Towards a Balanced Sustainability Vision for the Coffee Industry

By Luis F. Samper and Xiomara F. Quiñones-Ruiz

Source: MDPI - Publisher of Open Access Journals

CONCLUSION

The debate over how to best achieve sustainability in general and in the coffee industry in particular is wide open. The coffee industry has been the leader in implementing VSS, influencing other industries along the way. Certainly, literature shows that positive effects have been identified since VSS started. However, the time has come to re-evaluate the current model, not with the objective of doing away with what it has achieved, but to look for new ways to approach sustainability and obtain a bigger and wider effect that more closely reflects the complex reality of coffee growing.

Available studies show that impact of the current model varies according to the specific context. There is no “silver bullet” standard to improve sustainability indicators. Furthermore, VSS has not altered the value chain governance. In addition, it appears that VSS will have difficulty growing and achieving at a larger scale as the business case for sustainability investment is becoming more dubious from a grower’s perspective due to the reduced economic incentives and excess supply of sustainable certified coffees.

Both the industry and the coffee growing communities, as well as consumer and NGO advocates have to come to terms and agree on what is important and a priority for the sustainability of the coffee industry as a whole. A top-down/bottom-up industry wide materiality assessment is urgently needed to focus on priorities, build effective alliances, achieve scale and provide effective tools for participation that can be adapted to different coffee growing realities. This new approach will imply the development of sustainability KPIs for individual coffee origins and the ability to provide farmers with economic upgrade opportunities.

In the current market context where single origin coffees are favored by third wave market trend-setters, the new sustainability framework should leverage this market opportunity by offering Origin coffees and GIs, leveraging differentiation from below opportunities that provide value to both farmers and downstream industry players by strengthening their quality and sustainability attributes. Likewise, Origin sustainability manifestos developed based on the experience of GRI, VSS, SAFA and/or SDG frameworks can become a useful tool to provide origin differentiation and credible data for other value chain actors. A desired competition on quality and sustainability can help to develop public private partnerships and long-term cooperation with those marketing given origins.

This origin-centric inclusive sustainability strategy will provide more authentic and credible content to consumers and stakeholders and upgrade opportunities to all, not limiting the system to convey differentiation opportunities for the marketing and distribution end of the value chain. As the model provides for regional differentiation, it coexists with and learns from the successful farm-specific and direct trade value creation processes that the third wave coffee segment has successfully positioned. It also reduces the implicit delocalization risks that are part of the VSS model. Consistent with the sustainable market transformation theory, it has the benefits of scale as whole origins are marketed and positioned. Lastly, it gives positive incentives for all supply chain actors that can create value along the chain.

***********

Full article is stored at https://www.scribd.com/document/359243886/Towards-a-Balanced-Sustainability-Vision-for-the-Coffee-Industry

Source: file:///C:/Users/wonmez/Downloads/resources-06-00017%20(1).pdf