2008

UTZ CERTIFIED - Good Inside assurance of sustainable quality

UTZ CERTIFIED Good Inside

Our vision & mission

We want to achieve sustainable agricultural supply chains, where:

– Farmers are professionals implementing good practices;

– The food industry takes responsibility by demanding and rewarding;

– Consumers can trust their brands and buy products which meet their expectations

We aim to implement a worldwide program for socially and

environmentally responsible commodity production and sourcing

(coffee, cocoa, tea, soy, palm oil, cotton, sugar cane)

Certification enables markets to reward good practices!

UTZ CERTIFIED Good Inside

Sustainability in the coffee chain

• Farmers benefit from professional farming and meet market requirements

• Governments require food safety, traceability and increasingly also sustainable production practices

• Brands need continuous quality supply & assurance of good practices in origin

• Consumers are better informed & expect their brands to take care

Brands / roasters assure quality coffee

UTZ CERTIFIED assures sustainable production by professional farmers with care for their product, the people & environment involved

UTZ CERTIFIED Good Inside

1. Meaningful impact Code of Conduct

Traceability and record keeping

Monitoring business processes

Training

Food safety

Business practices

Minimized & controlled agrochemical use

Reduced water usage and pollution

No deforestation

Prevention of soil erosion

Environment

Access to healthcare

Worker health and safety

Decent housing for workers

Access to education

Social

UTZ CERTIFIED Good Inside

Impact on business practices

• Decreased in the average percentage of defects from 11 to 3%. Production increased from 2.8 to 4.5 million kgs between harvest season 05/06 and 06/07 . This is a 60% increase compared to a national increase of 9% in the same period.(Acatenango Cooperative-Fedecocagua farm records, Guatemala)

• 43% productivity increase over 3 harvest periods (compared to 2% national)(Ever Reyes, Sogimex Farm Group records, Honduras)

Conventional coffee parchment San Nicolas-Sogimex Honduras

Certified coffee parchment San Nicolas-Sogimex, Honduras

“UTZ CERTIFIED helps to get control over processes and leads to more professional farm management. Since we joined the program, for example, the member farmers provide the factory with cleaner coffee. This coffee only has to go through part of the processing line. This reduces production costs.”(Andrew Falconer, Managing Director Kawacom, Uganda)

UTZ CERTIFIED Good Inside

Impact on environment

• Through their improvements to a wet mill as part of obtaining certification, Acatenango reduced water usage from 1 million to 18,000 liters per day. This is while they increased production by 50%. The water it uses is now also recycled and treated. (Acatenango Cooperative, Fedecocagua records, Guatemala)

• Conversion of 59 tons of fresh pulp to fertilizer and treating 145,274 liters of residue water 9instead of releasing it into the river). Replanting of 500 trees on 11.2 hectares of land.(Sogimex Farm Group records, Honduras)

Waste water before implementing UTZ way of working -Acatenango, Fedecocagua, Guatemala

Waste water after implementing UTZ way of working -Acatenango, Fedecocagua, Guatemala

“With the implementation of record-keeping and good agricultural practices required for UTZ certification we have been able to reduce our water use by 50% and production cost by at least 12%. This decrease was brought about by reducing spraying and through cheaper insurance premiums because of safety precautions.” - Mureithi Kieu, General Manager Sasini, Kenya

Before

After

UTZ CERTIFIED Good Inside

Social impact

• Reduction in employee accidents due to safety precautions(Independent audit reports Brazil and Colombia)

• Groups have been more active in raising awareness among their members about health and education. This has lead to access to first aid, building or improvement of sanitary facilities and better waste management.(Independent audit report, Peru)

First aid training -Ndumberi Cooperative, Kenya

“Through UTZ CERTIFIED, the producers have developed a culture of improvement of the working conditions of all people involved in coffee production. Also, the opportunity of the certification has improved the relation between the members of the cooperatives and has improved the documentation of the activities and advances of the producers.” Manuel Romero, Central de Cooperativas Cafetaleras de Honduras, Honduras

UTZ CERTIFIED Good Inside

Meaningful impact From conventional to Good inside

UTZ CERTIFIED Good Inside

• Professionally managed farms

– Care for product: focusing on higher productivity, better

coffee quality and cost efficiency

– Care for people: training, water, housing, healthcare

– Care for environment: Good soil and water management

• Proud farmers, passion for coffee

• Bridging the knowledge gap:

UTZ CERTIFIED support network in origin

• Match with roaster’s demand: good yields and coffee

qualities in the short and long term

Meaningful impact UTZ CERTIFIED farms are better businesses

UTZ CERTIFIED Good Inside

Meaningful impact Smallholder groups, continuous improvement

• Inclusion of smallholder farmer groups

– Many smallholder projects certified

– Specific support for Internal Control Systems (ICS) by the Coffee

Support Network to set

– Specific implementation tools (Group Guidance Manual)

• Continuous Improvement

– Focus of the support in origin

– New version 2009 of the UTZ Code of Conduct includes a

continuous improvement scheme

– Stakeholder involvement (participatory approach) in Code

Development and Revisions

UTZ CERTIFIED Good Inside

• Professionally managed farms

– Care for product: focusing on higher productivity, better

coffee quality and cost efficiency

– Care for people: training, water, housing, healthcare

– Care for environment: Good soil and water management

• Proud farmers, passion for coffee

• Bridging the knowledge gap:

UTZ CERTIFIED support network in origin

• Match with roaster’s demand: good yields and coffee

qualities in the short and long term

Meaningful impact UTZ CERTIFIED farms are better businesses

UTZ CERTIFIED Good Inside

2. Credibility

•Independent annual auditing (ISO 65): Code & Chain of Custody

• based Good Agriculture Practices

•Surprise audits & ‘shadow’ checks at farms & coops

•Chain of Custody: physical & administrative separation

•Logo use: minimum of 90% certified content

•Traceability: from growers to roaster

On-line real-time trace & tell!

UTZ CERTIFIED Good Inside

Credibility Traceability in 4 steps

Sales announcementUTZ CERTIFIED nr:

1-123-04-890

UTZ CERTIFIED nr:

1-123-04-890

Trader‘First buyer’

Roaster ‘Final buyer’

Sales RecordSales Record

Enjoy & trust

UTZ CERTIFIED Good Inside

Real-time: Trace & Tell

UTZ CERTIFIED Good Inside

Meet the growers – share the stories

UTZ CERTIFIED Good Inside

4. Added value: positive cycle

+ Impact in

developing countries

+Added value

for companies

+ Better terms of

trade

+Credible audit

system

+

The Value cycle“Markets

recognizing and rewarding good

practices”

UTZ CERTIFIED Good Inside

Different programs – shared sustainability goal

Box Volume: (Potential) Market share

• Branding of the label• Consumer recognition• Cost of program

Consumer labelsFairtradeOrganic

Rainforest Alliance

Industry Round Table4C

CSR Program – Sustainable Quality LabelUTZ CERTIFIED

UTZ CERTIFIED Good Inside

UTZ in a nutshell…

• Sustainability: People, Planet & Profit

• Meaningful impact in coffee origin, open to all farmers

• Credible assurance & unique online real-time traceability

• Efficiency: market orientation

• Added value for all stakeholders

THANK YOU FOR YOUR ATTENTION!

UTZ CERTIFIED Good Inside

Questions are welcome!