EFICO – Y 2024 – Communication on Progress

COMMUNICATION ON PROGRESS YEAR 2024

BASED ON THE ENHANCED COMMUNICATION ON PROGRESS REQUIRED FOR MEMBERS OF THE UNITED NATIONS GLOBAL COMPACT

OPENING STATEMENT

This annual report is based on the Enhanced Communication On Progress (COP) reporting framework of the United Nations Global Compact (UNGC).

In 2022, EFICO reported to this framework already as Early Adopter Member. The updates made by the UNGC to the Enhanced COP throughout 2023 are now effective for all participant members.

The Communication on Progress (COP) is a required public and annual disclosure by business participants of the UN Global Compact to stakeholders with the following main objectives:

• Foster accountability on corporate sustainability performance to help safeguard the integrity of the UN Global Compact initiative;

• Promote continued learning and help drive corporate sustainability performance; Enhance stakeholder access to information regarding participants’ implementation of the Ten Principles and contribution towards the achievement of the Sustainable Development Goals (SDGs).

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

• Measure and demonstrate progress to stakeholders and the public on the Ten Principles and the Sustainable Development Goals in a consistent and harmonized way.

• Build credibility and brand value by showing their commitment to the Ten Principles and the Sustainable Development Goals.

• Receive insight, learn and continuously improve performance by identifying gaps, accessing guidance and setting sustainability goals. Compare performance against peers with access to one of the largest sources of free, public and comparable corporate sustainability data.

This report reflects our commitment towards the Ten Principles of the UNGC and the Sustainable Development Goals (SDGs) and reports our progress made in 2024.

At EFICO, we encourage this consistent and harmonized way of continuous improvement reporting and are convinced the UNGC’s enhanced platform acts as a strong tool to support sustainability performance advancement and transparency year over year.

As a global compact signatory since 2003, EFICO is committed to transparently report its progress and challenges, and share this with its partners.

We welcome feedback and ideas to continue learning and improving our sustainability journey, together with you.

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

LOOKING BACK

Dear Stakeholders, Partners and Friends of EFICO,

Looking back at 2024, it’s clear this year brought its share of challenges, shaped by global economic shifts and geopolitical tensions that left their mark on nearly every industry -including the global coffee trade.

2024 - A YEAR OF SHORTAGES AND PRICE VOLATILITY

2024 was marked by significant fluctuations in the coffee market. Prices opened the year at 177 c/lb and soared to 348.35 c/lb by December 9, closing the year at 319.75 c/lb -an overall increase of 80%.

The fundamentals of this rally were rooted in supply and demand dynamics. Major Arabica producers like Honduras, Peru, and Brazil faced reduced harvests, while projections for Brazil’s 2025 crop fell short. With global production struggling to meet growing demand, market pressures intensified. Vietnam’s 2022/23

Robusta harvest fell short of expectations, placing emphasis on the current crop forecast, which aims to exceed 28 million bags. Robusta prices began 2024 at $2,570/mt and surged to $4,875/mt -an 89.5% increase, outpacing Arabica in percentage terms. This sharp rise has kept upward pressure on Arabica prices, making a significant drop unlikely as long as Robusta remains at these elevated levels.

Both Arabica and Robusta faced supply issues, which were undoubtedly a major factor driving the bullish movement witnessed throughout the year and expected to persist into 2025.

GLOBAL CHALLENGES IMPACTING THE COFFEE MARKET

The global landscape introduced a series of

challenges that significantly impacted the coffee market, including inflation, volatile currencies, and the ongoing effects of the global recession. Climate change remained a constant concern, especially in South America, where El Niño led to lower yields and higher production costs for Arabica beans.

Simultaneously, political instability and infrastructure issues in key African coffeeproducing countries placed additional strain on the supply chain, particularly for the European market where we operate.

These challenges were further amplified by persistent inflation and the economic repercussions of the war in Ukraine, which intensified pressure on resources.

Adding another layer of complexity, the implementation of the European Union Deforestation Regulation (EUDR) created uncertainty and stress due to its unstructured rollout. The EU estimates that compliance could raise input costs by 0.3% to 4.3%, significantly affecting businesses operating with tight margins. Smallholder farmers, particularly in regions with fragmented coffee production, faced considerable obstacles in meeting these new requirements, further tightening an already strained global coffee supply chain.

SPECULATORS AND THE IMPACT OF A STRONG US DOLLAR

Speculators played a pivotal role in the 2024 coffee price surge, driving momentum by betting on coffee as a top-performing commodity. However, their involvement also heightened market unpredictability, adding to the challenges posed by inflation and geopolitical instability.

For our partners in Europe and the UK, the strength of the US dollar further intensified the strain, making coffee significantly more expensive in local currencies than during previous price peaks.

This prolonged period of high prices, coupled with broader economic pressures, has put additional strain on the market, requiring the industry to remain agile and responsive to evolving conditions.

BALANCING RISK AND SECURING COFFEE

SUPPLY IN A VOLATILE MARKET : AGILE SOURCING, SOLID FINANCE, AND 360°

EXPERTISE

The unpredictable nature of the Arabica market in 2024 required agility and flexibility in our sourcing strategies. Erratic weather patterns and supply disruptions fueled extreme price volatility, amplified by unprecedented speculative trading and currency fluctuations, driving prices to multidecade highs.

Meanwhile, the Robusta market saw a significant shift: rising inflation in Europe increased demand for more affordable coffee options, while favourable growing conditions in key Robusta-producing regions led to better yields and improved quality. In response, we explored new partnerships to ensure we could meet evolving market needs effectively.

