The Memorandum of Understanding (MOU) signed by Melissa Duncan, Fairtrade’s executive director and Dr. Éliane Ubalijoro, CIFOR-ICRAF’s CEO, solidifies their commitment to advance nature-based solutions into key supply chains such as coffee and cocoa. This will later be expanded to other product areas such as tea, banana, cotton, sugar, and nuts.

This five-year partnership will also foster future mutual endeavours on advocacy and policy influencing, and collaboration on exchanging and co-developing knowledge and expertise on priority thematic areas such as climate and the environment, deforestation, and decent livelihoods.

They will work side-by-side to support countries and supply chain stakeholders, particularly smallholder farmers, in implementing new legislation, which includes the EU Deforestation Regulation and the Corporate Sustainability Due Diligence Directive. In addition, they will also assist stakeholders in building up their climate resilience and transition to agroecology.

“Fairtrade found in the alliance with CIFOR-ICRAF great synergies as well as a shared commitment to facing the challenges of climate change and the biodiversity crisis,” said Duncan. “With this partnership we aim to accelerate agroecology transitions, scaling agroforestry systems, and building further climate resilience among Fairtrade producers and workers.”

“This memorandum of understanding represents a significant step forward in our shared commitment to advancing sustainable and equitable livelihoods for smallholder farmers and forest communities,” said Ubalijoro. “By aligning CIFOR-ICRAF’s scientific expertise with Fairtrade’s market-driven approach, we can create meaningful pathways to empower producers, enhance climate resilience, and support biodiversity conservation. Together, we are fostering a future where environmental sustainability and social equity go hand in hand.”

This year’s World Soil Day theme of “Caring for soils: Measure, monitor, manage” is perfectly aligned with the aim of this new strategic partnership to safeguard people and the planet. Indeed, for farmers, healthier and more fertile soils can result in higher incomes through more productivity, less reliance on external inputs, higher crop quality, and increased resilience to climate change. For the planet, enhanced soil health can increase carbon sequestration in soils as well as allowing lower emissions per product thanks to higher yields, both supporting climate change mitigation.

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The European Council raised concerns surrounding the no risk amendment to the EUDR, passed by the European Parliament in a vote on 14 November. The controversial amendment, which was provisionally dropped by the European leaders on 3 December, was proposed by the European People’s Party (EPP) at the time of the vote.

German MEP, Christine Schneider of the EPP, withdrew the party’s proposal to create the no risk status category under the EUDR on 2 December. “We promised and we have delivered. This postponement means businesses, foresters, farmers and authorities will have an additional year to prepare,” she said in a statement, adding, “An impact assessment and further simplification is to follow in the review stage for the low risk countries or regions providing countries with an incentive to improve their forest conservation practices.”

The EPP’s withdrawal follows the European Parliament’s vote to delay the EUDR by 12 months, which remains in effect. Companies will have one more year to adapt to new EU rules to prevent deforestation, which will ban the sale of products sourced from deforested land in the EU. A statement released by the European Parliament announced that on Tuesday evening (2 December), negotiators from the Parliament and Council reached a provisional political agreement to postpone the application of the new rules. Large operators and traders will now have to respect the obligations of this regulation as of 30 December 2025, and micro- and small enterprises from 30 June 2026. This additional time is intended to help companies around the world implement the rules more smoothly from the beginning, without undermining the objectives of the law.

The Commission proposed postponing the application date of the deforestation regulation by one year in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024.

Following requests from Parliament, The Commission committed to continue easing the burden on businesses by reducing administrative requirements and eliminating unnecessary bureaucratic burdens

In terms of next steps, the vote on the informal agreement between the co-legislators will be added to the agenda of Parliament’s next plenary session (16-19 December). In order for the postponement to enter into force, the agreed text has to be endorsed by both Parliament and Council and published in the EU Official Journal before the end of the year. — Vanessa L Facenda

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Following a vote on 14 November in Brussels, Belgium, the European Parliament confirmed to delay implementing the European Union Deforestation Regulation (EUDR) –a plan that was already endorsed by the Council of Ministers – until December 2025.

Adopted on 19 April 2023 and initially due to be enforced on 30 December 2024, the EUDR proposes to ban the export of products associated with deforestation, such as coffee beans, cocoa beans, soya, cattle, rubber, palm oil, and wood. The law also applies to European farmers.

Third countries, member states, operators and traders will have more time to prepare for the due diligence obligations imposed by the EUDR. Large operators and traders would have to adhere to the requirements stemming from the EUDR as of 30 December 2025, whereas micro- and small enterprises would have until 30 June 2026. In a statement released by the European Parliament, “this additional time would help operators around the world to implement the rules smoothly from the start without undermining the objectives of the law.”

Parliament also adopted other amendments proposed by the political groups such as the European People’s Party (EPP), including the creation of a new category of countries posing “no risk” on deforestation in addition to the existing three categories of “low”, “standard” and “high” risk. Countries classified as “no risk”, defined as countries with stable or increasing forest area development, would face significantly less stringent requirements as there is a negligible or non-existent risk of deforestation. The Commission will have to finalise a country-benchmarking system by 30 June 2025.

Multiple proponents of the EUDR have called out the move. In a statement on LinkedIn, Rainforest Alliance said the no-risk category would be “a death sentence to the EUDR.”

The World Wildlife Fund (WWF) issued a statement saying, “The European Parliament, driven by the European People’s Party (EPP), voted for amendments to substantially weaken the EU Deforestation Regulation (EUDR) de facto deregulating and undermining one of the EU’s landmark environmental laws. By introducing a category of “no risk” countries, the EPP and its allies have effectively voted to enable further forest destruction both within and outside of Europe. The move undermines the efforts of forward-thinking companies that have invested in deforestation-free supply chains to comply with EUDR requirements in time for its application on 30 December 2024.”

Parliament is now referring this file back to committee for interinstitutional negotiations. In order for these changes to enter into force, the agreed text will have to be endorsed by both Council and Parliament and published in the EU Official Journal.

The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest – an area larger than the EU – were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation. Palm oil and soya beans account for more than two-thirds of this. — Vanessa L Facenda

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Consumers find value in organic food that is produced without the use of synthetic nitrogen fertiliser or genetic engineering. To many, buying organic reflects their belief in sustainability, nutrition, and supporting a healthy environment. In an effort to protect the integrity of the organic supply chain and deter fraud, the United States Department of Agriculture (USDA) , which develops the rules for organic food in the United States, and the National Organic Program (NOP) created the Strengthening Organic Enforcement (SOE) Final Rule (the Rule) , which went into enforcement on 19 March 2024. The expansive,80-page SOE Rule– USDA’s biggest change to organic regulations in several decades – aims to strengthen oversight and enforcement of the production, handling, and sale of organic agricultural products. Regardless of your company’s position of the coffee supply chain, the SOE Rule will affect
your operations. Failure to comply with the SOE Rule can result in significant consequences for your business, including consumer-fraud class action lawsuits, business-to-business litigation, the inability to market coffee as organic, breach of contract disputes with supply chain partners, regulatory enforcement through civil penalties and criminal liability — and a reputational hit for your brand and company.

The SOE Rule strengthened many requirements and created several new ones for maintaining certified organic coffee. Some of the biggest changes to businesses (“operators”) working in organic involve:
• All operators who produce or handle (ie, those who sell, process, or package) organic products need to be certified by a USDA registered certifier;
• All handlers are required to implement a Fraud Prevention Plan (FPP) as part of the Organic System Plan (OSP) ;
• Implications for importers and exporters of coffee;
• The National Organic Program Import Certificate;
• Creation of the USDA INTEGRITY database for managing organic certification information;
• How changes to the SOE Rule affected operators who were already working in organic.

Scope
One of the biggest changes to the SOE Rule is that it has expanded the scope of coverage so that now
handlers of organic agricultural products, with a few exceptions, must have organic certification.
Handlers, such as traders and certain brokers (such as those who help assist sales of coffee between producers and exporters) must obtain certification through a USDA-accredited certifier.
The USDA identified these operators as those who were considered higher risk for committing fraud (looking across all organic agricultural products and not just coffee).

