COFFEE LABELS The coffee industry is under pressure. Its clientele, newly awa-re of social and environmental sustainability, is requiring proof that the products from the Southern hemisphere have been produced in fair conditions. The coffee industry has reacted by introducing various generally meaningful labels, though the differences between them are enormous. While some are truly centred on the sustainable improvement of the living conditions of farming families, others have more of a PR goal. Often only lip service is paid, by declarations as to how much one is involved in the environment and the coffee growers.

Fairtrade International (FLO) – a fair trade pioneer

Products with the Fairtrade label may be found in retail shops and restaurants. The best-known products are bananas, coffee and tea. The responsibility for the certification of the producers lies with the independent certification body, FLO-Cert. The Fairtrade label designates products of which the raw materials are fairly traded and grown accor-ding to social and environmental guidelines.

This implies, for example, guaranteed minimum prices for small farmers, stable trading relationships and a fair trade premium for projects that assist in the development of the entire region, for example schools, roads and bridges, and drinking water. Fairt-rade supports the producers in improving their standing on the world market, thus overcoming their poverty by their own efforts. The farming families thus benefit from a long-term development perspective.

The 4C Codex – the industry’s fig leafThe 4C Codex (Common Codex for the Coffee Community) is a good idea in principal, except that all the participants in the coffee industry got together to find a way to counter the accusa-

tions of exploitation: 4C was launched in 2002 by the German Federal Ministry for

Economic Cooperation and Development, the German Techni-cal Cooperation and the German Coffee Association. Finally, the Codex was agreed by a committee of coffee producers, coffee traders and representatives of the coffee industry (Nestlé, Sara Lee, Kraft, Tchibo) and of NGOs (Oxfam, Rainforest Alliance, Pesticide Action Network UK). Thanks to this broad support, 4C is not aimed at niches, but has a broad effect. But, since during the negotiations the consensus reached was only the lowest-common denominator between the initiators, 4C is also the weakest label when it comes to content. The Codex sets no positive qualitative standards, but works by a process of elimi-nation: Thus only the ten worst practices (e.g. “worst forms of child labour”) are grounds for non-certification. All other industry

criteria are given values under the traffic light system (red = to be discontinued; yellow = to be improved; green = a desirable practice), whereby even coffee producers with a red grade can satisfy the 4C standard. The only requirement is that the average of the lights of all the practices be yellow. This means that for each red grade, a green one must be obtained to balance it. So, for example, pesticides may continue to be used (red light), as long as the plantation waste water is recycled (green light).4C is oriented towards the needs of the coffee industry on the one hand and, on the other hand, towards the increasing needs of a clientele with high spending power and an interest in susta-inability, that allows itself to be fobbed off with superficial catch-phrases. The Codex is a marketing tool, which is more to the benefit of the industry than to that of the producers.

Nespresso AAA Sustainable Quality Pro-gram – much ado about nothing

Nestlé began its “Nespresso AAA Sustainable Quality Program” in 2003. Within the framework of the AAA programme, the farmers receive further training, are taught about sustainable farming and im-prove their knowledge of manage-ment. Additionally, Nestlé came to

an agreement with the internationally active NGO, Rainforest Al-liance, which verifies that the farmers who cooperate with Nestlé respect environmental rules, e.g. a reduced use of pesticides and thrifty water management.But the contents of the AAA programme are not communicated transparently. The company only announces that only producers in ideal situations, who respect the rules set forth by the Rainfo-rest Alliance and respect criteria concerning land use, harves-ting practices and plant care, are taken into account. For this purpose, Nestlé requires a certain type – not more precisely de-fined- of fertiliser use, water economy measure and biodiversity maintenance. In addition, the coffee families must have accepta-ble housing, access to medical care and their children must be able to attend school. Sacks containing AAA beans are marked so that they can be tracked and Nestlé guarantees that each participating farmer receives “at least 75 %” of the world market price. By these means, the company wishes to build up “long-lasting partnerships” with the farmers, which does not answer the question of what these consist of and of their suitability as a basis for some security. The Nespresso label is primarily a marketing and quality label, to which social criteria are only an accessory.

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