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 Shade-Grown
Coffee
Helping an Industry Turn
Over a New Leaf
story by April Pojman
photos by David Griswold
In recent years, sustainability has become a hot topic in the specialty coffee
industry. But as discussions about organic and fair-trade coffee have intensified,
it has become increasingly clear that the lesser-known "third leg" of the coffee
sustainability stool-shade-is wobbling and in need of repair.
While the organic movement has become practically mainstream and
fair-trade coffee has enjoyed unprecedented growth since 1999, shade coffee has
lagged behind. According to Daniele Giovannucci's 2001 Sustainable Coffee Survey
of the North American Specialty Coffee Industry, 98.7 percent of businesses contacted
were aware of organic coffee, and 82.5 percent knew about fair trade, but only
76.4 percent were familiar with shade-grown coffee. Moreover, only three percent
of specialty coffee drinkers reported having purchased shade coffee.
Why the lack of awareness? Despite shade-grown coffee's biological
value and potential as a conservation-oriented marketing tool, it has been plagued
by confusion, criticism and slow acceptance. Clearly, there's plenty to learn
about shade coffee, its position in the sustainable coffee arena and its enormous
marketing potential for unique specialty coffees.
 Shedding
Light on Shade
Traditionally, coffee grows in the "understory" beneath the forest canopy, as
part of a larger ecosystem. Different layers of vegetation provide food and shelter
for animals and insects, soil replenishment through leaf litter, microclimate
stabilization, and protection from soil erosion and water run-off. Under natural
conditions, coffee is one of the most environmentally benign and ecologically
stable cash crops in the world.
But not all shade is equal. There is a broad variety of shade coffee
systems, ranging from monocultures—a single species of shade tree—to
highly diverse polycultures with many species. The greater the number and type
of shade tree, the greater the biodiversity of plant and animal species in a given
area.
Although an undisturbed area is always preferable for conservation
purposes, extensive and reliable scientific studies have shown that shaded coffee
plantations can serve as important migration corridors or alternative habitats
for native and migratory animals. In return, shade trees provide many benefits
to coffee farmers, including less need for chemical inputs, and production of
wood, food and medicinal products that diversify the family economy.
At the same time, shade trees provide what are known as "ecosystem
services." These are natural environmental functions—such as air purification,
nutrient recycling and soil formation—that are very difficult and costly
to achieve without the help of natural processes. According to a 1997 Nature
article entitled "The Value of the World's Ecosystem Services and Natural Capital,"
ecosystem services are estimated to be worth some $33.3 trillion. The article
goes on to compare that figure to the total combined gross national product of
all of the world's economies—only $18 trillion. Some argue that farmers should
be paid shade premiums based on this idea.
 To
Certify or not to Certify?
Shade-grown coffee has enjoyed the spotlight only sporadically in certain parts
of the United States. One of the main reasons is that shade lacks a worldwide
champion like the International Federation of Organic Agriculture Movements (IFOAM)
or Fair Trade Labeling Organizations International (FLO), both of which have created
widely accepted and enforceable definitions and standards for their certification
systems.
Some critics contend that the term "shade" itself is a misnomer
that prevents its widespread acceptance and that the concept should be re-branded
as "habitat-friendly" or "ecosystem-friendly" to convey the benefits it provides.
Others take the opposite tack, arguing that the shade concept should refer to
the problems it addresses, such as deforestation.
The U.S. has two separate shade certification systems intended
to ensure that Latin American shade-grown coffee is produced under a set of scientific
guidelines. One is the Eco-OK program developed by the Rainforest Alliance and
a network of Latin America environmental organizations, and the other is the Smithsonian
Migratory Bird Center (SMBC) criteria. Both systems' standards require a minimum
of 40 percent shade coverage, as well as specified tree heights and numbers of
non-deciduous native tree species.
Eco-OK is a stand-alone certification that covers many aspects
of farming. It requires a minimum of 12 species of native trees and at least 70
trees per hectare (one hectare equals 2.47 acres). It also includes regulations
regarding agrochemical use, water resources, soil and waste management, hunting,
working conditions, and community relations. Within the next year, Eco-OK auditors
will begin to certify for organic and fair-trade criteria as well.
SMBC guidelines focus exclusively on shade. In September 2000,
SMBC began a series of workshops to standardize the definition of shade and to
align itself with organic certifiers so that a single technician can inspect for
shade and organic standards in one visit. Currently, all SMBC-certified farms
must also have organic certification.
Francisco Mena, general manager of the Lomas Al Rio coffee farm,
recently went through this new certification process, making Lomas Al Rio the
first SMBC-certified farm in Costa Rica. He explains that an organic inspector
visiting his farm had completed one of the SMBC workshops, so during his inspection
for organic, he recommended that he also inspect for SMBC standards. Mena approved
the idea, and the total cost for certification was around $320.
The trend toward integrating certification systems is occurring
in other areas as well. For example, FLO criteria for bananas already includes
some environmental standards. And the Eco-OK's Sustainable Agriculture Network
is working with FLO, IFOAM and Social Accountability International to develop
a "Social Accountability in Agriculture" program. These initiatives are important,
because many farmers find the preparation, transition to compliance, and certification
difficult and costly. For example, farmers seeking Eco-OK certification must pay
for technicians to perform site visits and evaluations ($7.50 per hectare), and
they must cover the technicians' travel-related expenses ($100-$150 per day plus
travel expenses, depending on where the nearest inspector is located). Achieving
and maintaining more than one certification is simply beyond the economic capacity
of most producers.
