Fresh Cup Magazine May 2002
Shade-Grown Coffee
Helping an Industry Turn Over
a New Leaf
http://www.freshcup.com
story by April Pojman
In recent years, sustainability
has become a hot topic in the specialty coffee industry. But as
discussions about organic and fair-trade coffee have intensified,
it has become increasingly clear that the lesser-known "third
leg" of the coffee sustainability stool--shade--is wobbling
and in need of repair.
While the organic movement
has become practically mainstream and fair-trade coffee has enjoyed
unprecedented growth since 1999, shade coffee has lagged behind.
According to Daniele Giovannucci's 2001 Sustainable Coffee Survey
of the North American Specialty Coffee Industry, 98.7 percent
of businesses contacted were aware of organic coffee, and 82.5
percent knew about fair trade, but only 76.4 percent were familiar
with shade-grown coffee. Moreover, only three percent of specialty
coffee drinkers reported having purchased shade coffee.
Why the lack of awareness?
Despite shade-grown coffee's biological value and potential as
a conservation-oriented marketing tool, it has been plagued by
confusion, criticism and slow acceptance. Clearly, there's plenty
to learn about shade coffee, its position in the sustainable coffee
arena and its enormous marketing potential for unique specialty
coffees.
Shedding Light on Shade
Traditionally, coffee grows
in the "understory" beneath the forest canopy, as part
of a larger ecosystem. Different layers of vegetation provide
food and shelter for animals and insects, soil replenishment through
leaf litter, microclimate stabilization, and protection from soil
erosion and water run-off. Under natural conditions, coffee is
one of the most environmentally benign and ecologically stable
cash crops in the world.
But not all shade is equal.
There is a broad variety of shade coffee systems, ranging from
monocultures--a single species of shade tree--to highly diverse
polycultures with many species. The greater the number and type
of shade tree, the greater the biodiversity of plant and animal
species in a given area.
Although an undisturbed area
is always preferable for conservation purposes, extensive and
reliable scientific studies have shown that shaded coffee plantations
can serve as important migration corridors or alternative habitats
for native and migratory animals. In return, shade trees provide
many benefits to coffee farmers, including less need for chemical
inputs, and production of wood, food and medicinal products that
diversify the family economy.
At the same time, shade trees
provide what are known as "ecosystem services." These
are natural environmental functions--such as air purification,
nutrient recycling and soil formation--that are very difficult
and costly to achieve without the help of natural processes. According
to a 1997 Nature article entitled "The Value of the World's
Ecosystem Services and Natural Capital," ecosystem services
are estimated to be worth some $33.3 trillion. The article goes
on to compare that figure to the total combined gross national
product of all of the world's economies--only $18 trillion. Some
argue that farmers should be paid shade premiums based on this
idea.
To Certify or not to Certify?
Shade-grown coffee has enjoyed
the spotlight only sporadically in certain parts of the United
States. One of the main reasons is that shade lacks a worldwide
champion like the International Federation of Organic Agriculture
Movements (IFOAM) or Fair Trade Labeling Organizations International
(FLO), both of which have created widely accepted and enforceable
definitions and standards for their certification systems.
Some critics contend that the
term "shade" itself is a misnomer that prevents its
widespread acceptance and that the concept should be re-branded
as "habitat-friendly" or "ecosystem-friendly"
to convey the benefits it provides. Others take the opposite tack,
arguing that the shade concept should refer to the problems it
addresses, such as deforestation.
The U.S. has two separate shade
certification systems intended to ensure that Latin American shade-grown
coffee is produced under a set of scientific guidelines. One is
the Eco-OK program developed by the Rainforest Alliance and a
network of Latin America environmental organizations, and the
other is the Smithsonian Migratory Bird Center (SMBC) criteria.
Both systems' standards require a minimum of 40 percent shade
coverage, as well as specified tree heights and numbers of non-deciduous
native tree species.
Eco-OK is a stand-alone certification
that covers many aspects of farming. It requires a minimum of
12 species of native trees and at least 70 trees per hectare (one
hectare equals 2.47 acres). It also includes regulations regarding
agrochemical use, water resources, soil and waste management,
hunting, working conditions, and community relations. Within the
next year, Eco-OK auditors will begin to certify for organic and
fair-trade criteria as well.
SMBC guidelines focus exclusively
on shade. In September 2000, SMBC began a series of workshops
to standardize the definition of shade and to align itself with
organic certifiers so that a single technician can inspect for
shade and organic standards in one visit. Currently, all SMBC-certified
farms must also have organic certification.
