to visiting the regions where we mostly source our coffee; Sierra Nevada for our organic crops, Sol Naciente and Huila for the top microlots. It was the perfect timing to see the beginning of the harvest in Sierra, and the ideal moment to already cup the new crop in Huila.

Meeting the farmers who grow the coffees we import, is not only one of our most favourite parts of our job, but it is also one of the cornerstones of the Cuprima philosophy. Another topic we feel strongly about is ‘sharing our knowledge and expertise’, so please hereby find our insights, foresights and lessons learned:

WE DID NOT VISIT ‘ONE COLOMBIA’, WE DISCOVERED A MULTITUDE OF COLOMBIA

The first thing we noticed is that there is not ‘one Colombia’, but there are ‘multiple Colombia’s’.

We may know the difference in cup profile between Tolima, Sierra Nevada, Antioquia or Huila. These coffee regions have their own specific characteristics and ecosystem; the soil, altitude, latitude are all different and affect the cup profile. But within the same region, the same differences still prevail. Each ecosystem (macrosystem) is made up of different so called ecotopes (microsystems). Also when it comes to fermentation, we often refer to the type of fermentation, time, temperature to predict the cup profile. But each fermentation is linked to a specific environment, the environment is driving the development of micro-organism during the fermentation process. This makes it very difficult to standardize fermentation processes and makes us understand that the very first thing to do when evaluating a coffee, is to understand its environment.

THE RECIPE FOR GOOD COFFEE IS DIVERS

Today, Huila is one of the regions with the largest production in Colombia. The most famous “Eje Cafetero” started more as a tourist destination for backpackers who wanted to visit a coffee plantation, than as a strategic export region for Colombian coffee. How to explain this shift? The ecosystems and ecotopes described above certainly contribute to this, but local infrastructure and local people are also important parts of this story.

The roads in Huila are better, making it easier to transport coffee from farms to coopera-

tives, drying mills and ports. The mentality/ point of view of the farmers also plays a role. While farmers in some areas strive for a high yield (e.g. by increasing the number of trees per hectare), farmers in Huila (we cannot generalize either) are more quality conscious and make sure that the trees have enough space to produce well. These smart decisions also make a difference. Terroir, infrastructure, culture, mentality; everything influences the quality of the cup.

SHARED RESPONSABILITY

One might think that production stimulates consumption, but on the contrary, farmers/ producers pay close attention to the evolution of consumption in order to position their coffee where the market pays higher prices. We see that more and more producers are starting to implement new fermentation processes such as anaerobic lactic acid/alcoholic fermentation to meet the new needs of end users. But these new processes require new equipment and especially knowledge and experience to achieve good results in the cup. This is long-term work and a real investment for both producers and exporters. As a buyer, we must remember that our purchases have a real impact on producers’ decision to grow and process coffee.

Continuous feedback between producer and consumers helps to better understand needs and to focus on suitable agriculture that will help farmers position their coffee in the market in a long-term perspective.

Is it sustainable for a producer to plant Gesha on all his plantations? Maybe not, but the producer definitely needs guidance to ensure that the changes they want to make, will

work for them and provide a return on their investment. It is part of the role of the exporter to guide the producers. At InConexus, several agronomists travel to coffee plantations throughout the country to guide and monitor the farmers throughout this. And it is also our role as an importer to ensure the continuity of our purchases to support all investments made in the country of origin.

LOOKING AHEAD | THE FUTURE OF COFFEE

We were delighted to see a new fermentation processes implemented by farmers. At Finca Las Palmas, Huila, they start with alcoholic and lactic acid fermentation. In both techniques, bacteria or yeasts are added to the anaerobic tanks. There is discussion in the specialized industry about these new processes. The main consideration concerns information to the end consumer, and the deviation from “natural” fermentation.

Apart from this debate, there is something very interesting for growers, which is the duplicability of the cup profile over time. Indeed, once you’re able to control your fermentation to achieve an accurate cup profile, it means you can play around with it too. In a context of climate change and concerns about coffee production, controlling the fermentation process may seem like a new tool to maintain consistency on the cup profile and therefore the price of coffee.

Perhaps this can help us see behind these new fermentation processes not just a funky cup profile, but a new, sustainable way of producing coffee in a challenging coffee future.

Read the insight online on our website

Read the French version of this article ‘Voyage à l’origine, entre rencontre et apprentissage’, on the website of SCA France

Sierra Nevada, Colombia

COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, sourcing sustainably and establishing long-term partnerships with our customers and suppliers, facilitated by our local offices, is key. Our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through our EFICO FOUNDATION.

