Over time certification has become an almost
indispensable marketing tool for many agricultural products, particularly
perishables such as fruit and vegetables. The Flower label required on principle
by many western retail chains for imported fruit and vegetables is a good
example.
However, these are products that are sold directly
to the end-consumer, i.e. they are not transformed, and as such certification in
fact ensures market access. This is so because labelling proves to the end-user
that producers subscribe to good agricultural and management practices; protect
the environment; practice safe pesticide use; and engage in resource protection
generally. Thus, the product is accepted as both safe and environmentally
friendly. For coffee the situation is rather different because coffee growers in
the main provide green coffee to overseas roasters who in turn produce and
retail the finished product. Therefore, in most instances the identity of the
producing countries, let alone the individual producer, is not known to the
end-user. Consequently there is much less consumer awareness of the production
process and whether certification (or verification) by itself enhances a
coffee's marketability, is therefore a pertinent question.
In the coffee industry certification schemes also
guarantee, through a certificate, that specific rules and regulations of
voluntary standards are met. On-pack labels then make this known to the end-user
on the producer's behalf and, often, the end-user is expected to pay a premium
to recompense the grower for this specific effort.*
To note here that the scope for premium priced
coffee, purely based on quality, is in theory unlimited because it has direct
and universal appeal to many more end-users. The market for quality or specialty
(gourmet) coffee is increasing constantly, i.e. this market segment is demand
driven and is showing strong growth.
But, the scope for premium prices, based on
certification rather than on quality, is limited because of demand reasons. This
is so because for many if not a majority of end-users the intrinsic quality of a
product is of more importance than is certified compliance with a code of
conduct or standard. Therefore, the potential for certified coffees that require
to be sold at a premium mostly lies in niche markets. However, the supply of
such coffees is not necessarily always demand driven and over time some may be
subject to oversupply. And so, whilst certification definitely adds to a
coffee's image and may enhance its value, in the longer term certification by
itself (so without the 'quality') is no guarantee for premium prices. But it can
add to a coffee's marketability…
*Verification similarly
ensures that certain agreed criteria and practices are met, but does not use
certificates or on-pack claims to market this to the end-user. Typically a
mainstream market tool that offers market access rather than premia,
verification is meant to improve efficiency, sustainability and profitability
for growers on the one hand, whilst enabling buyers to make more informed
decisions on the produce they purchase and process. To note here that,
currently, the mainstream market accounts for between 85 and 90% of all green
coffee exported from producing countries. Over time, it may be expected that
buyers of mainstream coffee will increasingly insist on certain guarantees as
regards the manner in which the coffee they buy is produced, perhaps to the
gradual exclusion of those producers unable or unwilling to provide them.
Verification would appear to be the most likely tool for this, in many cases
enhanced by certification for a particular type of niche market.