With the high demand for coffee production, the coffee industry faces numerous challenges within its supply chain. Ranking among the top five commodities driving deforestation—alongside palm oil, soy, wood, and cocoa—coffee production accounts for 7.0% of global deforestation (Café Imports Europe: 2024).
Despite significant progress in improving the sustainability of coffee production, several issues persist in the supply chain. Efforts have been made to enhance traceability, reduce environmental impact, and implement fair trade practices, yet one significant concern remains: vulnerabilities in ethical labor practices. Producers, who are often at the heart of this supply chain, still endure extreme heat during 10-hour workdays, earning only 1% to 3% of the retail price (Forbes: 2022). This highlights the importance of industry leaders exchanging their expertise to mitigate such issues and realizing a more equitable environment for all stakeholders involved by promoting sustainability, transparency, and fair labor practices in the coffee industry.
In June 2024, we reinforced our commitment to sustainability by becoming the member of the Swiss Sustainable Coffee Platform (SSCP). This multi-stakeholder initiative, driven by the Swiss coffee industry, the Swiss government, the civil society and academia, aims to promote sustainability in the coffee sector by enabling its members to gain access to an extensive range of shared resources, expertise, and best practices. It holds an important shared vision to shape an industry that respects human rights, protects the environment, and operates within planetary boundaries. The platform emphasizes responsible coffee practices for imports into Switzerland, aligning with international guidelines and the UN Sustainable Development Goals (SDGs). A key focus is on sustainable coffee sourcing and production, with the primary objective of improving producers' livelihoods and ensuring that all stakeholders along the value chain benefit.
Dominko Madjura, representing us, formally signed the declaration of intent in the presence of fellow SSCP members. We are committed to collaborating with other members and stakeholders to build socially, economically, and environmentally responsible coffee supply chains.
Founded by the Swiss Federal Department of Economic Affairs and SECO on 6 June 2024, SSCP is supported by representation from over 50 countries and 13 million producers. "Both the Swiss Coffee Trade Association and our member companies have been committed to greater sustainability along the coffee value chain for years," said Nicolas A. Tamari, President of the Swiss Coffee Trade Association. "But there is still much to be done. And we are convinced that with this platform, we have created the right tool to fulfil our joint responsibility."
Federal Councillor Guy Parmelin stated: "Our economic cooperation in partner countries such as Indonesia, Vietnam, or Peru can achieve a significantly greater impact through closer cooperation with the Swiss private sector. And for our companies, the Swiss Platform for Sustainable Coffee can make an important contribution to ensuring due diligence along their value chain."
Manfred Borer, CEO and Co-Founder of KOLTIVA, stated, "As we seize opportunities in the coffee sector, it is essential to build and promote sustainable practices that foster resilient coffee supply chains. The coffee industry faces challenges, including deforestation and inadequate labor practices. With evolving regulations like the EUDR, there is a strong push towards sustainability by avoiding deforestation and enhancing transparency. At KOLTIVA, we are dedicated to supporting businesses in adhering to these regulations, offering our robust traceability technology, KoltiTrace MIS, and extensive field services. Since 2019, we've partnered with our clients to ensure their coffee supply chains are sustainable, transparent, and compliant. Through initiatives like SSCP, we aim to collaborate on effective solutions that drive sustainable coffee practices, protect the environment, and improve the livelihoods of producers."
We offer a comprehensive suite of solutions to enhance the sustainability of coffee supply chains. Our traceability platform, KoltiTrace, provides scalable solutions for independent suppliers, enabling them to map and monitor their supply chains effectively. KoltiSkills, our extension service, supports processors and manufacturers by offering field staff or third-party assistance for sustainable supply chain mapping, transactional traceability, and risk mitigation. The latest addition to our modular approach, KoltiVerify, allows manufacturers to verify the completeness and quality of their supply chain data, whether using KoltiTrace or another platform.
Since 2019, we have spearheaded sustainability efforts in the coffee industry, deploying hundreds of Field Agents to empower smallholders and promote sustainable practices. To date, over 200,000 coffee producers have registered with us, and we have verified more than 740,000 farm plots and production areas. Additionally, we have registered over 958 small and medium enterprises, ensuring a robust and transparent supply chain.
Together, we will collaborate to find common solutions for regulatory requirements in a pre-competitive context. This cooperation fosters innovation and efficiency, allowing us to address these challenges more effectively. Additionally, we will engage in public-private partnership projects in coffee-producing countries, working collectively to implement sustainable practices and enhance the well-being of coffee communities.
Resources:
ScienceDirect. (n.d.). Agricultural and forestry trade drives large share of tropical deforestation emissions. ScienceDirect. Retrieved from https://www.sciencedirect.com/science/article/pii/S0959378018314365.
Morrison, B. (2023). The sustainability problems percolating in the coffee supply chain. Forbes. Retrieved from https://www.forbes.com/sites/sap/2022/09/29/the-sustainability-problems-percolating-in-the-coffee-supply-chain/.
Writer: Kumara Anggita, Content Writer
Editor: Daniel Prasetyo, Head of PR and Corporate Communication
About the Writer
Kumara Anggita, serving as Koltiva's dedicated Content Writer, brings a wealth of experience from her six-year tenure in journalism in the fields of humanities and lifestyle, as well as her role as a writer in the tech industry. Her deep-rooted passion for gender equality and sustainability spurred her to enhance her reporting and storytelling skills through the EmPower Media Bootcamp by UN Women. Now, Kumara utilizes her platform to advocate for sustainable practices and gender equality through her compelling writing.
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