EFICO – Y 2024 – Communication on Progress

COMMUNICATION ON PROGRESS YEAR 2024

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Communication On Progress Year 2024

COMMUNICATION ON PROGRESS YEAR 2024

BASED ON THE ENHANCED C O M M U N I C AT I O N O N PROGRESS REQUIRED FOR MEMBERS OF THE UNITED N AT I O N S G L O B A L C O M PA C T

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Communication On Progress Year 2024

OPENING STATEMENT This annual report is based on the Enhanced

•

Build credibility and brand value by

Communication On Progress (COP) report-

showing their commitment to the

ing framework of the United Nations Global

Ten Principles and the Sustainable

Compact (UNGC).

Development Goals.

•

Receive insight, learn and continuously

In 2022, EFICO reported to this frame-

improve performance by identifying

work already as Early Adopter Member. The

gaps, accessing guidance and setting

updates made by the UNGC to the Enhanced

sustainability goals.

COP throughout 2023 are now effective for all

•

participant members.

Compare performance against peers with access to one of the largest sources of free, public and comparable corporate

The Communication on Progress (COP) is a

sustainability data.

required public and annual disclosure by business participants of the UN Global Compact

This report reflects our commitment towards

to stakeholders with the following main

the Ten Principles of the UNGC and the

objectives:

Sustainable Development Goals (SDGs) and

•

reports our progress made in 2024.

Foster accountability on corporate sustainability performance to help safeguard

•

•

the integrity of the UN Global Compact

At EFICO, we encourage this consistent and

initiative;

harmonized way of continuous improvement

Promote

and

reporting and are convinced the UNGC’s

help drive corporate sustainability

continued

learning

enhanced platform acts as a strong tool to

performance;

support sustainability performance advance-

Enhance stakeholder access to informa-

ment and transparency year over year.

tion regarding participants’ implementation of the Ten Principles and contri-

As a global compact signatory since 2003,

bution towards the achievement of the

EFICO is committed to transparently report its

Sustainable Development Goals (SDGs).

progress and challenges, and share this with its partners.

The enhanced COP therefore enables participating companies of the UN Global Compact to:

We welcome feedback and ideas to continue

•

Measure and demonstrate progress

learning and improving our sustainability

to stakeholders and the public on the

journey, together with you.

Ten Principles and the Sustainable Development Goals in a consistent and harmonized way.

Our COP report is published on www.unglobalcompact.org and on www.EFICO.com/about/sdg/.

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LOOKING BACK Dear Stakeholders, Partners and Friends of

challenges that significantly impacted the

EFICO,

coffee market, including inflation, volatile currencies, and the ongoing effects of the

Looking back at 2024, it’s clear this year

global recession. Climate change remained a

brought its share of challenges, shaped by

constant concern, especially in South America,

global economic shifts and geopolitical

where El Niño led to lower yields and higher

tensions that left their mark on nearly every

production costs for Arabica beans.

industry -including the global coffee trade.

Simultaneously, political instability and 2024 - A YEAR OF SHORTAGES AND PRICE

infrastructure issues in key African coffee-

VOLATILITY

producing countries placed additional strain

2024 was marked by significant fluctuations

on the supply chain, particularly for the

in the coffee market. Prices opened the

European market where we operate.

year at 177 c/lb and soared to 348.35 c/lb by December 9, closing the year at 319.75 c/lb -an

These challenges were further amplified

overall increase of 80%.

by persistent inflation and the economic repercussions of the war in Ukraine, which

The fundamentals of this rally were rooted in

intensified pressure on resources.

supply and demand dynamics. Major Arabica producers like Honduras, Peru, and Brazil faced

Adding another layer of complexity, the

reduced harvests, while projections for Brazil’s

implementation of the European Union

2025 crop fell short. With global production

Deforestation Regulation (EUDR) created

struggling to meet growing demand, market

uncertainty and stress due to its unstructured

pressures intensified. Vietnam’s 2022/23

rollout. The EU estimates that compliance

Robusta harvest fell short of expectations,

could raise input costs by 0.3% to 4.3%,

placing emphasis on the current crop forecast,

significantly affecting businesses operating

which aims to exceed 28 million bags. Robusta

with tight margins. Smallholder farmers,

prices began 2024 at $2,570/mt and surged

particularly in regions with fragmented coffee

to $4,875/mt -an 89.5% increase, outpacing

production, faced considerable obstacles in

Arabica in percentage terms. This sharp rise

meeting these new requirements, further

has kept upward pressure on Arabica prices,

tightening an already strained global coffee

making a significant drop unlikely as long as

supply chain.

Robusta remains at these elevated levels.

SPECULATORS AND THE IMPACT OF A Both Arabica and Robusta faced supply

STRONG US DOLLAR

issues, which were undoubtedly a major factor

Speculators played a pivotal role in the 2024

driving the bullish movement witnessed

coffee price surge, driving momentum

throughout the year and expected to persist

by betting on coffee as a top-performing

into 2025.

commodity. However, their involvement also heightened market unpredictability, adding

GLOBAL CHALLENGES IMPACTING THE

to the challenges posed by inflation and

COFFEE MARKET

geopolitical instability.

The global landscape introduced a series of

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Communication On Progress Year 2024

For our partners in Europe and the UK, the

inhouse team is a blend of seasoned experts

strength of the US dollar further intensified

and dynamic new perspectives, enabling us to

the strain, making coffee significantly more

act with precision and foresight.

expensive in local currencies than during previous price peaks.

Surrounding ourselves with expertise at every level and strengthening our presence

This prolonged period of high prices, coupled

(in Europe in Spain and Eastern Europe)

with broader economic pressures, has put

we’re well-positioned to handle the agility

additional strain on the market, requiring the

the ever-changing C-market demands. This

industry to remain agile and responsive to

combination of solid foundations and expert-

evolving conditions.

driven dynamism defines who we are and what we do best.

BALANCING RISK AND SECURING COFFEE SUPPLY IN A VOLATILE MARKET : AGILE

NAVIGATING THE EUDR CHALLENGE

SOURCING, SOLID FINANCE, AND 360°

The implementation of the European Union

EXPERTISE

Deforestation Regulation (EUDR) in 2024

The unpredictable nature of the Arabica

introduced a new level of complexity for

market in 2024 required agility and flexibility

businesses. As a transformative policy, the

in our sourcing strategies. Erratic weather

EUDR redefined compliance and traceability

patterns and supply disruptions fueled

standards, mandating ‘deforestation-free’

extreme price volatility, amplified by

products and rigorous due diligence. This

unprecedented speculative trading and

necessitated a comprehensive overhaul of the

currency fluctuations, driving prices to multi-

value chain.

decade highs.

Uncertainty

surrounding

the

EUDR’s

Meanwhile, the Robusta market saw a

country benchmarking system added to the

significant shift: rising inflation in Europe

complexity. Delays in its publication created

increased demand for more affordable coffee

a regulatory maze that required cautious

options, while favourable growing conditions

navigation. Combined with the potential for

in key Robusta-producing regions led to better

fines of up to 4% of turnover, this placed a

yields and improved quality. In response, we

sharp focus on balancing risk management

explored new partnerships to ensure we could

with securing a stable coffee supply for our

meet evolving market needs effectively.

roaster partners.

Beyond sourcing, we reinforced our solid

In late 2024, the EU announced an extension

financial backbone, essential for navigating

to the EUDR implementation deadline: large

these challenges.

and medium sized companies now have until December 30, 2025, while micro and small

For nearly 100 years, we’ve not only forged

enterprises have until June 30, 2026.

strong partnerships with trusted partners deeply rooted in coffee-producing regions, we

At EFICO, we view this extension as an

also teamed up with numerous fellow experts

opportunity to assist our producing partners

along the coffee value chain. And our own

with compliance, actively monitor their

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progress, and go beyond the regulatory

and deepen our partnerships with dedicated

requirements. We are committed to pragmatic,

producers. Our unwavering commitment

inclusive approaches that ensure social fairness

to sustainability and innovation drove

while meeting high standards. By bolstering

investments in practices that enhance

our sustainability team with additional

resilience and align with a sustainable future.

experts, implementing advanced tracking

The year served as a reminder of the critical

and verification systems, and deepening our

role agility and foresight play in an increasingly

collaboration, we aim to create a value chain

complex global market.

that is not only compliant but also resilient and LOOKING AHEAD: NAVIGATING

socially inclusive.

CHALLENGES WITH CONFIDENCE IMPACT ON SMALLHOLDER FARMERS

As we enter 2025, the coffee market continues

AND COMPLIANCE CHALLENGES

to face pressure, and the outlook remains

The EUDR has had a particularly significant

uncertain. However, the lessons learned in

impact in regions with fragmented coffee

2024 have equipped us with the expertise,

production and limited compliance resources,

agility, and foresight needed to tackle the

where political instability and conflict are often

challenges ahead. While the road may be

prevalent.

difficult, we are ready to navigate it, seize new opportunities, and keep delivering value to

In countries where smallholder farmers form

both our coffee producer and roaster partners

the backbone of the coffee industry, meeting

in an ever-evolving market.

these new requirements has been a major challenge. Fortunately, our long-established

EFICO’s nearly 100 years of experience,

partnerships with producer communities,

grounded in the solid foundations of a

supported by the efforts of our coffee traders,

family business, remains a testament to our

sustainability team, and data experts, have

resilience. Our strong reputation, stability, and

enabled us to navigate these changes

adaptability have been key in balancing risk

effectively.

management with ensuring a secure coffee supply. This has been made possible through

We remain committed to strengthening

the dedication and coordination of all those

support and monitoring for our producer

across the value chain -our trading team,

partners, deepening these vital relationships,

logistics, finance, sustainability and quality

sharing our expertise, and working closely

experts, and operations team.

with industry specialists. Our aim is to ensure a seamless transition that benefits all parties

Our ability to respond quickly and securely to

across the coffee value chain.

changing conditions is a unique strength, and one we are proud to share with our partners.

STRENGTHENING PARTNERSHIPS AND

As we move forward, we stay committed

PREPARING FOR 2025

to collaboration, innovation, and resilience,

Despite

the

challenges ,

we

found

opportunities to strengthen our value chain

8

ensuring that we remain one step ahead in a challenging market.

Communication On Progress Year 2024

STATEMENT OF CONTINUED SUPPORT

“

We are pleased to affirm EFICO’s continued support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

Since 2003, EFICO has been a signatory to the United Nations Global Compact and we remain as committed as ever in the implementation of those principles.

This annual Communication on Progress describes our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.

We are committed to sharing the details of our progress through our primary channels of communication and we invite stakeholder feedback.