By supporting innovative and scalable projects in coffee producing countries, along with the coffee roasting community and institutional partners, a positive ripple effect is put into motion.

Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively impact coffee farmers’ livelihoods, prosperity and environment. The multi-stakeholder approach adopted is unique and is a dynamic tool to foster partnerships. The EFICO FOUNDATION is about PEOPLE: from coffee farmers, their families and local communities to coffee roasters and coffee lovers.

To date, we report back on about 84 projects in 18 producing countries. Discover them on our website

IN SHORT:

Private foundation, established in 2003

• Co-designs and supports projects that create a positive impact on coffee farmers’ livelihoods, prosperity and environment

• Projects are selected by an independent jury of experts

• A flexible tool to build a sustainable supply chain : support by sourcing coffee with EFICO contributing 0.25 EUR/kg or direct transfer to the EFICO Fund: www.eficofoundation.org

• 100% of the contribution goes directly to the projects, EFICO covers operational expenses, funds are managed independently and transparently by the King Baudouin Foundation Working together: a multi-stakeholder approach, fostering partnerships

IN 2023:

• 9 projects in 5 different countries with concrete impact

• direct improved possibilities, empowerment and prosperity for 2,311 coffee entrepreneurs generating a positive impact on the lives of more than 8,049 coffee families

HIGHLIGHTS | 2023

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Various trips to Central and South America, Africa

Fairs and coffee events | Attending, Networking & Hosting

It was nice to reconnect at WOC Athens, Paris Coffee Show, SCA Portland, 14th SCTA Coffee Forum & Dinner, Sintercafé

Celebrating 20 Years of EFICO FOUNDATION

In 2023 our EFICO FOUNDATION celebrated its 20th Anniversary. On this special occasion, we have taken a moment to thank everyone who has partnered up with us over the past 20 years. Our team is grateful for the journey, growth and lessons learned so far, and looks forward to continuing to deliver on our slogan ‘Coffee for People, People for Coffee’.

We are looking at a coffee future that can benefit all actors in the coffee supply chain without compromising the potential for future generations.

INSIGHTS | 2023

Encouraging and fostering a knowledge sharing culture

2003-2023 | 20 YEARS EFICO FOUNDATION | 20 YEARS OF IMPACT

This year, our EFICO FOUNDATION celebrates its 20th Anniversary. A perfect occasion to remember and cherish its purpose.

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20 YEARS EFICO FOUNDATION | HIGHLIGHTS, INSIGHTS AND LESSONS LEARNED FROM 2 FLAGSHIP PROJECTS

In a few months, we will celebrate 20 years of EFICO FOUNDATION, a milestone that we at EFICO are proud of

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KILIMANJARO COFFEE & EFICO FOUNDATION 20Y FLAGSHIP PROJECT ‘WATER AND FOOD FOR ALL’ COMBI

Tanzania is home to the highest point in Africa. The title belongs to none other than the famous Mount Kilimanjaro.

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20 YEARS OF EFICO FOUNDATION | COUNTING OUR BLESSINGS

Thank you for making a difference with us !

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OVERVIEW CURRENT EFICO FOUNDATION PROJECTS | 2023

Guatemala

Honduras

Tanzania

Nicaragua

Colombia

COLOMBIA

A new generation of coffee entrepreneurs

COLOMBIA

A new generation of coffee entrepreneurs, committed to productivity and quality

GUATEMALA

&

GUATEMALA & HONDURAS

The future of coffee

WCR Multi-location variety trial

HONDURAS

Promotion and education for healthy school children, follow-up project

NICARAGUA

Clean water and school supplies for children

GUATEMALA Healthy Homes

GUATEMALA Entrepreneurs in action: Bachelors in coffee

Education

technology empowering youth

For this 2023 reporting, we focus on following newly initiated value chain project, launched in honour of 20 Years of EFICO FOUNDATION:

KILIMANJARO WATER & FOOD FOR ALL REGENERATIVE AND WATER EFFICIENT AGRICULTURAL SYSTEMS IN TANZANIA

Foot of Mt Kilimanjaro, Tanzania

Preparation activities started in January 2023

Project implementation: August 2023 - December 2025

30.000 EUR

Directly :

• Local employees and seasonal workers of the Lambo and Lyamungo farms: Around 20 technical and professional staff working for APK and around 200 seasonal workers by the end of the project, which are local small farmers living close to the farms (around 70% are women).