OSP and FPP
The NOP updated the requirements for what must be included in an Organic System Plan (OSP) . The OSP serves multiple functions — it describes an operator’s capacity for producing and managing organic agricultural products; it also functions as a planning tool for resource and budget determination, and serves as a contract between the certifier and the operator. An OSP also details compliance requirements for a manufacturing facility, a product formulation and its ingredients and suppliers, and other details of a manufacturing process. It can also assist auditors in verifying an operator’s compliance with organic regulations and in identifying cases of fraud or non-compliance. The SOE now also requires a Fraud Prevention Plan (FPP), which includes important information that verifies the organic certification and status of suppliers and organic products. This is especially important, since green coffee is often grown and processed by multiple producers and shipped together, and handlers can mistakenly co-mingle organic and non-organic coffee beans. An FPP includes steps a manufacturer or other operator should take at critical points in the supply chain to avoid organic fraud.

Certification

The SOE Rule also requires that importers and foreign exporters to the US obtain organic certification from a USDA-accredited certifier. It is important that the certifier be USDA accredited, as equivalency programs may not always be up to date. The importer or foreign exporter must also get an NOP Import
Certificate issued from its certifier prior to shipping any organic coffee. These are potentially big changes for the supply chain, and importers and exporters should factor in the time necessary to obtain an Import
Certificate when estimating the time needed for shipment and delivery to the customer. The NOP has also recently revised data fields in the Import Certificate. The USDA created the Organic INTEGRITY Database, which contains important certification and contact information on certified operations and which a certifier uses to issue an Import Certificate. Those businesses that were already working in certified-organic coffee prior to the SOE Rule will need to update their OSP to include an FPP and to comply with the revised Import Certificate.

Exemptions
While a goal of the SOE is to reduce likelihood of fraud by requiring higher risk operators to become certified, some operators remain exempt from the new requirements:
• Retailers that only process and/or sell organic products at the final point of sale;
• Operations that handle less than 70 percent organic ingredients;
• Warehouses that store organic products in tamper-evident packaging;
• Customs and logistics brokers;
• Transporters that only transport organic products.

Some operations, such as warehouses that handle bulk organic products, are not exempt from the SOE Rule. This overview of the new SOE rules is a summary – the full body of rules are complex and have many additional implications for coffee. It’s crucial, if you are handling organic coffee, that you carefully review the rules and navigate these complexities – or review the recently released NCA coffee-specific SOE Guide, which will take you step by step through the rules. Safeguarding the integrity of organic will
help protect consumers and businesses – including yours – and help ensure a credible organic supply chain well into the future.

Mark Corey, PhD, is director of Scientific & Regulatory Affairs at the National Coffee Association (NCA) of the USA and staff liaison to the Science Leadership Council (SLC). Prior to joining the NCA, Dr Corey worked in Research & Development roles in coffee for Keurig Dr Pepper, Inc. and Heartland Food Products Group and is a former Chairperson of the NCA’s SLC. He is trained as a food scientist, and his academic research focused on functional foods and human health.

• Mark Corey, PhD, is director of Scientific & Regulatory Affairs at the National Coffee Association (NCA) of the USA and staff liaison to the Science Leadership Council (SLC). Prior to joining the NCA, Dr Corey worked in Research & Development roles in coffee for Keurig Dr Pepper, Inc. and Heartland Food Products Group and is a former Chairperson of the NCA’s SLC. He is trained as a food scientist, and his academic research focused

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The vast majority of the world’s 12.5 million coffee farms are run by smallholder farmers; in fact, almost three-fourths of the world’s coffee comes from small farms. Yet, if nothing is done to tackle the exacerbating issues faced by these farmers – such as climate change and low and unstable incomes – 50 percent of the regions suitable for coffee farming could disappear by 2050. As a result, farmers may resort to expanding into forested areas in their struggle to sustain and increase agricultural output, leading to further deforestation.

The Rainforest Alliance strongly believes that the European Union Deforestation Regulation (EUDR), due to come into effect on 30 December 2024, is an important step forward in the global fight against deforestation and forest degradation linked to the production of several high-risk commodities, including coffee.

However, as companies race towards EUDR compliance, we are seeing the very real risk of companies only meeting the minimum requirements and neglecting their responsibility to support farmers and address systemic poverty – a major contributor to deforestation. To address this, it is crucial that more value finds its way from companies to smallholders, who are vital to global food supply chains. This is why the role of certification has never been more important for the coffee sector.

Challenges faced by smallholder coffee farmers

In our work over the last 36 years, we’ve seen that smallholder farmers often lack the financial resources and technical expertise needed for better farm management, traceability, and accountability, such as GPS mapping. This further exacerbates the challenges they face, creating a barrier for producers who lack access to such tools.

EUDR compliance requires providing GPS points or polygons, which can overwhelm smallholder farmers operating in remote or rural areas with limited infrastructure. Without the required support, they are at a disadvantage compared to larger, more resourced competitors which also risks marginalising them from lucrative European markets.

The cumulative effect of these challenges underscores the need for support mechanisms, such as financial assistance, training programmes, and infrastructure development, to help smallholder farmers align with EUDR requirements and remain competitive in the global market.

Certifications: bridging regulatory requirements and sustainable agriculture

Certification acts as a bridge between regulatory demands and the transition towards more sustainable and regenerative agricultural practices. It provides a structured framework for coffee grown and harvested in ways that aim to protect forests and support local communities, through:

• Credibility and assurance: Recognised programmes (like Rainforest Alliance certification) provide a credible stamp, assuring brands, regulators and consumers that certified coffee aligns with a strict set of social, economic and environmental sustainability standards.
• Traceability: Certification processes often include robust traceability mechanisms, allowing companies to track their coffee’s journey from farm to cup. This traceability is crucial for EUDR compliance, ensuring products are deforestation-free.
• Sustainable agriculture: At the heart of certification is the promotion of sustainable farming practices beyond addressing deforestation, including climate resilience, improved livelihoods, biodiversity conservation, protection and advancement of human rights, business training, and compliance with local laws. This holistic approach aligns with the broader goals of the EUDR by addressing some of the root causes of deforestation.

For the coffee sector, embracing certification is not just a strategic move – it is an essential step towards ensuring that every cup of coffee contributes to positive change for both farmers and nature.

• Miguel Gamboa is coffee sector lead at the Rainforest Alliance and is based in Guatemala. He trained as an industrial engineer with Masters in Reengineering and International Trade. Gamboa started his professional career working in a coffee exporting company. Twenty years ago, he started working with the UTZ certification programme, learning about the different realities of coffee production throughout Latin America. After the merger of UTZ and the Rainforest Alliance, Gamboa was appointed coffee representative manager for Latin America, and assumed his current position in September 2022. With 37 years of experience in tackling deforestation in global supply chains, the Rainforest Alliance’s systems can help certified coffee supply chain partners take steps towards complying with EUDR requirements. RA is also developing a deforestation risk assessment offering for non-certified supply chains.

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“We have noticed that many packages of coffee, whether green or industrialised, have been improperly labelled with the DO “Cerrado Mineiro,” which could compromise the region’s reputation and harm consumers choices, partners and producers. This is considered an infringement of the rules of the Federation of Coffee Growers of the Cerrado, which has its Designation of Origin registered by the INPI (National Institute of Industrial Property). That’s why we want to be closer to the different links in the chain to provide guidance on the processes for using controlled origin designation,” said Juliano Tarabal, executive director of the Federation of Coffee Growers of the Cerrado.

Campaign

One of the highlights of the campaign is also to increase the traceability of coffee lots, adding value to the product on national and international markets. Since 2013, the label of origin and quality has attested to the fact that the batch sold is certified in the Cerrado Mineiro region, according to the requirements established in the production process. The Designation of Origin policy establishes that all coffees that achieve at least 80 points and pass through the cooperatives will be certified, with the aim of increasing the supply of DO coffee in the market.

