Episode 56 - Ethical Coffee

What is Coffee?

Coffee beans are the inner seed from the “cherry” of the coffea plant, which is native to Ethiopia.[1] Coffee is the world’s second most tradable commodity, after crude oil. There are four primary types of coffee: Arabica (coffea arabica), Robusta (coffea caniphora), Liberica (coffea liberica), and Exelsa (coffea liberica var. dewervrei).

Arabica is the most common type of coffee consumed in North America. Arabica beans are sweet less acidic in flavour than Robusta beans. They are farmed in areas with high elevations above sea level and where rain is prevalent. Arabica plants are delicate and prone to disease, which makes it challenging to grow in large quantities.

Robusta beans are most popular in Europe, the Middle East, and Africa. It is not generally very popular because it can taste burnt or rubbery. But Robusta coffee is easier to grow and has higher levels of caffeine (which acts as a natural insect repellant). It is typically used in instant coffee and as a filler in dark roasts. There are some very good Robusta coffees, but this variety is usually seen as lower quality.

Liberica and Excelsa are both relatively rare coffee beans.

You can grow a coffee plant in your apartment, but don’t expect it to produce coffee cherries. Coffee plants are trees that yield mature harvests only after 4-7 years of attentive cultivation.[2]

There are lots of different coffee brewing styles (e.g., drip, pour over, cold brew, espresso, ristretto). Capsule coffee is a rising trend. More than 40% of U.S. households own an espresso pod machine. The global market for coffee pod and capsule machines is expected to double by 2025. 

There is also a wide variety of coffee drink types (e.g., espresso, americano, cappuccino, flat white, affogato, iced coffee) but we won’t get into those.

How Coffee is Made

When coffee cherries are picked, the beans are removed either through a “dry” or “wet” process. The dry process involves leaving the beans in the sun to dry and then running them through a grinder. In the wet process, you use water to wash the fruit away from the seed. The “green” coffee beans are then “cleaned” (inspected and sorted) and then roasted.

A (Brief) History of Coffee

Four hundred years ago, coffee was a “mysterious Ottoman custom” cultivated commercially only in Yemen.[3] Now it is an “unrivalled work drug” and a ubiquitous daily necessity.[4] It is also a cash crop produced by more than 25 million people in over 70 countries.[5]

The word coffee derives from the Arabic “qahwah”, meaning wine: coffee is the wine of Islam.[6] Early coffee cultivation took place in the sixteenth century on the hillsides of Yemen.[7] The Ottoman empire set up a coffeehouse as one of its first actions after conquering a new city, to demonstrate the civility of their rule.[8]

Coffee became a European luxury in the seventeenth century as Europeans brought the tradition back from visits in the Middle East. Coffee was especially popular in England. The first coffeehouse in London was established in the early 1650s, but by the turn of the 18th century there were several hundred coffeehouses there.[9]

British traders had more success trading for tea than coffee, which is one reason that England is today associated more with tea than coffee.[10]

Arab traders in Yemen monopolized coffee production until 1699, when the Dutch successfully introduced coffee to Java.[11]After that, coffee spread around the world through pathways of empire and slavery.[12] After the Dutch, the French colonial administrators took coffee to Africa. Then the Dutch introduced coffee to Suriname. Then a Portuguese official smuggled coffee from French Guiana to Brazil. The British began cultivating coffee in Jamaica and the Spanish established coffee in Cuba. By the end of the 18th century coffee was virtually everywhere in the Americas.[13]

The Coffee Industry

The total value of the global coffee industry was $465.9 billion in 2020 (this was a huge jump from 2019). 10.21 million bags of coffee were exported in 2020.

People around the world drink coffee, but the Aussies may be the most committed market. Even though the U.S. population is 12x the Australian population, the Australian coffee market ($7.8 billion) is more than half as much as the U.S. coffee market ($14 billion).

The world’s top coffee exporters include: Brazil, Vietnam, Colombia, Honduras, and Indonesia. Canada’s top coffee supplying countries are Brazil, Peru, Colombia, Nicaragua, Guatemala, and Mexico.