Francisco Mena, general manager
of the Lomas Al Rio coffee farm, recently went through this new
certification process, making Lomas Al Rio the first SMBC-certified
farm in Costa Rica. He explains that an organic inspector visiting
his farm had completed one of the SMBC workshops, so during his
inspection for organic, he recommended that he also inspect for
SMBC standards. Mena approved the idea, and the total cost for
certification was around $320.
The trend toward integrating
certification systems is occurring in other areas as well. For
example, FLO criteria for bananas already includes some environmental
standards. And the Eco-OK's Sustainable Agriculture Network is
working with FLO, IFOAM and Social Accountability International
to develop a "Social Accountability in Agriculture"
program. These initiatives are important, because many farmers
find the preparation, transition to compliance, and certification
difficult and costly. For example, farmers seeking Eco-OK certification
must pay for technicians to perform site visits and evaluations
($7.50 per hectare), and they must cover the technicians' travel-related
expenses ($100-$150 per day plus travel expenses, depending on
where the nearest inspector is located). Achieving and maintaining
more than one certification is simply beyond the economic capacity
of most producers.
For this reason, a "super
seal" concept that combines organic, shade and fair-trade
criteria is gaining support among importers, roasters and retailers.
In the Sustainable Coffee Survey, nearly two-thirds of the specialty
coffee industry supported a "super seal" as a simpler
of way of communicating sustainability in the marketplace.
Still, there are many other
areas of confusion and contention regarding shade in the coffee
industry. In the Sustainable Coffee Survey report, nearly 45 percent
of the companies claiming to carry shade-grown coffee did not
even know who their shade-certifying agency was. Many importers,
roasters and retailers add to the confusion by selling "verified
shade" coffee, which comes from plantations that have not
been certified by Eco-OK or SMBC but have been visited by someone--often
an importer--who, without scientific guidelines, checks to make
sure shade trees are present on the farms. Most people seem to
agree that certified-shade is the clearest way to convey the concept
in the marketplace and provide a transparent method of ensuring
validity of shade claims.
Shade From Below
There are four broad elements
of shade certification that the industry agrees upon:
1. Certification should not increase the financial
burden on farmers.
2. Producers who go through the certification
process should get a premium price.
3. Certification criteria should be developed
with input from farmers.
4. Certification should be based on valid scientific
data to ensure that shade increases biodiversity.
Because of the lack of coordination
surrounding shade coffee, most of these points have not been implemented,
and they are actually the source of many farmers' complaints about
shade certification. For example, many producers are interested
in being certified, but they cannot afford it. "When we wanted
to get certified, the price of coffee had already gone down, so
it wasn't very attractive for the producers," says Lorena
Calvo, a conservation biologist studying coffee farms in Guatemala.
"[Farmers] have to pay for the certification, make the changes
on the farm and then look for a market for their coffee."
Farmers also often feel that
if they cannot get a higher price for shade-certified coffee,
the time and expense involved in the certification process cannot
be justified. Asked what the benefits of certification are for
farmers, Francisco Mena answers, "We don't know yet. I expect
someone [might be willing to pay an] additional premium. We're
all making an effort for the good of the whole, but we need motivation."
"A lot of certified coffee
ends up in the market at conventional prices," acknowledges
Christopher Bacon, a doctoral student in environmental studies
at the University of California-Santa Cruz who works with coffee
cooperatives in Nicaragua. "We've been discussing with growers
their decision to become certified, because there is a risk that
they won't realize a price premium. They need to consider other
positive impacts of shade production, such as reducing costs or
improving working conditions."
For many producers, there simply
isn't enough demand for shade coffee. "Our idea is to start
certifying just a few producers, because the market seems small,"
says Nicolas Eberhart, marketing coordinator for the PROCAP coffee
cooperative in Ecuador. "Only one importer has inquired up
to now. [We will] begin with the producers who already have organic
certification. The only problem is the shade seals--there is much
confusion about them in Ecuador."
In fact, according to the Sustainable
Coffee Survey, of the 6.6 million pounds of coffee that were shade-certified
globally in 2000-2001, only 2.1 million pounds were sold as such.
Importers agree that shade certification doesn't often bring farmers
a premium, but it may help their coffee sell more quickly. All
other factors being equal, roasters are more likely to purchase
certified-shade coffee over an equivalent uncertified coffee.
A Shady Future
In order to gain wider appeal,
shade-grown coffee needs a unified front to champion a biodiversity-
and farmer-friendly definition of shade and to coordinate compliance
and education around that definition. This is hardly a quick fix,
but it's the only way that shade will gain more respect and popularity.