Beyond sourcing, we reinforced our solid financial backbone, essential for navigating these challenges.

For nearly 100 years, we’ve not only forged strong partnerships with trusted partners deeply rooted in coffee-producing regions, we also teamed up with numerous fellow experts along the coffee value chain. And our own

inhouse team is a blend of seasoned experts and dynamic new perspectives, enabling us to act with precision and foresight.

Surrounding ourselves with expertise at every level and strengthening our presence (in Europe in Spain and Eastern Europe) we’re well-positioned to handle the agility the ever-changing C-market demands. This combination of solid foundations and expertdriven dynamism defines who we are and what we do best.

NAVIGATING THE EUDR CHALLENGE

The implementation of the European Union Deforestation Regulation (EUDR) in 2024 introduced a new level of complexity for businesses. As a transformative policy, the EUDR redefined compliance and traceability standards, mandating ‘deforestation-free’ products and rigorous due diligence. This necessitated a comprehensive overhaul of the value chain.

Uncertainty surrounding the EUDR’s country benchmarking system added to the complexity. Delays in its publication created a regulatory maze that required cautious navigation. Combined with the potential for fines of up to 4% of turnover, this placed a sharp focus on balancing risk management with securing a stable coffee supply for our roaster partners.

In late 2024, the EU announced an extension to the EUDR implementation deadline: large and medium sized companies now have until December 30, 2025, while micro and small enterprises have until June 30, 2026.

At EFICO, we view this extension as an opportunity to assist our producing partners with compliance, actively monitor their

progress, and go beyond the regulatory requirements. We are committed to pragmatic, inclusive approaches that ensure social fairness while meeting high standards. By bolstering our sustainability team with additional experts, implementing advanced tracking and verification systems, and deepening our collaboration, we aim to create a value chain that is not only compliant but also resilient and socially inclusive.

IMPACT ON SMALLHOLDER FARMERS AND COMPLIANCE CHALLENGES

The EUDR has had a particularly significant impact in regions with fragmented coffee production and limited compliance resources, where political instability and conflict are often prevalent.

In countries where smallholder farmers form the backbone of the coffee industry, meeting these new requirements has been a major challenge. Fortunately, our long-established partnerships with producer communities, supported by the efforts of our coffee traders, sustainability team, and data experts, have enabled us to navigate these changes effectively.

We remain committed to strengthening support and monitoring for our producer partners, deepening these vital relationships, sharing our expertise, and working closely with industry specialists. Our aim is to ensure a seamless transition that benefits all parties across the coffee value chain.

STRENGTHENING PARTNERSHIPS AND PREPARING FOR 2025

Despite the challenges, we found opportunities to strengthen our value chain

and deepen our partnerships with dedicated producers. Our unwavering commitment to sustainability and innovation drove investments in practices that enhance resilience and align with a sustainable future. The year served as a reminder of the critical role agility and foresight play in an increasingly complex global market.

LOOKING AHEAD: NAVIGATING CHALLENGES WITH CONFIDENCE

As we enter 2025, the coffee market continues to face pressure, and the outlook remains uncertain. However, the lessons learned in 2024 have equipped us with the expertise, agility, and foresight needed to tackle the challenges ahead. While the road may be difficult, we are ready to navigate it, seize new opportunities, and keep delivering value to both our coffee producer and roaster partners in an ever-evolving market.

EFICO ’s nearly 100 years of experience, grounded in the solid foundations of a family business, remains a testament to our resilience. Our strong reputation, stability, and adaptability have been key in balancing risk management with ensuring a secure coffee supply. This has been made possible through the dedication and coordination of all those across the value chain -our trading team, logistics, finance, sustainability and quality experts, and operations team.

Our ability to respond quickly and securely to changing conditions is a unique strength, and one we are proud to share with our partners. As we move forward, we stay committed to collaboration, innovation, and resilience, ensuring that we remain one step ahead in a challenging market.

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 Managing Director

Philip Van gestel Executive Chairman

EFICO Group works in support of following 6 SDGs

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

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

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Ensure healthy lives and promote well-being for all at all ages

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Achieve gender equality and empower all women and girls

Ensure availability and sustainable management of water and sanitation for all

Ensure access to affordable, reliable, sustainable and modern energy for all

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Reduce inequality within and among countries

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

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalize the global partnership for sustainable development

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

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.

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 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. 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 sustainable benchmark for all companies within the sector.

2024 KEY FACTS AND FIGURES

EVOLUTION CERTIFIED & VERIFIED COFFEES * 2007 - 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.

Local exporter

International exporter Cooperative

• 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

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 Advisory Service Providers (EAS) and one for producer organisations.

Those curious about the tool and reports can sign up for an Equal Origins account via their website: equalorigins.org

Our goal is to further use the tool with other partners and multiply the positive trigger effect.

We highly support initiatives as The Global Coffee Platform ’s Sustainability 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.