Sincerely,

Michel Germanès

Philip Van gestel

Managing Director

Executive Chairman

EFICO Group works in support of following 6 SDGs

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Communication On Progress Year 2024

TABLE OF CONTENTS Opening Statement

5

Looking Back

6

Statement of Continued Support

9

Logbook EFICO GROUP 2024 EFICO GROUP | Network of Companies

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Key Facts & Figures 2024

16

EFICO | A Passion for Coffee

18

Highlights & Insights 2024

18

Connecting the Coffee Value Chain Supporting Partners through Challenging Times

22

Insights & Takeaways from EFICO’s Sustainability Team for EUDR Compliance

30

CUPRIMA | Coffee with an Identity

40

Highlights & Insights 2024

43

Facts, Alternative Facts, Facts & Figures and Factchecking Ethiopian Forest Coffee

46

EFICO FOUNDATION | Coffee for People,

52

People for Coffee Highlights & Insights 2024

54

Overview Current EFICO FOUNDATION Projects

56

Reflecting on EFICO FOUNDATION’s Flagship Project: Kilimanjaro Water & Food for All

58

SEABRIDGE LOGISTICS | Green Coffee Logistics

62

Milestones & Metrics

63

Highlights 2024

64

Looking Ahead

66

Acknowledgement

71

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THE 10 UNITED NATIONS GLOBAL COMPACT PRINCIPLES

At EFICO we integrate the ten United Nations Global Compact principles in our strategies and actions: Additionally, we support the United Nations Guiding Principles on Business and Human Rights, following the Commodity Sector Guidance issued by the Swiss Government in November 2018.

HUMAN RIGHTS - PRINCIPLES BASED ON THE UNIVERSAL DECLARATION §1

Businesses should support and respect the protection of international proclaimed human rights

§2 Businesses should ensure that they are not complicit in human rights abuses LABOUR - PRINCIPLES RESULTING FROM THE INTERNATIONAL LABOUR ORGANIZATION’S DECLARATION §3 Businesses should uphold the freedom of association and recognize effectively the right to collective bargaining §4 Elimination of all forms of forced or compulsory labour §5 Effective abolition of child labour §6 Elimination of discrimination in respect of employment and occupation ENVIRONMENT - PRINCIPLES DERIVED FROM THE RIO DECLARATION PRINCIPLES §7 Businesses should support a precautionary approach to environmental challenges §8 Undertake initiatives to promote greater environmental responsibility §9 Encourage the development and diffusion of environmentally-friendly technologies ANTI-CORRUPTION - PRINCIPLE BASED ON THE UN CONVENTION AGAINST CORRUPTION §10 Businesses should work against corruption in all its forms including extortion and bribery 12

Communication On Progress Year 2024

THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS The Millenium Development Goals were transformed into the post2015 Sustainable Development Goals. The UN Member States agreed on the proposed 17 goals at the UN Summit in September 2015; the new framework came into effect as from January 2016. These new goals give an overview on how to tackle the world’s most pressing problems, including poverty, inequality and environmental destruction:

End poverty in all its forms everywhere

Reduce inequality within and among countries

End

hunger,

achieve

food

security

and improved nutrition and promote

Make cities and human settlements inclusive, safe, resilient and sustainable

sustainable agriculture Ensure sustainable consumption and Ensure

healthy

lives

and

promote

production patterns

well-being for all at all ages Take urgent action to combat climate Ensure inclusive and equitable quality

change and its impacts

education and promote lifelong learning Conserve and sustainably use the oceans,

opportunities for all

seas and marine resources for sustainable Achieve gender equality and empower

development

all women and girls Protect, restore and promote sustainable Ensure

availabilit y

and

sus tainable

use of terrestrial ecosystems, sustainably

management of water and sanitation for all

manage forests, combat desertification, and halt and reverse land degradation

Ensure access to affordable, reliable,

and halt biodiversity loss

sustainable and modern energy for all Promote peaceful and inclusive societies Promote

sus tained,

inclusive

and

for sustainable development, provide

sustainable economic growth, full and

access to justice for all and build effective,

productive employment and decent work

accountable and inclusive institutions at all levels

Build resilient infrastructure, promote inclusive and sustainable industrialization

Strengthen the means of implementation

and foster innovation

and revitalize the global partnership for sustainable development 13

EFICO GROUP | NETWORK OF COMPANIES EFICO GROUP’s network of companies gives you direct access to the entire world’s coffee production. Our tailor-made services include sustainable sourcing, competitive price proposals & structuring, high quality assurance, smart logistics, current availability and forecasts, and much more.

EFICO GROUP

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Communication On Progress Year 2024

EFICO | A PASSION FOR COFFEE EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique

MORE INFO

varieties delivered from around the world.

CUPRIMA | COFFEE WITH AN IDENTITY CUPRIMA is the group’s specialty coffee division and an additional EFICO response to the growing need to promote flavour and origin diversity. CUPRIMA’s coffee range consists of extraordinary qualities, prepared for

MORE INFO

both the connoisseur and the regular market. Based on the organoleptic profile, traceability and physical quality assessment, roasters can choose within 3 categories; Prima, Autentica, and Terra.

EFICO FOUNDATION | COFFEE FOR PEOPLE, PEOPLE FOR COFFEE At EFICO, our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through the EFICO FOUNDATION.

MORE INFO

Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively impact coffee farmer’s livelihoods, prosperity and environment.

SEABRIDGE | GREEN COFFEE LOGISTICS SEABRIDGE is a sustainable green logistics service center and distribution platform dedicated to green coffee in the port of Zeebrugge, founded to meet the existing community needs and to define a sustaina-

MORE INFO

ble benchmark for all companies within the sector.

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2024 KEY FACTS AND FIGURES EVOLUTION CERTIFIED & VERIFIED COFFEES * 2007 - 2024 54%

60%

64%

62%

58%

53%

13%

2007

2008

53%

2009

2010

2011

2012

2013

2014

2016

2017

2018

2019

2020

2021

2022

2023

2024

of our sourced coffees are certified or verified against sustainable standards

*In insight ‘Connecting the Coffee Value Chain’ (p. 22), you can read what we understand as certified and verified coffee, and how we translate these facts & figures into reality & practice.

15%

International exporter

57%

Local

28%

Cooperative

exporter

85% directly sourced from local actors

•

5 projects created concrete impact in 3 different countries: Colombia, Guatemala and Tanzania

•

with direct improved possibilities, empowerment and prosperity for 863 coffee entrepreneurs

•

indirectly generating a positive impact on the lives of over 2,918 coffee families

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Communication On Progress Year 2024

At EFICO and EFICO FOUNDATION, we

helped funding,

developing, testing and finalising Equal Origin’s ‘Gender Equity Index’ tool. This tool is free to use and available in three languages.

Two different studies are available: one for Extension and

Our goal is to further

Advisory Service Providers (EAS) and one for producer

use the tool with other

organisations.

partners and multiply the positive trigger Those curious about the tool and reports can sign

effect.

up for an Equal Origins account via their website: equalorigins.org

PARTNERSHIPS WITH

We highly support initiatives as The Global Coffee Platform’s

Sustainabilit y

Reference

Code,

the

Commitment’s Hub of Sustainable Coffee Challenge, the programs and trials of World Coffee Research and Equal Origin’s Gender Equity Index Tool.

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EFICO | A PASSION FOR COFFEE EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique varieties delivered from around the world.

HIGHLIGHTS | 2024 Reconnecting with our global and local partners Field Trips | Travelling to the Origins Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua, Peru, Tanzania, Uganda,…

Fairs & Events | Hosting, Cupping, Networking • February 2024 | Warsaw Coffee Festival

• Q2 2024| Koffieverbond, BVDAKI-UPCAIC

• February 2024 | Coffee Festival Madrid

• June 2024 | World of Coffee Copenhagen

• March 2024 | Producer & Roaster Forum,

• August 2024 | Coffee Congress Anacafé

Guatemala

Guatemala

• March 2024 | Le Paris Café Festival

• September 2024 | Paris Coffee Show

• April 2024 | Kaffee Campus Hamburg

• October 2024 | International Coffee Day

• April 2024 | Amsterdam Coffee Festival

Experience, Antwerpen & Zeebrugge

• April 2024 | Specialty Coffee Expo Chicago • April 2024 | Cupping & keynote presenta-

• October 2024 | 15th SCTA Coffee Forum & Dinner, Basel • November 2024 | Sintercafé Costa Rica

tion ‘Coffee Processing’, Antwerp Coffee Week

Local Projects ClimCoff In partnership with the Botanic Garden

2024 exhibited less balance and consistency

of Meise, KU Leuven – Forest Nature &

compared to its 2023 evaluation, with a final

Landscape, CoffeeLab Independent, and

score of 81.50 points. While this places the

other institutions, ClimCoff continues to eval-

coffee within specialty coffee cupping stand-

uate the quality potential of genetic Robusta

ards, there remains room for improvement.

lines from the Yangambi region in DR Congo.

In 2024, further sensory and physical anal-

Notably, the coffee demonstrates promis-

yses were conducted by a panel of three

ing potential, highlighted by its remarkably

EFICO/SEABRIDGE Q Graders to assess the

low caffeine content of 1.79%, an uncommon

coffee’s quality profiles and potential. The

characteristic for Robusta coffee.

pulped natural coffee sample evaluated in 18

Communication On Progress Year 2024

For A Better Life

will use this funding for cancer prevention,

Non profit association ‘For A Better Life’

research into more effective treatments and

(FABL) –an association founded in 2005

better care for everyone affected by cancer.

by Marc Dieusaert and The JAVA Coffee Company’s Wim Claes,

is committed to

Warmste Week

making the world a better place, both at

EFICO supported ‘Warmste Week’, a soli-

home and abroad.

darity campaign of VRT (one of the national

On the occasion of FABL’s fundraising net-

public service broadcasters for the Flemish

work event, EFICO contributed 1,320 EUR.

Community of Belgium), which is organized

The funds are destined to several purposeful

annually in the week before Christmas -from

local Belgian projects.

18 to 24 December. In 2024, De Warmste Week facilitated no fewer than 276 projects

Kom Op Tegen Kanker

around the central theme of ‘loneliness’.

EFICO supported Belgian NGO ‘Kom Op

These are projects that put people back in

Tegen Kanker’ by purchasing a Ghent Azalea

their power, so that they feel understood,

plant for all of its co-workers during the 30th

accepted, but above all (re)connected in

Plant Weekend against Cancer on 13-15

our society.

September 2024. ‘Kom Op Tegen Kanker’

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INSIGHTS | 2024 Encouraging and fostering a knowledge sharing culture

EFICO’S ORIGIN OFFICES - SNAPSHOT Establishing offices at the origin grants EFICO -as a green coffee importer, a substantial competitive edge.

Click and read the full story

INSIGHT INTO EFICO’S QUALITY POLICY ...and why everybody loves our in-house quality laboratories.

Click and read the full story

FIELDTRIP BRAZIL - EFICO GREEN TRADER JOURNAL Several times a year, we visit the farmers we collaborate with at their origins. In July, EFICO’s green coffee traders travelled to Brazil to join our local EFICO Brazil director João Marcos for some fascinating fieldtrips.

Click and read the full story

WHY TEAMING UP WITH A GREEN COFFEE TRADER MAKES SENSE … and not just from an economic point of view.