For this reason, a "super seal" concept that combines organic,
shade and fair-trade criteria is gaining support among importers, roasters and
retailers. In the Sustainable Coffee Survey, nearly two-thirds of the specialty
coffee industry supported a "super seal" as a simpler of way of communicating
sustainability in the marketplace.
Still, there are many other areas of confusion and contention regarding
shade in the coffee industry. In the Sustainable Coffee Survey report, nearly
45 percent of the companies claiming to carry shade-grown coffee did not even
know who their shade-certifying agency was. Many importers, roasters and retailers
add to the confusion by selling "verified shade" coffee, which comes from plantations
that have not been certified by Eco-OK or SMBC but have been visited by someone—often
an importer—who, without scientific guidelines, checks to make sure shade trees
are present on the farms. Most people seem to agree that certified-shade is the
clearest way to convey the concept in the marketplace and provide a transparent
method of ensuring validity of shade claims.
 Shade
From Below
There are four broad elements of shade certification that the industry agrees
upon:
1.
Certification should not increase the financial burden on farmers.
2.
Producers who go through the certification process should get a premium price.
3.
Certification criteria should be developed with input from farmers.
4. Certification
should be based on valid scientific data to ensure that shade increases biodiversity.
Because of the lack of coordination surrounding shade coffee, most
of these points have not been implemented, and they are actually the source of
many farmers' complaints about shade certification. For example, many producers
are interested in being certified, but they cannot afford it. "When we wanted
to get certified, the price of coffee had already gone down, so it wasn't very
attractive for the producers," says Lorena Calvo, a conservation biologist studying
coffee farms in Guatemala. "[Farmers] have to pay for the certification, make
the changes on the farm and then look for a market for their coffee."
Farmers also often feel that if they cannot get a higher price
for shade-certified coffee, the time and expense involved in the certification
process cannot be justified. Asked what the benefits of certification are for
farmers, Francisco Mena answers, "We don't know yet. I expect someone [might be
willing to pay an] additional premium. We're all making an effort for the good
of the whole, but we need motivation."
"A lot of certified coffee ends up in the market at conventional
prices," acknowledges Christopher Bacon, a doctoral student in environmental studies
at the University of California-Santa Cruz who works with coffee cooperatives
in Nicaragua. "We've been discussing with growers their decision to become certified,
because there is a risk that they won't realize a price premium. They need to
consider other positive impacts of shade production, such as reducing costs or
improving working conditions."
For many producers, there simply isn't enough demand for shade
coffee. "Our idea is to start certifying just a few producers, because the market
seems small," says Nicolas Eberhart, marketing coordinator for the PROCAP coffee
cooperative in Ecuador. "Only one importer has inquired up to now. [We will] begin
with the producers who already have organic certification. The only problem is
the shade seals—there is much confusion about them in Ecuador."
In fact, according to the Sustainable Coffee Survey, of the 6.6
million pounds of coffee that were shade-certified globally in 2000-2001, only
2.1 million pounds were sold as such. Importers agree that shade certification
doesn't often bring farmers a premium, but it may help their coffee sell more
quickly. All other factors being equal, roasters are more likely to purchase certified-shade
coffee over an equivalent uncertified coffee.
A
Shady Future
In order to gain wider appeal, shade-grown coffee needs a unified front to champion
a biodiversity- and farmer-friendly definition of shade and to coordinate compliance
and education around that definition. This is hardly a quick fix, but it's the
only way that shade will gain more respect and popularity.
In May 2001, five non-profit organizations that work on coffee
conservation issues (Conservation International, Consumer's Choice Council, Rainforest
Alliance, Smithsonian Migratory Bird Center, and the Summit Foundation) took a
step toward creating a unified front by releasing a document entitled "Conservation
Principles for Coffee Production." The principles were designed to provide common
ground for conservation groups to work with other environmental movements and
coffee businesses. They can also help importers and roasters develop sourcing
guidelines and assist banks and foundations in deciding which coffee development
projects to fund and how to evaluate them.
There also remains a need for a widespread educational campaign
to establish a single definition of "shade." Many growers still don't know what
the shade standards are or how to get certified. As a result, some retailers are
carrying coffee with "shade-grown" claims that cannot be verified. More importantly,
even with all of the debate in the industry over shade-grown coffee, most consumers
don't even know that it exists or what it means. The concept of shade-grown coffee
can be difficult to explain on a supermarket shelf to consumers who lack prior
knowledge about how coffee is produced and what a difference shade can make.
There are hopeful signs, however. A 1999 survey by the Hartman
Group indicates that 86 percent of American consumers believe that there is a
connection between the health of the environment and their own well-being. And
a March 2002 survey by the Songbird Foundation shows that 75 percent of Seattle-area
coffee drinkers are likely to switch to shade-grown coffee if they understand
the implications. Based on their experiences, 83 percent of those who have purchased
sustainably produced coffee say they would buy it again.
Clearly, the coffee industry's move toward sustainability will
not be complete until the shade "leg" of the stool is securely affixed.
April Pojman is the director of environmental
and social policy for Thanksgiving Coffee Company in Fort Bragg, California. She
can be reached at apojman@thanksgivingcoffee.com.
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