PARTNERSHIPS WITH

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

• February 2024 | Coffee Festival Madrid

• March 2024 | Producer & Roaster Forum, Guatemala

• March 2024 | Le Paris Café Festival

• April 2024 | Kaffee Campus Hamburg

• April 2024 | Amsterdam Coffee Festival

• April 2024 | Specialty Coffee Expo Chicago

• April 2024 | Cupping & keynote presentation ‘Coffee Processing’, Antwerp Coffee Week

Local Projects

ClimCoff

In partnership with the Botanic Garden of Meise, KU Leuven – Forest Nature & Landscape, CoffeeLab Independent, and other institutions, ClimCoff continues to evaluate the quality potential of genetic Robusta lines from the Yangambi region in DR Congo. In 2024, further sensory and physical analyses were conducted by a panel of three EFICO/SEABRIDGE Q Graders to assess the coffee’s quality profiles and potential. The pulped natural coffee sample evaluated in

• Q2 2024| Koffieverbond, BVDAKI-UPCAIC

• June 2024 | World of Coffee Copenhagen

• August 2024 | Coffee Congress Anacafé Guatemala

• September 2024 | Paris Coffee Show

• October 2024 | International Coffee Day Experience, Antwerpen & Zeebrugge

• October 2024 | 15th SCTA Coffee Forum & Dinner, Basel

• November 2024 | Sintercafé Costa Rica

2024 exhibited less balance and consistency compared to its 2023 evaluation, with a final score of 81.50 points. While this places the coffee within specialty coffee cupping standards, there remains room for improvement.

Notably, the coffee demonstrates promising potential, highlighted by its remarkably low caffeine content of 1.79%, an uncommon characteristic for Robusta coffee.

For A Better Life

Non profit association ‘For A Better Life’ (FABL) –an association founded in 2005 by Marc Dieusaert and The JAVA Coffee Company’s Wim Claes, is committed to making the world a better place, both at home and abroad.

On the occasion of FABL’s fundraising network event, EFICO contributed 1,320 EUR. The funds are destined to several purposeful local Belgian projects.

Kom Op Tegen Kanker

EFICO supported Belgian NGO ‘Kom Op Tegen Kanker’ by purchasing a Ghent Azalea plant for all of its co-workers during the 30th Plant Weekend against Cancer on 13-15

September 2024. ‘Kom Op Tegen Kanker’

will use this funding for cancer prevention, research into more effective treatments and better care for everyone affected by cancer.

Warmste Week

EFICO supported ‘Warmste Week’, a solidarity campaign of VRT (one of the national public service broadcasters for the Flemish Community of Belgium), which is organized annually in the week before Christmas -from 18 to 24 December. In 2024, De Warmste Week facilitated no fewer than 276 projects around the central theme of ‘loneliness’. These are projects that put people back in their power, so that they feel understood, accepted, but above all (re)connected in our society.

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

EFICO | CONNECTING THE COFFEE VALUE CHAIN SUPPORTING

PARTNERS THROUGH CHALLENGING TIMES

THE COFFEE VALUE CHAIN IN 2024 A YEAR OF HEIGHTENED DISRUPTION

The coffee market has always been volatile, but recently, speculation has significantly amplified this instability. Traditionally, price fluctuations were driven by factors like weather, production yields, and shifts in supply and demand. However, in recent times, financial speculators -such as hedge funds, proprietary trading firms and algorithm-driven traders -who have little to no connection to coffee, have pushed volatility to new extremes. High-frequency trading now dominates the market, generating self-reinforcing price swings that often have little to no relation to actual supply conditions.

But while speculation fuels short-term fluctuations, the far greater and more pressing challenge is climate change. With extreme weather events becoming more frequent and intense, global coffee production is facing

significant disruptions. Climate change is no longer a distant threat; it is actively reshaping the agricultural sector -including coffee, with lasting consequences. Farmers face unpredictable harvests, rising input costs, and increasing risks from droughts, storms, and pests. As these challenges escalate, the pressure on the coffee supply chain grows, directly impacting prices and consumers worldwide.

The year 2024 has brought a perfect storm to the coffee value chain. Poor harvests in key producing countries, such as Brazil and Vietnam, have tightened supply, while surging demand from emerging markets in Asia and the Middle East has further strained the market. On the supply side, producers have faced a series of challenges, including labour shortages, soaring input costs -particularly for fertilizers and transportation, both impacted by the ongoing Russia-Ukraine conflict, and logistical disruptions such as port congestion.

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 CONNECTING EVERY LINK IN THE COFFEE VALUE CHAIN

PURPOSE-DRIVEN,

RESILIENT AND FUTURE-READY

The coffee value chain is under more pressure than ever, with disruptions, imbalances, and uncertainties impacting every stakeholder. In this challenging environment, EFICO’s role in connecting the value chain has never been more significant. With nearly a century of experience, EFICO continues to play a vital role in linking every partner across the value chain -ensuring adaptability, resilience and long-term sustainability.

At EFICO, our commitment to a resilient, transparent, and sustainable coffee value chain has been at the heart of our business for almost 100 years. True resilience -we believe, comes not from standing still, but from evolving together with our partners. Our approach focuses on purposeful partnerships -connecting every part of the value chain, from farmers to roasters, with long-term, meaningful relationships built on trust and shared goals.

Darwin’s words resonate deeply: ‘It is not the strongest who survive, but those most adaptable to change’. In today’s volatile landscape, adaptability is key to a sustainable and thriving future for all.

At EFICO, connecting the value chain is not just a commitment; it’s at the heart of everything we do. Our origin offices serve as vital support hubs, offering farmers essential information, training, sustainability support, and market access. These resources help farmers overcome challenges, adopt sustainable practices, strengthen their communities, and ultimately expand their reach to broader markets. Our green coffee traders cultivate transparent, long-lasting relationships with roasters -fostering mutual trust and respect. Meanwhile the EFICO FOUNDATION plays a pivotal role in investing in local communities by supporting education and driving sustainable projects at origin. These collective efforts strengthen the entire value chain, ensuring that -despite ongoing disruptions, our partners are not only prepared to endure but are empowered to grow.

