UTZ Coffee Statistics Report

2017

UTZ is the largestcertification program

in the world for sustainable coffee

More than 480,000coffee farmers and

workers benefit from the UTZ program

UTZ certified coffee is produced in

23 countries

In 2017, more than

43.8 billion cups of UTZ certified coffee were enjoyed

in 84countries

Introduction

The main goal of this report is to present the scope and scale of the UTZ coffee program in 2017 – calendar year. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency.

The statistics report focuses on the key indicators related to:

• Market uptake: sales of UTZ certified coffee

• Program reach: UTZ certified coffee production, premiums being paid

and multi-certification of this production

This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal.

We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at ME@utz.org

©2018 UTZInformation presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.

A stable supply base

UTZ supply remains stable with Arabica volume growing and compensating slight Robusta decline

More than 225 thousand farmers and over 250 thousand workers reached

43% of UTZ coffee certificate holders are also certified for one or more other schemes, being UTZ-Rainforest Alliance the most common combination. Multi-certification is most common in Africa

Increased demand for UTZ was reflected in 14% increase in first buyer sales; with higher sales of both Arabica and Robusta Coffee

Increasing commitments for certified coffee of European retailers

Significant growth of demand for UTZ soluble coffee

In 2017, farmers were able to sell 43% of certified coffee as UTZ

An increasing market demand for UTZ certified coffee

Summary

Content

1. Reach

2. First buyer sales

3. Premium

4. Estimated production

5. Supply-demand trend

6. Multi-certification

1.1 Geographical reachThe UTZ Coffee program reached 23 producing countries

Compared to 2016 El Salvador (1 group and 1 estate) and Panama (1 estate) weren’t anymore in the program

1.2 Program reach5% more land was reached by the UTZ coffee program in 2017, but there were 14% less workers. The number of farmers reachedremained fairly stable

The growth in area was mostly driven by Latin America, particularly Brazil and Colombia The number of farmers remained fairly stable. The decrease of 0.2% was mostly driven by

Africa The largest absolute decrease in the number of workers was seen in Vietnam and

Honduras

592,977

2013 2014 2015 2016 2017

Area (Ha)

255,647

2013 2014 2015 2016 2017

# of workers (seasonal and permanent)

Relative growth ‘16 – ‘17 5% -0.2% -14%

226,015

2013 2014 2015 2016 2017

# of farmers

2.1 Global first buyer salesThe UTZ coffee 1st buyer sales increased with 14% from 2016 to 2017

Increased demand coming mainly from:- Western Europe - driven by private labels- Northern Europe - driven by A- brands

Substantial volumes were sold to the coffee soluble industry

‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.Private labels are products under own company name manufactured by a third party. A-brands are own branded products.* From 2015 onwards volumes are reported in Green coffee equivalent

224,028

258,867 238,392

321,419

365,091

2013 2014 2015* 2016 2017

MT

Gre

en

Co

ffee

Eq

uiv

alen

t

14%

-8%

35%

2.2 First buyer sales per originMost UTZ coffee came from Brazil (38%), Vietnam (17%) andHonduras (13%)

9% increase in Latin America mainly due to more sales from Honduras, Nicaragua and

Guatemala

31% increase in Asia with all countries increasing their sales, except for China

31% increase in Africa with all countries increasing their sales, except for Ethiopia and Kenya

‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.*’Other' includes : Indonesia, Tanzania, Peru, India, Ethiopia, Costa Rica, Kenya, Guatemala, China, Papua New Guinea, Uganda, Mexico, Rwanda, Burundi, DR of Congo & Zambia

Relative growth ‘16 – ‘17 27%-6%

139,848

61,178

47,401

34,595

18,054

64,015

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Brazil Vietnam Honduras Colombia Nicaragua Other*

MT

Gre

en C

off

ee E

qu

ival

ent

2015

2016

2017

48% 9% 65% 31%

2.3 Split Arabica vs RobustaAlmost 40% increase in Robusta first buyer sales sales and 10% increase in Arabica

Robusta volume sold increased with almost 40% with all UTZ producing countries increasingtheir sales

Vietnam and India sold most of the UTZ certified Robusta coffee Almost 10% increase in Arabica sales mainly driven by increase in sales of Arabica coffee

from Honduras

‘First Buyer Sales’ are all confirmed sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas* From 2015 onwards volumes are reported in green coffee equivalent

77%

82%

18%

82%

188,755 183,776

274,272

299,380

70,113 54,615 47,147

65,711

2014 2015* 2016 2017

MT

Gre

en C

off

ee E

qu

ival

ent

Arabica Robusta

23%

85%

15%

18%

77%73%

27%23%

85%

82%

15%

2.4 First buyer sales per coffee quality classificationIncrease in sales for all coffee qualities except for the Brazilian Arabica sales which decreased with 6%

Brazilian and other natural Arabicas decreased with 6% Other Arabica Milds coffee qualities increased with 42% Robusta sales increased with 39% Colombian Milds increased with 9%

‘First Buyer Sales’ are all the confirmed sales from the producer to the first buyer.Arabica sales consists of Colombian Milds, Other Mild Arabicas & Brazil & other Natural Arabicas*Coffee quality classification for a small volume of Arabica coffee is unknown