Click and read the full story

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Communication On Progress Year 2024

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EFICO | CONNECTING THE COFFEE VALUE CHAIN SUPPORTING PARTNERS THROUGH CHALLENGING TIMES THE COFFEE VALUE CHAIN IN 2024

significant disruptions. Climate change is no

A YEAR OF HEIGHTENED DISRUPTION

longer a distant threat; it is actively reshaping

The coffee market has always been vola-

the agricultural sector -including coffee, with

tile, but recently, speculation has signifi-

lasting consequences. Farmers face unpredic-

cantly amplified this instability. Traditionally,

table harvests, rising input costs, and incre-

price fluctuations were driven by factors

asing risks from droughts, storms, and pests.

like weather, production yields, and shifts in

As these challenges escalate, the pressure on

supply and demand. However, in recent times,

the coffee supply chain grows, directly impac-

financial speculators -such as hedge funds,

ting prices and consumers worldwide.

proprietary trading firms and algorithm-driven traders -who have little to no connection

The year 2024 has brought a perfect storm

to coffee, have pushed volatility to new extre-

to the coffee value chain. Poor harvests in

mes. High-frequency trading now dominates

key producing countries, such as Brazil and

the market, generating self-reinforcing price

Vietnam, have tightened supply, while sur-

swings that often have little to no relation to

ging demand from emerging markets in Asia

actual supply conditions.

and the Middle East has further strained the market. On the supply side, producers have

22

But while speculation fuels short-term fluc-

faced a series of challenges, including labour

tuations, the far greater and more pressing

shortages, soaring input costs -particularly for

challenge is climate change. With extreme

fertilizers and transportation, both impacted

weather events becoming more frequent and

by the ongoing Russia-Ukraine conflict, and

intense, global coffee production is facing

logistical disruptions such as port congestion.

Communication On Progress Year 2024

Geopolitical uncertainties, tariff tensions, and increasing regulatory pressures -including the European Deforestation Regulation (EUDR), have only added to the instability. Demand, too, has played a role in this crisis. The rising coffee consumption in emerging markets, combined with historically low global coffee supplies, has led to scarcity in the spot market. The resulting inverted market with negative switch conditions has driven prices to their highest levels in decades.

Many coffee industry veterans have noted that they have never experienced such turmoil in their careers -a truly challenging time for the entire coffee industry. 2024 will be remembered in global coffee history as a year that brought immense pressure to the entire coffee value chain.

EFICO | NEARLY A CENTURY OF

Darwin’s words resonate deeply: ‘It is not the

CONNECTING EVERY LINK IN THE COFFEE

strongest who survive, but those most adap-

VALUE CHAIN

table to change’. In today’s volatile landscape,

PURPOSE-DRIVEN, RESILIENT AND

adaptability is key to a sustainable and thri-

FUTURE-READY

ving future for all.

The coffee value chain is under more pressure than ever, with disruptions, imbalances,

At EFICO, connecting the value chain is not

and uncertainties impacting every stakehol-

just a commitment; it’s at the heart of eve-

der. In this challenging environment, EFICO’s

rything we do. Our origin offices serve as

role in connecting the value chain has never

vital support hubs, offering farmers essential

been more significant. With nearly a century

information, training, sustainability support,

of experience, EFICO continues to play a vital

and market access. These resources help far-

role in linking every partner across the value

mers overcome challenges, adopt sustaina-

chain -ensuring adaptability, resilience and

ble practices, strengthen their communities,

long-term sustainability.

and ultimately expand their reach to broader markets. Our green coffee traders cultivate

At EFICO, our commitment to a resilient,

transparent, long-lasting relationships with

transparent, and sustainable coffee value

roasters -fostering mutual trust and respect.

chain has been at the heart of our business for

Meanwhile the EFICO FOUNDATION plays a

almost 100 years. True resilience -we believe,

pivotal role in investing in local communities

comes not from standing still, but from evol-

by supporting education and driving sustaina-

ving together with our partners. Our approach

ble projects at origin. These collective efforts

focuses on purposeful partnerships -connec-

strengthen the entire value chain, ensuring

ting every part of the value chain, from far-

that -despite ongoing disruptions, our part-

mers to roasters, with long-term, meaningful

ners are not only prepared to endure but are

relationships built on trust and shared goals.

empowered to grow.

23

In the face of climate change, global trade disruptions, and shifting market dyna-

15%

International exporter

57%

Local exporter

28%

Cooperative

mics, EFICO’s purpose-driven approach has never been more crucial. At the core of this approach is our focus on smart partnerships -empowering all our partners, enhancing collective expertise, and maximizing value across the entire coffee value chain. As the EU Deforestation Regulation approaches its implementation by the end of 2025, we are intensifying our focus on direct, traceable

85%

directly sourced from local actors

partnerships. This ensures compliance while strengthening trust across the supply chain, making every step -from crop to cup, fully

85% of our coffee comes from cooperati-

traceable and sustainable.

ves and local exporters who reinvest in their communities. By sourcing directly from them,

With EFICO’s centenary on the horizon in

we help keep economic benefits within cof-

2026, we embrace nearly a century of exper-

fee-growing regions, directly supporting their

tise as both a legacy and a responsibility. Our

development. These long-term partnerships,

long-standing experience has deepened our

built on shared values of quality, food integrity,

commitment to safeguarding the future of

and sustainability foster stability and resili-

coffee, as well as the well-being of the part-

ence in an unpredictable marketplace.

ners and communities across the value chain.

Through responsible sourcing, sustainability

Our sourcing offices in Ethiopia, Central

initiatives, and community-driven efforts,

America, and Brazil are integral to our sus-

EFICO continues to evolve -staying dynamic,

tainable sourcing strategy. These offices go

proactive, and responsive in the ever-chan-

beyond operational hubs, serving as cen-

ging world of coffee we hold dear.

ters of adaptive collaboration that connect us directly to coffee-growing regions. They

EFICO | QUALITY, TRACEABILITY &

ensure farmers receive the necessary support

SUSTAINABILITY

to navigate the ever-changing coffee lands-

Y2024 KEY FACTS & FIGURES FROM OUR

cape. By standing alongside our partner pro-

MAIN SOURCING AREAS

ducers, we strengthen local economies and the broader coffee supply chain, fostering

PURPOSE DRIVEN SMART PARTNERSHIPS

relationships based on mutual growth and

We focus on purpose-driven partnerships

understanding. At EFICO, we take great pride

across the coffee value chain, starting at

in being part of locally rooted partnerships.

origin. By collaborating with cooperatives,

Smart sourcing is not just about coffee; it’s

local exporters, and key partners, we ensure

about creating lasting, positive impact.

a sustainable and transparent coffee supply.

Our sourcing strategy prioritizes reinvesting value locally, strengthening economies, and building resilience against market fluctuations and environmental challenges.

24

Communication On Progress Year 2024

CERTIFIED, VERIFIED VS NON-VERIFIED COFFEE In an era of global uncertainty, EFICO’s sustainable sourcing model ensures both adaptability and accountability. In 2024, we maintained a stable 49% share of certified coffee, including renowned certifications such as Organic, Rainforest Alliance and Fairtrade. Additionally, 4% of our coffee underwent rigorous verification and auditing by independent assessors, bringing the total share of certified and verified coffee sourced according to sustainable standards to 53%.

54%

60%

64%

62%

58%

53%

13%

2007

2008

53%

2009

2010

2011

2012

2013

2014

2016

2017

2018

2019

2020

2021

2022

2023

2024

of our sourced coffees are certified or verified against sustainable standards

Our certified and verified coffees consistently

and in combination with Rainforest Alliance

surpass industry averages -demonstrating

or Fairtrade certifications, with the largest

our unwavering commitment to certification,

decreases recorded in Peru and India.

verification, and our role as a trusted partner.

The increased rigor of the EU organic stanHowever, we observed a slight overall decline

dard for imported products, along with more

in certified coffee, both in terms of absolute

frequent inspections both at the origin and

volume and market share, with the most

in Europe, has had an impact. With advance-

notable drop in Fairtrade Certified coffee. The

ments in measurement accuracy, testing has

steepest declines were recorded in Honduras,

become more precise in detecting residues

Nicaragua, and Colombia.

that may indicate potential cross-contamination. As a result of the complexity involved in

This decline was primarily driven by higher aver-

complying with EU organic rules and regulati-

age market prices during several months of

ons, organic volumes in Europe have declined.

2024, which exceeded the Fairtrade minimum

Some exporters may consider shifting their

price. The rise in premium prices amid a volatile

focus to North America, where organic certifi-

market made Fairtrade coffee less attractive at

cation requirements are less stringent.

that time. However, as New York coffee prices later surpassed the Fairtrade minimum, roas-

These observations suggest that in times of

ters gradually returned to these qualities.

market volatility and rising prices, producers and roasters may be moving away from cer-

A similar downward trend was seen in

tain certification models. The costs and com-

Organic-certified coffee -both standalone

plex processes associated with certifications

25

make them less attractive. This shift could

Rainforest Alliance Standard -integrated with

reflect a ‘back to basics’ approach, where price

risk assessment tools, for example, serves as a

considerations play a larger role -particularly

key stepping stone toward EUDR compliance

in times of economic instability and inflation.

and improved traceability. It provides significant support to farmers worldwide -helping

Nevertheless, certification systems remain

them navigate the increasingly complex regu-

crucial for meeting the growing demands of

latory landscape of the European market.

sustainability and traceability. The updated

Honduras Guatemala

Vietnam

Colombia Ethiopia

India

Nicaragua Rest of Central America

Rest of Asia Peru

Brazil

Rest of Africa

Rest of S. America

Certified | Coffee is compliant with and audited against internationally recognized sustainability standards Verified | Coffee is compliant with and audited against company’s sustainability standards Not Verified

26

DEEP DIVE INTO EFICO’S 3 KEY ORIGINS

mics are influencing EFICO’s sustainable

WITH ESTABLISHED SOURCING OFFICES

sourcing strategy.

The world map above provides a 2024

snapshot of coffee origins, highlighting the

BRAZIL

percentages of certified, verified, and unveri-

Brazil remains EFICO’s top coffee sourcing

fied coffee. For a more detailed perspective,

origin, with 1 in every 3 coffee bags coming

we analyzed sourcing data from EFICO’s 3

from this country. This is due to the con-

major coffee origins with established sourcing

sistently good quality of Brazilian Arabica

offices. This deeper analysis sheds light on

beans, which are perfect for both blends and

how local conditions and global market dyna-

single-origin coffees.

Communication On Progress Year 2024

At first glance, EFICO’s sourcing profile may

in Guatemala City -which plays a vital role in

appear to show that only 50% of the coffee

addressing these challenges and fostering

from Brazil is certified. However, this figure

strong local partnerships.

surpasses industry standards. When we add 11% of verified coffee, the total share of certi-

An impressive 68% of our coffees sourced from

fied and verified Brazilian coffee increases

Central America have been verified and certi-

to a strong 61% -a figure that has remained

fied -reflecting a continued commitment to

consistent over time. Additionally, 91% of our

certification and sustainability. Additionally,

Brazilian coffee is sourced from local coo-

75% of the coffee sourced comes from local

peratives and exporters. By factoring in

cooperatives and exporters, underscoring

coffee from a local partner who follows inter-

the strength of our local partnerships.

nationally recognized traceability and sustainability standards, the combined share of

Certification progress has remained generally

certified and verified coffee rises by another

stable and consistent, reflecting our conti-

12%, bringing the total to an impressive 73%.

nued commitment to upholding high certifi-

cation standards despite evolving challenges.