“The authenticity of Cerrado Mineiro coffee needs to be protected and it is a collective responsibility to guarantee the quality and history behind the region’s coffee. For us, as producers, it is very important that our partners and consumers know that they are drinking a real coffee of origin and quality, which has a beautiful story behind the cup. This brings value to our product, and the buyer asks for it,” says Augusto Faria, producer.

The campaign includes social media, videos, talks, printed materials and banners to engage as many people as possible around the world.

For the Cerrado Coffee Growers’ Cooperative (Expocacer), one of the supporters of this marketing action, traceability and certifications reaffirm the quality, attributes of the drink and good agricultural practices adopted by producers. “We are the first region in Brazil with a Designation of Origin, certifying that our coffee has a unique quality, characteristics and production methods. That’s why it’s so important that the DO is used correctly, as the campaign reinforces,” says Simão Pedro de Lima, executive president of Expocacer.

Designation of Origin

The Designation of Origin (DO) is a label of quality that identifies products originating in a specific region and which have unique and differentiated characteristics, resulted from geographical, climatic and cultural factors. In the case of coffee from the Cerrado Mineiro region, this certification guarantees that the product was grown and processed in the area of the 55 cities in the region and by one of the 4,500 producers, complying with strict standards of quality, sustainability and guaranteeing traceability.

“The campaign represents an effort to ensure that consumers receive quality products of certified origin, fighting against infringements, strengthening confidence in coffee from the Cerrado Mineiro region, as well as valuing the work of producers who follow the necessary requirements for getting the certification. We have enough potential to attend the demand of the global market, for which we have mapped the use of the Cerrado Mineiro Origin in 44 countries by more than 700 brands,” Tarabal concluded.

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Reducing the burden of data management for green coffee traders, roasters and merchants in Italy, Dimitra’s DDS platform receives, manages, analyses and stores supply chain data for seamless communication with authorities and other supply chain operators. Once a supply chain is fully mapped, Dimitra’s DDS will automatically prepare a Risk Assessment and Due Diligence Report and upon user confirmation upload all required data to the EU Information System, documenting compliance. Dimitra’s DDS platform can act as a stand alone system or be fully integrated into any third party Enterprise Resource Planning (ERP) environment.

Alkaff will employ Dimitra’s tailored DDS platform and engage Dimitra’s leading industry experts to map Alkaff’s expansive supply chain, support Alkaff suppliers in farm-level data acquisition, and analyse the data provided by the suppliers to ensure a transparent, traceable, and EUDR compliant supply chain. Dimitra will integrate fully into Alkaff’s software environment and also deliver traceability data directly to Alkaff’s customer-facing application.

Maurizio Zugna, Dimitra, Italy project manager, said: “For Alkaff, the largest coffee merchant in Italy, to make this decisive step towards EUDR compliance proves once again that Rudi Albert, the company CEO, and his team understand the opportunities that come with the digitalisation of global coffee chains. Dimitra’s platform digitalises the process making compliance that much more achievable.”

Rudi Albert, CEO and founder of Alkaff, said: “At Alkaff we pair our passion for coffee with a dedicated focus on innovation. We are excited to streamline EUDR compliance with Dimitra’s advanced tools and origin experience.”

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Seated on deck chairs around the back of the lively illy stand, to the backdrop of the loud music and bustling festival – and plied by illy’s zero waste soft serve ice cream and espresso martinis – I quizzed Franco on the importance and significance of regenerative agriculture and its certification.

Franco explained that illy is the first brand with the complete certification, meaning that all the steps throughout the company’s supply chain are audited and certified. Not only is illy’s Brasile Arabica Selection Coffee Regenagri certified, but so is the company itself. Therefore, any other coffee illy sells that comes from Regnagri certified farms, via a certified producer, is also covered.

When certifying farms, Regenagri looks at the full set of criteria, whether that be soil health; reduction in use of water and energy; biodiversity; use of fertilisers; intercropping; or conservation efforts. They are all measured and assessed and scored against, said Franco. Farms or businesses need a Regenagri score of 65 per cent to achieve the certification. “We look at the whole picture. Consider it like a puzzle, where each of the components has weight, and each of the components is measured and verified for improvement, and everything together gives the final result of the Regenagri certification,” said Franco. He added that, crucially, the programme requires improvement every year: “you cannot be certified Regenagri and let things stay,” he said, and this is what drives the impact of the certification.

This improvement is crucial and needs to be tangible. If a company does not improve, Regenagri requires it to submit an improvement plan to shape their strategy. Franco explains that they don’t want to immediately cut companies out that haven’t improved, because farming is more complicated than that. If improvement is not seen in the first year, they have to submit an improvement plan, which is verified the following year. If they are still not able to achieve results, they cannot stay in the programme and remain Regenagri certified. “I think it is a fair balance between helping them and giving them some urgency as well,” commented Marco.

And there is urgency for these changes, especially in coffee. “There is strong power from both sides [consumer and company] to engage with the farmers and with the suppliers, and to reward them for their efforts to do better farming, and then also the power towards consumers to convey the right message,” said Franco. He added that consumers are getting increasingly aware and knowledgeable about sustainable farming and the environment, but they need to be much more informed about regenerative farming. Brands that take on the Regenagri certification and display it on their products are part of this consumer education.

Each company that is working towards or has achieved a Regenagri certification will have entirely context specific plans. What this means, Franco explained, is that each of the criteria is assessed based on the specific context, which region, which climatic area, the type of soil where they are farming. Different areas will have different needs and priorities and the Regenagri plan can be adjusted accordingly.

I then asked about whether the new EU Deforestation Regulations (EUDR) is expected to impact Regenagri’s work in any way, or if it’s being welcomed with open arms. Franco responded that “the eligibility criteria of the Regenagri standard for farms has always included the checks to see if the applicant has been involved in deforestation or conservation; it’s been there since the beginning …, so basically the EUDR is embedded into the original standard.”

While regenerative agriculture practices are recommended to all kinds of farming, Franco explained that there is special potential in coffee. “In this case in Brazil, the reductions of carbon footprint for coffee is actually nearly double what is achieved in other arable crops.” He added that “in Brazil, I think there are approximately 50,000 hectares of farms that are certified. If you put them all together, in one year they have essentially reduced [the equivalent of] ten per cent of the carbon footprint of London.” When companies first start on their regenerative agriculture journey, there is huge room for improvement, then as they improve “the curve flattens a bit,” but the impact is great.

It is all moving in the right direction, companies and farms just need to be educated and motivated to make the change. When I asked whether Franco thought that governments should be doing more to incentivise and perhaps subsidise regenerative agriculture transitions, Franco commented, “I’m not always in favour of subsidising something; I’m more of a believer of letting the system create value by itself. Subsidising usually means creating a bubble,” he said, emphasising it is more important for a true economic system to be developed to support the regenerative supply chain, where value and impact is recognised.

Hopefully, going forward, we will see many more companies being certified by Regenagri, especially in coffee and tea where there is huge potential, as well as already existing practices that champion regenerative agriculture. Steps like this by the big coffee and tea organisations are essential at this stage to safeguard our industry.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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NKG is well-prepared to meet the challenges of the EUDR on multiple levels:

• Through its 17 export companies, NKG has established long-standing relationships with suppliers and possesses in-depth knowledge of the local coffee sectors.
• The proprietary supply chain programs NKG Verified and NKG Bloom exceed the requirements of EUDR and other regulations, serving as initial blueprints for compliance. All NKG Verified supply chains and some NKG Bloom supply chains will be EUDR aligned by the end of Q3-2024. Furthermore, NKG’s field teams work daily with producers, providing services to address root causes of deforestation.
• So far, NKG’s efforts have focused on information sharing, fostering a common understanding of the regulation both internally and with business partners. The group has established protocols for the consistent mapping of coffee plots and the creation of high-quality polygons, which are essential for accurate monitoring and compliance.
• An effective response to EUDR requires substantial efforts and investments in both human and technical resources. The worldwide operating group can leverage the power of over 300 colleagues working in sustainability globally.

NKG has set up a comprehensive, reproducible methodology to validate geodata quality, its plausibility as coffee growing area and check specific deforestation and legality risk. This method serves as a global NKG benchmark and is based on publicly available resources. The methodology will be made available across NKG, making deforestation analysis ubiquitous and accessible across the group. NKG regularly updates and refines its methodology based on customer and regulatory requirements.