Around 125 million people globally depend on coffee for their livelihoods. Unlike some commodities, which are grown on large plantations, small coffee farms proliferate: smallholder farmers produce 80% of the world’s coffee.

Like other agricultural commodities, farmworkers receive very little of the value added from coffee. Coffee farmers typically earn only 7-10% of the retail price of coffee. The rest goes to traders, roasters, and retailers downstream.

In part, this has to do with the concentration of coffee buying and processing. Three coffee buyers control half of the global coffee trade (ECOM, Neumann and Volcafe). And 40% of coffee is processed by the ten largest coffee roasters, including Nestlé and Jacobs Douwe Egbers (JDE).

There is an interest in making the coffee industry fairer. Consumer research has found that 53% of U.S. coffee drinkers want to buy ethical coffee and are willing to pay $1.31 extra for a cup of coffee produced by a cooperative farmer.

Working Conditions

A Living Wage for Coffee Farmers

The low, and volatile, price of coffee is one of the biggest problems for coffee producers. Nearly 61% of coffee growers are selling their coffee at prices under the cost of production. While the global coffee industry has been growing, coffee farmers’ average incomes have not changed in the past 20 years, and has actually decreased when you factor in rising farming costs.

The low price of coffee is also a cause of child labour. Remember that coffee is farmed primarily by smallholders. Farmers will often pull their children from school into labour on coffee plantations, in order to produce enough to make a living.

Fairtrade Coffee

Fair trade is one solution to the problem of low coffee prices. Coffee is by far the leading fair trade product.[14] 

To provide farmers with a living income, fair trade estimates that coffee would need to be sold at $1.40 per pound. That is 40% higher than the current market price for coffee. And arguably even that price is not high enough. That is why the Fairtrade Minimum Price for coffee is $1.40 per pound (or $1.70 for organic).

On top of that, farmers receive a $0.20 per pound Fairtrade Premium, of which at least 25% is invested in productivity and quality initiatives. Co-operatives invest the rest in projects that they choose, which can be facility upgrades or things like community healthcare. Fairtrade coffee producers earned more than $94 million in Premium in 2017.

Forced Labour

Forced labour is a problem on some coffee plantations. For example, a 2019 investigation by Thompson-Reuters Foundation found evidence of widespread use of modern slavery on Brazilian coffee plantations.  

Environment

A 2008 study by Ben Salinas found that brewing and transportation are the two biggest sources of emissions from coffee production. The study shows that coffee growing and roasting both have a relatively small environmental footprint.

Coffee Growing

Sun Grown versus Shade Grown Coffee

Coffee has traditionally been grown under a shaded canopy of trees (shade grown), but recently there has been a shift to sun-grown coffee to meet greater demand. Sun-grown coffee is worse for the environment for two main reasons: it requires fertilizer and it is a cause of deforestation since forested area is cleared to make space for the plantations.

Coffee from Colombia, Brazil, and Costa Rica is usually grown on full-sun plantations. Whereas Peru, El Salvador, Nicaragua, Guatemala, and Ethiopia usually produce shade-grown coffee.

Most, though not all, organic growers will use shade-grown methods. To be extra sure that your coffee is shade-grown, you can also look for Bird-friendly Certification

Water Use 

Approximately 130 litres of water are needed to produce one cup of coffee. For context, a kilogram of beef takes 15,400 litres of water. And a cup of dairy milk takes 255 litres to produce.

Most of the water used to produce coffee is used in the growing process.

Impact of Climate Change

Climate change is impacting coffee yields as pests infest crops. It is also changing the ideal altitude for coffee growing. For example, Fairtrade International has said that warmer temperatures could push Arabica coffee production higher up into mountains and forest reserves, potentially displacing communities and wildlife.

Brewing Method

There are debates about the best and worst ways to brew coffee, but a lot depends on the volume of coffee that you are making and how you are using the system. One thing we can say fairly definitively is that cold brew is the most environmentally friendly way to brew coffee, since it requires no electricity, provided that you use a reusable filter. Generally speaking, a brewing method will be more environmentally friendly if you have a reusable filter, waste very little product, and keep the machine on for a short duration.