CENTRAL AMERICA

However, a slight decline in both total and

Central America continues to be a key region

certified volumes was observed in 2024, par-

for EFICO’s coffee sourcing -despite facing

ticularly in Fairtrade and Rainforest Alliance

significant challenges such as climate change,

certifications.

migration, and productivity issues. Through our EFICO FOUNDATION, we actively support

The most significant volume declines occurred

various quality and sustainability projects that

in Nicaragua, Honduras, and Guatemala, where

have a positive impact on the coffee value

certified coffee volumes -especially Fairtrade-

chain. Our commitment to the region is rein-

certified coffee, dropped considerably.

forced by the presence of our sourcing office

27

ETHIOPIA Our trusted partner EFICO KURU operates

When combined with the certified portion,

4 washing stations in the Sidama region, all

this means that 64% of our Ethiopian coffee

certified under both Rainforest Alliance &

is sourced against sustainable standards -

Organic standards. EFICO is committed to

underscoring our commitment to creating a

developing a market for these coffees. These

positive impact through sustainable sourcing.

direct operations in Ethiopia allow us to build transparent value chains that extend to the

In comparison to 2023, we have also observed

washing stations, providing significant bene-

a notable increase in volumes from Ethiopia,

fits to farmers.

both in non-verified and certified coffee, with a particular rise in Rainforest Alliance and

Although certified Ethiopian coffee accounts

Organic certifications, while maintaining a

for just 33% of our total Ethiopian volume, it still

consistent share of certified coffee.

outperforms industry standards. Furthermore, 31% of our Ethiopian coffee volumes meet our internal sustainability standards.

28

Communication On Progress Year 2024

EFICO | FUTURE OUTLOOK CREATING SUSTAINABLE VALUE CHAIN INITIATIVES Our strategy extends beyond traditional certification to achieve carbon neutrality and deliver good quality coffee that is ethically sourced from thriving coffee communities.

A key initiative in our carbon-neutral strategy is the introduction of ‘Nicaragua Forest Positive’ Coffee, which was added to EFICO’s portfolio in late 2024 and is being launched in the first quarter of 2025. This initiative promotes regenerative agricultural practices that enhance carbon sequestration while generating revenues to coffee farmers through the sale of carbon removal units (CRU’s). By adopting sustainable agroforestry systems, Nicaraguan smallholder coffee farmers can boost their yields, safeguard their land, and receive financial recognition for their environmental contributions -securing both long-term economic and ecological benefits. For every 4 bags of Nicaraguan Forest Positive coffee purchased, partner roasters will receive 1 CRU they can use to offset their carbon emissions.

Another significant initiative in our sustainability strategy is the ‘Kilimanjaro Water & Food for All’ (KW&F4A) project, launched by EFICO FOUNDATION in celebration of its 20th anniversary in 2023. This flagship project focuses on implementing regenerative, water-efficient agricultural systems to restore soil productivity and ensure access to water for communities around Kilimanjaro’s coffee-growing regions. Reflecting on its first year, we decided at the end of 2024 to build on our progress and scale the project. KW&F4A serves as a replicable model for advancing 5 states in Kilimanjaro region, in collaboration with local coffee cooperatives and NGOs. The project promotes cultural change and multi-stakeholder collaboration, driven by core values such as conservation, ecosystem restoration, and regeneration. It also emphasizes innovation in water management and sustainable agricultural practices -all aimed at ensuring long-term access to water and food for communities.

Through these initiatives, we foster cultural change and multi-stakeholder collaboration, driving positive transformation in the coffee sector. By emphasizing values such as conservation, regeneration, participation, collaboration and innovation, we aim to create a sustainable value chain where roasters and consumers can fully appreciate the unique journey of each coffee, from bean to cup.

29

INSIGHTS AND TAKEAWAYS FROM EFICO’S SUSTAINABILITY TEAM FOR EUDR COMPLIANCE A FOCUS ON FOREST PRESERVATION AND

On 2 October 2024, the European Commission

EUDR COMPLIANCE

published a proposal to amend the EUDR,

On 29 June 2023, the Regulation on

delaying its application to 30 December

Deforestation-free Products (EUDR) entered

2025 for large companies and 30 June 2026

into force. The main driver of deforestation is

for SMEs. This was formally adopted by

the expansion of agricultural land linked to

both the European Parliament and Council

the production of commodities like coffee,

and published in the Official Journal on 23

cacao, cattle, wood, soy, palm oil, rubber,

December 2024.

and some of their derived products, such as leather, chocolate, tyres, or furniture. As a

This additional time is intended to help com-

major economy and consumer of these com-

panies around the world implement the

modities linked to deforestation and forest

rules more smoothly from the date of appli-

degradation, the EU wants to lead the way to

cation, without undermining the objectives

solving it. Under the Regulation, any opera-

of the law.

tor or trader who places these commodities

30

on the EU market, or exports from it, must be

EFICO: READY FOR EUDR COMPLIANCE

able to prove that the products do not orig-

ANYTIME AND BEYOND

inate from recently deforested land or have

At EFICO, we have been closely monitor-

contributed to forest degradation.

ing the developments surrounding the

Communication On Progress Year 2024

EUDR to ensure we are fully prepared for

nating, initiating, and advancing our green

its implementation, no matter the timeline.

coffee goals. They’ve been driving our pro-

Our commitment to full compliance with

gress behind the scenes, ensuring we stay

the EUDR remains steadfast. The extra time

ahead of the curve. Recently, we sat down

granted will allow us to delve deeper into the

with them to gain firsthand insights into

requirements, enabling us to provide even

their work on EUDR compliance. They shared

greater value.

their field experiences and framed them within the broader coffee landscape, providing valuable takeaways for European roasters

C AMIL A PE R E Z

PAULINE VANDEPUTTE

and stakeholders.

K ATRIE N DEL AET

As experts in EUDR-related matters, they are well-positioned to offer tailored support to EFICO’s partner producers, exporters and roasters, guiding them on the path to sustainable, deforestation-free coffee.

This reflects EFICO’s personalised approach

SUSTAINABILITY TEAM

to EUDR compliance: ensuring alignment across the entire coffee value chain, minimising duplicated efforts, and openly sharing

Leading these efforts is EFICO’s Sustainability

insights and practical tips. At EFICO, it’s all

Team -a diverse, international, and multilin-

about personalised strategies, customised

gual group of dedicated women who have

advice, and building purposeful partnerships.

been on top of it for some time now, coordi-

31

A CONVERSATION WITH EFICO’S

•

Compliance with Local Legislation:

SUSTAINABILITY TEAM

Coffee must adhere to relevant leg-

KEY INSIGHTS, PRACTICAL TAKEAWAYS

islation in its country of production

AND BEST PRACTICES FOR EUDR

-including laws on environment, land

COMPLIANCE FOR OUR PARTNERS

use, forest governance, labour, tax, and human rights.

I. IMPACT OF EUDR ON COFFEE

•

Due

Diligence:

Each

shipment

PRODUCERS

must be accompanied by a due dil-

Most people are likely familiar with it by now,

igence statement, confirming mini-

but here’s a brief summary.

mal risk of non-compliance with EUDR

The EU Deforestation Regulation (EUDR) -one

requirements.

of the most stringent and comprehensive environmental laws in the EU, aims to ensure

The workload for mapping coffee plots

that 7 key consumer goods (soy, cattle, oil

under the EUDR largely falls on farmers and

palm, wood, cacao, coffee and natural rubber)

producers with the support of exporters,

and some of their derivatives placed on the

importers and governmental and non-gov-

EU market are free from deforestation.

ernmental organisations. The coffee producers with less than 4 hectares of coffee

For our coffee sector, this translates as

land are required to provide a GPS pin mark-

follows:

ing the center of their plot, while producers

Fundamentally, the EUDR dictates that

with more than 4 hectares of coffee must

all coffee entering or leaving the EU must

also use ‘polygon mapping’, a more detailed

comply with these principles:

method that outlines the boundaries of

•

each plot.

Deforestation-Free: Ensuring that coffee products purchased, used, and consumed by Europeans do not contribute to deforestation or forest degradation, both within the EU and globally.

32

Communication On Progress Year 2024

This strict, zero-tolerance approach, where

geolocation techniques and ground-truth-

products are either compliant or not, places

ing, often requiring enumerators and farm-

significant pressure on importers (in our

ers to work together. There’s a significant

sector: importers of green coffee, decaffein-

gap between the expectations set by EUDR

ated coffee, roasted coffee, and other coffee

regulators and the realities faced by farm-

derivatives) to ensure accurate and compre-

ers and data collectors on the ground. In

hensive data collection.

many African countries, farmers frequently rely on informal methods, such as memory

A. EFICO X PRODUCER PARTNERS

or handwritten notebooks, to manage their

EUDR COMPLIANCE VS FIELD REALITY

business data.’

Katrien Delaet -Expert Quality & Sustainability at EFICO: ‘Farmers in developing countries

Katrien agrees and concludes: ‘Collecting

are now suddenly expected to have smart-

accurate, formalized data for regulatory

phones and become tech-savvy enough to

purposes is quite a challenge. The pro-

map their coffee growing areas and inter-

cess becomes more effective when per-

pret satellite imagery. While the technologi-

sonal relationships are built, as qualitative

cal demands, such as handling geo-location

insights are more easily gathered when

data, are already challenging, the legal obsti-

data collectors connect with farmers. At

cles are even harder to overcome. In many of

EFICO, we are fortunate to have naturally

these regions, land ownership is often uncer-

developed the ability to build purposeful

tain. As a result, the EUDR legislation can

partnerships, something we have enjoyed

feel disconnected from the practical realities

doing over the years. This approach is

these farmers face on the ground.’

always beneficial, but especially crucial at this moment.’

Katrien continues: ‘So maybe let’s start by addressing the in-the-field realities, such as

Camila Perez, who recently joined the

the challenges related to boundaries and the

EFICO Sustainability team as GIS Data &

associated costs of data collection for small-

Sustainability Officer, shares: ‘I was quickly

holder farmers. Farmers must be involved

thrown into the deep end! At the moment,

in identifying plot boundaries, as they know

my role involves coordinating the collec-

the land best. Mapping every farm, espe-

tion and analysis of GIS datasets, assessing

cially for smallholders, involves significant

deforestation risks with external partners,

resources, including time, human, and finan-

and reviewing critical cases with EFICO’s

cial expenses. Even getting to remote farms

coffee-producing partners. Later on, I will

is challenging due to poor infrastructure,

help refine internal methods, enhance risk

and many farmers don’t live near their plots.’

analysis, and design systems to track our social and environmental impact. I’ll also be

Pauline Vandeputte -Value Chain Expert

involved in setting up new data collection

& Sustainability at EFICO: ‘The EUDR man-

projects from farm to customer, focusing on

dates geolocation for every coffee plot to

full traceability and sustainability. I’m look-

demonstrate that no deforestation occurred

ing forward to assisting with hands-on work

after 30/12/2020. This involves advanced

in the countries of origin!’

