STiR coffee and tea magazine

16 STiR coffee and tea / Issue 6, 2018 (December / January 2019) Q&A Q A By Dan Bolton STiR: The sustainable model at origin that the entire coffee industry is seeking is in jeopardy. What is the immediate priority in your view on the pressing matter of farmgate prices declining the past two decades to the point they are now below the cost of production? Harbour: Rainforest Alliance is appealing to traders, roasters, and retailers in the global coffee industry to change the way they do business. As prices decline, Rainforest Alliance warns that it is essential to ensure that farmers – large or small – are economically viable businesses. For smallholders, this can be the difference between being able to earn a decent living or being stuck in a cycle of poverty. For larger farms, it can be the difference between paying workers a living wage or not. For all farmers lack of economic viability means they will not be able to invest in sustainable practices, adapt to climatic changes or take steps to respect child and worker rights. It is vital that all actors in the supply chain commit to a long-term and systemic response in order not only to improve prices but also to allow producers to build their resilience to fluctuating markets and increase their profitability. STiR: What do you believe are causes of the current price drop? Harbour: The causes of the current price drop are complex and include issues such as how supply is managed, poorly designed agricultural policies, and insufficient support for farmers and farm management. Speculation in the coffee futures market is also a factor, exacerbating price swings. Yet while the current pricing crisis is particularly dire, fluctuating prices are a trait of any commodity and the long-term sustain- ability of producers will only be possible if it can be achieved within the current market system they rely on. However, as the recent dramatic price falls have demon- strated, the market is not an equal playing field. Producers carry a disproportionate amount of risk, and often lack the knowledge and access to tools that are designed to deal with these risks. This is compounded by being impacted more quickly and more dramatically when the market price drops. Price volatility, especially low prices, often means producers are unable to commit long-term investments needed to implement sustainable agricultural practices. At the same time, they cannot easily exit the coffee market and move into other forms of income generation. STiR: The simplified concept of a linear supply chain comprised of specialized links distorts what is a complex system in which origin adds value up to and including retail packaging; direct sourcing bypasses traditional trade desks and traceability can be a nightmare. Describe how the chain of custody update more closely aligns with real-world supply systems? Harbour: We are looking at how to best reflect this real-world situation in the chain of custody, and in other work we do, we recognize that the linear supply chain is too simplified and supply chains vary greatly from commodity to commodity. This is an ongoing piece of work that we will be working with stakeholders on in the coming months. Our experience with both growers and buyers means that we are always looking to improve and innovate in order to make systems work well. We are looking at how data and other tools can help best serve all actors in the supply chain and take into account the differences in supply chains. STiR: Certifications that burden growers with distractions, costly inspections, paperwork, and procedures squander time and limited resources that are better applied to the pursuit of quality. Quality is sustainable. How do you get back to the basic task of assuring customers their dollars are well spent? Harbour: It's hard to go into a supermarket without spotting the Rainforest Alliance frog seal which represents a holistic Emma Harbour is the Rainforest Alliance's head of global advocacy. In this position, she oversees the organization's advocacy work at a global, regional, and local level. Rainfor- est Alliance's advocacy focuses on engaging with public and private sector policy makers to influence change to help create more enabling environments for sustainable supply chains to be able to flourish. Emma joined pre-merger UTZ in 2014. She has worked in advocacy and communications for organi- zations in the UK, Netherlands and the US including ActionAid, UN Women, and the Clean Clothes Campaign. Emma Harbour Rainforest Alliance

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