• 2 Rural Cooperatives and their 2.700 members

Indirectly :

6.000+ families living in the surrounding area who depend on the Weruweru river as the main water source for their crops and households and are involved in the water stewardship committees linked to the project

This project is possible thanks to the partnership of African Plantations Kilimanjaro (APK), Herencia - Value Your Legacy, Kijani Pamoja, 6 rural cooperatives, EFICO and the EFICO FOUNDATION

By increasing water efficiency and reducing risks along the coffee & food value chains, Kilimanjaro Water & Food for All will improve living conditions for 2.700+ families. It deploys an innovative, comprehensive and scalable model for water management & regenerative agriculture to speed productivity recovery, secure rural water and maize seeds supply, reducing CO2 emissions through best irrigation and water use practices linked to water stewardship in 2 farms.

PURPOSE

Social Impact:

KW&F4A impacts on rural employment, income generation and living conditions, contributing to increase welfare of over 2,700 Tanzanian rural coffee families by securing water protection and ecosystem restoration in 2 adjacent APK farms with 471 ha for coffee and food crops.

Expected social changes in 3 years are:

improved water sovereignty in communities around the coffee farms by the quantity and quality of water supply, increasing small plot productivity and granting water access to rural communities;

• 2 cooperatives receive better incomes by 10% increase in profitability from recovered farm productivity;

• employment generation with 1,200 new permanent and seasonal jobs for cooperative members and local communities; access to agricultural knowledge, technology, and markets through capacity building on water management skills for 200+ APK staff;

• female employment and social protection through inclusive gender policies in the APK farms, where 70% of the workforce is female.

Environmental Impact:

KW&F4A protects and restores natural capital for coffee production (soil, water, biodiversity) to increase productivity and resilience to climate change by:

• introducing good water management, stewardship practices in agriculture, ecosystem restoration and reducing CO2 emissions in 471 Ha coffee & food crops of 2 adjacent farms and the Weruweru river; changing the current flood and open channel/furrow irrigation for closed pipelines and exact drip and sprinkler systems will prevent water leakages and evaporation, allowing optimal crop water uptake and increasing water efficiency by 70%;

• eliminating the use of 7 diesel electric generators to pump water, by installing water transportation per gravity. The strategy validates a replicable model to further 5 States in Kilimanjaro, in collaboration with local coffee cooperatives and NGOs.

The project is scalable through the sector and has also effects on cultural change and multistakeholder engagement for the positive transformation of the coffee sector, recognizing the importance of values like protecting nature, participation, regeneration, prosperity, innovation, cooperation.

COFFEE | TANZANIA TUMAINI

The coffee linked to this flagship project is called Tanzania “Tumaini”, meaning “HOPE” in Kiswahili. This fully washed Rainforest Alliance coffee has a balanced cup, fine acidity, milk chocolate body with fruity flavours, berry and tobacco notes, bright sweetness and rounded with smooth finish.

It is produced by APK, a business owned by a family group with deep roots in Colombia under the leadership of Alejandro Galante, which makes APK uniquely Tanzanian with a Colombian feel.

Coffee Specs

Species: Arabica

Varieties: Bourbon, Kent, N39, KP,F6

Picking: Hand Picked

Processed: Washed coffee - via semi-submersive channel, saves 85% water consumption vs traditional washing method

Drying: 50% sun-dried and 50% mechanical dryer with temperature control in slack combustion silo

Harvest: runs from July to October, with August being the peak

sive array of services encompasses shipping, transportation, forwarding, customs and documentation handling, as well as coffee loading and coordinating transportation to end customers on behalf of coffee traders.

PIONEERING GREEN COFFEE LOGISTICS IN ZEEBRUGGE

SEABRIDGE functions as an advanced logistics service hub and distribution platform tailored specifically for the coffee industry, strategically positioned within the port of Zeebrugge, Belgium.

Its primary aim is to excel in providing solutions for the storage, sustainability, and traceability of green coffee. Its comprehen -

Backed by a proficient and seasoned team, SEABRIDGE offers a range of value-added services such as coffee reprocessing, sieving, blending, and repacking, tailored to meet the diverse needs of its clientele. Be it boxes, bags, big bags, or bulk shipments, SEABRIDGE 's adaptable logistics solutions are meticulously tailored from the point of origin to the final destination. The warehouse infrastructure at SEABRIDGE is meticulously designed to maintain optimal storage conditions for green coffee, employing highly automated processes for precision.