33

B. EFICO’S TAKEAWAYS

partners. Recognising the pressures this

→

Any EUDR compliance effort must con-

regulation can impose on farmers, our

sider the socio-economic realities faced

strategy is flexible, collaborative, and

by smallholder farmers, who risk losing

progressive.

market access if they cannot meet the

→

→

requirements. Developing an inclusive

ducers to ensure compliance without

approach should be a priority when

adding unnecessary pressure. We pro-

building sustainable supply chains.

vide clear data requirements for geolo-

While technology -such as satellite data,

cation, traceability, legality, and harvest

is crucial for compliance, manual interventions and human judgment are often

→

→

EFICO works closely with its partner pro-

periods. →

To avoid duplicating efforts and incurring

needed to correct inaccuracies and

unnecessary verification costs, EFICO

ensure reliable results; ground truthing

allows suppliers to submit risk assess-

is a must!

ments conducted by other approved ser-

These challenges and insights empha-

vice providers. Our approach is tailored

sise the need for realistic and con-

with tiered engagement levels, ranging

text-sensitive approaches to EUDR com-

from basic data submission to compre-

pliance, balancing regulatory demands

hensive risk assessments. By adapt-

with the practical needs and limitations

ing to each supplier’s needs, we ensure

of farmers and supply chain participants,

compliance while minimising additional

specific to each country of origin.

burdens.

Many countries of origin face ongoing

→

Sustainability has been at the heart of

political and economic instability, which

EFICO since the beginning. With the

presents significant challenges. A one-

EUDR regulations on the horizon, we

size-fits-all approach simply doesn’t exist.

have expanded the team with two fulltime sustainability experts. They are

C. EFICO’S APPROACH

here to assist our partner farmers and

→

EFICO’s approach emphasises enhanc-

roasters in navigating these new regula-

ing supply chain transparency while pro-

tions, helping us all maintain the highest

viding tailored support through direct

standards of sustainability.

contact and dialogue with our producer

34

Communication On Progress Year 2024

II. IMPACT OF EUDR ON COFFEE TRADERS

industry is immense, affecting most supply

& ROASTERS IN THE EUROPEAN BEAN

chain actors. Non-compliance could result in

SCENE

fines of up to 4% of annual turnover, potential

We’ve discussed EFICO’s role in informing

confiscation of shipments, and losing access to

and supporting partner producers at origin.

a market that represents over a third of global

Now, let’s shift the focus to the impact of the

coffee consumption. For many traders and

EUDR on European roasters and how EFICO

roasters, these consequences could be cata-

supports them in navigating this process.

strophic. However, despite these challenges, the EUDR legislation also presents significant

Katrien: ‘The Regulation was published in

opportunities. It promotes closer collaboration

the Official Journal of the European Union

with both producer and roaster partners, lead-

on June 9, 2023, and took effect on June 29,

ing to stronger, more enduring partnerships.’

2023. For now, the actual enforcement is set to begin on 30 December 2025 for most

Katrien explains: ‘Companies with inadequate

companies and on 30 June 2026, for micro-

policies on deforestation and biodiversity are

and small enterprises. Rest assured, we will

facing challenging times, but EFICO just needs

stay on top of things and be ready whenever

to step up a gear and make some extra efforts,

needed.’

as the EUDR aligns with the sustainability goals and standards we have been investing

Katrien acknowledges: ‘It’s an understate-

in for years, even before these regulations were

ment to say that the impact on the coffee

introduced.’

35

Katrien emphasises and advises: ‘Certified

of land where the coffee is produced. This

coffee goes beyond conventional options,

includes providing geolocation data for the

with major certification bodies such as

production area. EFICO must also assess and

Rainforest Alliance and Fairtrade already

address the risk of their products contrib-

aligning their standards with EUDR require-

uting to deforestation by examining supply

ments. These certifications are essential

chains to ensure legal and environmental

in helping coffee importers meet data col-

compliance in the country of origin.’

lection obligations, particularly regarding legal aspects. This gives EFICO a significant

Katrien continues: ‘Once documentation

advantage, as we offer a wide range of cer-

confirms there is no or negligible risk of

tified coffees. However, certification alone

non-compliance, EFICO must submit a Due

does not guarantee EUDR compliance!

Diligence Statement (DDS) through the EU

Farmers must voluntarily meet the require-

Information System (TRACES). This submis-

ments ahead of their audits, and operators

sion generates a DDS reference number,

remain liable for any non-compliance. That is

which is necessary for the coffee’s release

why, at EFICO, we always perform additional

for circulation within or export from the EU

due diligence to ensure full compliance with

market.’

legal standards.’

‘Once the coffee is cleared by customs for A. EFICO X ROASTER PARTNERS

free circulation in the EU, the requirements

EUDR COMPLIANCE VS EUROPEAN BEAN

change’, Katrien explains. ‘Large downstream

SCENE REALITY

operators (such as processors, roasters or

What are EFICO’s responsibilities as an

decaffeinators,) must meet similar due dili-

importer/operator under the EUDR regu-

gence obligations and submit a DDS based

lation, and how does it impact their coffee

on a previous reference number. In contrast,

roasters customers?

SMEs are not required to submit a due diligence declaration for products already cov-

36

Pauline: ‘As an importer/operator, EFICO

ered by another economic operator. They

must ensure that all their coffees are trace-

only need to provide the reference number

able to their origin, specifically to the plot

of the existing declaration if requested.’

Communication On Progress Year 2024

Katrien: ‘Once the EUDR comes into effect,

→

European roasters must meet due dili-

we will consistently include our DDS num-

gence obligations before selling or dis-

bers on every invoice to directly demonstrate

tributing roasted coffee or processed

our compliance, ensuring automatic and

products within the EU, ensuring their

seamless information transfer.’

products comply with all criteria set by the regulation.

B. EFICO’S TAKEAWAYS →

If European roasters process green coffee beans (e.g. by roasting it) after

islation by being product-based and

the enforcement date of 30 December

focusing on prohibitions. In contrast,

2025, they must provide evidence that

the CSDDD (Corporate Sustainability

the coffee was placed on the EU market

Due Diligence Directive) for example

before this date (as per order request,

requires companies to address human

transport document, or invoice). Or in

rights and environmental risks in their

case the coffee is made with beans intro-

supply chains, while the German Supply

duced to the market after 30 December

Chain Act (LkSG) emphasises companies’

2025, they must demonstrate that the

responsibility to ensure due diligence

beans are deforestation-free by provid-

and prevent harm in their supply chains.

ing the respective DDS number.

Both the CSDDD and LkSG focus on best

→

→

The EUDR stands out from other leg-

→

In the context of the EUDR, it is once

efforts to manage risks, whereas the

again clear that building long-term part-

EUDR takes a stricter approach by ban-

nerships is both useful and necessary.

ning products linked to deforestation.

Additionally, direct involvement with the

European roasters play a crucial role in

EUDR regulations -such as ensuring full

the coffee supply chain and are directly

transparency and traceability, can poten-

affected by the EUDR. The regulation

tially lead to new insights into market

mandates that all European operators,

setting and commercialisation.

including roasters, ensure their products are free from deforestation and meet the legal requirements of the country of origin.

37

C. EFICO’S APPROACH →

EFICO’s approach focuses on enhancing supply chain transparency.

→

At EFICO, we collaborate closely with our partner roasters, offering clear data requirements to help facilitate compliance with the EUDR.

→

EFICO makes compliance easy and hassle-free by streamlining the process. Upon the enforcement date of the EUDR legislation -starting 30 December 2025, every EFICO invoice will include the DDS reference number from the EU IT platform for coffee imported and cleared after this date. This ensures compliance with geolocation and legality requirements, while batches cleared before this date are exempt.

→

All coffee imported on or after the EUDR’s enforcement date will be subject to EUDR regulations. However, coffee that EFICO has in stock prior to this date will not be subject to these regulations.

→

If needed, EFICO is available to provide detailed information to demonstrate compliance during controls or audits by your competent authorities.

IS IT STILL A CHALLENGE FOR YOU TO SEE THE FOREST FOR THE TREES? If so, be sure to check out the updated FAQs published by the European Union -they offer valuable insights to enhance your understanding. Alternatively, you can reach out to EFICO’s green traders, who collaborate closely with the in-house sustainability team. They’ll provide you with expert advice and support.

38

Communication On Progress Year 2024

39

CUPRIMA | COFFEE WITH AN IDENTITY CUPRIMA is EFICO Group’s specialty coffee division and an additional response to the growing need to promote flavour and origin diversity, and foster stable and sustainable supply chains that make sense in today’s challenging environment.

A dedicated CUPRIMA team of coffee experts and Q graders takes care of the selection, sourcing, logistics and sales of specialty coffee. Outstanding coffee qualities are selected, directly sourced and fully traceable down to washing station or farm level, while building win-win partnerships and connecting farmers and craft coffee roasters.

For more information visit our website

40

Communication On Progress Year 2024

Autentica

Prima

Terra

• SCA: 86+

• SCA: 84-86

• SCA: 82-84

• Exceptional coffees

• High quality coffees

• Typical of the

• Unique sensory

• Authentic

organoleptic profile

• Available according to

of its region

the crop calendar

• Available all year

experiences • Exclusive • Optimal traceability

• Traceable to the region

With CUPRIMA, we sourced 421 different coffees from 15 countries in 2024, promoting flavour diversity whilst ensuring the future of coffee.

Indonesia is now also part of our origins, adding unique flavours to our specialty coffee selection.

x1 Dominican Republic

x 18

x4

Guatemala

Honduras

x1

x 18

x 72

El Salvador

Colombia

x 19

Indonesia x 74 Ethiopia

x 100

Nicaragua

x 16

Brazil

Kenya

x 42 Costa Rica x 13 Peru

x3 DR Congo

x 13 x 27

Rwanda

Burundi

various types of coffees

41

42

Communication On Progress Year 2024

HIGHLIGHTS | 2024 Reconnecting with our global and local partners Field Trips | Travelling to the Origins Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua, Peru, Tanzania …

Fairs & Events | Hosting, Cupping, Networking •

February 2024 | Warsaw Coffee Festival

•

June 2024 | World of Coffee Copenhagen

•

February 2024 | Coffee Festival Madrid

•

August 2024 | Coffee Congress Anacafé

•

March 2024 | Producer & Roaster Forum,

Guatemala

Guatemala

•

September 2024 | Paris Coffee Show

•

March 2024 | Le Paris Café Festival

•

October 2024 | International Coffee Day

•

April 2024 | Kaffee Campus Hamburg

•

April 2024 | Amsterdam Coffee Festival

•

October 2024 | Brussels Coffee Show

•

April 2024 | Specialty Coffee Expo

•

November 2024 | Sintercafé Costa Rica

Experience, Antwerp & Zeebrugge

Chicago •

April 2024 | Cupping & key note presentation ‘Coffee Processing’, Antwerp Coffee Week

Collabs •

Teaming up with SCA France Sponsoring ‘Le Championnat de France de Torréfaction’

•

Teaming up with World Coffee Research

43

INSIGHTS | 2024 Encouraging and fostering a knowledge sharing culture

FROM CANOPY TO CUP | EXPLORING AGROFORESTRY IN COFFEE Agroforestry, the perfect blend of sustainability and coffee cultivation.

Click and read the full story

FACTS, ALTERNATIVE FACTS AND FACT CHECKING ETHIOPIAN WILD FOREST COFFEE Several recent publications have provided valuable insights into this matter, yielding somewhat unexpected findings.

Click and read the full story

FIELD TRIP BRAZIL’S SPECIALTY COFFEE TRAILBLAZERS Last July, we had the pleasure of traveling to Brazil, to catch up with two of our long-standing specialty partners.