In the face of climate change, global trade disruptions, and shifting market dynamics, 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 partnerships. This ensures compliance while strengthening trust across the supply chain, making every step -from crop to cup, fully traceable and sustainable.

With EFICO ’s centenary on the horizon in 2026, we embrace nearly a century of expertise as both a legacy and a responsibility. Our long-standing experience has deepened our commitment to safeguarding the future of coffee, as well as the well-being of the partners and communities across the value chain. Through responsible sourcing, sustainability initiatives, and community-driven efforts, EFICO continues to evolve -staying dynamic, proactive, and responsive in the ever-changing world of coffee we hold dear.

EFICO | QUALITY, TRACEABILITY & SUSTAINABILITY

Y2024 KEY FACTS & FIGURES FROM OUR MAIN SOURCING AREAS

PURPOSE DRIVEN SMART

PARTNERSHIPS

We focus on purpose-driven partnerships across the coffee value chain, starting at origin. By collaborating with cooperatives, local exporters, and key partners, we ensure a sustainable and transparent coffee supply. Our sourcing strategy prioritizes reinvesting value locally, strengthening economies, and building resilience against market fluctuations and environmental challenges.

Our sourcing offices in Ethiopia, Central America, and Brazil are integral to our sustainable sourcing strategy. These offices go beyond operational hubs, serving as centers of adaptive collaboration that connect us directly to coffee-growing regions. They ensure farmers receive the necessary support to navigate the ever-changing coffee landscape. By standing alongside our partner producers, we strengthen local economies and the broader coffee supply chain, fostering relationships based on mutual growth and understanding. At EFICO, we take great pride in being part of locally rooted partnerships. Smart sourcing is not just about coffee; it’s about creating lasting, positive impact. 85% directly sourced from local actors

85% of our coffee comes from cooperatives and local exporters who reinvest in their communities. By sourcing directly from them, we help keep economic benefits within coffee-growing regions, directly supporting their development. These long-term partnerships, built on shared values of quality, food integrity, and sustainability foster stability and resilience in an unpredictable marketplace.

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%.

Our certified and verified coffees consistently surpass industry averages -demonstrating our unwavering commitment to certification, verification, and our role as a trusted partner.

However, we observed a slight overall decline in certified coffee, both in terms of absolute volume and market share, with the most notable drop in Fairtrade Certified coffee. The steepest declines were recorded in Honduras, Nicaragua, and Colombia.

This decline was primarily driven by higher average market prices during several months of 2024, which exceeded the Fairtrade minimum price. The rise in premium prices amid a volatile market made Fairtrade coffee less attractive at that time. However, as New York coffee prices later surpassed the Fairtrade minimum, roasters gradually returned to these qualities.

A similar downward trend was seen in Organic-certified coffee -both standalone

and in combination with Rainforest Alliance or Fairtrade certifications, with the largest decreases recorded in Peru and India.

The increased rigor of the EU organic standard for imported products, along with more frequent inspections both at the origin and in Europe, has had an impact. With advancements in measurement accuracy, testing has become more precise in detecting residues that may indicate potential cross-contamination. As a result of the complexity involved in complying with EU organic rules and regulations, organic volumes in Europe have declined. Some exporters may consider shifting their focus to North America, where organic certification requirements are less stringent.

These observations suggest that in times of market volatility and rising prices, producers and roasters may be moving away from certain certification models. The costs and complex processes associated with certifications

53% of our sourced coffees are certified or verified against sustainable standards

make them less attractive. This shift could reflect a ‘back to basics’ approach, where price considerations play a larger role -particularly in times of economic instability and inflation.

Nevertheless, certification systems remain crucial for meeting the growing demands of sustainability and traceability. The updated

Rainforest Alliance Standard -integrated with risk assessment tools, for example, serves as a key stepping stone toward EUDR compliance and improved traceability. It provides significant support to farmers worldwide -helping them navigate the increasingly complex regulatory landscape of the European market.

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

DEEP DIVE INTO EFICO’S 3 KEY ORIGINS WITH ESTABLISHED SOURCING OFFICES

The world map above provides a 2024 snapshot of coffee origins, highlighting the percentages of certified, verified, and unverified coffee. For a more detailed perspective, we analyzed sourcing data from EFICO’s 3 major coffee origins with established sourcing offices. This deeper analysis sheds light on how local conditions and global market dyna-

mics are influencing EFICO ’s sustainable sourcing strategy.

BRAZIL

Brazil remains EFICO’s top coffee sourcing origin, with 1 in every 3 coffee bags coming from this country. This is due to the consistently good quality of Brazilian Arabica beans, which are perfect for both blends and single-origin coffees.

Guatemala

Nicaragua

Rest of Central America

Honduras

Vietnam

Rest of S. America

India

Ethiopia

Rest of Africa

Rest of Asia

Colombia Brazil

Peru

At first glance, EFICO’s sourcing profile may appear to show that only 50% of the coffee from Brazil is certified. However, this figure surpasses industry standards. When we add 11% of verified coffee, the total share of certified and verified Brazilian coffee increases to a strong 61% -a figure that has remained consistent over time. Additionally, 91% of our Brazilian coffee is sourced from local cooperatives and exporters. By factoring in coffee from a local partner who follows internationally recognized traceability and sustainability standards, the combined share of certified and verified coffee rises by another 12%, bringing the total to an impressive 73%.