NKG’s Due Diligence System (DDS) powered by osapiens

NKG’s DDS is the cornerstone of the group’s approach to EUDR. Efficient due diligence processes are essential to manage information flows effectively, which will be assured by one unified NKG system for EUDR and Business Partner Due Diligence, among others. Therefore, NKG partners with osapiens.

“By collaborating with osapiens, we aim to strengthen NKG’s position as a leading green coffee service provider. This partnership will increase efficiency and maximize value creation by enhancing our business relationships. Additionally, it will ensure the best possible and streamlined preparation for EUDR compliance across our entire group” explains NKG Group COO, Ruben Scholz.

osapiens is an exceptional partner in NKG’s mission to enhance supply chain management and regulatory compliance. With osapiens, the group will harmonize data, establishing clear protocols for both suppliers and customers. For seamless and efficient data flow, a single endpoint will be provided and complemented by a portal, including applicable EU TRACES information. Additionally, osapiens offers a comprehensive range of capabilities for business partner due diligence. NKG will be able to deliver complete information packages at a shipment level, ensuring thorough and accurate documentation. Through the combination of an integrated Due Diligence System with high quality geodata analysis NKG will keep the coffee flowing into Europe under EUDR.

For more information about NKG’s approach and possibilities to get in touch please visit nkg.coffee/eudr.

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Led by Dimitra Europe GmbH, a subsidiary of Dimitra Incorporated, this partnership utilises blockchain technology to enhance farming processes and ensure market compliance with the upcoming European Union Deforestation Regulation (EUDR), set to take effect at the end of 2024.

As part of the new partnership, Arasco will employ Dimitra’s tailored Connected Coffee platform to allow farmers access to blockchain traceability solutions that will act as a transparent, traceable supply chain for regulators and smallholder farmers. The pilot project aims to ease the burden of data management for smallholders and family farmers in Cameroon to ensure they receive certificates of compliance in line with new EU regulations, which will ban imports from crops grown on deforested land after 2020. The project will onboard 5,000 farmers to the Connected Coffee mobile application, providing them with comprehensive tools for farm registration, crop management, farmer surveys, and data acquisition.

Andreas Cerdan, director of Dimitra Europe, said: “Our Dimitra team is excited to be working with Arasco to prepare one of their key coffee origins for EUDR compliance. Rather than shying away from remote origins, Arasco takes this decisive step towards a fully digitised supply chain.”

Dimitra’s Connected Coffee platform draws data from various emerging technologies (including AI, satellite imagery, IoT, genomics and more). It translates these many data points for agriculturalists, helping to stabilise year-round production and increase the quality and quantity of coffee cherries produced per farm. Dimitra tracks the flow of goods from farms to Arasco’s processing units, ensuring they can improve processes and ensure regulatory compliance across global markets for local stakeholders, farmers, and traders.

Müsteçep Aras, CEO of Arasco Food BV, said: “At Arasco Food BV, we are thrilled to announce our collaboration with Dimitra. This partnership represents a significant step forward in improving the socioeconomic conditions of thousands of farmers in Cameroon through digitisation. By adopting the Connected Coffee app, we can enhance sustainable coffee production and trading in line with EUDR while we also support the local communities. We are excited to be part of this transformative journey and look forward to the positive impact it will bring.”

Farm registration and training have already commenced in the Littoral and West regions of Cameroon. Upon completion of the pilot programme, Dimitra and Arasco plan to implement across further global supply chains to continue the commitment to full traceability and compliance.

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“We’ve seen a very positive response to GCP’s call for the use of a common language on the foundations of coffee sustainability,” said Annette Pensel, executive director, GCP.

“The three organisations we’re pleased to announce today are the latest to join the growing list of sustainability schemes owned by GCP Members that are answering that call. We applaud this commitment to the use of a common language and the increasing openness to transparency.”

GCP announced today the recognition of Fairtrade International, Small Producer Organization and Coffee Standard, and Fair Trade USA’s Agriculture Production Standard as equivalent to the Coffee SR Code 3^rd party assurance. In addition, Montesanto Tavares Group’s GMT Green has been recognised as equivalent to the Coffee SR Code, 2^nd party assurance.

The number of sustainability schemes recognised by GCP now amounts to 19, representing encouraging progress for sector alignment on coffee sustainability.

Hear from the schemes in their own words.

Sector alignment for coffee sustainability 

Sustainability schemes going through the GCP Equivalence Mechanism Process – which was strengthened with stricter sustainability and operational criteria in 2022 – are aligning their systems to become equivalent to the Coffee SR Code. The code is a sector-wide reference on the foundations of sustainability in economic, social and environmental dimensions for green coffee production and primary processing worldwide.

GCP’s Equivalence Mechanism also entails assessment against a set of operational criteria that ensures a credible and effective system for implementation and includes governance, standard-setting, assurance, data and claims requirements.

According to Mario Vega, GCP’s newly appointed senior manager sustainable sourcing, this announcement was the first of the year with more sustainability schemes planned to be announced in Q3 and Q4.

“Alignment is a critical feature to understand, advance and accelerate coffee sustainability and we applaud the action by these GCP Members to step up and publicly measure up to the Coffee SR Code and GCP Equivalence Mechanism,” said Vega.

For the assessment of the sustainability schemes, GCP partnered with the International Trade Centre, which, as GCP’s implementation partner, assessed the schemes against the principles and practices of the Coffee SR Code and the operating practices that schemes should have in place to be considered credible and effective.

“The Coffee SR Code serves as a baseline, and equivalent schemes meet at least these requirements. Some schemes – especially 3^rd party schemes – may go further with their principles and practices, their commitment to transparency, and their approaches to deal with sustainability issues,” said Vega.

“We hope that these GCP Members will inspire others to step up for coffee sustainability for the urgent and essential advancement of farmer prosperity.”

Click here to view all the schemes recognised by GCP as equivalent to the Coffee SR Code.

All sustainability schemes recognized by GCP are eligible for roasters and retailers to be included in the annual GCP Collective Reporting on Sustainable Coffee Purchases, another way companies are aligning and increasing transparency to advance coffee sustainability globally.

The Equivalence Mechanism, together with the Coffee SR Code and the GCP Collective Reporting on Sustainable Coffee Purchases, are connected assets developed by GCP to offer a common language on the foundations for coffee sustainability and promote the supply and demand of coffee produced following at least baseline sustainability principles.

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The global certification’s fifteenth edition of the report showed that Fairtrade Premium received by producer organisations for Fairtrade’s top seven products – banana, cocoa, coffee, cotton, flowers, sugar and tea – totalled about €210 million, while the Premium for the minor products topped €12 million. The Fairtrade Premium is an additional amount on top of the selling price that is paid to producer organisations and which they democratically choose how to invest in their business and communities.

The small-scale producer organisations invested 36 percent of their Premium into improving production and farming practice, such as building processing plants and warehouses, as well as purchasing farm materials for members. Another 23 percent was spent on financial benefits for farmers, whether direct cash payments to top up incomes or credit services. Meanwhile, workers on Fairtrade certified plantations allocated 75 percent of their Premium into social investments, including education and housing. Another 15 percent was invested in financial benefits for workers and their families.

In addition to the Fairtrade Premium, the report includes a full set of data about producer organisations and their farmer members and workers, as well as the global production of each product, land area, and regional breakdowns.

As of the end of 2022, 1,910 producer organisations were Fairtrade certified, including 1,563 small-scale producer organisations (including those certified for contract production) and 347 larger farms that depend on a hired workforce (known as hired labour organisations). These organisations were made up of 1,848,268 farmers and 197,118 workers.

For the first time, the monitoring report also includes information about organic sales of the six largest Fairtrade products (excluding flowers, for which there is no organic category). Sixty-four percent of the 231,188 metric tonnes of Fairtrade coffee sold by producers in 2022 was organic, while a similar 63 percent of the 730,176 metric tonnes of Fairtrade bananas sold were organic. In addition, organic cotton made up half of all cotton producers’ Fairtrade sales.