Click and read the full story

CUPRIMA’S KEY INSIGHTS, TAKEAWAYS AND BEST PRACTICES FOR EUDR COMPLIANCE The European Union Deforestation Regulation accelerates our vision, and we are using this opportunity to reaffirm our commitment to maintaining deforestation-free supply chains ensuring EUDR compliance.

Click and read the full story

44

Communication On Progress Year 2024

45

FACTS, ALTERNATIVE FACTS, FACTS & FIGURES AND FACT CHECKING ETHIOPIAN FOREST COFFEE ‘Forest Coffee’ -often seen as a promising

facts, alternative interpretations and diffe-

and intriguing concept, is far too often pro-

ring opinions surrounding this almost mythi-

moted without a comprehensive understan-

cal concept.

ding of its implications. This term has received attention for its potential environmental

BACK TO THE ROOTS: THE CLOUD

and quality benefits, but may still have no

FORESTS OF KAFA

substantive meaning.

Long before coffee was cultivated around the globe, before it became one of the wor-

46

Recent research and publications have shed

ld’s most traded commodities, and before

light on this topic, uncovering unexpected

it became the backbone of industries and

findings and prompting a deeper investiga-

economies, the plant grew wild in Ethiopia’s

tion into its essence. Time for a brief state of

dense forests. The mountainous and misty

affairs. Let’s unravel the truth behind savvy

southwestern Ethiopian rainforests serve as

marketing phrases such as ‘forest coffee’

the backdrop and original habitat of Coffea

and/or ‘wild coffee’. Let’s explore a range of

arabica’s gene pool.

Communication On Progress Year 2024

These cloud forests -especially the renowned

WILD STORYTELLING

region of Kafa carry significant historical

It is easy and tempting to make a romantic

and agricultural importance in the cultiva-

leap from the existence of some wild coffee

tion of Arabica coffee. Here, wild trees grow

in Ethiopia to an imaginary mythical place

up to 9 meters tall and are covered in moss,

where the local natives wander into their

almost unrecognisable from the neat rows

forest to gather the wild, original coffee ber-

of pruned shrubs you find on a conventional

ries that still grow there.

coffee farm.

That’s because this legendary land of ancient Up until the twentieth century, the Kafa area

coffee forests -often romanticised in coffee

remained largely undiscovered by European

marketing and storytelling- speaks to our

explorers, providing the local Kafa people

desire to honour nature and origins. We are

with the opportunity to cultivate the world’s

only too happy to pay tribute to the cradle of

original coffee culture within these forests. It

coffee and we are only too happy to strive for

is here in Kafa, once a proud kingdom, that

coffee that has been grown in the most natu-

coffee developed as part of the local ecosys-

ral environment possible. However, it is more

tem, or, as Koehler puts it in his reference

than unlikely that your cup of Yirgacheffe

work ‘Where the Wild Coffee Grows’ – earned

was grown in a truly wild way.

its place in the forest.

47

FACTS & FIGURES: ETHIOPIAN WILD

Several publications and studies in recent

COFFEE, FOREST COFFEE, SEMI FOREST

years have provided valuable insights into this

COFFEE PLANTATION COFFEE, GARDEN

topic, with somewhat unexpected results.

COFFEE, PLANTATION COFFEE

The diagram below (compiled by Julie Craves

All fanciful and tempting storytelling aside,

using data from a range of different sour-

let’s try to find out how much Ethiopian

ces and published in the article ‘How wild is

coffee is cultivated in the deep forests. Is

Ethiopian forest coffee‘) about coffee gro-

forest coffee truly sourced from pristine

wing, harvesting practices and their effect on

environments? Does this production method

the environment is a simplified representa-

effectively preserve biodiversity?

tion of the different coffee growing methods in Ethiopia, with rough approximations of frequency with which they occur.

COFFEE CULTIVATION IN ETHIOPIA

10% Plantation Garden Forest Semi-forest

48

50% 5% 35%

Communication On Progress Year 2024

PLANTATION COFFEE 10% →

This method involves the most intensive cultivation practices, where land is cleared and exclusively planted with coffee, managed for high yield, ranging from 450 to 1200 kg per hectare annually (with an average of around 750 kg).

It encompasses larger estates but may also involve smallholder farmers.

GARDEN COFFEE (OR ‘SEMI-FOREST

→

In Ethiopia, only around 2000 square kilo-

PLANTATION) 50%

meters of high-quality forest containing

→

In this method, coffee plants are moved

wild arabica coffee remains. Even within

to gardens near farmers’ residences.

local communities, the term ‘forest

These plants may be sourced from

coffee’ can hold various interpretations. It

nearby forests, exchanged between

might denote old, overgrown plantations

farmers for varieties suited to local con-

or a lone coffee tree in a pasture that was

ditions, or even come from different

formerly forested. Regardless, yields are

regions. Coffee is typically intercropped

typically low, often ranging from just 7 to

with other crops and fruit trees. Garden

30 kg per hectare.

coffee is predominantly found in south-

→

→

This more or less corresponds with how

ern Ethiopia, including Sidamo, as well

non-profit organization Partnerships for

as Harerge/Harrar. Yields typically range

Forests defines Forest Coffee: ‘coffee

from 200 to 700 kg/ha/year.

that grows naturally in primary forests

By comparison, Partnerships For Forests,

that have not been disturbed or dam-

defines semi-forest coffee as: ‘coffee that

aged by human intervention.’ Although

grows in forests that are semi-managed

there is actually no management of the

by humans (i.e. opening up canopies,

surrounding vegetation, there is some

clearing weeds etc.) but maintain a mini-

minor removal of undergrowth purely to

mum of 50% canopy cover’.

facilitate access to the coffee trees. →

Most farmers cannot afford pesticides,

FOREST COFFEE 5%

herbicides or other chemical inputs.

→

This scenario is likely what most people

Yields of forest coffee are much lower

envision when they hear about ‘wild’

than from garden or plantation coffee

coffee. Here, coffee is gathered from

systems. Deviations, however, are high.

trees growing naturally in the forest, with

Forest coffee yields tend to have tremen-

minimal intervention in the surrounding

dous annual fluctuations due to pests,

vegetation, except for some clearance of

unfortunate weather conditions or plant

undergrowth to access the coffee trees.

recovery/regeneration.

However, it’s important to acknowledge

→

According to our local Ethiopian part-

that some level of management occurs

ner KURU, a maximum of 3% can be

wherever coffee is cultivated.

described as real ‘forest coffee’.

49

SEMI-FOREST COFFEE 35% →

Here, the forest undergoes management and changes, often to a notable extent. The canopy is periodically thinned to allow more light to reach the coffee plants, enhancing yields, which can vary greatly depending on the level of management but generally stay below 400 kg per hectare per year.

Trees with open, widespread canopies are preferred to offer the desired shade with fewer trees. Undergrowth, competing shrubs, and emerging seedlings of other plants are cleared to ease harvesting and make room for additional coffee plants. While the coffee grows naturally, it’s supplemented by shrubs transplanted from elsewhere, typically from nearby forests, although occasionally government-provided cultivars may be used.

→

A significant portion of what’s commonly labeled as ‘forest coffee’ likely falls under the category known as semi-forest coffee.

FOREST COFFEE CULTIVATION IN

But Ethiopia faces a number of practical perfor-

ETHIOPIA : PRACTICAL CHALLENGES &

mance problems and a conceptual dilemma:

CONCEPTUAL DILEMMA

•

→

→

50

In practical terms, concerns arise regard-

The forests are worldwide rapidly deplet-

ing the benefits of certification for pro-

ing due to deforestation, leading to irre-

ducers. Although private merchants

versible damage to their ecosystems and

sometimes pay slightly more for coffee

biodiversity.

than cooperatives, cooperatives usually

Since 2002, a growing number of stake-

distribute profits as dividends to mem-

holders engage in certification of

bers. However, some farmers have not

Ethiopian forest coffee. The units of certi-

received payments for years, casting

fication are local coffee cooperatives that

doubt on the credibility and sustainability

are organised under cooperative unions.

of the cooperative system.

Communication On Progress Year 2024

•

Conceptually, a dilemma emerges regarding the relationship between price and forest management. Traditionally, local producers employ extensive practices to enhance yields.

However, intensified management activities, driven by higher prices, result in forest degradation and biodiversity loss. This presents a paradox: while certification aims to offer higher prices, it inadvertently promotes practices that harm forest ecosystems. This raises questions about the appropriateness of current certification approaches given the diverse ecological and socio-economic contexts of forest coffee production. On the other hand, higher prices promote the long-term transformation of the last remaining primary coffee forests into agro-forestry coffee plantations. This opens the question on the appropriateness of certification concepts. Different products are produced under different ecological and socio-economic backgrounds, posing different challenges on certification. Fairtrade and UTZ Certified standards have been developed for and are most widely applied in intensive agricultural production systems, like coffee plantations in Brazil. Coffee production in Ethiopia, however, describes a different ecological, socio-economic and institutional situation.

WILD COFFEE, FOREST COFFEE :

So the result is not so good. But as an experi-

FLAVOUR FACTS

ence? Being in the woods and drinking rich,

So wild coffee, coffee that comes from beans

thick wild coffee can’t be beat.

collected in a coffee forest, does it taste better?

We would rather say ‘no’, or ‘not necessarily’.

CUPRIMA'S ETHIOPIAN COFFEE LINE CUP

The best coffee has a high quality control: it

At CUPRIMA, we’re all about coffee with atti-

comes only from ruby red fruit. If the berry

tude! We select our coffees for pure quality

is not ripe, the bean will not have the same

and rank them based on their SCA value.

taste. But in the deep forest, the farmers

Our lineup? Nothing but the coolest, most

take all the coffee fruit off the tree, includ-

exceptional coffees, whether they’re wild or

ing the underripe and overripe cherries.

not.

That’s because wild coffee doesn’t mature at the same time. The place where people forage may not be close to where they live, and if they return later, a monsoon may have

Click here for the complete line-up

knocked over the fruit, or baboons and birds may have eaten it – animals love the ripe coffee fruits…

51

By supporting innovative and scalable projects in coffee producing countries, along with the coffee roasting community and insti-

COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

tutional partners, a positive ripple effect is put into motion.

Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively

At EFICO, sourcing sustainably and estab-

impact coffee farmers’ livelihoods, prosper-

lishing long-term partnerships with our cus-

ity and environment. The multi-stakeholder

tomers and suppliers, facilitated by our local

approach adopted is unique and is a dynamic

offices, is key. Our sustainable sourcing com-

tool to foster partnerships. The EFICO

mitment goes hand in hand with investment

FOUNDATION is about PEOPLE: from coffee

in a sustainable coffee future through our

farmers, their families and local communities

EFICO FOUNDATION.

to coffee roasters and coffee lovers.

To date, we report back on about 86 projects in 18 producing countries.

Discover them on our website.