In May 2001, five non-profit
organizations that work on coffee conservation issues (Conservation
International, Consumer's Choice Council, Rainforest Alliance,
Smithsonian Migratory Bird Center, and the Summit Foundation)
took a step toward creating a unified front by releasing a document
entitled "Conservation Principles for Coffee Production."
The principles were designed to provide common ground for conservation
groups to work with other environmental movements and coffee businesses.
They can also help importers and roasters develop sourcing guidelines
and assist banks and foundations in deciding which coffee development
projects to fund and how to evaluate them.
There also remains a need for
a widespread educational campaign to establish a single definition
of "shade." Many growers still don't know what the shade
standards are or how to get certified. As a result, some retailers
are carrying coffee with "shade-grown" claims that cannot
be verified. More importantly, even with all of the debate in
the industry over shade-grown coffee, most consumers don't even
know that it exists or what it means. The concept of shade-grown
coffee can be difficult to explain on a supermarket shelf to consumers
who lack prior knowledge about how coffee is produced and what
a difference shade can make.
There are hopeful signs, however.
A 1999 survey by the Hartman Group indicates that 86 percent of
American consumers believe that there is a connection between
the health of the environment and their own well-being. And a
March 2002 survey by the Songbird Foundation shows that 75 percent
of Seattle-area coffee drinkers are likely to switch to shade-grown
coffee if they understand the implications. Based on their experiences,
83 percent of those who have purchased sustainably produced coffee
say they would buy it again.
Clearly, the coffee industry's
move toward sustainability will not be complete until the shade
"leg" of the stool is securely affixed.
------------------------------------------------------------------------
April Pojman is the director
of environmental and social policy for Thanksgiving Coffee Company
in Fort Bragg, California. Later this year, she will be moving
to Nicaragua to support Thanksgiving's cupping lab project. She
can be reached at april@yapame.com]
++++++++++++++
Also in the article (but not
on the web version), is a list of arguments for and against certification,
it reads:
Arguments for and Against Certification:
Pro-Certification: 1) Allows
growers to get a higher price for conservation efforts 2) Consumers
know that product is truly shade-grown 3) Provides transparency
and holds companies accountable for their claims 4) Builds trust
between people who have never met 5) Ensures scientific evaluation
of farm biodiversity 6) Establishes a chain of custody that can
be followed to detect fraud
Anti-Certification: 1) Certification
is expensive and time-consuming 2) "Verified shade"
is based on personal relationships, so it's better than bureaucracy
3) Certifiers could be corrupt and falsely label coffee as shade-grown
4) Some importers do more for their farmers than certification
systems do 5) Retail prices will become too high if every aspect
of coffee is certified 6) Brokers, not farmers, should be certified
so they can verify shade conditions
------------------------------------------------------------------------
Global Exchange addition:
Here is a directory of organizations
promoting shade grown coffee.
Songbird Foundation
www.songbird.org
Kim Winters, Executive Director
2367 Eastlake Avenue East,
Seattle, WA 98102
206/374.3674 phone and fax
kim@songbird.org
The Songbird Foundation educates
and motivates people to make sustainable choices to preserve migratory
songbirds. Their current campaign goals are focused on raising
awareness among coffee consumers, retailers, growers and distributors
of the effect of sun-grown coffee on the songbirds and the rain
forest on which they depend for essential habitat
Smithsonian Migratory Bird
Center
http://natzoo.si.edu/smbc/
Bob Rice
rarice@igc.org
3000 Connecticut Avenue NW,
Washington DC 20008
202/673.4908
Researches shade coffee as
bird habitat and supports scientifically-based "bird friendly"
certification. Sponsored first Sustainable Coffee Congress in
September 1996.
Seattle Audubon Society
www.seattleaudubon.org
Ashley Parkinson, Coordinator
8050 35th Ave, NE, Seattle,
WA 98115
206/323.7856 phone
206/528.7779 fax
ashleyparkinson@yahoo.com
To raise awareness in the coffee
industry and in the public at large about the positive role of
shade coffee in conserving migratory birds, a group of local coffee
roasters, retailers, and importers joined with Seattle Audubon
Society to form the Northwest Shade Coffee Campaign.
Rainforest Alliance
Sabrina Vigilante
svigilante@ra.org
www.rainforestalliance.org
65 Bleecker Street, New York,
NY 10012
212.677.1900
888.MY-EARTH
Coordinates
the Eco-OK conservation program to promote sustainable agriculture
with farming partners and coffee companies.