112,675

98,981

148,254

138,977

50,664 54,884

87,746

124,458

70,113

54,615 47,147

65,711

20,457 27,542

31,671 34,595

2014 2015 2016 2017

MT

Gre

en C

off

ee E

qu

ival

ent

Brazil and other natural Arabicas Other Arabica Milds Robustas Colombian Milds

87 supply chain actors joined the UTZ coffee program in 2017, a relative growth in members of 13%

First supply chain actors joined in Hong Kong and the Russian Federation In 2017, there were 1,609 new labeled coffee products on the market

2.5 Market uptake Sales growth was also reflected in new supply chain actors andlabeled packages

492

582

669

756

2014 2015 2016 2017

# of Licensed Coffee Supply Chain Actors

‘Supply Chain Actors’ include traders, roasters and retailers

13%

3.1 PremiumUTZ average coffee cash premium increased to 3.60 $c/lbs

The UTZ Premium is an additional cash amount paid above the market price for a similar conventional (non-certified/non-verified) product. It is mandatory and agreed upon between the certified group or producer and the first buyer

UTZ average coffee premium increased with 7%, with an increase of 9% for Arabica to3.78 Cents/ lb and a decrease of 3% for Robusta to 2.77 Cents/ lb in 2017

UTZ premium calculations are based on transactions data recorded in the UTZ traceability system. Previous years values above 20 $c/lbs were excluded from the analysis. In 2017 values above 30 $c/lbs are excluded. This change will improve our analysis and understanding of the UTZ premium

3.373.60

3.46

3.78

2.87 2.77

2016 2017

Global average UTZ Cash Premium ($c/lbs)

Global Arabica Robusta

3.2 Premium per countryThere are significant differences in the UTZ average coffee cash premium among countries

Premiums differ per country, producer and buyer because of several aspects such as quality, proportion of in-kind premium, and negotiation powers

Largest absolute increase seen in India Largest absolute decrease seen in Indonesia

* UTZ premium calculations are based on transactions data recorded in the UTZ traceability system. Values above 30 $c/lbs are excluded from the analysis. Countries with less than 3 CHs not included

3.054.00

6.01

8.09

1.36

3.03

6.47

1.87

12.32

3.68

6.78

2.493.13

7.74

2.41 2.41

4.07

1.52

Average UTZ Cash Premium ($c/lbs)

2016 2017

Global averageUTZ Cash premium 2017

70% 70%72%

80% 83%

30% 30%

28%

20% 17%

2013 2014 2015 2016 2017

MT

Gre

en C

off

ee E

qu

ival

ent

Arabica Robusta

4.1 UTZ estimated productionUTZ estimated production remained stable despite a decrease in Robusta coffee

2% more certified Arabica volume, 15% reduction in Robusta volume Estimated production in Latin America and Africa remained quite stable with an increase of 2%

and 1% respectively Estimated production in Asia decreased by 11% mainly due to a decrease in production in

Vietnam

Estimated production is based on license information from licenses valid on December 31st 2017

-1%726,591 729,918

821,399870,102 857,803

6%

13%

4.2 UTZ estimated production per originGrowth in certified volume in Colombia compensated the decline in Vietnam

79% of UTZ certified coffee volume comes from 5 countries: Brazil, Vietnam, Honduras, Peru and Colombia

Largest absolute growth in Colombia because of an increase in the number of farmers and area Largest absolute decline in Vietnam because of a decrease in the number of group members and

weather conditions

Estimated production is based on license information from licenses valid on December 31st 2017*Other includes: India, Laos, Indonesia, Nicaragua, Costa Rica, Kenya, Mexico, Uganda, China, Tanzania, Papua New Guinea, Rwanda, Burundi, DR of Congo, Dominican Republic, Ethiopia, Guatemala & Zambia

295,547

141,610

101,814

73,525 69,393

175,913

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Brazil Vietnam Colombia Peru Honduras Others

MT

Co

ffee

Gre

en E

qu

ival

ent

2015

2016

2017

Relative growth ‘16 – ‘17 -18%-2% 37% -3% -16% 7%

5.1 Supply-demand trendProducers sold on average 43% of their estimated production as UTZ. Increasing trend since 2015

The share of estimated production that was sold as UTZ increased in 2017 for all regions Largest increase seen in Asia from 27% in 2016 to 40% in 2017 Latin America increased from 42% in 2016 to 45% in 2017 Africa increased from 18% in 2016 to 24% in 2017

Supply Demand is based on first buyers sales and estimated production 2017. It indicates a trend but not an absolute number.

35%

29%

37%

43%

2014 2015 2016 2017

% of estimated production sold as UTZ

45%40%

24%

Latin America Asia Africa

% of estimated production sold as UTZ per region in 2017

6.1 Multi-certification: Certificate holders43% of UTZ coffee certificate holders are also certified for one or more other schemes

Decrease in multi-certified CHs for all schemes included in the analysis Rainforest Alliance (RFA) was once again the most common scheme in combination with UTZ Multi certification is most common in Africa (78%), followed by Latin America (42%) and Asia (33%)

Multi-certified represents the number of UTZ coffee certificate holders that were also certified for one or more of the following schemes: Fair Trade; Rainforest Alliance; Organic are included in the analysis. 4C and ‘Other’ schemes are excluded from the total Multi-certification figures for UTZ since these are practices and not a certification schemes

45%

8%

30%

17%

48%

12%

32%

20%

43%

11%

28%

18%

Multi-Certified Fair Trade RFA Organic

2015

2016

2017