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Creating Shared Value in the Supply Chain	



David Griswold, Specialty Coffee Importers
Bringing Shared Value to the Supply Chain
The Coffee Supply Chain




  GROW    COLLECT FINANCE  MILL  PURCHASE   ROAST
   PICK   PROCESS         EXPORT  IMPORT     SELL
Our Roles in the Coffee Supply Chain




  GROW    COLLECT FINANCE  MILL  PURCHASE   ROAST
   PICK   PROCESS         EXPORT  IMPORT     SELL
How do you find the right organizations to partner with so
you can create shared value supply chains that do good for
           business / good for the world (CSR)?
Need to ensure your partner choice is
strategic and agreed upon at the top.
Asking lots of questions - learning from others.
Shared value collaboration for grower training in
      productivity, organic agriculture...
...food security and water management projects.
Fair Trade USA empowers
farmers and farm workers
around the world
to fight poverty in ways that
are economically, socially and
environmentally sustainable.


Our Certification promises
!Quality Products
!Improve Lives
!Protect the Environment
Why Fair Trade ?

A Huge Problem                                Consumers Care
            2.6 billion live in poverty




            ~65% work in farming
                                          ! Want companies to pay
                                            farmers / workers fairly
                                          ! Believe 3rd party certification is best way
                                            to verify product claims
                                          ! Have an improved brand perception for
                                            products that are Fair Trade
                                          ! Want to buy Fair Trade products at
                                            supermarkets and mass market stores
Fair Trade Standards Improve Lives

                        Community
   Fair Trade        Development Funds
   Difference                +
                        Democratic
                      Decision Making




       Strong
   Foundation




!Compliance ensured through independent audits
!Certification mark = public validation
Fair Trade Impact Across Supply Chain

                                                                            70MM Aware
                                187 million lbs imported          700+
  1.5 million Farmers                                          Businesses
                                                                            Grocery + 75%
                                       7% growth
$250 million in impact to                                       10,000 +
 farming communities                                                         40 + Local
                              Co-op Link Capacity / Capital     Products
                                                                             Movements




GROW       COLLECT                      EXPORT        IMPORT    ROAST          BUY
 PICK                       FINANCE                              SELL
           PROCESS
Fair Trade Impact Around the World


                                               3
                                                      4


                                                      1       8
                                                                                                      9

                                                                                               10                        11
                                                          5
                                                                          6




    Coopetarrazú, Costa Rica                                          CECANOR, Peru                                           9
                                                                                                                                   Oromia, Ethiopia
1
    Sustainability workshops for highschoolers                    5   Women’s leadership trainings                                 Flour mills for villages, new schools, bridges

    UCA San Juan, Nicaragua                                       6
                                                                      Pronova, Brazil                                         10   Abakunda Kawa, Rwanda
2
    New office building                                               Cupping competition, sustainable coffee program,             Washing station, roads
                                                                      quality improvement
                                                                                                                              11
    HUATUSCO, Mexico                                                                                                               Permata Gayo, Indonesia
3
    Supplies for health clinics, scholarships, vaccinations           Naranjillo, Peru                                             Paved roads, communal farming equipment,
                                                                  7   Increased yields                                             microcredit for women
    COAGRICSAL, Honduras
4   School books                                                  8   Asprocafe Ingruma, Colombia
                                                                      Organic Certification
 Our mission is to improve the lives of coffee producers
 using a transparent, shared value supply chain model.
Transparency
                                                                                            In 2011,
                                                                                            Sustainable
                                                                                            Harvest
1¢ is invested in training and capacity building at origin
                                                                                            purchased
      8¢ pays for importing costs                  91¢ is paid to the coffee cooperatives
      and company operations                       for green coffee beans                   $73.3 million
                                                                                            of coffee from
                                                                                            farmer
                                                                                            organizations
                                                                                            at a price that
                                                                                            averaged $0.65
                                                                                            higher than
                                                                                            the C market.
Sustainable Harvest
 We conduct our business at origin, empowering our
partners to make decisions that bring them long-term
economic benefits and support a healthy supply chain.