CENTRAL AMERICA

Central America continues to be a key region for EFICO’s coffee sourcing -despite facing significant challenges such as climate change, migration, and productivity issues. Through our EFICO FOUNDATION, we actively support various quality and sustainability projects that have a positive impact on the coffee value chain. Our commitment to the region is reinforced by the presence of our sourcing office

in Guatemala City -which plays a vital role in addressing these challenges and fostering strong local partnerships.

An impressive 68% of our coffees sourced from Central America have been verified and certified -reflecting a continued commitment to certification and sustainability. Additionally, 75% of the coffee sourced comes from local cooperatives and exporters, underscoring the strength of our local partnerships.

Certification progress has remained generally stable and consistent, reflecting our continued commitment to upholding high certification standards despite evolving challenges. However, a slight decline in both total and certified volumes was observed in 2024, particularly in Fairtrade and Rainforest Alliance certifications.

The most significant volume declines occurred in Nicaragua, Honduras, and Guatemala, where certified coffee volumes -especially Fairtradecertified coffee, dropped considerably.

ETHIOPIA

Our trusted partner EFICO KURU operates 4 washing stations in the Sidama region, all certified under both Rainforest Alliance & Organic standards. EFICO is committed to developing a market for these coffees. These direct operations in Ethiopia allow us to build transparent value chains that extend to the washing stations, providing significant benefits to farmers.

Although certified Ethiopian coffee accounts for just 33% of our total Ethiopian volume, it still outperforms industry standards. Furthermore, 31% of our Ethiopian coffee volumes meet our internal sustainability standards.

When combined with the certified portion, this means that 64% of our Ethiopian coffee is sourced against sustainable standardsunderscoring our commitment to creating a positive impact through sustainable sourcing.

In comparison to 2023, we have also observed a notable increase in volumes from Ethiopia, both in non-verified and certified coffee, with a particular rise in Rainforest Alliance and Organic certifications, while maintaining a consistent share of certified coffee.

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.

INSIGHTS AND TAKEAWAYS FROM EFICO’S SUSTAINABILITY TEAM FOR EUDR COMPLIANCE

A FOCUS ON FOREST PRESERVATION AND EUDR COMPLIANCE

On 29 June 2023, the Regulation on Deforestation-free Products (EUDR) entered into force. The main driver of deforestation is the expansion of agricultural land linked to the production of commodities like coffee, cacao, cattle, wood, soy, palm oil, rubber, and some of their derived products, such as leather, chocolate, tyres, or furniture. As a major economy and consumer of these commodities linked to deforestation and forest degradation, the EU wants to lead the way to solving it. Under the Regulation, any operator or trader who places these commodities on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation.

On 2 October 2024, the European Commission published a proposal to amend the EUDR, delaying its application to 30 December 2025 for large companies and 30 June 2026 for SMEs. This was formally adopted by both the European Parliament and Council and published in the Official Journal on 23 December 2024.

This additional time is intended to help companies around the world implement the rules more smoothly from the date of application, without undermining the objectives of the law.

EFICO: READY FOR EUDR COMPLIANCE ANYTIME AND BEYOND

At EFICO, we have been closely monitoring the developments surrounding the

EUDR to ensure we are fully prepared for its implementation, no matter the timeline. Our commitment to full compliance with the EUDR remains steadfast. The extra time granted will allow us to delve deeper into the requirements, enabling us to provide even greater value.

SUSTAINABILITY TEAM

Leading these efforts is EFICO’s Sustainability Team -a diverse, international, and multilingual group of dedicated women who have been on top of it for some time now, coordi-

nating, initiating, and advancing our green coffee goals. They’ve been driving our progress behind the scenes, ensuring we stay ahead of the curve. Recently, we sat down with them to gain firsthand insights into their work on EUDR compliance. They shared their field experiences and framed them within the broader coffee landscape, providing valuable takeaways for European roasters and stakeholders.

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 to EUDR compliance: ensuring alignment across the entire coffee value chain, minimising duplicated efforts, and openly sharing insights and practical tips. At EFICO, it’s all about personalised strategies, customised advice, and building purposeful partnerships.

CAMILA PEREZ

PAULINE VANDEPUTTE

KATRIEN DELAET

A CONVERSATION WITH EFICO’S SUSTAINABILITY TEAM

KEY INSIGHTS, PRACTICAL TAKEAWAYS AND BEST PRACTICES FOR EUDR COMPLIANCE FOR OUR PARTNERS

I. IMPACT OF EUDR ON COFFEE PRODUCERS

Most people are likely familiar with it by now, but here’s a brief summary.

The EU Deforestation Regulation (EUDR) -one of the most stringent and comprehensive environmental laws in the EU, aims to ensure that 7 key consumer goods (soy, cattle, oil palm, wood, cacao, coffee and natural rubber) and some of their derivatives placed on the EU market are free from deforestation.

For our coffee sector, this translates as follows:

Fundamentally, the EUDR dictates that all coffee entering or leaving the EU must comply with these principles:

• 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.

• Compliance with Local Legislation: Coffee must adhere to relevant legislation in its country of production -including laws on environment, land use, forest governance, labour, tax, and human rights.

• Due Diligence: Each shipment must be accompanied by a due diligence statement, confirming minimal risk of non-compliance with EUDR requirements.

