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Coffee Statistics Report 2016
Introduction
The main goal of this report is to present the scope and scale of the UTZ coffee program in 2016. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency.
The statistics report focuses on the key indicators related to:
• Market uptake: sales of UTZ certified coffee
• Program reach: UTZ certified coffee production, premiums being paid
and multi-certification of this production
This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal.
We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at [email protected]
©2017 UTZInformation presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.
Content
1. Reach
2. First buyer sales
3. Premium
4. Estimated production
5. Supply-demand trend
6. Multi-certification
7. Conclusions
1. Reach With Laos joining, now 25 producing countries over the globe
567,336
2010 2011 2012 2013 2014 2015 2016
Area (ha)
226,424
2009 2010 2011 2012 2013 2014 2015 2016
# of farmers
296,208
2010 2011 2012 2013 2014 2015 2016
# of workers
1. Reach The reach of the UTZ program increased over 2016 with 12 % more farmers, 15% more workers and 3% more land
25
2009 2010 2011 2012 2013 2014 2015 2016
# Producing countries
2.1 Global salesThe UTZ coffee sales - the volume UTZ certified coffee bought from producers - increased by 35% from 2015 to 2016
UTZ sales recovered from temporary drop in 2015 and picked up positive trend Increased sales mainly came from Western and Northern Europe, both due to
existing partners increasing their commitments and some new joining Total volume sold by UTZ farmers increased by 35 percent in 2016 85% of the global coffee sales were Arabica and the remaining 15% were Robusta
coffee
120,994 136,752
188,096
224,028
258,867 238,392
321,419
2010 2011 2012 2013 2014 2015* 2016
MT
‘First Buyer Sales’ are sales from the producer to the first buyer.* From 2015 onwards volumes are reported in Green Coffee equivalent.
35%
2.2 Sales per origin country Largest increase in Brazil (50%) and Honduras (46%), a small loss in Vietnam (5%)
35% increase in UTZ coffee sold from Latin America because of more sales from Brazil,
Honduras, Colombia, Peru, Nicaragua, Guatemala
Coffee sales from Asian remained stable: India compensated for the decrease of 5% in sales
from Vietnam
3% less coffee sold from Africa because of 10% drop in Kenyan coffee
‘First Buyer Sales’ are sales from the producer to the first buyer.*Other includes Mexico, Uganda, Ethiopia, Indonesia, Costa Rica, Kenya, China, Tanzania, Papua New Guinea, Rwanda, Burundi, DR of Congo, Panama, Bolivia, Dominican Republic, El Salvador & Zambia
149,514
48,326
32,041 31,758
12,597 10,933 9,555 6,876
19,839
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Brazil Vietnam Honduras Colombia Peru Nicaragua India Guatemala Other*
2014
2015
2016
2.3 Split Arabica vs RobustaAlmost 50% increase in Arabica sales but a 14% decrease in Robusta sales
188,755 183,776
274,272
70,113 54,615 47,147
2014 2015 2016
Global UTZ certified First Buyer Coffee Sales (MT)
Global UTZ Certified 1st Buyer Arabica Coffee Sales Global UTZ Certified 1st Buyer Robusta Coffee Sales
Arabica volume sold increased by almost 50%
Vietnam and India sold most of the UTZ certified Robusta coffee
Robusta coffee sales increased in Brazil, Mexico and India and decreased in Vietnam, Indonesia and Uganda
‘First Buyer Sales’ are sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas
2.4 Sales per coffee quality classificationColombian and Brazilian Arabica sales increased since 2015
Brazilian and other mild Arabica coffee qualities saw largest increase (more than 50%) compared to 2015 sales Account for 46% of volume sold
Colombian Arabica mild quality sales increased by 15% And make up 27% of UTZ sales
Robusta sales decreased by 14 % compared to 2015
90,118
112,675
98,981
148,254
18,879 20,457 27,542 31,671
57,108 50,664
54,884
87,746
52,532
70,043
54,303 47,104
2013 2014 2015 2016
Brazil and other natural Arabicas Colombian Milds Other Arabica Milds Robustas
‘First Buyer Sales’ are sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas
The number of Supply chain actors in the UTZ Program increased by 87 First members joined the UTZ program in 2016 in Ecuador, El Salvador, Rwanda, Zambia,
Greece & Latvia The number of labeling approval requests increased by 37.5%
This resulted in 360 approved SKUs for Coffee And coffee products with the UTZ name or logo available in 89 countries, 17 of them new
2.5 Market uptake Increase in number of newly registered supply chain actors andnumber of new label approvals reflects increased market uptakeof UTZ coffee
395
492
582
669
2013 2014 2015 2016
# of Coffee Supply Chain Actors
3.1 Premium UTZ average coffee premium remained stable at 2.89 $c/lb
The UTZ Premium is an additional cash amount paid above the market price for a similar conventional (non-certified/non-verified) product. It is mandatory and agreed upon between the certified group or producer and the first buyer.
The average UTZ premium, as registered in the Good Inside Portal (GIP) increased by 2% for Arabica to 3.10 Cents/ lb and decreased by 11% for Robusta to 1.61 Cents/ lb in 2016.
4.29
3.49
2.72 2.74 2.89
4.44
3.80
3.13 3.03 3.10
3.56
2.28
1.68 1.821.61
2012 2013 2014 2015 2016
Global average UTZ premium ($c/lbs)
Global Arabica Robusta
UTZ premium calculations are based on transactions data recorded in the GIP. Values above 20 $c/lbs are excluded from analysis.
