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- Coffee Manufacturers from the coffee consuming countries contribute to the Coffee Fund US$ 1.- per 60kg bag of green coffee processed. - The Coffee Fund invests 50% of the contributions for projects in the coffee producing countries for enhanced environmental and social sustainability (agricultural coaching, business management practices for coffee farmers, water & soil management, renewable energies among other aspects) and measurements to increase quality of coffee beans. This part is treated under the “Origin Programme”.
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The Coffee Fund uses 50 % of the contributions for promotion of coffee
consumption. This “Marketing Programme” targets a renewed coffee culture through
education of the public and professionals in the catering sector, tasting
opportunities, dissemination of information about health related issues (in
co-ordination with Positively Coffee) and about sustainability in the producing
countries as well as advertising, where required. Promotion can apply to
traditional and non-traditional coffee consuming countries or to coffee
producing countries.
Origin ProgrammeFor the Origin Programme, in addition to quality work, also cost reduction through improved efficiency in agricultural and administrative concerns results in higher profits for the producers The Origin Programme has three primary focuses: · Quality improvement · Environmental sustainability · Economic viability of producers and processing enterprises This has been said over and over again. Everybody knows what has to be done. So we want to execute it and do it with a long-term perspective through assured funding. Also, we are not invading coffee producing countries with so-called “ultimate, western technology”. The projects are born from within the producing area, from the coffee farmers, coffee-boards, co-operatives, NGO’s, research centres and so on. The management of the Coffee Fund mostly has a consultative, co-ordinating and financing role. Determinant for quality is the taste the consumers experience when enjoying a coffee. The measurements that we support in this regard are: - Harvesting practices (to prevent defects) - Clean drying patios - Proper storing & transportation methods - Cupping skills These aspects support the efforts made and success achieved by the specialty and gourmet sector. They are a critical element for further gaining new coffee consumers and strengthening the drinking pleasure of the loyal coffee lovers. Achieving this does not come by itself; it also needs informative work, opportunities for tasting and developing preferences for a coffee type or brand on the consuming side. Under environmental sustainability we support projects that aim mainly at - Fertilizing techniques, tending towards organic fertilizers - Pest management - Soil, Water and Waste management - Renewable energy for drying process - Reforestation
The economic viability, that is the coffee growing and processing in a form that brings more revenue than cost, looks at following measurements: - Co-ordination for transportation and storage of crop - Sales distribution channels - Alternative income sources for the farmers - Management skills for co-operatives (e.g. foreign exchange, process management) - Elaborate internal and external financing solutions
The Coffee Fund is able to finance partially project investments, such as washing installations and materials, but cannot provide bridging credits for harvests. However, we mediate with international financing partners that can do so. This type of financing is neutral and lets the exporter open to sell his coffee to whomever he decides to. The projects may be addressing all three focuses simultaneously. Regional or country specific customs may not require one or the other item to be implemented, but other points not mentioned before are very critical. Then there should be no obstacle to, at least, consider them. For implementation, the Coffee Fund management, the people on the field and the corresponding authorities analyse and decide on the strategy and the measurements to be taken. The projects are selected according to certain criteria, considering the funds available and the global strategy in place. A project selected is then presented to the Board of the Coffee Fund. The board consists of one nominee of each of these three organizations, respectively group of organizations: - ICO - NCA / SCAA (for North America) - ECF / SCAE (for Europe)
Each of them nominates one person of their choice that executes a board function to the Coffee Fund and has a veto right against each project. This procedure permits an effective supervision from the international coffee community on our activities and keeps the administrative work at a minimum.
Marketing Programme
The goal of the programme is to increase the overall consumption of coffee products in a number of selected markets. We do this through creating and strengthening the coffee culture - that is the habit of drinking a good cup of coffee and the consumer identification that goes with it. We focus on some countries and, within a country, on selected market segments. This can give us any combination of these countries
Together with the roasters and the ICO we select the actual countries and markets for the campaigns. The Coffee Fund organizes and manages the activities following the guidance and requirements of the processing industry and the ICO. In general, we look at:
i. For example at universities, on client evenings, Radio or TV talk shows ii. Through the press with reports on health issues, recipes, origin of coffee
i. Through courses to employees in restaurant, to baristas and sales personal in shops
The Coffee Fund supports the ongoing efforts and expands them to new consumers, markets and countries. We collaborate with coffee people who are close to the consumers and we manage the programmes ourselves. We visualize a coffee market where the culture of the beverage coffee reaches a cult status similar to the beverage wine. A fundamental part of our concept is that the roasters recover the fund contribution through increased sales. Therefore, the fund contribution does not represent a lost donation, the money is recovered and all within the coffee industry benefit. As an example, the coffee consumption curve of the three German-speaking countries – Germany, Austria and Switzerland over the last 25 years shows a peak in the early 1990 and has decreased since, in spite of a growing population. The consumption in this market reduced by 1.6 mio bags from 13.3 mio bags to 11.6 mio. To recover the total worldwide contribution to the Coffee Fund an increase in consumption of only 500,000 bags is required that is one third of what the German market lost in the last 10 years. In other words, increasing this or any market worldwide by 500,000 bags compensates for the entire promotion programme and all the projects in the origin countries. This goal is clearly within doable boundaries. The fund contributors do not only recover the money through increased sales, in addition: a. The multinationals achieve an improved image through the participation in this sustainable fund b. Quality improvements and increased social and economic sustainability in the origin countries will assure the continuation of the current global market structure. In other words, we will avoid larger social discontentment and the related consequences, including migration, criminality and illegal crop. c. Environmental achievements are appreciated by the coffee consumers worldwide and create a positive attitude towards our product.
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Stand: 16. Dezember 2005 |