In 2018, SEABRIDGE attained the distinction of being the first Belgian company to be recognized as an SCA Premier Training Campus, a testament to its commitment to excellence. Collaborating with the Coffee Quality Institute (CQI), SEABRIDGE organizes annual training courses in coffee quality control, covering Q-Grading, Q-cupping, and Q-Calibration & Retakes.

SEABRIDGE is dedicated to improving energy efficiency in its operations and storage. They work actively to reduce the use of fossil fuels by carefully tracking greenhouse gas emissions and setting strategic goals to lessen their environmental impact.

SEABRIDGE | FACTS & FIGURES

• In 2009, SEABRIDGE started operating as a warehouse in the port of Zeebrugge.

• In 2012, SEABRIDGE received the Authorised Economic Operator (AEO) certification. In February 2015, the NOORD NATIE group elevated its managerial engagement within the EFICO Group.

• In 2018, SEABRIDGE became the first Belgian SCA certified premier training campus

• In July 2023, SEABRIDGE was granted with the Rainforest Alliance 2020 Program License

• The warehouse is 20.000 m² with 9 loading docks and 24 silos.

• SEABRIDGE can store about 167.000 MT of coffee in bags or big bags. The warehouse has comprehensive environmental control system, including permanent humidity and temperature monitoring, air filtration, sterilization, and ventilation.

• SEABRIDGE is generating 1MW peak green energy with 4.600 photovoltaic panels,

• Goods are automatically received and processed to ensure efficiency and accuracy.

• SEABRIDGE is accessible by inland shipping, sea, and rail connection on-site, with 99% of import containers using intermodal solutions.

SEABRIDGE has an on-site laboratory for stringent quality tests and analyses on incoming coffee.

• The core principles of SEABRIDGE comprise a dedication to quality, upheld through the highest standards and just-in-time services; traceability, facilitated by a track-and-trace system; and sustainability, encompassing the use of green energy, waste recycling, and the cultivation of dependable long-term relationships.

HIGHLIGHTS | 2023

Reconnecting with our global and local partners

SEABRIDGE GRANTED WITH THE RAINFOREST ALLIANCE PROGRAM LICENCE

Being granted this Rainforest Alliance certificate is a great achievement; SEABRIDGE is recognized as a safe and sustainable haven for sustainable coffee. .

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SEABRIDGE WALKS THE TALK AT ‘PORT CLEAN UP 2023’

Our SEABRIDGE crew supported once again the ‘Port Cleanup 2023’ campaign of the Port of Antwerp and Zeebrugge.

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SEABRIDGE PLANTS TREES IN ITS BACKYARD

Together with the City of Bruges and BOS+, we will plant a new forest of 12 hectares in Bruges.

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SEABRIDGE TEAMS UP WITH GO OCEAN TO RESTORE SEAGRASS MEADOWS

By teaming up with GO Ocean and contributing to their ‘restoring seagrass meadow’ project, SEABRIDGE is extending their efforts to the ocean, ...

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INSIGHTS | 2023

Encouraging and fostering a knowledge sharing culture

SEABRIDGE’S Q ARABICA GRADER COMBO COURSE

Encouraging and fostering a knowledge sharing culture at SEABRIDGE – the Hub of Specialty Coffee Education

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MORE ON THE TRAINING COURSES OFFERED AT SEABRIDGE’S FIRST CERTIFIED PREMIER TRAINING CAMPUS IN BELGIUM

LOOKING AHEAD

Dear Stakeholders, Partners and Friends of EFICO,

The global spotlight is increasingly on ESG issues as governments and companies recognize the importance of sustainability. The European Union leads the charge by integrating sustainability into corporate governance through initiatives like the EU Green Deal and ESG reporting standards, promoting transparency and accountability for a more sustainable economy.

CONNECTING AND ADDING VALUE & QUALITY TO THE VALUE CHAIN

At EFICO we commit to intensifying our sustainability efforts in line with EU guidelines to enhance our resilience and competitiveness while contributing to a sustainable future. We prioritize the integrity, quality, safety, and authenticity of our sourced coffee, fostering fully traceable and sustainable value chains. Our team is adept at managing various risks across logistics, security, financial, quality, macro-economic, and supply chain domains.

We leverage our nearly century-old expertise as connectors in the industry to navigate the evolving global trade landscape, ensuring secure solutions for challenges like EUDR legislation and the Red Sea crisis. This proactive approach not only benefits EFICO but also inspires and benefits our partners throughout the coffee value chain.