3.2 Premiums per countryA detailed look shows a large variation in premiums within and among countries
2.574.28
1.74
4.79
8.41
2.15 2.52
4.753.29
4.40
1.592.78
3.88
0
5
10
15
20
$c/
lbs
UTZ premium distribution 2016
Average premium Min premium Max premium
Average UTZ Coffee Premium 2.89 $c/lb
The average UTZ premium increased for Guatemala, Colombia, Kenya, Ethiopia, Indonesia and Uganda
In most countries we see large differences between premiums entered in the GIP
UTZ premium calculations are based on transactions data recorded in the GIP. Values above 20 $c/lbs are excluded from analysis.
3.3 Premium transparencyImproving our analyses
UTZ premium distribution
1 2 3
We works towards improving our knowledge on the use of premium
We collect additional information during the audit
First data is available, but still needs validation from the field
2.89
3.373.10
3.46
1.61
2.87
2016 2016 with new threshold
Global Arabica Robusta
Global average UTZ coffee premium ($cents/lb)
After consultation, the maximum acceptable threshold for entries in the GIP will be set at 30 $c/lbs.
This change will change and improve our analysis of the UTZ premium
4.1 Global Estimated Production The UTZ Certified coffee volume (estimated production) increasedwith 6% in volume mostly driven by increase in Arabica
20% more UTZ certified coffee in Latin America Brazil estimated production grows despite 2 members leaving the program Peru and Nicaragua also contributing to the increase woth new members
19% decrease in estimated production in Asia Due to decrease in production in Vietnam
Estimated production in Africa remained stable DR Congo, Burundi and Rwanda compensate for decrease in Uganda and Kenya
17% more certified Arabica volume, 22% reduction in Robusta volume
715,648 726,591 729,918
821,399 870,102
2012 2013 2014 2015 2016
MT
Gre
en c
off
ee e
qu
ival
ent
Estimated production is based on license information from licenses valid on December 31st 2016
6%
4.2 Estimated Production per Origin Country
80% of UTZ certified coffee volume comes from 5 countries: Brazil, Vietnam, Honduras, Peru and Columbia
Largest growth in Brazil (21%) and Peru (108%) Largest decline in Vietnam (23%) and Uganda (25%)
300,745
172,620
82,469 75,551 74,564
39,320 36,046
15,593
73,193
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Brazil Vietnam Honduras Peru Colombia India Nicaragua Uganda Others
MT
Gre
en c
off
ee e
qu
ival
ent
2014
2015
2016
Estimated production is based on license information from licenses valid on December 31st 2016*Other includes: Mexico, Ethiopia, Guatemala Indonesia, Costa Rica, Kenya, China, Tanzania, Papua New Guinea, Rwanda, Burundi, DR of Congo, Panama, Bolivia, Dominican Republic, El Salvador & Zambia
5. Supply-demand trendsIncrease in supply/demand ratio to 37%, because demand grew faster than supply for certified coffee
The supply-demand ratio measures the share of estimated production volume that was soldas UTZ
The supply demand ratio for coffee that was sold as UTZ increased for all regions Latin America increased by 24% from 2015 to 2016 driven by increase in supply and a
bigger increase in demand for UTZ coffee from Latin American countries Asia increased by 24% from 2015 to 2016 due to stable sales but a drop in supply Africa decreased to 18% due to decrease in sales and stable production volumes
31%
35%
29%
37%
2013 2014 2015 2016
% of estimated production sold as UTZ42%
27%
18%
Latin America Asia Africa
Supply demand: 2016
Supply Demand is based on first buyers sales and estimated production 2016. It indicates a trend but not an absolute number.
6. Multi-certification Increase to 55% due to a growth in organic-UTZ certification; double certification with Rainforest Alliance is predominant
55% of estimated production is also certified for one or more other schemes Rainforest Alliance (RFA) was once again the most common in combination with UTZ Increase in volume both UTZ and Organic certified
Multi certification is most common in Africa (79%), followed by Latin America (65%) and Asia (25%) Multi-certification increased in all countries except Vietnam, Indonesia, Ethiopia and Burundi
52%
14%
45%
15%
52%
14%
45%
15%
55%
15%
45%
22%
Multi-Certified Fair Trade RFA Organic
2014 2015 2016
Multi-certified represents the volume of estimated coffee production that was UTZ certified as well certified for one or more of the following schemes: Fair Trade; Rainforest Alliance; Organic
In 2016, 37% of certified coffee was sold as UTZ, an increase from2015
Multi-certification increased to55% of the volume mainly due tonew certificate holders from Peru joining the program who are alsoOrganic certified. This is related toan increasing demand for thecombination UTZ-organic in especially Northern Europe
The average premium paid for a pound of UTZ coffee stabilized around 2.89 $cents after a year by year decrease.
Increase in supply-demand ratio & multi certification
Continuous reach with a stable supply base
Small increase in estimated production volume and certified area
First producers joined UTZ in Laos and Zambia
Over half a million farmers and workers reached
Increased demand for UTZ reflected in 35% increase in first buyer sales; 17 out of 20 top buyers increased their UTZ coffee volumes
Increase is due to new andgrowing commitments to source certified coffee by partners in Western and Northern Europe andthe US
Demand for UTZ coffee in Brazilian and other Arabica coffee grew, while demand for Vietnam and other Robusta coffee decreased
Increase market demand for UTZ certified coffee
7. ConclusionsContinuous reach of the UTZ Program in both origin and market