Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci. 

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Three years after they announced plans to merge under the Rainforest Alliance name, Rainforest Alliance and UTZ have announced a new Sustainable Agriculture Standard that will replace both programs in July 2021. Over 1,000 people across more than 50 countries have contributed to the new standard’s development over the past two years. Expected to be adopted by an existing network of at least two million farmers around the world, the new certification program has separate requirements for farms and supply chains, as well as new compliance procedures and documents. According to Rainforest Alliance, the new seal that accompanies the program promises more “shared responsibility,” including a mandatory sustainability differential above the market price, a required sustainability investment component, and greater support for climate-adaptive agriculture. A training program for current certificate holders, Rainforest Alliance staff, and Certification Bodies will be available from September 2020. 

The International Coffee Organization has released the third report in its series on the impact of the COVID-19 crisis on the global coffee sector. Focused on exporting country members that represent more than 80% of global coffee production, the survey results provide a snapshot of current perceptions of trends, including expectations that employment, revenues, domestic consumption, and export will all be negatively affected by the pandemic over the next year. The report highlights a concern expressed by over half the respondents that sales contracts were canceled or changed, mirroring a recent prediction by the US Department of Agriculture that global coffee consumption is set to fall this year for the first time since 2011. 

Guatemala has officially begun its exit from the International Coffee Agreement of 2007, the driver of all the ICO’s activities. Following its departure on September 30, Guatemala will be the only major coffee-producing country that is not a part of the agreement. The 2007 agreement made headlines in 2018 when the US, a founding member of the original 1963 agreement, unexpectedly withdrew. These departures have a significant impact on the organization's budget, which is funded through contributions from its importing and exporting partners based on annual coffee trade volumes. Ricardo Arenas, head of Anacafe’s Board of Directors, said the Guatemalan coffee association had urged the government to cut ties with the organization as it did not do enough to protect producers’ interests. 

This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening. 

Further Reading: 

• The Rainforest Alliance 2020 Certification Program Is Here 
  • Rainforest Alliance Unveils Sweeping New Certification Program (Daily Coffee News) 
• Impact of COVID-19 on the Global Coffee Sector: Survey of ICO Exporting Members 
  • ICO Surveys Exporting Members on Impact of COVID-19 (Global Coffee Report) 
  • The World is Drinking Less Coffee While Office Workers Stay Home (Bloomberg) 
• Guatemala to Exit the International Coffee Agreement 
  • Guatemala to Exit the International Coffee Agreement (Daily Coffee News) 
  • Update 2: Guatemala to Leave International Coffee Organization, Sources Say (Reuters)