Beyond Certification

CONNECTING THE VALUE CHAIN, BASED ON A GREATER COMMON PURPOSE | BEYOND CERTIFICATION

There is a lot of talk about doing the right thing in the coffee industry and we at EFICO regularly engage in lively debates on this topic. We found Katrien Delaet – Expert Quality & Sustainability at EFICO and Renaud Cuchet – Director EFICO America Central ready to talk about EFICO’s purpose, partnerships, the range of current coffee challenges, how to approach these issues in a sustainable way, the recent regulations that came into effect, and how all this translates to the reality.

ON VALUE CHAIN CHALLENGES & LONG TERM PARTNERSHIPS WITH A PURPOSE

PARTNERSHIPS WITH PURPOSE
Renaud starts off ‘As you may know, EFICO is a family company with a purpose driven business mindset. We strive for a long-term and stable partnership within the value chain; we want to bring value back to the farmers and put our expertise at the service of coffee roasters. As a coffee value connector, EFICO’s goal was and is to create value, transparency and traceability throughout the entire coffee chain, from crop to cup. Ninety-seven years ago, we embarked on a dynamic sustainability trajectory that continues to evolve, even (or even more so) in turbulent times.’

UNIQUE ERA
Katrien continues: ‘We are currently living in challenging times; world trade was only just recovering from the pandemic when war broke out in Ukraine last year. And then we have globally worrying climate change and biodiversity loss that are increasingly resonating with institutions and authorities, and rightly moving higher up official agendas. In such challenging and disruptive times, doing business with purpose is more important than ever.’

CONNECTING THE VALUE CHAIN, BASED ON A GREATER COMMON PURPOSE | BEYOND CERTIFICATION

EFICO’s SOURCING STRATEGY

Katrien continues. ‘Let’s give you some insights in our sourcing strategy and key figures explaining why and how we focus on smart partnerships building. QUALITY has been and always will be at the heart of everything we do, as we believe it is a great way to create value and experience passion.’ ‘Throughout the coffee value chain’, Katrien continues, ‘we focus on SMART PARTNERSHIPS. We build and strengthen the expertise of our partners to create maximum value. That is why our sourcing strategy is aimed at maximising sourcing through cooperatives and local exporters who invest value in their local economies.’

‘We are therefore proud to say that 40% of our coffee comes from COOPERATIVES worldwide and 42% from LOCAL EXPORTERS. Most of our coffee suppliers have been working with us for decades and we GROW TOGETHER organically, thanks to the mutual trust and SHARED VALUES of food integrity, quality and sustainability.’

‘At EFICO, we are proud to be part of locally embedded partnerships‘, Katrien explains, ‘Our SOURCING OFFICES in Ethiopia, Central America and Brazil play a key role in connecting the value chain; they literally and figuratively STAND ALONGSIDE our partner producers.’

‘Finally, at EFICO we have a realistic and well-reasoned VERIFICATION AND CERTIFICATION strategy.

‘51% of our coffees is certified according to ORGANIC, Rainforest Alliance/UTZ and FAIR TRADE standards. On top of that 11% is verified and audited by external independent auditors against recognized sustainability standards. This goes way beyond the sectoral averages.’

‘While the stats give you a clear picture of the geographic breakdown of our certified and verified coffees, looking beyond the numbers can give you a better understanding of ‘why’ and ‘how’ this reflects country and market realities’, Katrien explains.

BEYOND CERTIFICATION – BRAZIL
‘Brazil is our number 1 sourcing country. About 1 on 3 coffee bags we source at EFICO has Brazilian origins. It is no surprise that these beans are a perfect basis for blends and single origin coffee.’ >>> read the further details in EFICO’s COP report – p.22

BEYOND CERTIFICATION – CENTRAL AMERICA
‘71% of our Central American sourced coffees are already verified and certified. 78% comes from local cooperatives and local exporters.’ >>> read the further details in EFICO’s COP report – p.22

BEYOND CERTIFICATION – ETHIOPIA
‘While only 37% is being certified, this goes way beyond the industry average.’
>>> read the further details in EFICO’s COP report – p.22

THE WAY FORWARD | BEYOND CERTIFICATION

‘Our way forward goes beyond certification, envisioning carbon positive and quality coffee, sourced fairly from thriving coffee communities.’ Katrien clarifies, ‘We believe in a value chain where coffee roasters and their customers know the unique and complete fingerprint identity from crop to cup.’

THE WAY FORWARD | ADDRESSING THE DEFORESTATION REGULATION

The Deforestation Regulation dd April 19, 2023
‘Recently, a new EU law came into effect to address climate change and biodiversity loss. On April 19, 2023, the European Parliament adopted the final text of a new EU regulation aimed at tackling deforestation and forest degradation (the ‘Deforestation Regulation‘) that obliges companies to identify the source of purchase of e.g. coffee, cacao, palm oil, rubber, soy, timber, cattle,… The new law requires that companies verify and issue a so-called “due diligence” statement that products placed on the EU market have not led to deforestation and forest degradation anywhere in the world after 31 December 2020. Without this, they will not be allowed to sell their products in the EU. Large and medium-sized companies will have 18 months to adapt, while small and micro-enterprises will have an additional 6 months.’

Challenges
‘For our company’, Katrien continues, ‘the first main challenge is to implement and activate the different surveying and demonstration methods (GPS locators, traceability systems with QR codes, farm mapping, interviews with farmers, field audits, …) at our different producers in the origins. We are aware that data collection is complex, that there are potential risks of data corruption or leakage and implementing the monitoring system will be costly.’

Reality Check
‘The reality in the field,’ Katrien explains, ‘is that many co-ops, coffee producers, farms and exporters in the country of origin can’t afford the extra tools to provide importers with this data, and not all local buyers, exporters, importers or traders will be interested to invest in these monitoring systems. This entails the risk that many coffee origins and farmers will inevitably be left behind.’

THE WAY BEYOND | POWERFUL PARTNERSHIPS WITH PURPOSE

Commitment
‘In this regards, EFICO wants to make a firm statement’, Katrien says. ‘At EFICO we are going to team up more than ever – and possibly even more closely – with our partners in origin. Together we will strive smartly for a joint and meaningful change in these places of origin. We are determined to continue working with the partners we have worked with for decades. We want to ensure that together, side by side, we can continue functioning and operating in the coffee ecosystem that we love and that makes us happy.’

Engagement
‘Our strategy is to secure the long term future of coffee farming and supplies. Huge investments are needed to restore coffee and forest areas (e.g. agroforestry, crop rotation, targeted input use, soil and water management,…), to preserve these agricultural lands and make them flourish for the future. This positive reforestation and replanting will have to take place step by step. To make this a success, we need to think ‘long term’ and create stability for our partners in the short term.’

Call to Action – Empowerment
‘That is why we would like to launch a call to our partner coffee roasters! You can actively help build even stronger partnerships along the value chain for the coffees you purchase.
By partnering up, you can help creating long-term stability for farmers in the countries of origin. In order to make a sustainable difference, we need to look beyond the current supply and make commitments beyond the next coffee crop season. Let’s work together, collaborate, associate, support each other, form an alliance. Let’s strengthen our partners in origin!