There are some articles out there saying that coffee pods are good for the environment. I take issue with these articles.

So, what is true about them? The life cycle assessments have pointed to something that is generally right: single-serve systems tend to result in less coffee waste, and that be more sustainable.

Drip coffee has generally been found to have a larger environmental impact than single-serve coffee, because LCAs assume that people prepare too much coffee at one time and brew extra batches to retain freshness. However, wasted product is something the consumer can control.

And that can make a big difference for thre outcome of these assessments. For instance, a 2015 study finds that accurate amounts of drip-brewed coffee outperformed single-serve methods, while over-preparation and keeping the warming plate on meant the highest environmental impact. (This study also assumed that drip coffee was brewed using a disposable paper filter and conventionally packaged coffee, but that is not necessarily what people are using.)

Even if you waste less coffee using a capsule system, that still does not mean that single use-coffee pods are good for the environment. It means we need to be careful about over-producing coffee and keeping warming pots on. These analyses typically do not measure against single-serve measures like French press, which eliminate the waste problem while also avoiding the garbage problem of coffee pods.

Every minute approximately 29,000 coffee capsules are dumped into landfills worldwide. The pollution problem associated with single-use capsules is huge, and it is undercounted in these lifecycle analyses. That is because these studies build in rosy assumptions about coffee pods. Sure, single-use capsules might not be a problem big deal if you assume that coffee pods are always put in the recycling—which they aren’t—and actually recycled—which, again, they aren’t.

There is a debate about the relative merits of different capsules. In one study, biodegradable capsules perform the best. In another, aluminum pods are viewed as the best choice. But these studies assume that capsules are ending up where they need to – either being composted or recycled appropriately, and we know that that is rarely the case.

So, if you are going to stick with a coffee pod machine, the best solution is to go for reusable pods. We think that’s a great choice! Here is a guide to help you choose the right reusable capsules.

It might be more efficient to get coffee at a café, since they produce a high volume of coffee. But there are a lot of factors that would go into it, and we couldn’t find a study on this question.

Packaging

Most coffee packaging is not recyclable because of the coffee bag laminate. Some roasters will sell coffee by weight in a container of your choosing. Or you can try your local bulk foods store.

Accompaniments

How do you take your coffee? One great way to reduce the environmental impact of coffee consumption is to switch from animal milk to a plant milk (for more on that see our alternative milks episode). If you add sugar or a powdered creamer, consider the impact of these accompaniments as well.

What You Can Do

Buy Ethical Coffee

World Vision recommends looking for coffee that is Fairtrade International, Fair Trade Certified, UTZ Certified, or Rainforest Alliance Certified. Try doubling up with organic certification, to ensure that your coffee is shade-grown. You can also buy from local roasters that are committed to buying ethical coffee. These roasters may prefer a direct purchasing strategy instead of going with a certification program. That can be a good approach, if you trust that the roaster takes ethics seriously.

Brew Efficiently

Whatever brewing method you use, make it as efficient as possible by:

●      Avoiding single-use filters

●      Turning the machine off when you’re done

●      Not producing more than you need

●      Keeping the machine clean, so it operates efficiently

Support Responsible Supply Chain Legislation

Support legislation that would require big companies to take action and report on their efforts to address child labour, modern slavery, and other human rights violations in their supply chains.

Canada started consultations in 2019. Bill S-216, An Act to Enact the Modern Slavery Act, would require large businesses listed on the Canadian stock exchange, or having a connection to Canada, to provide an annual report which would be posted publicly on the company’s website, as well as in a public government database. The Bill would also ban the import of goods produced by forced or child labour.

The Bill is currently in committee in the Senate (since 30 March 2021), having passed the second reading. That means that now is a good time to contact your Senators and Member of Parliament to ask if they support Bill S-216 and let them know that the Bill has your support.

Australia, the United Kingdom, California, and France already have similar laws (although in France the approach is a bit different). However, the Canadian legislation potentially goes further by amending the customs tariff to wholly exclude goods from entering Canada if manufactured by forced or child labour.