Drawing upon nearly a century of expertise in fostering connections, EFICO’s profound knowledge will prove invaluable as the coffee industry rushes to fulfill EURD requirements by December 2024. This proactive leadership stance promises benefits not only for EFICO

but also serves as an inspiration and advantage for fellow coffee partners throughout the value chain and the broader industry.

PARTNERSHIPS WITH PURPOSE

At EFICO, we prioritize purposeful partnerships where each party is an expert in their field, enabling us to maximize value for all involved. This includes sourcing coffee from local partners such as exporters and cooperatives to boost local economies and development.

We are currently collaborating with our partner suppliers to assess their readiness for compliance with the EUDR initiative. Recognizing the challenge this poses, we stand ready to support and guide them through our local offices in Brazil, Central America, Ethiopia, and beyond.

Our local offices play a crucial role in maintaining close relationships with our coffee farmer partners. We believe in a global outlook with local action, fostering sustainable value chains that improve farmers’ livelihoods and reduce environmental impact.

While the EUDR regulations present uncertainties and concerns, EFICO remains dedicated to ensuring compliance across our supply chains and supporting our partners exporters, cooperatives and roasters.

To ensure full compliance with sustainability standards, EFICO’s Belgian headquarters will engage a number of sustainability specialists to monitor processes across our global origins. This joint effort, involving our international coffee traders, underlines our commitment to compliance and sustainability. At EFICO guaranteeing the integrity, quality,

safety, and authenticity of our coffee is paramount. With our extensive experience as connectors in the value chain since 1926, we take pride in offering comprehensive solutions to our coffee roasters, addressing logistics, safety, financial, quality, macroeconomic, and other supply chain challenges with precision and effectiveness.

EFICO GROUP 2024 | FUTURE PROOF

At EFICO, we envision a coffee future characterized by diversity in origin and taste, economic viability and stability. Sustainability lies at the heart of our vision -a future where the coffee sector invests in long-term growth and values inclusivity.

We prioritize the legislative framework on both global and local scales, recognizing initiatives like the European Green Deal and the EU’s mandatory Due Diligence legislation as crucial steps toward a sustainable future. These efforts demonstrate a strong commitment to reshaping global value chains for sustainable growth.

In 2023 EFICO has initiated a comprehensive risk assessment of our sourcing areas, highlighting our commitment to social responsibility, environmental conservation, and support for both producers and roasters. This ongoing effort remains a top priority throughout 2024.

SEABRIDGE is actively crafting a Carbon Strategy with ambitious targets to halve emissions by 2030 and achieve global netzero status by 2050 or even earlier.

Through renewable energy adoption, emissions refinement, and enhanced operational efficiency, SEABRIDGE aims to reduce

its environmental impact. Additionally, SEABRIDGE plans to intensify recycling efforts for packaging materials.

Furthermore, SEABRIDGE will continue to rigorously assess climate-related risks and opportunities to drive strategic adjustments, led by its dedicated sustainability team.

The EFICO FOUNDATION , dedicated to enhancing the well-being, prosperity, and environmental sustainability of coffee farmers, continues to drive innovation in the coffee value chain through multi-stakeholder partnerships. Aligned with forthcoming EU Corporate Sustainability Due Diligence legislation, the EFICO FOUNDATION seeks to integrate its initiatives into EFICO’s value chains for optimal synergies.

Our 2023 flagship project ‘Kilimanjaro Water and Food for All’ in Tanzania, exemplifies our collaborative approach and scalability across the sector. Building on the successes of our previous projects in Guatemala –‘Finca El Platanillo’ and Colombia –‘Kachalú Original’, we aspire to achieve even greater transformative impact through continued partnership in the years ahead.

At EFICO, we remain committed to navigating the dynamic global trade landscape with secure solutions for evolving realities such as EUDR legislation and the Red Sea crisis. We leverage our strengths to address challenges, allowing our partners to focus on coffee cultivation and roasting processes, strengthening the value proposition for each partner in the value chain.

Acatenango, Guatemala

ACKNOWLEDGEMENT

We would like to take this opportunity to express our utmost gratitude to all our long-term partners: from coffee growers and suppliers to coffee roasters. A special thanks goes out to our institutional partners and civil society:

In a difficult context with several global challenges, your inspiration and continued support in our effort to contribute to the SDGs has made a difference. We are grateful for the exchanges, learnings and long-term cooperation.

This report is published online on the website of UN Global Compact ∙ unglobalcompact.org, and on the website of EFICO ∙ EFICO.com.

Italiëlei 181, B-2000 Antwerpen

Tel. : +32 (0)3 233 78 65

EFICO@EFICO.com

www.EFICO.com