Coffee does not grow in Switzerland, but in the so-called coffee belt, between the 23rd northern and 25th southern latitude parallel to the equator. Central America, Brazil, Indonesia, India, Vietnam are among the major production regions, but also East Africa with Ethiopia and Kenya. While coffee is omnipresent in our everyday lives, the social, ecological and financial damage in coffee cultivation is far away.
The Corporate Accountability Initiative directly affects coffee cultivation and trade and the responsibility of roasters. Federal Councillor Karin Keller-Suter also cites coffee in interviews as an example<1><2>, but derives an argument against the initiative from it.
As a coffee roastery, Switzerland's largest coffee school and co-operator of a coffee farm in Nicaragua, we strongly disagree with the portrayal by Federal Councillor Karin Keller-Suter.
Instead, we see important impetus from the Corporate Accountability Initiative that can contribute to a more sustainable and future-oriented coffee industry. The Corporate Accountability Initiative is an opportunity for the Swiss coffee industry to position itself for long-term success, to establish durable trading relationships with producers, and to secure access to the increasingly scarce resource of coffee.
The KVI is a historic correction for the coffee industry
The coffee industry has been able to hide behind anonymity for the past two centuries. Production conditions, purchasing prices, trading practices, the asymmetric power relations between producers in the southern hemisphere and processing industries in mostly the northern hemisphere were long not questioned – and if they were, much remained unchanged.
However, there have been increasingly positive developments recently, and within the international coffee roasting industry there has been increased engagement for transparency and fairness along the coffee chain<3>.
Opponents of the KVI say that "global supply chains with thousands of suppliers are highly complex" and "usually outside the sphere of influence of the clients"<4>. As a coffee roastery, we must disagree with this.
Every roastery has it in their own hands to carefully set up their own supply chain, monitor it, and work with partners who pursue a corresponding mindset. It is not outside the sphere of influence of the clients – in this example the coffee roastery – whether a coffee can be procured with a properly managed supply chain or not.
It is solely a matter of will and standards whether this path of entrepreneurship is taken.
The fact that coffee chains can become traceable, more resilient and more predictable is a development that is long overdue and has been treated rather laxly historically. For the coffee industry, the KVI is a correction with the potential to address the signs of the times.
Opportunities instead of risks for coffee roasters
For a growing number of smaller and larger roasteries, the KVI has little or no impact. These roasteries source coffee directly or semi-directly (intermediary traders), build long-term relationships with coffee producers, and maintain continuous dialogue both by telephone and through visits to growing countries.
The decision for direct sourcing is particularly motivated in smaller roasteries by the desire to take on co-responsibility. In many cases, higher prices are paid for green coffee, which are not based on coffee exchange prices.
The larger the roastery, the more green coffee it purchases. This means it also indirectly deals with a larger number of production and trading partners. While this increases the effort – this does not relieve roasteries of their responsibility. Roasteries have the task of conscientiously and carefully selecting green coffee suppliers. Consumers should be able to rely on their coffee being produced responsibly.
The Corporate Accountability Initiative is an additional impetus here that can help sharpen the focus on risks on coffee farms. It provides a basis for targeted dialogue with trading partners. The KVI is a necessary wake-up call for the coffee industry and coffee trade to pay more attention to the sustainability of the value chain.
Such a structured trading relationship is an opportunity, not a risk. Due to growing coffee consumption in new markets such as China and India and changing cultivation conditions due to climate change, the coffee industry faces a scarcity of high-quality coffees over the next 15 years. Reliable, sustainable and jointly responsible trading relationships secure roasteries' access to the increasingly scarce resource of coffee.
Philipp Schallberger and Benjamin Hohlmann
<2> SRF ARENA