52

Communication On Progress Year 2024

IN SHORT: •

Private foundation, established in 2003

•

Co-designs and supports projects that create a positive impact on coffee farmers’ livelihoods, prosperity and environment

•

Projects are selected by an independent jury of experts

•

A flexible tool to build a sustainable supply chain : support by sourcing coffee with EFICO

•

contributing 0.25 EUR/kg or direct transfer to the EFICO Fund: www.eficofoundation.org

•

100% of the contribution goes directly to the projects, EFICO covers operational expenses, funds are managed independently and transparently by the King Baudouin Foundation

•

Working together: a multi-stakeholder approach, fostering partnerships

IN 2024: •

5 projects in 3 different countries with concrete impact

•

direct improved possibilities, empowerment and prosperity for 863 coffee entrepreneurs

•

generating a positive impact on the lives of more than 2,918 coffee families

53

HIGHLIGHTS | 2024 Reconnecting with our global and local partners

Field Trips | Travelling to the Origins Various trips to Central and South America, Africa

Fairs and coffee events | Attending, Networking & Hosting It was nice to reconnect at WOC Copenhagen, Paris Coffee Show, SCA Chicago, Anacafé’s Coffee Congress, 15th SCTA Coffee Forum & Dinner and Sintercafé.

EFICO FOUNDATION ON-PACK PROJECT LABEL WITH QR CODE The EFICO FOUNDATION label serves as a

The label has undergone a transformation and

project label, signifying support for sustain-

now includes not only the EFICO FOUNDATION

able development projects by coffee roast-

logo and the slogan ‘Coffee for People, People

ers. By featuring the label on their packag-

for Coffee’ but also a QR code. This code

ing, roasters contribute to initiatives backed

links directly to the EFICO FOUNDATION

by the EFICO FOUNDATION. The label clearly

Partnership Impact Report Page.

communicates that a fixed amount of €0.25 per kilo of labeled coffee is fully allocated to the EFICO Fund. Additionally, 100% of any extra premium paid for this coffee is transparently invested in these projects.

54

Communication On Progress Year 2024

55

OVERVIEW CURRENT EFICO FOUNDATION PROJECTS | 2024

Guatemala Tanzania Colombia

COLOMBIA A new generation of coffee entrepreneurs, committed to productivity and quality

GUATEMALA Healthy Homes for coffee farming families

56

GUATEMALA Solar Panels for Cooperative Nuevo Sendero

Communication On Progress Year 2024

GUATEMALA Entrepreneurs in action: 4th Bachelors in coffee project

TANZANIA Kilimanjaro Water & Food for All

57

For this 2024 reporting, we reflect on EFICO FOUNDATION’s Flagship project ‘KILIMANJARO WATER & FOOD FOR ALL’, launched last year in honour of 20 Years of EFICO FOUNDATION:

REFLECTING ON EFICO FOUNDATION FLAGSHIP PROJECT ‘KILIMANJARO WATER & FOOD FOR ALL’ EFICO FOUNDATION PROJECT KILIMANJARO WATER & FOOD FOR ALL A year ago, we proudly celebrated 20 years of EFICO FOUNDATION -two decades of meaningful impact supporting coffee farmers, guided by our motto: ‘Coffee for People, People for Coffee!’.

To mark this milestone, we launched a brand new EFICO FOUNDATION flagship project, 'KILIMANJARO WATER & FOOD FOR ALL' ‘KW&F4A’ PROJECT AT A GLANCE The ‘Kilimanjaro Water & Food for All’-project focuses on implementing regenerative and water-efficient agricultural systems to restore soil productivity and ensure access to water for all communities surrounding coffee production in the Kilimanjaro region.

Purpose: The ‘KW&F4A’-project aims to restore ecological balance, safeguard vital water resources, and improve the livelihoods of local communities in the Kilimanjaro region by protecting the watershed, enhancing biodiversity, and promoting sustainable land use practices.

Beneficiaries: 2,700 families that are members of the Kyumasha and Fonrwa cooperatives

58

Communication On Progress Year 2024

Location: Lambo & Silverdale farms with 440 ha at the foot of Mt Kilimanjaro in Tanzania Proud Partnership: African Partnerships Kilimanjaro ltd, EFICO, EFICO FOUNDATION, Herencia − Value your Legacy Values: Regenerative Agriculture, natural capital, responsible coffee, good governance, innovation, social inclusion, prosperity

PROJECT HIGHLIGHTS

POSITIVE PURSUITS

An optimal irrigation system was installed

→

These trees enhance ecosystem resil-

across 136 hectares of coffee farms in Lambo

ience, capture CO2 , support water bal-

and Silverdale.

ance, and create wildlife habitats. →

This agroforestry initiative improves

The partners involved have contributed to

local livelihoods and promotes sustaina-

essential improvements in key water infra-

ble land management in the Kilimanjaro

structure, such as installing a new water

region, benefiting both the community

intake on the Weruweru River and building

and the environment.

sedimentation tanks. These upgrades have facilitated the shift from traditional, water-in-

ACTION HIGHLIGHT

tensive furrow irrigation to more efficient,

Several key improvements were made to

modern irrigation systems.

enhance irrigation systems and water management practices.

Meanwhile -as part of the broader ‘Kilimanjaro Water & Food for All’ initiative, 2,024 trees have

Upgraded Water Delivery

been planted in the Weruweru River sub-ba-

Open furrows previously used to direct water

sin. This side effort simultaneously promotes

from catchment areas to fields were replaced

reforestation, conservation and agroforestry,

with closed pipelines. This upgrade improved

helping to restore ecological balance and pro-

efficiency by 60-70%.

tect vital water bodies in the Kilimanjaro region.

Reduced Flooding Practices PROJECT ACTIONS AND RESULTS

Smallholder farmers have transitioned from

ACTION HIGHLIGHT

traditional flooding methods to more sustain-

In 2024, 2,024 native trees were planted in

able practices, conserving water and ensuring

the Weruweru basin -including species like

its efficient distribution across fields.

African Cordia (Mringaringa), Ficus (Mkuyu), and Newtonia Buchananii (Mkufi).

59

Restored Farmland Productivity

→

Agricultural

productivity

increased,

With improved irrigation and water man-

thanks to more precise water distribu-

agement techniques, agricultural farmlands

tion. Previously unproductive fields were

now utilize water more effectively, pro-

restored to cultivation, boosting overall

moting healthier crop growth and higher

farm output.

productivity.

→

These initiatives have improved water availability for downstream users, who are

Installation of an Optimized Irrigation System

educated and trained in effective water

An efficient irrigation system was installed

management practices by the local Water

across 136 hectares of coffee farms in Lambo

Stewardship Committee.

and Kyumasha (Silverdale), designed to opti-

→

Additionally, energy generated through

mize water use and support sustainable

gravity has reduced diesel and electricity

coffee production.

use in pumps and motors by up to 95%. →

Overall, these smart initiatives contribute

POSITIVE PURSUITS

to significant water savings, lower fuel

Each step reflects a focused improvement

costs, improved crop health, all while con-

that contributes to the overall sustainability

tributing to environmental sustainability.

and productivity of the farms.

It represents a positive advancement for farmers, the local community, and the

→

The introduction of closed pipelines and

planet.

systems like drip irrigation and sprinklers has enhanced water efficiency by 50%, resulting in a 70% reduction in water con-

This project contributes to This project contributes to

sumption. These methods have also significantly minimized water loss due to leakage, evaporation, and pollution.

LOOKING AHEAD – WHAT’S NEXT ?

As we reflect on the first year’s impact and key achievements, we are excited to introduce the next phase of the project, building on our progress. We remain committed to expanding this initiative, as this ‘KW&F4A’project is scalable and serves as a replicable model for advancing five states in Kilimanjaro, in partnership with local coffee cooperatives and NGOs. Additionally, it promotes cultural change and multi-stakeholder engagement, driving the positive transformation of the coffee sector while highlighting values such as conservation, participation, regeneration, prosperity, innovation, and collaboration.

We truly value the support of all our partners and look forward to continuing this journey together.

60

Communication On Progress Year 2024

KILIMANJARO COFFEE SUPPORT LOCAL FARMERS BUYING COFFEE COFFEE TANZANIA TUMAINI, KILIMANJARO

Coffee Specs

The coffee linked to this flagship project is

Species: Arabica

called Tanzania ‘Tumaini’, meaning ‘Hope’

Varieties: Bourbon, Kent, N39, KP, F6

in Kiswahili. This fully washed Rainforest

Picking: Hand Picked

Alliance coffee has a balanced cup, fine

Processed: Washed coffee - via semi-

acidity, milk chocolate body with fruity

submersive channel, saves 85% water

flavours, berry and tobacco notes, bright

consumption vs traditional washing

sweetness and rounded with smooth finish.

method Drying: 50% sun-dried and 50%

It is produced by APK, a business owned by

mechanical dryer with temperature

a family group with deep roots in Colombia

control in slack combustion silo

under the leadership of Alejandro Galante,

Harvest: runs from July to October,

which makes APK uniquely Tanzanian with a

with August being the peak

Colombian feel.

EFICO FOUNDATION PROJECT: ‘KILIMANJARO WATER & FOOD FOR ALL’

EFICO COFFEE: TANZANIA TUMAINI, KILIMANJARO

61

sive array of services encompasses shipping, transportation, forwarding, customs and documentation handling, as well as coffee loading and coordinating transportation to end customers on behalf of coffee traders.

PIONEERING GREEN COFFEE LOGISTICS IN ZEEBRUGGE

Backed by a proficient and seasoned team, SEABRIDGE offers a range of value-added services such as coffee reprocessing, sieving, blending, and repacking, tailored to meet the diverse needs of its clientele. Be

SEABRIDGE functions as an advanced logis-

it boxes, bags, big bags, or bulk shipments,

tics service hub and distribution platform

SEABRIDGE 's adaptable logistics solu-

tailored specifically for the coffee industry,

tions are meticulously tailored from the

strategically positioned within the port of

point of origin to the final destination. The

Zeebrugge, Belgium.

warehouse infrastructure at SEABRIDGE is meticulously designed to maintain opti-

62

Its primary aim is to excel in providing solu-

mal storage conditions for green coffee,

tions for the storage, sustainability, and

employing highly automated processes

traceability of green coffee. Its comprehen-

for precision.

Communication On Progress Year 2024

In 2018, SEABRIDGE attained the distinction of being the first Belgian company to be recognized as an SCA Premier Training Campus, a testament to its commitment to excellence. Collaborating with the Coffee Quality Institute (CQI), SEABRIDGE organizes annual training courses in coffee quality control, covering Q-Grading, Q-cupping, and Q-Calibration & Retakes.

SEABRIDGE is dedicated to improving energy efficiency in its operations and storage. They work actively to reduce the use of fossil fuels by carefully tracking greenhouse gas emissions and setting strategic goals to lessen their environmental impact.

