ECOM – The 21st Century Supply Chain
Ecom is at the lead in the trend to bring consumers and farmers closer together, promoting a more sustainable way of coffee production and allowing for increased traceability and transparency on the 21st Century coffee supply chain.
Integral to this approach – and what truly makes its strategy unique – is its focus on the overall sustainability of the supply chain and the ability of the group to replicate its know-how world-wide on an unprecedented scale.

Enabling a Sustainable Coffee Supply-chain

Opportunity and Ecom’s Role
Consumers, civil society groups, investors, producers and the institutional sector are increasingly dealing with issues such as food safety, food security, labour practices, and environmental impacts associated with commodity production. In response to these concerns, there has been an unprecedented global interest in the environmental and social issues associated with the production of agribusiness commodities.

Similarly the coffee industry as a whole is gradually maturing to request more environmentally sound business practices and ethics. In this sector alone, a daunting range of initiatives (certification schemes, supply chain assurance systems, enhanced reporting, branding…etc. ) makes it increasingly difficult for the actors to define a clear path of action without being lost or overwhelmed by the plethora of sometimes competing and un-coordinated approaches mostly aimed at the niche specialty coffee market.

The end result is many organizations focusing on certain isolated elements of the so called “farm to cup” approach in order to solve the problem; and yet few, if any, fully integrate a complete supply chain approach with the potential to address large numbers of farmers across different countries and markets. This missing role in the coffee supply chain is the one Ecom is trying to enable. Its subsidiaries throughout the coffee world have been implementing diverse market-driven supply-chain improvement programs under a wide variety of conditions, forms, requirements, and guidelines.

Central America and Mexico: Verification of CAFÉ Practices Farmers

Starting in 2003 AMSA in Mexico has participated in a multi-stakeholder relationship with Conservation International, a leading environmental organization based in Washington, DC. This collaboration has resulted in successful supply to Starbucks of the Shade-Grown Mexico brand and in the strengthening of a group of cooperatives in the El Triunfo Biosphere of Chiapas. Furthermore, as a strategic supplier to Starbucks, Ecom subsidiaries have made a significant investment in the adequate implementation of Starbuck’s CAFÉ Practices program across the region.

More than 2,000 farmers are currently participating in the program and current plans include expansion of our work in other key Ecom origin offices such as Indonesia and Papua New Guinea.
This has resulted in increased business with this important customer which is the leading edge of sustainability. In total Starbucks consumes approximately 2.2 million bags with 500,000 under CAFÉ Practices to date and 1.1m bags expected in 2006.

Additional information can be found at:
Starbucks Homepage - http://www.starbucks.com/
CAFE Practices Guidelines - http://www.scscertified.com/csrpurchasing/starbucks.html
Conservation International - http://www.conservation.org/xp/CIWEB/


Costa Rica: One Bag One Tree in association with Nespresso AAA Program

Based upon a diagnostic covering more than 200 farms that identified over 130 rivers, creeks or springs, and with the assistance of a local university, more than 10,000 trees of 30 different tree species were selected for planting.

At the same time that producers were receiving technical conferences, more than 1000 kids from the elementary schools of the region were receiving paint books promoting in the next generation of coffee growers a higher environmental conscience.

In total, Nespresso consumes approximately 250,000 bags with 25-30% annual growth. Additional information can be found at: http://www.nespresso.com/precom/aaa/index_us_es.html

Nicaragua: Ecom partners with CIRAD to improve availability of high quality coffee cultivars.

In collaboration with CIRAD, Ecom has invested in the creation of a seed and plant production laboratory alongside Ecom’s coffee mill in Sebaco, Northern Nicaragua. This laboratory will introduce local agronomists, producers and cooperatives to new coffee technologies resulting in improved quality and economic viability. By improving and expanding their planting material, producers can raise the quality and volume of their harvests.

Through this lab Ecom offers a solution for the coffee, forest and agriculture industries in Nicaragua and Central America.

Additional information can be found at:
CIRAD - Development-oriented agricultural research - http://www.cirad.fr/en/index.php


UTZ Kapeh for Best Practices certification of small and medium farmers

It is our belief that together, coffee growers, traders and roasters are responsible for growing, merchandising and distributing coffee in a sustainable manner. Ecom’s collaboration with Utz Kapeh was designed as a means to prove our commitment to this sustainability - our commitment to both the environment and its people.
To date Ecom has successfully contributed to the certification of more than 15,000 farmers in such diverse countries as Honduras, Uganda, and Vietnam.

Collaboration for the establishment of these programs was obtained from EPOPA in the case of Uganda and from the Coffee Support Network (a program of the Green Development Foundation) in the case of Honduras and Vietnam.
Additional information can be found at:
Utz Kapeh Certified Responsible Coffee - http://www.utzkapeh.org/
EPOPA Export Promotion of Organic Products from Africa - http:/www.grolink.se/epopa/
Green Development Foundation - http://www.greendevelopment.nl/page4_one.htm)

Rainforest Alliance - environmentally sound coffee and timber production

Ecom’s local offices in these countries have been closely collaborating with Rainforest Alliance for the development of certified sustainable coffee and timber production. In Nicaragua one notable project is the buffer zone of the Bozawas Biosphere Reserve where Ecom is working with Rainforest Alliance in promoting sustainably produced coffee while leading farmers in the Bozawas area towards land management practices that are environmentally friendly and socially responsible.
A profile of Ecom’s Coffeeland Commitment by Rainforest Alliance is available at:
http://www.rainforest-alliance.org/programs/profiles/documents/ECOMProfile-withhorizon.pdf



Fairtrade Certified Coffees – Collaboration with cooperatives and NGOs


For many years Ecom origin and destination offices have worked with a diverse number of cooperatives around coffee and cocoa origins.
By buying direct from cooperatives at better prices, helping to strengthen their organizations and marketing their produce, the Fairtrade model offers concerned consumers the opportunity to buy products which were bought on the basis of the Fairtrade standards.

Ecom has supported the development of the Mark by registering itself as an active trader of Fairtrade products and promoting registered producers amongst it customer base, including small, medium and large roasters both in Europe and North America.

As a specific example, Ecom has partnered with Nestle and organized farmer groups in El Salvador to supply NESCAFÉ Partners’ Blend with coffee exclusively sourced from cooperatives that help bring social, economic and environmental sustainability to their communities under the Fairtrade Labeling Organization International standards. Additional information can be found at: The Fairtrade Foundation - http://www.fairtrade.org.uk/ Nestle - Partners Blend Homepage - http://www.growmorethancoffee.co.uk/ Proexcafe - http://www.proexcafe.com/Proexcafe.htm

Global – Ecom Foundation for the Development of Origin Resources

The fundamental objective of the Ecom Foundation is to improve the living conditions and well-being of small and medium scale commodity farmers by increasing the overall economic, environmental and social sustainability of the supply-chains with which Ecom is involved.

While Ecom cannot control the root causes of volatile commodity prices, it can affect the supply chain issues and contribute to the availability of traceable and sustainable sources of supply. It is in these areas in which the strategy focuses using Best Management Practices and through the implementation of project by:

1. working to educate for efficiency and quality in agricultural production
2. recommending techniques and practices to obtain high quality reliable products
3. strengthening sustainable and profitable management of natural resources
4. recommending adoption of environmentally friendly agricultural solutions
5. contributing to a better quality of life within the communities.