The workload for mapping coffee plots under the EUDR largely falls on farmers and producers with the support of exporters, importers and governmental and non-governmental organisations. The coffee producers with less than 4 hectares of coffee land are required to provide a GPS pin marking the center of their plot, while producers with more than 4 hectares of coffee must also use ‘polygon mapping’, a more detailed method that outlines the boundaries of each plot.

This strict, zero-tolerance approach, where products are either compliant or not, places significant pressure on importers (in our sector: importers of green coffee, decaffeinated coffee, roasted coffee, and other coffee derivatives) to ensure accurate and comprehensive data collection.

A. EFICO X PRODUCER PARTNERS

EUDR COMPLIANCE VS FIELD REALITY

Katrien Delaet -Expert Quality & Sustainability at EFICO: ‘Farmers in developing countries are now suddenly expected to have smartphones and become tech-savvy enough to map their coffee growing areas and interpret satellite imagery. While the technological demands, such as handling geo-location data, are already challenging, the legal obsticles are even harder to overcome. In many of these regions, land ownership is often uncertain. As a result, the EUDR legislation can feel disconnected from the practical realities these farmers face on the ground.’

Katrien continues: ‘So maybe let’s start by addressing the in-the-field realities, such as the challenges related to boundaries and the associated costs of data collection for smallholder farmers. Farmers must be involved in identifying plot boundaries, as they know the land best. Mapping every farm, especially for smallholders, involves significant resources, including time, human, and financial expenses. Even getting to remote farms is challenging due to poor infrastructure, and many farmers don’t live near their plots.’

Pauline Vandeputte -Value Chain Expert & Sustainability at EFICO : ‘The EUDR mandates geolocation for every coffee plot to demonstrate that no deforestation occurred after 30/12/2020. This involves advanced

geolocation techniques and ground-truthing, often requiring enumerators and farmers to work together. There’s a significant gap between the expectations set by EUDR regulators and the realities faced by farmers and data collectors on the ground. In many African countries, farmers frequently rely on informal methods, such as memory or handwritten notebooks, to manage their business data.’

Katrien agrees and concludes: ‘Collecting accurate, formalized data for regulatory purposes is quite a challenge. The process becomes more effective when personal relationships are built, as qualitative insights are more easily gathered when data collectors connect with farmers. At EFICO, we are fortunate to have naturally developed the ability to build purposeful partnerships, something we have enjoyed doing over the years. This approach is always beneficial, but especially crucial at this moment.’

Camila Perez, who recently joined the EFICO Sustainability team as GIS Data & Sustainability Officer, shares: ‘I was quickly thrown into the deep end! At the moment, my role involves coordinating the collection and analysis of GIS datasets, assessing deforestation risks with external partners, and reviewing critical cases with EFICO ’s coffee-producing partners. Later on, I will help refine internal methods, enhance risk analysis, and design systems to track our social and environmental impact. I’ll also be involved in setting up new data collection projects from farm to customer, focusing on full traceability and sustainability. I’m looking forward to assisting with hands-on work in the countries of origin!’

B.

EFICO’S TAKEAWAYS

→ Any EUDR compliance effort must consider the socio-economic realities faced by smallholder farmers, who risk losing market access if they cannot meet the requirements. Developing an inclusive approach should be a priority when building sustainable supply chains.

→ While technology -such as satellite data, is crucial for compliance, manual interventions and human judgment are often needed to correct inaccuracies and ensure reliable results; ground truthing is a must!

→ These challenges and insights emphasise the need for realistic and context-sensitive approaches to EUDR compliance, balancing regulatory demands with the practical needs and limitations of farmers and supply chain participants, specific to each country of origin.

→ Many countries of origin face ongoing political and economic instability, which presents significant challenges. A onesize-fits-all approach simply doesn’t exist.

C. EFICO’S APPROACH

→ EFICO’s approach emphasises enhancing supply chain transparency while providing tailored support through direct contact and dialogue with our producer

partners. Recognising the pressures this regulation can impose on farmers, our strategy is flexible, collaborative, and progressive.

→ EFICO works closely with its partner producers to ensure compliance without adding unnecessary pressure. We provide clear data requirements for geolocation, traceability, legality, and harvest periods.

→ To avoid duplicating efforts and incurring unnecessary verification costs, EFICO allows suppliers to submit risk assessments conducted by other approved service providers. Our approach is tailored with tiered engagement levels, ranging from basic data submission to comprehensive risk assessments. By adapting to each supplier’s needs, we ensure compliance while minimising additional burdens.

→ Sustainability has been at the heart of EFICO since the beginning. With the EUDR regulations on the horizon, we have expanded the team with two fulltime sustainability experts. They are here to assist our partner farmers and roasters in navigating these new regulations, helping us all maintain the highest standards of sustainability.

II. IMPACT OF EUDR ON COFFEE TRADERS & ROASTERS IN THE EUROPEAN BEAN SCENE

We’ve discussed EFICO ’s role in informing and supporting partner producers at origin. Now, let’s shift the focus to the impact of the EUDR on European roasters and how EFICO supports them in navigating this process.

Katrien: ‘The Regulation was published in the Official Journal of the European Union on June 9, 2023, and took effect on June 29, 2023. For now, the actual enforcement is set to begin on 30 December 2025 for most companies and on 30 June 2026, for microand small enterprises. Rest assured, we will stay on top of things and be ready whenever needed.’