SEABRIDGE | MILESTONES & METRICS •

Founded in 2009 at the Port of Zeebrugge, establishing itself as a pioneer in sustainable green logistics services

•

Achieved AEO (Authorised Economic Operator) certification in 2012, a global mark of quality recognizing secure supply chain operations, efficient standards, and trustworthiness as a business partner

•

In February 2015, the NOORD NATIE group elevated its managerial engagement within the EFICO Group

•

In 2018, SEABRIDGE became the first Belgian SCA certified premier training campus

•

In July 2023, SEABRIDGE was granted with the Rainforest Alliance 2020 Program License

•

In 2024, SEABRIDGE received the SDG Pioneer Certificate at the VOKA Sustainability event, recognizing leadership in sustainable development

•

SEABRIDGE operates a 20,000 m² warehouse with 9 loading docks, 24 silos, and a storage capacity of 16,000 MT for coffee in bags or big bags

•

SEABRIDGE’s warehouse is equipped with an advanced environmental control system, including permanent humidity and temperature monitoring, air filtration, sterilization, and ventilation systems

•

Powered by 4,600 photovoltaic panels, SEABRIDGE generates 1 MW of peak green energy

•

SEABRIDGE guarantees automated goods handling (receiving and processing), ensuring maximum efficiency and accuracy

•

SEABRIDGE is accessible via inland shipping, sea, and on-site rail connections, with 99% of import containers utilizing intermodal solutions

•

SEABRIDGE features an on-site laboratory for rigorous quality testing and analysis of incoming coffee

•

The core principles of SEABRIDGE are centered around a commitment to quality, maintained through the highest standards and just-in-time services; traceability, supported by an advanced track-and-trace system; and sustainability, driven by the use of green energy, waste recycling, and the cultivation of strong, long-term partnerships 63

HIGHLIGHTS | 2024 Reconnecting with our global and local partners

SEABRIDGE PLANTS TREES WITH IMPACT IN COUTHUIN, BELGIUM SEABRIDGE decided to support a

GO FOREST

reforestation project in Couthuin, located in the municipality of Héron, Belgium.

Click and read the full story

SEABRIDGE RECEIVES SDG PIONEER CERTIFICATE AT ‘VOKA DAG DUURZAAM ONDERNEMEN’ SEABRIDGE

proudly accepted the SDG Pioneer

Certificate during the annual VOKA Sustainability event.

Click and read the full story

64

Communication On Progress Year 2024

65

LOOKING AHEAD Dear Stakeholders, Partners and Friends of

collaboration, and quality drives innovation

EFICO,

and resilience, preparing us to lead with confidence in a changing world.

Reflecting on 2024, it’s clear that the year has been shaped by a range of challenges, driven

EFICO remains committed to adapting

by geopolitical tensions, global economic

responsibly, leveraging nearly a century of

shifts, significant logistical disruptions, and

experience to foster innovation, promote

severe climate shocks. Extreme weather

collaboration,

and

nurture

events have affected nearly every agricultural

partnerships.

This

approach

sector, including the global coffee production.

resilience, quality, and sustainable growth

Fluctuations in supply and demand, shifting

throughout the value chain. As we approach

consumer expectations, currency instability,

this remarkable milestone, we are ready for

a volatile C-Market, evolving sustainability

what lies ahead -prepared not just to adapt

priorities, and stricter regulatory frameworks

but to lead with confidence.

long-term ensures

are all affecting the landscape for everyone involved.

EFICO’S TARGETTED ACTIONS FOR FUTURE READINESS

THE FUTURE: FROM GLOBAL

STARTING THE YEAR STRONG: LAUNCHING

UNCERTAINTY TO COFFEE INDUSTRY

NICARAGUAN FOREST POSITIVE COFFEE

RESILIENCE

EFICO is kicking off 2025 with the introduction

For EFICO -as a European importer and

of the Nicaraguan Forest Positive Coffee

trader of green coffee, these dynamics

pilot project, focusing on carbon insetting

are particularly pronounced. European

within the value chain and reaffirming its

legislation, such as EUDR and CSRD, requires

commitment to sustainability and climate

increased compliance and accountability.

action.

However, with nearly a century of experience, EFICO has proven its ability to adapt and

This pilot marks the beginning of a broader

thrive. Our solid financial and administrative

effort, as EFICO aims to expand this model to

framework, complemented by in-house

other origins, creating a replicable framework

expertise and a network of trusted global

that integrates environmental stewardship

partners and experts across the coffee

with economic growth. This project stands as

value chain, ensures we are well-prepared to

a powerful example of how we are putting its

manage these complexities.

values into action, setting a positive tone for the year ahead.

As we navigate this transformation, EFICO’s

66

focus remains steadfast: connecting origin

COMPREHENSIVE CARBON FOOTPRINT

and destination with positive impact. By

CALCULATING

supporting coffee producers in adapting

In 2025, EFICO’s major priority is to calculate

to regulatory and environmental demands

the full carbon footprint across the entire

and ensuring reliable solutions for roasters,

coffee value chain -from farm to doorstep.

we meet the needs of today’s dynamic

By collaborating with top experts in the field,

market. Our commitment to sustainability,

EFICO is incorporating this data to assess its

Communication On Progress Year 2024

greenhouse gas emissions, ensuring that its

requirements. By proactively preparing for

operations align with sustainability objectives.

these changes, we ensure compliance and

This effort is about more than just numbers;

position ourselves to lead the next phase

it reflects our commitment to taking

of accurate and comprehensive regulatory

responsibility for its environmental impact

registration and reporting.

and finding innovative ways to minimize it.

By making data-driven decisions, EFICO aims

PREPARING FOR THE CORPORATE

to enhance efficiency, reduce emissions, and

SUSTAINABILITY REPORTING DIRECTIVE

create long-term value for all stakeholders

(CSRD), FINE-TUNING EUDR COMPLIANCE,

across the coffee value chain.

AND USING THE EXTRA YEAR STRATEGICALLY

FOCUS ON NAVIGATING THE

Preparing for the Corporate Sustainability

COMPLEXITIES OF EU LEGISLATION

Reporting Directive (CSRD) requires a

COMPLIANCE

comprehensive understanding of the

The EU regulatory landscape is rapidly

evolving regulatory landscape and a proactive

evolving, with the ‘Customs Single Window

approach to ensure compliance. At EFICO, we

Certificate Exchange System’ serving as both

are implementing robust systems designed

the core and driving force behind this shift.

to collect, manage, and report detailed

This centralized digital platform connects

sustainability data, covering environmental,

the import, export, and transit systems of

social, and governance (ESG) factors. EFICO’s

Member States to the Union, enabling the

efforts are centered around aligning internal

real-time receipt of original data. The EU has

processes, ensuring transparency in our

set ambitious goals to drive efficiency and

reporting, and integrating sustainability into

transparency across borders, and this system

the core of our business strategy. By investing

plays a central role in achieving them.

in advanced data management tools, leveraging digital technologies, and fostering

The system is designed to enhance the legal

cross-departmental collaboration, we are

and operational framework for information

not only focused on meeting regulatory

exchange and digital cooperation between

standards but also positioning ourselves

customs administrations and other public

to gain a competitive edge. This approach

authorities responsible for non-customs

reflects our commitment to sustainability

formalities at EU borders, including health

and long-term value creation.

and safety, environmental protection, food and product safety, and agriculture. The

In parallel, the European Deforestation Regulation

goal is to achieve seamless interoperability

(EUDR) offers new opportunities for growth.

between

non- customs

The additional year granted for compliance

domains, ensuring more efficient and

provides us with a unique opportunity to

transparent movement of goods.

strengthen our position and move beyond basic

customs

and

legal requirements. We are utilizing this extra At EFICO, we are investing significant time

time to focus on social inclusion, enhance our

and resources into understanding and

partnerships, and build lasting relationships that

aligning our operations with these evolving

support our sustainability goals.

67

Our strategy includes closely monitoring

By focusing on agricultural regeneration

our current partners, guiding them through

and water efficiency, this initiative enhances

this transition, and collectively building

livelihoods, restores ecological balance, and sets

resilience. By December 2025, EFICO aims

the stage for long-term prosperity. The learnings

to not only meet all regulatory requirements

from this flagship project will guide our efforts

but also establish a system that operates

as we replicate its success in other Tanzanian

smoothly, fosters trust, and reflects our

regions, further embedding sustainability and

values of collaboration and mutual growth.

innovation into everything we do.

This strategic approach will ensure that we not only comply but thrive in the evolving

EFICO: MORE THAN EVER, THE TRUSTED

sustainability landscape.

ALLY FOR PARTNER ROASTERS In these challenging times, EFICO is more

TAKING STOCK: STRENGTHENING SOCIAL

committed than ever to supporting its roaster

INCLUSION

partners. By providing the reassurance they

Social inclusion is a fundamental pillar of

need to navigate the complexities of the ever-

EFICO’s vision for the future. As we align

changing coffee landscape, we help them

with evolving social inclusion regulations,

stay ahead of the curve.

we collaborate with experts to ensure our initiatives scale and deliver greater impact.

Our tailored approach ensures that roasters have access to a carefully curated selection of

By combining our internal expertise

high-quality coffees, whether conventional,

with external insights, we aim to develop

specialty, with specific certifications, or

programs that exceed compliance and create

accompanied by certified carbon credits.

lasting positive change in the communities

This commitment to offering the best quality

and value chains we serve.

coffee is just the beginning. EFICO goes beyond product supply by providing valuable

This partnership-driven approach ensures our

market insights, expert coffee knowledge,

social inclusion efforts remain effective, aligned

and flexible logistics solutions, all designed to

with best practices, and responsive to shifting

help our partner roasters succeed.

regulatory and environmental demands.

Clear and direct communication is at the SCALING UP THE EFICO FOUNDATION’S

heart of our approach, keeping our partners

FLAGSHIP PROJECT: ‘KILIMANJARO

informed about the evolving EU regulatory

WATER AND FOOD FOR ALL’

landscape and its practical implications.

Building on the momentum of the EFICO

This transparency ensures that everyone

FOUNDATION’s 20th anniversary project,

is aligned and confident in navigating the

‘KW&F4A’, we are scaling up our efforts.

regulatory changes together.

This project embodies our commitment

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to sustainable and inclusive growth by

Furthermore, EFICO is deeply committed to

connecting farmers, exporters, importers,

promoting sustainable entrepreneurship. By

roasters, and other like-minded experts

empowering our partners to make informed

across the coffee value chain.

decisions, refine their offerings, and align

Communication On Progress Year 2024

with their sustainability goals, we help them create a long-term, positive impact on the coffee industry. With EFICO by their side, our partner roasters can confidently move forward, knowing they are supported in every step of their journey.

PREPARING FOR OUR CENTENNIAL WITH CONFIDENCE As we approach EFICO’s 100th anniversary in 2026, we stay firmly grounded in the family values that have shaped our business: strength, unity, and resilience. These values have been the foundation of our journey and continue to inspire and guide everything we do.

By surrounding ourselves with experts, fostering innovation, and strengthening every link in the value chain, we are building a future that is both sustainable and resilient.

Our

commitment

to

preparation

and

collaboration gives us confidence as we navigate the challenges ahead, knowing that we are well-equipped to continue driving meaningful impact across the industry and beyond.

TOGETHER, WE’RE READY FOR WHAT LIES AHEAD -WITH PURPOSE, RESILIENCE, AND A SHARED VISION FOR A BETTER TOMORROW.

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ACKNOWLEDGEMENT We would like to take this opportunity to express our utmost gratitude to all our long-term partners: from coffee growers and suppliers to coffee roasters.

A special thanks goes out to our institutional partners and civil society:

In a difficult context with several global challenges, your inspiration and continued support in our effort to contribute to the SDGs has made a difference.

We are grateful for the exchanges, learnings and long-term cooperation.

This report is published online on the website of UN Global Compact ∙ unglobalcompact.org, and on the website of EFICO ∙ EFICO.com.

Italiëlei 181, B-2000 Antwerpen Tel. : +32 (0)3 233 78 65 EFICO@EFICO.com www.EFICO.com