UNCTAD Secretary-General's Multi-Stakeholder
Meeting on Coffee
8 April 2009, Geneva
Coffee policy issues
by
Mr. Néstor Osorio
Executive Director, International Coffee Organization
"The views expressed are those of the author and do not necessarily reflect the views of UNCTAD"
COFFEE POLICY ISSUES
UNCTAD MULTI-STAKEHOLDER
CONSULTATION
08 April 2009
Geneva, Switzerland
Néstor Osorio
Executive Director
International Coffee Organization - www.ico.org
International Coffee Agreements
¾ 1st: 1962
¾ 2nd: 1968
¾ 3rd: 1976
¾ 4th: 1983
1989 – End of economic clauses
¾ 5th: 1994
¾ 6th: 2001
¾ 7th: 2007
International Coffee Organization - www.ico.org
Membership
¾ ICA 2001
™ 45 exporting Members and 32 importing
Members
™ 97% of world production
™ 82% of world consumption
¾ ICA 2007
™ Procedures for ratification etc. under way
™ Entry into force expected in September 2009
International Coffee Organization - www.ico.org
ICA 2007
¾ Overall objective: to strengthen the global coffee
sector and promote its sustainable expansion in a
market-based environment for the betterment of
all participants in the sector
International Coffee Organization - www.ico.org
Objectives of the ICA 2007 (1)
¾ Article 1:
(1) promoting international cooperation on coffee matters;
(2) providing a forum for consultations on coffee matters
among governments, and with the private sector;
(3) encouraging Members to develop a sustainable coffee
sector in economic, social and environmental terms;
(4) providing a forum for consultations seeking
understanding with regard to the structural conditions in
international markets and long-term trends in production
and consumption that balance supply and demand, and
result in prices fair both to consumers and to producers;
International Coffee Organization - www.ico.org
Objectives of the ICA 2007 (2)
¾ Article 1:
(5) facilitating the expansion and transparency of
international trade in all types and forms of coffee, and
promoting the elimination of trade barriers;
(6) collecting, disseminating and publishing economic,
technical and scientific information, statistics and studies,
as well as the results of research and development in
coffee matters;
(7) promoting the development of consumption and markets
for all types and forms of coffee, including in coffee
producing countries;
(8) developing, evaluating and seeking finance for projects
that benefit Members and the world coffee economy;
International Coffee Organization - www.ico.org
Objectives of the ICA 2007 (3)
¾
Article 1:
(9) promoting coffee quality with a view to enhancing consumer
satisfaction and benefits to producers;
(10) encouraging Members to develop appropriate food safety procedures
in the coffee sector;
(11) promoting training and information programmes designed to assist
the transfer to Members of technology relevant to coffee;
(12) encouraging Members to develop and implement strategies to
enhance the capacity of local communities and small-scale farmers to
benefit from coffee production, which can contribute to poverty
alleviation; and
(13) facilitating the availability of information on financial tools and
services that can assist coffee producers, including access to credit
and approaches to managing risk.
International Coffee Organization - www.ico.org
ICA 2007 – Governance Structure
¾ Council
¾ Subsidiary bodies
™ Projects Committee
™ Promotion and Market Development Committee
™ Finance and Administration Committee
™ Statistics Committee
¾ Advisory bodies
™ Consultative Forum on Coffee Sector Finance
™ Private Sector Consultative Board
™ World Coffee Conference
International Coffee Organization - www.ico.org
ICO Areas of Action
1.
2.
3.
4.
5.
6.
7.
Promotion of a sustainable coffee economy
Increased consumption and market development
Quality enhancement
Diversification
Improvement of marketing systems
Research & development
Rehabilitation
International Coffee Organization - www.ico.org
Coffee Development Projects
¾ICO role:
• Establish areas of priority for project activities
• Analyse and advise on the preparation of
projects
• Approve projects for subsequent submission to
donor or financing organizations, as appropriate
• Supervise project execution
International Coffee Organization - www.ico.org
Coffee Development Projects
¾Beneficiaries
• Populations suffering substantial poverty, as
well as populations and economies heavily
dependent on coffee.
• Least developed countries (LDCs): ICO has 45
exporting members, 16 of which are LDCs (15
in Africa)
International Coffee Organization - www.ico.org
Coffee Development Projects
¾ 30 projects in portfolio (1995/96 to 2008/09):
•
•
•
Total value: US$83.8 million
19 concluded
11 ongoing
¾ 15 projects in pipeline:
•
•
•
•
Total value: US$70.7 million
5 under consideration by CFC
3 to be considered by other donors
7 under consideration by the ICO
International Coffee Organization - www.ico.org
Promotion of a sustainable coffee
economy
Ð Economic, environmental and social aspects of
sustainability
Ð Climate change: appropriate adaptation and
mitigation strategies
Ð Environmentally friendly technologies throughout
the production and processing chain
Ð Action against pests and diseases, including
integrated biological pest control
International Coffee Organization - www.ico.org
Increased consumption and market
development 1
International Coffee Organization - www.ico.org
Increased consumption and market
development 2
COFFEECLUB NETWORK
www.coffeeclubnetwork.com
International Coffee Organization - www.ico.org
Quality enhancement
Ð Coffee Quality-Improvement Programme
– Over 69% of all green coffee bags
exported during 2007/08 were exported
by countries applying Resolution 420
– 91% of Green Arabica and 25% of
Robusta coffee exports in full
compliance with parameters established
by the Resolution
International Coffee Organization - www.ico.org
Diversification
Ð Horizontal: projects that aim to generate
complementary earnings for growers, such as
by the introduction of new crops, without
eliminating coffee growing itself.
Ð Vertical: speciality and industrialialized
coffees.
Ð Objective: creation of a balanced enterprise
for farmers which need not entail total
elimination of coffee growing.
International Coffee Organization - www.ico.org
Improvement of marketing systems
Ð strengthen grass root organizations and build up the
capacity of coffee sector institutions;
Ð develop their capacity to compete in the market;
Ð obtain access to commercial credit and technical
information;
Ð cope with price volatility and other risks through
appropriate financial instruments; and
Ð generate benefits to their communities
International Coffee Organization - www.ico.org
Research & development
Ð Research and development of technologies
to improve conditions for producers:
• ecologically more beneficial post-harvest processing
methods
• plant breeding
• genetically modified plant material
Ð Capacity building measures and training to
ensure dissemination
International Coffee Organization - www.ico.org
Rehabilitation
Ð Programmes to help recovery in production
capacity in cases where producing countries
have suffered a large decrease in production
for reasons of force majeure
Ð E.g. Angola (civil war), Nicaragua and
Honduras (Hurricane Mitch)
International Coffee Organization - www.ico.org
International Coffee Organization - www.ico.org