Katrien acknowledges: ‘It’s an understatement to say that the impact on the coffee

industry is immense, affecting most supply chain actors. Non-compliance could result in fines of up to 4% of annual turnover, potential confiscation of shipments, and losing access to a market that represents over a third of global coffee consumption. For many traders and roasters, these consequences could be catastrophic. However, despite these challenges, the EUDR legislation also presents significant opportunities. It promotes closer collaboration with both producer and roaster partners, leading to stronger, more enduring partnerships.’

Katrien explains: ‘Companies with inadequate policies on deforestation and biodiversity are facing challenging times, but EFICO just needs to step up a gear and make some extra efforts, as the EUDR aligns with the sustainability goals and standards we have been investing in for years, even before these regulations were introduced.’

Katrien emphasises and advises: ‘Certified coffee goes beyond conventional options, with major certification bodies such as Rainforest Alliance and Fairtrade already aligning their standards with EUDR requirements. These certifications are essential in helping coffee importers meet data collection obligations, particularly regarding legal aspects. This gives EFICO a significant advantage, as we offer a wide range of certified coffees. However, certification alone does not guarantee EUDR compliance! Farmers must voluntarily meet the requirements ahead of their audits, and operators remain liable for any non-compliance. That is why, at EFICO, we always perform additional due diligence to ensure full compliance with legal standards.’

A. EFICO X ROASTER PARTNERS

EUDR COMPLIANCE VS EUROPEAN BEAN

SCENE REALITY

What are EFICO ’s responsibilities as an importer/operator under the EUDR regulation, and how does it impact their coffee roasters customers?

Pauline: ‘As an importer/operator, EFICO must ensure that all their coffees are traceable to their origin, specifically to the plot

of land where the coffee is produced. This includes providing geolocation data for the production area. EFICO must also assess and address the risk of their products contributing to deforestation by examining supply chains to ensure legal and environmental compliance in the country of origin.’

Katrien continues: ‘Once documentation confirms there is no or negligible risk of non-compliance, EFICO must submit a Due Diligence Statement (DDS) through the EU Information System (TRACES). This submission generates a DDS reference number, which is necessary for the coffee’s release for circulation within or export from the EU market.’

‘Once the coffee is cleared by customs for free circulation in the EU, the requirements change’, Katrien explains. ‘Large downstream operators (such as processors, roasters or decaffeinators,) must meet similar due diligence obligations and submit a DDS based on a previous reference number. In contrast, SMEs are not required to submit a due diligence declaration for products already covered by another economic operator. They only need to provide the reference number of the existing declaration if requested.’

Katrien: ‘Once the EUDR comes into effect, we will consistently include our DDS numbers on every invoice to directly demonstrate our compliance, ensuring automatic and seamless information transfer.’

B. EFICO’S TAKEAWAYS

→ The EUDR stands out from other legislation by being product-based and focusing on prohibitions. In contrast, the CSDDD (Corporate Sustainability Due Diligence Directive) for example requires companies to address human rights and environmental risks in their supply chains, while the German Supply Chain Act (LkSG) emphasises companies’ responsibility to ensure due diligence and prevent harm in their supply chains. Both the CSDDD and LkSG focus on best efforts to manage risks, whereas the EUDR takes a stricter approach by banning products linked to deforestation.

→ European roasters play a crucial role in the coffee supply chain and are directly affected by the EUDR. The regulation mandates that all European operators, including roasters, ensure their products are free from deforestation and meet the legal requirements of the country of origin.

→ European roasters must meet due diligence obligations before selling or distributing roasted coffee or processed products within the EU, ensuring their products comply with all criteria set by the regulation.

→ If European roasters process green coffee beans (e.g. by roasting it) after the enforcement date of 30 December 2025, they must provide evidence that the coffee was placed on the EU market before this date (as per order request, transport document, or invoice). Or in case the coffee is made with beans introduced to the market after 30 December 2025, they must demonstrate that the beans are deforestation-free by providing the respective DDS number.

→ In the context of the EUDR, it is once again clear that building long-term partnerships is both useful and necessary. Additionally, direct involvement with the EUDR regulations -such as ensuring full transparency and traceability, can potentially lead to new insights into market setting and commercialisation.

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.

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

Terra Prima

• SCA: 86+

• Exceptional coffees

• Unique sensory experiences

• Exclusive

• Optimal traceability

Autentica

• SCA: 84-86

• High quality coffees

• Authentic

• Available according to the crop calendar

SCA: 82-84

• Typical of the organoleptic profile of its region

• Available all year

• 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.

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

• February 2024 | Coffee Festival Madrid

• March 2024 | Producer & Roaster Forum, Guatemala

• March 2024 | Le Paris Café Festival

• April 2024 | Kaffee Campus Hamburg

• April 2024 | Amsterdam Coffee Festival

• April 2024 | Specialty Coffee Expo Chicago

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

Collabs

• June 2024 | World of Coffee Copenhagen

• August 2024 | Coffee Congress Anacafé Guatemala

• September 2024 | Paris Coffee Show

• October 2024 | International Coffee Day Experience, Antwerp & Zeebrugge

• October 2024 | Brussels Coffee Show

• November 2024 | Sintercafé Costa Rica

• Teaming up with SCA France Sponsoring ‘Le Championnat de France de Torréfaction’ Teaming up with World Coffee Research

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

FACTS, ALTERNATIVE FACTS, FACTS & FIGURES AND FACT CHECKING

ETHIOPIAN

FOREST COFFEE

‘Forest Coffee’ -often seen as a promising and intriguing concept, is far too often promoted without a comprehensive understanding of its implications. This term has received attention for its potential environmental and quality benefits, but may still have no substantive meaning.