Women made up 21 percent of all Fairtrade farmers in 2022, with the highest proportion of women growing Fairtrade certified cereals (60 percent), oilseeds and oleaginous fruit like olives (41 percent), and dried fruit (35 percent). Forty-four percent of Fairtrade workers were women, with workers on farms producing fruit juices topping the list at 74 percent, followed by flowers and plants (54 percent) and tea (52 percent).

To read the full report, please click here.

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On 19 January 2023, the United States Department of Agriculture (USDA) National Organic Program issued the Strengthening Organic Enforcement (SOE) final rule. This new regulation aims to improve oversight of the organic supply chain and reduce fraud by increasing traceability and transparency. The final rule went into full implementation on 19 March 2024. These changes will be felt by every tea business that produces, processes and handles organic teas. The rules will apply to USDA organic Camellia sinensis products and USDA organic botanicals used in tea blends and tisanes. Since the US imports the vast majority of its teas, organic tea businesses across the globe will now have to comply with these new regulations aimed at preventing fraud in the organic supply chain.

Past issues

For years, the National Organic Program (NOP) has made strides in addressing the challenges of programme implementation. A 2010 review of the organic programme by the Office of Inspector General (OIG) found that certifying agents were not conducting regular and consistent, periodic residue testing, and in some cases were not conducting required onsite assessments of certified operations.

The USDA OIG assessment report included recommended remedies, and issues were addressed. A subsequent 2017 report concluded that overseas organic equivalency standards were not sufficiently transparent, and that NOP import documentation was not consistently verified at ports of entry.

Furthermore, some certified organic products being imported may have been fumigated with treatments that were not compliant with organic standards. This fumigation may have been necessary from a Customs and Border Protection perspective but would have rendered these products as no longer compliant with NOP organic standards. The need for fumigation occurs less frequently with Camellia sinensis products but may be necessary with certain botanical ingredients used in tea blends and herbal tea blends. As such, these past issues impacted the US organic tea industry to varying degrees.

The potential for fraud has been another significant and ongoing concern. Not only do fraudulent organic products de-value the perception of the organic brand, but high enough volumes can affect the pricing of organic products. When fraudulent organic products can be produced and sold at cheaper prices than authentic organic products, this raises the risk that legitimate organic producers get pushed out of business.

Changes in the strengthening organic enforcement (SOE) rule

Some of the major changes included in the SOE regulations that will impact the tea industry include:

• Exemptions: Under the old regulations more entities along the supply chain could be considered exempt, especially if they were handling the finished, packaged product and not coming in contact with the actual raw materials (leaf in the case of tea). Under the new regulations, organisations that sell in bulk from the farms, load/unload, store/warehouse, transport, and repackage organic products will likely need to be organic certified. To be clear, not all warehouses holding organic tea will necessarily need to be certified organic. Not all ocean container ships transporting organic tea will need to be certified. The best way to understand what exemptions are allowed under the new SOE regulations is for tea companies to contact their organic certifying agent for clarification.
• Traceability, Fraud Prevention and Inspections: Operations must include a fraud prevention plan as part of their organic system plan. During annual inspections, inspectors will conduct ‘in-out’ and ‘trace-back’ audits. These audits aim to verify that correct volumes of organic materials are accounted for coming in and out of the operator’s facilities. Inspections must also verify the organic products and organic ingredients are compliant back to the previously certified operation in the supply chain. In addition, certifying agents/organisations must also identify ‘high risk’ operations and products. High-risk products may come under greater scrutiny as they are traced throughout the supply chain.
• NOP Import Certificates (NOPIC): The NOPIC may be one of the newer and more significant changes affecting how certifier organisations in the country export get involved in the documentation of organic tea from origin. Imported organic products must be declared to the US Customs and Border Protection’s Automated Commercial Environment (ACE) system using data from a NOPIC that is to be generated by the exporter’s certifying agent/organisation.

Since the majority of the US’s organic tea is exported from a few major producing countries, the new NOPIC requirement could affect the timeliness and costs related to the import/export process. A representative of Ecocert USA, which provides selected organic, fair trade and social responsibility programs and certification services, was contacted to explore how the NOPIC may impact the flow of tea imports into the US.

Graph courtesy of Firsd Tea

Will a rise in demand for organic exports following the Spring tea harvest and the associated requests in NOPICs create delays or the need for more processing times for exports?

Ecocert spokesperson: Starting March 2024, exports to the USA shall be accompanied by a NOP Import Certificate (NOPIC). Before issuing a NOPIC, the certification agency will define specific verifications to confirm the compliance of the goods. Concerning Ecocert, the level of verifications may depend on the risk of the supply chain in question. The riskier the supply chain, the more robust the verifications before issuing the NOPIC. This administrative step to obtain the NOPIC, which was not required beforehand, will need to be anticipated by the exporter to avoid any delays.

As such, it would seem that the infrastructure and systems for processing NOPIC requests is considered robust and sufficient, but delays could be related to certifiers’ (of exporters) level of familiarity with the submission process and the varying degrees of compliance documentation that is required. Only the certifiers of exporters, not the certified organic tea exporting organisation itself, will be uploading documentation and requesting the NOPIC. Any organisation or product that has been deemed high-risk by the certifying organisations may require the certifier of export to submit more extensive documentation with the NOPIC request.

At what point in the process does the NOPIC need to be received by the exporter and/or importer? Before leaving the country of origin? On landing in the US? Other?

Ecocert spokesperson: There is no rule defined in the SOE about the reception date. The only date is about the NOPIC requesting date. Per 205.273(a) of the SOE regulations: The NOP finally indicated [in March] that the NOPIC should finally be issued ‘before departure’ which is different than what is written in the requirement. It is also mentioned that each import must ‘be associated with valid NOP Import Certificate data’ while being declared as organic to US Customs and Border Protection (on the ACE portal).

Certifying agents determine their own fees in terms of processing/verifying NOP import certificates. Is there a consensus across certifying agents in various countries as to standardizing the fees/rates?
Ecocert spokesperson: At the time of writing, there is no consensus on the fees related to the issuance of NOP Import Certificates (NOPIC) among certifying agents. Each certifying agent will communicate the fees to their clients once they are defined.

Value of SOE Regulations

As the SOE regulations go into effect, operations in the certified organic supply chain have been made aware of the changes needed to comply with the new rules. Overall, the new rules seek to improve compliance and security of the organic supply chain while imposing as little added administrative burden as possible. Operations involved in USDA organic certified tea can expect the need to process more documentation and (perhaps) an increase in surprise inspections.

It is worth noting that the SOE regulations are designed to increase traceability, but not necessarily transparency. In most cases, certified organic operations are required to document traceability back to the most recent certified upstream operation. Neither operators nor consumers can necessarily expect to have access to records that visibly trace a product through all the actors in the supply chain back to origin.

The tea industry will not be the only agricultural product affected by the roll out of these new regulations, but considering the US imports nearly all of its organic Camellia sinensis and a significant number of organic botanicals used in teas and herbal tea blends, the effects may be more widespread. Each year, about two percent of Camellia sinensis import volumes are organic, but that share rises to eight or nine percent of the total value of tea imports.

Since these imports arrive from various countries with the potential for multiple certifying agents active in those countries, some countries and tea suppliers may vary in terms of adapting to these changes. US organic tea operations that are concerned about these changes are advised to reach out to their certifying agent organization and the certified organisations in their supply chain to better understand any potential impacts to their businesses.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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As acrylamide is considered carcinogenic, limitation and mitigation of this process contaminant in food is a priority in regulatory acts worldwide. Typically, acrylamide is formed when starchy food materials are exposed to high heat, such as during roasting and extraction to produce soluble coffee, coffee concentrates as well as cereal- or chicory-based coffee surrogates.

Acrylerase is the first commercially available enzyme for direct decomposition of acrylamide, enabling effective on-site control of acrylamide levels during the processing of soluble coffee and coffee extracts. It is a flexible and simple drop-in solution that can be easily integrated into existing manufacturing processes. Thus, Acrylerase can help with regulatory compliance without the need for other costly mitigation measures. All this makes Acrylerase a game-changing application in the manufacturing of soluble coffee and coffee extracts.