 Portland
                                                        Sustainable Harvest
                                                         invests a third of its
       Oaxaca
                                                          annual earnings in
                Bogota
                         Kigoma & Moshi                 training and services
                                                         for our suppliers in
                  Lima




                                                          Latin America and
                                                             East Africa.
Training
Let’s Talk Coffee®
                     In 2011,
                     Sustainable
                     Harvest
                     helped its
                     partners
                     negotiate 11
                     million pounds
                     of coffee sales
                     during Let’s
                     Talk Coffee®.
Traceability through technology tools for grower coops - 
Household surveys to measure our shared value impact
RITS Metrics
END
QUESTIONS
SB'12 - David Griswold - Specialty Coffee Importers

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SB'12 - David Griswold - Specialty Coffee Importers

  • 1. Creating Shared Value in the Supply Chain David Griswold, Specialty Coffee Importers
  • 2. Bringing Shared Value to the Supply Chain
  • 3.
  • 4. The Coffee Supply Chain GROW COLLECT FINANCE MILL PURCHASE ROAST PICK PROCESS EXPORT IMPORT SELL
  • 5. Our Roles in the Coffee Supply Chain GROW COLLECT FINANCE MILL PURCHASE ROAST PICK PROCESS EXPORT IMPORT SELL
  • 6.
  • 7.
  • 8. How do you find the right organizations to partner with so you can create shared value supply chains that do good for business / good for the world (CSR)?
  • 9. Need to ensure your partner choice is strategic and agreed upon at the top.
  • 10. Asking lots of questions - learning from others.
  • 11. Shared value collaboration for grower training in productivity, organic agriculture...
  • 12. ...food security and water management projects.
  • 13.
  • 14. Fair Trade USA empowers farmers and farm workers around the world to fight poverty in ways that are economically, socially and environmentally sustainable. Our Certification promises !Quality Products !Improve Lives !Protect the Environment
  • 15. Why Fair Trade ? A Huge Problem Consumers Care 2.6 billion live in poverty ~65% work in farming ! Want companies to pay farmers / workers fairly ! Believe 3rd party certification is best way to verify product claims ! Have an improved brand perception for products that are Fair Trade ! Want to buy Fair Trade products at supermarkets and mass market stores
  • 16. Fair Trade Standards Improve Lives Community Fair Trade Development Funds Difference + Democratic Decision Making Strong Foundation !Compliance ensured through independent audits !Certification mark = public validation
  • 17. Fair Trade Impact Across Supply Chain 70MM Aware 187 million lbs imported 700+ 1.5 million Farmers Businesses Grocery + 75% 7% growth $250 million in impact to 10,000 + farming communities 40 + Local Co-op Link Capacity / Capital Products Movements GROW COLLECT EXPORT IMPORT ROAST BUY PICK FINANCE SELL PROCESS
  • 18. Fair Trade Impact Around the World 3 4 1 8 9 10 11 5 6 Coopetarrazú, Costa Rica CECANOR, Peru 9 Oromia, Ethiopia 1 Sustainability workshops for highschoolers 5 Women’s leadership trainings Flour mills for villages, new schools, bridges UCA San Juan, Nicaragua 6 Pronova, Brazil 10 Abakunda Kawa, Rwanda 2 New office building Cupping competition, sustainable coffee program, Washing station, roads quality improvement 11 HUATUSCO, Mexico Permata Gayo, Indonesia 3 Supplies for health clinics, scholarships, vaccinations Naranjillo, Peru Paved roads, communal farming equipment, 7 Increased yields microcredit for women COAGRICSAL, Honduras 4 School books 8 Asprocafe Ingruma, Colombia Organic Certification
  • 19.
  • 20.  Our mission is to improve the lives of coffee producers using a transparent, shared value supply chain model.
  • 21. Transparency In 2011, Sustainable Harvest 1¢ is invested in training and capacity building at origin purchased 8¢ pays for importing costs 91¢ is paid to the coffee cooperatives and company operations for green coffee beans $73.3 million of coffee from farmer organizations at a price that averaged $0.65 higher than the C market.
  • 22. Sustainable Harvest We conduct our business at origin, empowering our partners to make decisions that bring them long-term economic benefits and support a healthy supply chain. Portland Sustainable Harvest invests a third of its Oaxaca annual earnings in Bogota Kigoma & Moshi training and services for our suppliers in Lima Latin America and East Africa.
  • 24.
  • 25. Let’s Talk Coffee® In 2011, Sustainable Harvest helped its partners negotiate 11 million pounds of coffee sales during Let’s Talk Coffee®.
  • 26. Traceability through technology tools for grower coops - 
  • 27. Household surveys to measure our shared value impact
  • 29. END