Endnotes

[1] Sedgewick. Augustine. (2020). Coffeeland: One Man’s Dark Empire and the Making of Our Favourite Drug. New York: Penguin Randomhouse LLC.

[2] Sedgewick, Coffeeland.

[3] Sedgewick, Coffeeland p.11

[4] Sedgewick, Coffeeland.

[5] Sedgewick, Coffeeland.

[6] Sedgewick, Coffeeland.

[7] Sedgewick, Coffeeland.

[8] Sedgewick, Coffeeland.

[9] Sedgewick, Coffeeland.

[10] Sedgewick, Coffeeland.

[11] Sedgewick, Coffeeland.

[12] Sedgewick, Coffeeland.

[13] Sedgewick, Coffeeland.

[14]Sedgewick, Coffeeland.

Episode 53 - Flowers

The Flower Industry

Four different types of products are sold in the flower industry: cut flowers, foliage, plants, and young plant material. This episode focuses on cut flowers.

The Demand for Cut Flowers

The cut flower industry is worth $100 billion worldwide. 60% of flowers are bought as a gift and another 20% are for weddings or funerals. Flowers Canada did a Consumer Research Study, which found that the two gifts millennial women most appreciate are wine and flowers.

How It Works

Flowers are grown, cut and packed on flower farms. Then they either go to a flower auction or through the direct flower trade. Florists buy flowers either through auctions or directly to wholesalers.

This short video shows what Dutch flower auction houses look like. 40% of the world’s imported flowers pass through auction houses in the Netherlands.[1] Fun fact: North America’s largest flower auction house is in Burnaby, British Columbia!

Cut flowers are typically shipped by plane, unless they are grown locally. For example, around 187,000 tons of flowers go through the Miami International Airport every year.

Globalization and the Cut Flowers Industry

Since the 1990s there has been a shift in production from Europe and North America to developing countries with warmer climates and cheaper labour. The four biggest cut flower exporters are: the Netherlands (55%), Colombia (18%), Ecuador (15%), and Kenya (15%).

The U.S. imports almost 80% of their flowers. Most flowers sold in the U.S. come from Colombia and Ecuador. Two out of every three flowers in the U.S. are imported from Colombia. In Canada, 55% of imported cut flowers are from Colombia, with 26% from Ecuador.[2]

Countries do specialize in certain flower varieties. Here is a list with the top global producer for a few flower varieties:

  • Rose: Ecuador

  • Tulip: The Netherlands

  • Carnation: Colombia

  • Orchid: Thailand

  • Peony: The Netherlands

The Rise of Supermarket Flowers

75% of the cut flowers market is made up of online retailers and supermarkets. Supermarkets tend to buy lower quality flowers than high-end florists. But they do demand a great deal of uniformity and may require some form of environmental and/or social standards in their supplier codes.

Which is better: supermarket or florist? It’s hard to say across the board. Supermarkets will adopt standards as a risk reduction strategy, whereas florists are drawn to certification either to differentiate themselves or out of a general feeling of responsibility. But most florists (at least in Europe in 2011) are not actively engaged in social and environmental standards as a purchasing criterion or in communication to customers.

Workers’ Rights

As is common with agricultural products (see our episodes on tea and chocolate, for example), flower farm workers in developing countries generally receive low wages and their working conditions are not comfortable. Union busting is common practice in some countries and can be violent.

There are a few workers’ rights issues that are particular to the flower industry.

Special events drive the cut flower industry, especially Valentine’s Day, Christmas, Mother’s Day, and weddings. 77% of flower purchases involve a specific occasion. Because the industry is so heavily event-based, flower farms need a lot of labour in very short time windows. In places with less mechanization and weak labour protections, that means flower workers often have to work very long shifts around key holidays.

Another problem that is especially prominent in the flower industry is worker safety. Specifically, flower workers can be exposed to toxic chemicals without proper protective equipment. Because flowers aren’t consumed, flower growers are allowed to use more pesticides than food farmers.[3] Approximately one-fifth of the chemicals used in the flower industry in developing countries are banned or untested in the US. Without proper protective equipment, farm workers exposed to toxic pesticides can become sick and, in some cases, die.