Dr Marc Struhalla, CEO of c-LEcta, expressed excitement in introducing Acrylerase to the market, “This innovative enzyme product offers a practical solution for soluble coffee manufacturers. Acrylerase can efficiently reduce acrylamide levels without compromising taste or disrupting production processes.”

“We are excited to launch Acrylerase together with c-LEcta,” added Jan Schwital, managing director of ANKA, a coffee technology company. “We believe simplicity and efficiency are key to any successful industrial application. Acrylerase provides just that for controlling acrylamide in instant coffee and coffee extracts.”

Regulatory compliance and brand protection

Consumers are becoming more and more aware of the potential risk of acrylamide in food. In some countries such as South Korea and in the EU, directives and regulations are already in force to mitigate acrylamide and limit consumer exposure, ie, by introducing benchmark levels and monitoring acrylamide levels in various product categories, including soluble coffee. In addition, the introduction of fixed maximum limits is currently under discussion by the European Commission.

“Acrylerase not only offers soluble coffee manufacturers a much simpler and more flexible way to comply with acrylamide regulations than was previously possible, but also enables usage of coffee volumes that may otherwise be rejected due to high acrylamide formation,” remarked Oliver Süße-Herrmann, managing director of ANKA.

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The update, approved by the Fairtrade Standards Committee, meets, and in some areas exceeds, the European Union’s Deforestation Regulation (EUDR) that went into effect in June 2023. In particular, the updated Fairtrade Coffee Standard sets the deforestation cut-off date at 1 January 2014, which means that no coffee should come from land deforested after that point. It also requires that all farms have recorded geolocation points, and farms larger than four (4) hectares must have polygon maps.

Juan Pablo Solis, senior advisor climate and environment, Fairtrade International, explained that the updated Coffee Standard is important because it represents a big step in the right direction. “There is no denying we are living in an era of climate crisis. For farmers and workers, the frequency and severity of climate variability means high exposure to human and environmental risks that jeopardise their livelihoods. It is no secret that climate change directly impacts smallholders’ future, hence a significant change in our global food system is paramount.”

In addition, the Standard requires coffee cooperatives to develop a prevention and mitigation plan, and they must conduct deforestation monitoring that will be facilitated by a satellite platform provided by Fairtrade. Fairtrade has established a partnership with Satelligence, a leader in deforestation tracking, that will allow producer organisations to have access to data and act on risks identified.

By updating the Coffee Standard, 600 Fairtrade coffee cooperatives, representing 870,000 Fairtrade coffee farmers cultivating 1.1 million hectares, would have the guidance and tools to meet the EUDR, which is part of the European Green Deal.

For instance, the EUDR requires geolocation data, but the Fairtrade Standard goes further by requiring producer organisations to collect this information, and payers and conveyors to report it to Fairtrade and also share this with the producer organisations to prevent deforestation. This detail points to the principle of fairness, meaning that the responsibility of protecting the environment must be shared by all those involved. The EUDR cutoff date is 31 December 2020, while the Fairtrade cutoff date is 1 January 2014. Plus, the Fairtrade Standard requires not only monitoring and risk assessment but also a biodiversity monitoring and management plan unlike the EUDR requirements.

The updated Standard will take effect in 2026, which will provide producers and traders with a transition period to adjust their practices and ensure compliance.

Fairtrade standards are reviewed and regularly updated through an inclusive and consultative process initiated and led by Fairtrade International’s Standards and Pricing Unit, with the participation of key stakeholders in the Fairtrade system, including farmers and farm workers, and then decided upon by the Fairtrade International Standards Committee. The committee, which includes representatives of the three Fairtrade Producer Networks, ensures that any decision considers the views of all the relevant stakeholders and are in line with Fairtrade International’s mission and policy statements.

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After a successful pilot programme in Vietnam, JDE Peet’s has signed Memoranda of Understanding (MOUs) with Ethiopia, Papua New Guinea, Tanzania, and Uganda, and expects to sign MOUs with additional coffee producing countries over the next several months. These agreements aim to ensure that coffee producers export coffee grown on land that was not deforested after 2020. If the coffee does not meet these requirements, JDE Peet’s will support local authorities, NGOs, and farmers to reforest the land.

Fabien Simon, CEO of JDE Peet’s, commented, “At JDE Peet’s, we are committed to delivering sustainable growth that creates both shareholder return and societal value. This means making sure our supply chain is inclusive, regenerative, and authentic, which is exactly what our Common Grounds sustainability programme is designed to do. I am excited that this innovative new programme, which is fully aligned with the EU’s Regulation on Deforestation-free products, will ensure continued access to the EU market for the millions of smallholder farmers we work with around the world.”

David Browning, CEO of Enveritas, commented, “Millions of smallholder farmers around the world rely upon coffee income to pay for their children’s health, education, and nutritional needs. The new EU regulation risked significant new complexities and processes in the coffee supply chain which could mean new costs for vulnerable populations least able to afford it, and also risk market access. We are honoured to be a part of this innovative collaboration with JDE Peet’s which brings together public, private, and philanthropic organisations to address deforestation in a manner which also protects smallholder farmers.”

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4C, the sustainability certification scheme for the coffee sector, introduces its new Regulation for 4C certified EUDR Coffee in response to the obligations faced by importing and exporting operators under the EUDR which will be fully implemented by 30 December 2024. The obligations entail the establishment of a robust due diligence system, providing information on encompassing product details and traceability, geolocation specifications, deforestation-free production practices, legality of production, and comprehensive risk assessments.

What sets 4C apart is its strategic collaboration with Global Risk Assessment Services (GRAS), seamlessly integrating state-of-the-art risk assessment procedures such as high-resolution satellite image interpretation for forest and deforestation monitoring, complemented by an extensive data set covering national legislation, human rights, claims by indigenous peoples, corruption indices, and information on law enforcement. This unique approach, combined with the already incorporated traceability platform, allows every coffee batch to be traced back to its origin with all relevant data. 4C provides the necessary information, risk assessment, and risk mitigation crucial for the Due Diligence Statement required by the EUDR.

4C certification focuses on good agricultural and management practices, including requirements on economic, social and environmental conditions for coffee production and processing in order to establish credible sustainable and transparent supply chains.

The documents for 4C certified EUDR Coffee are now available on the 4C website. They comprise the Regulation for 4C certified EUDR Coffee v.1.0 and the Self-Assessment and Self-Declaration templates which provide a tool for 4C certified groups of farmers to assess their risks with regard to relevant national and international laws and declare their conformity, as well as the Guidelines for Geodata collection v.1.0. The 4C system will be monitored and revised according to any further guidance and requirements to be provided by the authorities of the European Union.

The application of 4C certified EUDR Coffee is available for all 4C Units in 2024 before being integrated into the revision of the 4C System in 2025. Thus, from 1 January 2025 all 4C certified coffee will be required to comply with these additional EUDR criteria. In February 2024, 4C will conduct a series of introductory webinars to facilitate the understanding of the new Regulation for 4C certified EUDR Coffee for all 4C System users. The dates will be announced shortly.

By choosing 4C, companies can be confident that their supply chains meet the highest standards of compliance, laying the foundation for sustainable, trustworthy, and fair coffee and cocoa sourcing.

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With corporations beginning to grasp that sustainability and corporate social responsibility (CSR) are important to customers and for the long term future of businesses, company claims of achievements and action plans are everywhere, alongside, of course, accusations of greenwashing. Which is why it is increasingly important for businesses to have certifications against their claims, to enlist consumer and stakeholder trust. Whether it be Fairtrade, Rainforest Alliance, organic, B Corp, non-GMO or vegan, consumers and company partners are looking for the certification labels, especially within the tea and coffee industry.

Certifications are notably prolific in the tea and coffee value chains. With 17 percent of tea, globally, certified Fairtrade, organic or Rainforest Alliance, and 25 percent of global coffee certified by these or similar schemes, according to Ethical Consumer (ethicalconsumer.org). This may be due to the fact that many tea- and coffee-producing areas are in developing countries, as well as the way in which both products are marketed to consumers; the origin of the tea and coffee is often one of its main selling points and helps the consumers build a narrative of the product before deciding to make the purchase. By instilling this focus and painting a picture of where the tea or coffee grew and was farmed, it is natural for consumers to want to imagine it with fair working conditions, nature friendly processes and beneficial to its local area, socially and environmentally. Amanda Archila, executive director, Fairtrade America, explained, “Coffee and tea are two critical commodities for Fairtrade. Globally in 2021, Fairtrade worked with 872,916 coffee farmers, and 400,402 tea farmers and workers. Premiums earned across coffee and tea amounted to over USD $102 million. We partner with traders, roasters, brands, and retailers around the world to ensure Fairtrade is easily accessible to consumers.”

As one of the biggest players in the tea and coffee certification field, Fairtrade as an organisation facilitates equitable and sustainable trading for producers in developing countries, working with co-operatives, businesses and governments. It does this by enforcing a Fairtrade Minimum Price for when the market price drops, as a safety net for producers, as well as an additional fixed Premium payment to be paid on top of the market price, to be invested in producers’ local communities.

It is an organisation and certification that is seeing a lot of growth; “The number of certified tea farmers in the Fairtrade system has been gradually increasing over the past few years: up to 347,000 in 2021 compared with 319,500 in 2019, in diverse origins,” commented Amy Collis, senior sustainable sourcing manager, Fairtrade Foundation.

Archila added that recognition among consumers has also increased: “Since 2019, recognition of the Fairtrade label has jumped by 118 percent among US shoppers,” demonstrating the building consumer interest in certified products. Archila continued, “Gen-Z shoppers showed the highest increase in recognition of the Fairtrade label among all age groups: 18-24 year olds who recognised the mark jumped by 121 percent, from 33 percent in 2021 to 73 percent in 2023. And millennial shoppers (25-34) are the most frequent purchasers of Fairtrade products.”

Archila agreed that “in the broader world of sustainability products, consumer awareness is definitely in the mainstream. Eighty-six percent of shoppers recalled seeing a sustainability or ethical label on a product while shopping. We also see this consumer connection to sustainable and ethical products growing stronger in the future.”

While the Fairtrade certification is seeing growth worldwide, Collis explained that the UK is currently the biggest market for Fairtrade tea, holding a share of 62 percent of Fairtrade tea sold globally. Collis said this was due to strong commitments from retail partners, “with Marks & Spencer, Waitrose and Co-op all having a 100 percent Fairtrade commitment on tea and coffee.”

Image: Kloth & Köhnken

Duncan Gray, head roaster and managing director, Bay Coffee Roasters, a west Wales, UK -based roastery, explained why the Fairtrade certification is important to his company: “Fairtrade is often far more than paying a good price to the farmer and also their workers, many of the Fairtrade cooperatives that we have worked with have community initiatives providing training and education for the families, health care and often other improvements to the local area.”

Consumers embrace organic

Bay Coffee Roasters’ other major certification that it champions, is organic, which often goes hand in hand with Fairtrade, with “over 50 percent of Fairtrade farmers [choosing] to go organic: tea, coffee, chocolate, bananas and cotton are among the products carrying dual Fairtrade and organic certification,” said Collis, as they both call for sustainable farming practices. “The nature of organic farming where farmers cannot rely on chemicals means that they generally have to care for their land, respecting its bio diversity and farming in a more sustainable way. Organic certification means that the farmers have to keep to their word,” said Gray. With organic farming, the emphasis is on techniques such as crop rotation, biological crop protection, green manuring and composting, and different regions have their own organic certifications, such as the EU and USDA Organic.

As discussed in ‘The Balance of Organic’ feature in the Tea & Coffee Trade Journal October 2023 issue, the organic market is seeing growth, with the tea market holding a value of USD $1.24 billion as of 2023, with a CAGR of 8 percent through 2033, while the organic coffee market estimates are even higher with a CAGR of 12.5 percent until 2028, according to market research companies FMI and Mordor Intelligence. Organic products are not only perceived as better for the environment and for the producers by the consumer, but they are also believed to be healthier, with less chemicals needed to grow and process them.

Gray added that they even have some customers who will buy only organic coffee, and whether that be for sustainability, ethical or health reasons, it is clear it is something that is important to many customers, or at a minimum regarded highly and as a bonus to their purchases.

Organic tea is something that it is ingrained in Kloth & Köhnken’s (K&K) identity, explained Sandra Nikolei, tea department/corporate social responsibility at K&K; “Organic farming can result in a better taste of a product as the plant grows slowly compared to most conventional products.”

Nikolei added that they are seeing much interest from their customers for organic products, but also for Rainforest Alliance-certified products. Rainforest Alliance, an even bigger scheme than Fairtrade and which now includes the UTZ label, is another non-profit organisation that promotes responsible business practices and strives to improve producer livelihoods and communities, especially in the face of the climate crisis. It does not do this with fixed pricing structures, but rather through policing production.

Image: Rainforest Alliance

“As we approach 2030 – a year experts mark as the potential point of no return – we must respond with unparalleled speed and scale to shift the course of sustainability transformation,” said Rainforest Alliance CEO, Santiago Gowland, “The hard truth is that the old sustainability models are good but not good enough.” The Rainforest Alliance certification has been going for 35 years, and, as of December 2022, has since achieved sustainability projects and certified farmers in 58 countries, worked with over 6,000 companies, and made Rainforest Alliance certified products available in 190 countries.

B Corp on the rise

Another major certification that is rising to the forefront of the tea and coffee industry, indeed most consumer industries as a whole, is B Corp. For a company to achieve B Corp certification, it must be verified by the ‘B Lab’ organisation, to “meet high standards of social and environmental performance, transparency and accountability,” B Lab explained. There are B Labs across the world, including UK Australia, East Africa, Europe, and North and South America, with 6,800 B Corp certified companies across 89 countries and 161 industries.

Duncan Gray that becoming a B-Corp is next on Bay Coffee’s agenda to achieve, joining the many tea and coffee companies certified as B Corps, such as Nespresso, Pact Coffee, English Tea Shop, Bigelow, and Pukka Herbs to name a few.

The cost of certifications

Many companies, including Bay Coffee and K&K, hold multiple certifications, particularly if they have a strong international presence as different certifications are more popular in different regions. K&K for one, lists Fairtrade, Fair Trade USA, Bio EU (organic), Bio Suisse organic, USDA Organic, Rainforest Alliance, FairBioTea, and kosher, among theirs.

Different certifications cover different areas and demand different requirements from companies, so perhaps the more the better, it could be argued. There is such a variety of certifications available, many much smaller than the ones listed here, and it comes down to a company’s specific operational practices, locations, and community needs as to what certifications will have the largest impact on its environmental and social undertakings. However, it is the big names such as Fairtrade, Rainforest Alliance, organic, and B Corp that seem to be major drivers of consumer and customer interest and purchases.

Image: Bay Coffee Roasters

But there are also a lot of conversations around certifications in relation to pricing and verification. Consumers realise that they will likely pay more for certified products than they do for those without certifications. “For a pound bag of coffee, shoppers said they were willing to pay a price premium of up to 35 percent more for certified coffee over uncertified. Nearly four in five consumers said they were willing to pay more for a product to ensure that producers received a fair price,” explained Archila.

While it is understandable that there must be additional costs to ensure the producer is receiving a fair price, it does mean the more price sensitive consumer may struggle to choose the ethical option when making their purchasing decisions. This allows the mass produced and possibly unethically sourced tea and coffee companies to keep a sizeable share of the market. Collis detailed that “Fairtrade-certified organisations sell only around 4 percent of their tea on Fairtrade terms – this means they don’t benefit from being certified to the extent that they could. When shoppers choose Fairtrade tea, tea producers can sell more of their product on Fairtrade terms.”

So, while there is growing demand for certified products, and a certain amount of consumer willingness to pay extra for them, there may not be enough for producers to justify the additional expense if it is not being bought from them at the certified price.