Sexual assault and harassment have been well-documented in the flower industry in Colombia and Kenya. Like the tea industry, there are a lot of women working in flower farming because they are perceived as being better at handling the plants delicately. In Kenya, for example, there have been accounts of sexual assault as a regular practice and in some cases as a condition of hiring and promotion.

Environment

Transportation

Timing is crucial for the cut flower industry. 45% of flowers die before they are sold. Typically, the time from harvest to sale is 10-12 days. And it is important to keep flowers refrigerated throughout this period, so they don’t spoil. For that reason, cut flowers are transported primarily by air. Of course, this means that transport contributes significantly to the environmental footprint of cut flowers.

That is why some people suggest that consumers think about plant miles – i.e.: how far did the plant travel to get to you?

Greenhouses

However, the fact that flowers are transported by plane does not necessarily mean that it is always better to buy local, from an emissions standpoint.

That is because it takes a lot of energy to heat greenhouses to the temperatures necessary to cultivate flowers in cold places like Canada, the United Kingdom, and the Netherlands.

A life cycle assessment commissioned by Fairtrade International found that “greenhouse gas emissions from air transport of roses from overseas are four to six times lower than  those from heating  the  greenhouses  in  the  Netherlands.” That study looked at the environmental impact of getting roses to Switzerland. So even though obviously the Netherlands is much closer to Switzerland than Kenya, Kenyan roses had a smaller carbon footprint.

So, if you are buying local it is also important to think about flowers that are grown in-season.

Water Use 

A single rose grown in Kenya takes ten litres of water to produce. So, the water footprint of a flower is relatively small (Quick reminder that a 6oz. steak has a water footprint of 2,551 litres).

However, some flower farms are more water efficient than others. And it can matter whether the flower farm is located somewhere that already struggles with water scarcity. Flower farms can impact local communities through water diversion for irrigation and water pollution.

Because of water scarcity in Kenya, the cut flower industry’s water use is a big issue there, for example. Flower producers in Kenya have been connected to pollution in water bodies like Lake Naivasha.

Pesticide Use

As discussed above, the flower industry uses a lot of pesticides. In addition to being a hazard to workers, pesticide use can pollute nearby freshwater and, in some cases, create ocean dead zones.

A study commissioned by Fairtrade International found that Dutch flower producers used less pesticides than Kenyan producers. But among Kenyan producers, fairtrade certified producers in Kenya used fewer pesticides, relative to non-fairtrade producers.

Packaging

Flowers often come wrapped in disposable plastic packaging, which is not ideal. If you can find plastic-free alternatives or buy a bouquet without packaging, do so.

Ethical Certifications

There is a truly overwhelming variety of ethical standards in the cut flower industry. Here is a chart that lists the most relevant standards for European flower and plant buyers:

Describing all of these standards would be challenging. But it is worth highlighting a few.

Organic Certification

Organic certification means that pesticides and other harmful chemicals were not used to grow the flower. There are also some other environmental criteria that may be applied. Different countries have different organic labels.

Fairtrade

We have talked about Fairtrade on the podcast before. See the research note from our sugar episode for a detailed description. Fair trade is a social standard that includes values like decent and safe work, fair prices for producers, and sustainability.

Fairtrade has two different types of standards. One stream is for businesses that hire employees. Another is for smallholders who work in farmer co-operatives.

Rainforest Alliance

Rainforest Alliance is an environmental NGO. Its certification system includes social and environmental criteria.

Developing Country Standards

The four largest developing country flower exporters all have their own ethical labels:

  • Florverde (Colombia)

  • FlorEcuador (Ecuador)

  • KFC Code of Practice (Kenya)

  • EHPEA Code of Practice (Ethiopia)

Florverde Sustainable Flowers is a social and environmental standard for flower growers in Colombia. It was created based on a code of conduct developed by the Association of Colombian Flower Exporters (Asocolflores). Florverdes includes standards on a number of social and environmental topics, including working conditions, occupational health, sustainability, traceability. Flower growers apply for Florverde certification through independent third party certifiers. As of 2015, 40% of total exports of flowers in Colombia had Florverde certification.