Certifications are costly for the producer as well as sometimes for the consumer. “Significant commitment is needed from producers to achieve and maintain compliance with the Fairtrade Standards: but it isn’t always feasible for producers who are facing other challenges, such as rising costs of inputs, low market prices and the effects of climate change,” said Collis. Likewise with organic, there is a conversion phase where anything grown cannot be sold under the organic title with the benefits that come with it, until the transition is complete, and no compensation is offered for the expense or yield loss.

K&K is proud of its certifications and recognises their value, but also their limitations; “Certifications are necessary to help to make the world a better place. But often they are too cost intensive and too difficult to implement, for farmers, small businesses and for start-ups. They should be less complicated and should focus on an easy way to make changes. Imposing the same requirements on everyone in this world and origin is, from our point of view, unfortunately very European and unidimensional. It should be more individually adaptable. Many certificates are too bureaucratic and rigid,” explained Nikolei.

Therefore, while they are an important mark of credibility and of good intentions to inform consumers, having certifications is not the only nor final step to sustainability and ethical business practices. “Certification can only ever form part of a company’s sustainability efforts,” articulated Collis, they do not “replace the duties of state or business actors with respect to human rights or sustainability.”

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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The Fairtrade-Satelligence partnership and expansion plan will also support producer organisations – representing more than one million coffee and cocoa farmers cultivating 2.5 million hectares – to meet the European Union Deforestation Regulation requirements so they can maintain access to important markets in Europe and beyond.

“This partnership focuses on an increasingly important area of trade: access to risk management data, which defines what cocoa and coffee can enter the EU market,” said Jon Walker, senior advisor for Cocoa at Fairtrade International. “Whoever has the data has the key to market access. Many large buyers have their own monitoring systems that cover the cooperatives they buy from, but they don’t necessarily share what they see with the cooperatives themselves. Inequalities in trading relationships will only widen if producer organisations are reliant on their trade partners for access to this important data. This partnership enables producer organisations and their smallholder members to have access to the data and act on risks identified.”

Producer organisations are key partners in gathering this information, and contributing to risk assessments and mitigation and prevention efforts. By equipping cooperatives with data about the farms where their cocoa and coffee is produced, they can make informed business decisions as well as offer this value to their trade partners.

Building on a set of cocoa cooperatives that tested geolocation and monitoring functionality in Côte d’Ivoire and Ghana last year, the new three-year partnership aims to include all Fairtrade certified cocoa and coffee producer organisations by 2025.

“Our collective goal is that farmers have the data they need to move forward in a changing regulatory environment, which ultimately contributes to their sustainability as businesses and communities,” said Arisbe Mendoza, director of global impact for Fairtrade International. “The partnership provides a proven satellite monitoring system combined with technical support from Fairtrade to interpret and manage the data on an ongoing basis. This is an important step in our journey to bring more transparency to supply chains.”

Producer organisations provide geolocation data for each of their members’ farm plots. Satelligence’s platform verifies this geolocation data to ensure data quality. Second, the system detects any deforestation activity within members’ boundaries, and whether or not farms are located in protected areas. It also flags deforestation near the farm, an important piece of information that contributes to cooperatives’ risk assessments. Finally, the system generates reports that cooperatives can use themselves, and provide to their customers or potential customers.

“We strive for a more inclusive and sustainable future by giving smallholders the most advanced tools to empower and encourage them,” said Niels Wielaard, CEO at Satelligence. “We are proud to partner with Fairtrade, making sure we help prevent further marginalisation of farmers by unlocking access to markets with proof that their goods are deforestation-free. Many companies are still unprepared for EU Deforestation Regulation, but Fairtrade cooperatives will be ahead of the curve. It is a big task but it can be done. We hope the world will invest more in smallholders, in particular in supporting those doing the right thing in vulnerable, high deforestation-risk regions.”

The Fairtrade Cocoa Standard aligns with the EU Deforestation Regulation requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points. Importantly, Fairtrade also requires traders to support producer organisations from which they buy in their deforestation monitoring and prevention efforts, whether through material or financial support. The Fairtrade Coffee Standard is being reviewed to include similar requirements, scheduled to be decided on by the Fairtrade Standards Committee in late 2023.

The scale-up of deforestation monitoring capacity is part of Fairtrade’s efforts to raise awareness about the importance of farmers and workers having more power as trade partners and in negotiations about regulations that affect their livelihoods.

Losing access to core markets, such as the European Union, would be devastating to smallholder coffee and cocoa farmers who mostly rely on these products for their livelihoods. If the economic realities of smallholder farmers are not taken into account, the legislation could lead to unintended consequences, such as a rise in illegal land use by farmers forced to find other sources of income. This would ultimately undermine sustainability, forest preservation, and the very intention of deforestation regulations.

“Deforestation legislation is an essential step, but the effects on smallholders are still unknown,” explained Walker. “The European Commission urgently needs to step up coordinated efforts to assess country-by-country readiness and impacts on covered sectors, in close collaboration with local stakeholders. It is worth noting that while technology such as satellite imaging continues to improve monitoring, the causes of deforestation are multi-dimensional, including poor legislation and governance, limited available economic opportunities, and poverty. Improving farmers’ livelihoods on the way to living incomes must be part of the approach to ensuring healthy forests and sustainable communities.”

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The ANSI/PMMI B155.1-2023 standard has undergone a meticulous revision, guided by a panel of industry experts convened by standard developer, PMMI, to address evolving safety concerns, technological advancements, and changing operational landscapes. The development committee includes new contributors providing deep insights from machine builders, consumer packaged goods companies, and technology suppliers.

“By introducing these comprehensive updates, the ANSI/PMMI B155.1-2023 standard sets a new benchmark for safety in the packaging and processing machinery industry,” said Tom Egan, vice president, industry services, PMMI. “This revised standard reaffirms the commitment of PMMI to the safety and well-being of industry professionals, ensuring that technological advancements go hand-in-hand with the highest levels of safety.”’

“Safety is critical to all operators. With an evolving work landscape, having industry standards that are rigorously evaluated on a consistent basis allows us to stay vigilant in mitigating risk,” commented John Uber, head of product compliance for PMMI member company, Mettler Toledo.

The standard guides packaging and processing machinery suppliers and users through a formal, documented risk assessment process designed to ensure that reasonably foreseeable hazards are identified, and corresponding risks are reduced to an acceptable level.

A few key highlights of the standard’s updates include:

• Refined Responsibilities: The revised text explicitly outlines the responsibilities of machinery suppliers, users, modifiers, purchasers of used machinery, and other stakeholders, fostering a safer working environment through increased accountability. The update addresses machinery-as-a-service, or MaaS, including equipment loaned or provided by a third party and located in a user facility, as well as mobile platforms, robots used for logistics, cleaning, and more.
• Introduction of Co-Packer / Co-Manufacturer Concepts: The new edition introduces the concept of co-packers and co-manufacturers, delineating their associated responsibilities within the framework of safety regulations.
• Updated Legacy Machinery Requirements: The responsibilities for existing (legacy) machinery have been updated and clarified to ensure that older equipment is brought in line with the latest safety standards in a practical, cost-effective, and appropriate way.
• Clarified Scope: The scope of the standard has been clarified to provide a more precise understanding of its applicability, reducing ambiguity, and allowing for improved implementation.
• Remote / Tele-Operation Enhancements: With the advancement of remote operations, the standard now offers improved information and guidelines for safely operating machinery through remote means.
• Reorganised Clauses 4 and 5: The standard now features a restructured layout for enhanced clarity and ease of reference, streamlining the reading experience for professionals in the field.
• Whole Body Access Requirements: The standard now includes comprehensive requirements for situations where whole body access is applicable, safeguarding operators from potential hazards.

The first version of this standard was approved by the PMMI membership on 27 September 1972. It was approved by ANSI on 6 August 1973. The standard has been reviewed and revised with subsequent approvals by the ANSI Board of Standards Review in 1979, 1986, 1994, 2000, 2006, 2011, and 2016.

The ANSI/PMMI B155.1-2023 standard will be available for purchase through the ANSI webstore.

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