European Standards

There are also a handful of ethical standards developed and used primarily in Europe.

Business-to-Business Standards

Some ethical standards are not designed to communicate information to consumers. Instead, business-to-business standards are used by companies that buy a product and apply to companies that produce a product. There are three main sets of business-to-business standards in the flower industry.

The first of these is GLOBALGAP. GLOBAL GAP is a coalition of large European retail chains that defines the elements of “Good Agricultural Practices” (GAP) in areas like crop management, pest control, and worker health and safety. Some other labels (E.g., Florverde) are benchmarked against GLOBALGAP. GLOBALGAP applies to other industries as well. The flower industry standard is the GLOBALGAP Flower and Ornamental Standard.

Next is MPS (“Milieu Project Sierteelt”, which means Floriculture Environmental Project). It was set up as an environmental project by Dutch auctions but now it is active in more than 50 countries. MPS has a series of certificates in different areas. MPS-ABC is the environmental management system, but there is also a social standard (MPS-SQ) and a standard benchmarked against GLOBALGAP (MPS-GAP). Florimark is also a part of MPS and is a certificate for completing certain elements of MPS.

Finally, there is the Ethical Trade Initiative (ETI). ETI is a code of labour practice that focuses on ethical sourcing, used by a coalition of British companies. It is not a certification system, but companies are required to comply with ETI standards. They usually require suppliers to go through a pass/fail audit.

So, How Common is Ethical Certification?

One barrier to certification is low consumer awareness. Only about 10% of consumers are aware that sustainable flowers are available in flower shops. Consumer awareness is highest for Fairtrade.

Consumer awareness may be low, but ethical certification is common in the flower industry. A vast majority of European flower and plant growers participate in one or more certification schemes. “It is not uncommon for African and Latin American producers to hold 5 or more different certificates.” (Trade for Development Centre 2011: p.5)

Certification opens up market segments because some buyers require it. Or it can be a selling feature that differentiates a product or signals quality. For instance, although ethical certification is not required at Dutch auctions, certification through MPS-ABC, FFP, and Florimark are listed at auction.

Generally, certified flowers and plants do not receive higher prices than non-certified products. Certified flowers do go for higher prices at auction, but typically this is due to differences in product quality.

The Slow Flowers Movement

The slow flowers movement encourages consumers to buy flowers grown locally, seasonally, and ethically. Slow also means flowers that are grown “in a considered manner and not rushed through with all sorts of chemicals and artificial interventions.”

What Can You Do?

You can start by looking for flowers that have ethical certification. Ask your local florist or supermarket where they get their flowers! If you are not impressed with the answer, think about finding alternatives. This article from World Vision has a few links to florists that offer fair trade and organic options in Canada.

In general, it is better environmentally to get a potted plant than cut flowers, because they last much longer. For this same reason, you should avoid potted plants that are “designed to die” like poinsettias. Before you buy, Google the plant to ensure that it is not endangered. To get you started, here is an A to Z guide of common house plants.


Endnotes

[1] Business Wars Daily Podcast. (24 February 2021). COVID Ransacked the Cut Flower Industry. Business Wars Daily Podcast episode 653.

[2] Richardson, Courtney. (2014). Love Hurts. Alternatives Journal 40(1): 56-56.

[3] Dundas, Mairead. (7 June 2019). Toxic Cocktail: The Secret Within Your Flowers. France 24 https://www.france24.com/en/20190607-down-earth-pesticides-toxic-chemicals-slow-flowers-bouquets-agriculture-netherlands.

Episode 47 - Biogas with Peter Harris

Kyla and Kristen are joined by Peter Harris, who explains how biowaste can be turned into energy through a process called anaerobic digestion.

Peter Harris is a post-doctoral research fellow for the Centre for Agricultural Engineering. He works on the energy and bio resource recovery team.

When Kristen asked him about using anaerobic digestion in the household, he pointed us to a paper he wrote called Biogas in the Suburbs. He pointed out that the best way to utilize this technology isn’t to use it at home, but to push cities to incorporate it into their waste management systems.

Kyla hosted this episode and prepared nothing, so the notes here are short. Check out the links for more information!