Recent research and publications have shed light on this topic, uncovering unexpected findings and prompting a deeper investigation into its essence. Time for a brief state of affairs. Let’s unravel the truth behind savvy marketing phrases such as ‘forest coffee’ and/or ‘wild coffee’. Let’s explore a range of

facts, alternative interpretations and differing opinions surrounding this almost mythical concept.

BACK TO THE ROOTS: THE CLOUD FORESTS OF KAFA

Long before coffee was cultivated around the globe, before it became one of the world’s most traded commodities, and before it became the backbone of industries and economies, the plant grew wild in Ethiopia’s dense forests. The mountainous and misty southwestern Ethiopian rainforests serve as the backdrop and original habitat of Coffea arabica’s gene pool.

These cloud forests -especially the renowned region of Kafa carry significant historical and agricultural importance in the cultivation of Arabica coffee. Here, wild trees grow up to 9 meters tall and are covered in moss, almost unrecognisable from the neat rows of pruned shrubs you find on a conventional coffee farm.

Up until the twentieth century, the Kafa area remained largely undiscovered by European explorers, providing the local Kafa people with the opportunity to cultivate the world’s original coffee culture within these forests. It is here in Kafa, once a proud kingdom, that coffee developed as part of the local ecosystem, or, as Koehler puts it in his reference work ‘Where the Wild Coffee Grows’ – earned its place in the forest.

WILD STORYTELLING

It is easy and tempting to make a romantic leap from the existence of some wild coffee in Ethiopia to an imaginary mythical place where the local natives wander into their forest to gather the wild, original coffee berries that still grow there.

That’s because this legendary land of ancient coffee forests -often romanticised in coffee marketing and storytelling- speaks to our desire to honour nature and origins. We are only too happy to pay tribute to the cradle of coffee and we are only too happy to strive for coffee that has been grown in the most natural environment possible. However, it is more than unlikely that your cup of Yirgacheffe was grown in a truly wild way.

FACTS & FIGURES: ETHIOPIAN WILD COFFEE, FOREST COFFEE, SEMI FOREST COFFEE PLANTATION COFFEE, GARDEN COFFEE, PLANTATION COFFEE

All fanciful and tempting storytelling aside, let’s try to find out how much Ethiopian coffee is cultivated in the deep forests. Is forest coffee truly sourced from pristine environments? Does this production method effectively preserve biodiversity?

Several publications and studies in recent years have provided valuable insights into this topic, with somewhat unexpected results. The diagram below (compiled by Julie Craves using data from a range of different sources and published in the article ‘How wild is Ethiopian forest coffee‘) about coffee growing, harvesting practices and their effect on the environment is a simplified representation of the different coffee growing methods in Ethiopia, with rough approximations of frequency with which they occur.

COFFEE CULTIVATION IN ETHIOPIA

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 PLANTATION) 50%

→ In this method, coffee plants are moved to gardens near farmers’ residences. These plants may be sourced from nearby forests, exchanged between farmers for varieties suited to local conditions, or even come from different regions. Coffee is typically intercropped with other crops and fruit trees. Garden coffee is predominantly found in southern Ethiopia, including Sidamo, as well as Harerge/Harrar. Yields typically range from 200 to 700 kg/ha/year.

→ By comparison, Partnerships For Forests, defines semi-forest coffee as: ‘coffee that grows in forests that are semi-managed by humans (i.e. opening up canopies, clearing weeds etc.) but maintain a minimum of 50% canopy cover’.

FOREST COFFEE 5%

→ This scenario is likely what most people envision when they hear about ‘wild’ coffee. Here, coffee is gathered from trees growing naturally in the forest, with minimal intervention in the surrounding vegetation, except for some clearance of undergrowth to access the coffee trees. However, it’s important to acknowledge that some level of management occurs wherever coffee is cultivated.

→ In Ethiopia, only around 2000 square kilometers of high-quality forest containing wild arabica coffee remains. Even within local communities, the term ‘forest coffee’ can hold various interpretations. It might denote old, overgrown plantations or a lone coffee tree in a pasture that was formerly forested. Regardless, yields are typically low, often ranging from just 7 to 30 kg per hectare.

→ This more or less corresponds with how non-profit organization Partnerships for Forests defines Forest Coffee: ‘coffee that grows naturally in primary forests that have not been disturbed or damaged by human intervention.’ Although there is actually no management of the surrounding vegetation, there is some minor removal of undergrowth purely to facilitate access to the coffee trees.

→ Most farmers cannot afford pesticides, herbicides or other chemical inputs. Yields of forest coffee are much lower than from garden or plantation coffee systems. Deviations, however, are high. Forest coffee yields tend to have tremendous annual fluctuations due to pests, unfortunate weather conditions or plant recovery/regeneration.

→ According to our local Ethiopian partner KURU, a maximum of 3% can be described as real ‘forest coffee’.

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 ETHIOPIA : PRACTICAL CHALLENGES & CONCEPTUAL DILEMMA

→ The forests are worldwide rapidly depleting due to deforestation, leading to irreversible damage to their ecosystems and biodiversity.

→ Since 2002, a growing number of stakeholders engage in certification of Ethiopian forest coffee. The units of certification are local coffee cooperatives that are organised under cooperative unions.

But Ethiopia faces a number of practical performance problems and a conceptual dilemma: In practical terms, concerns arise regarding the benefits of certification for producers. Although private merchants sometimes pay slightly more for coffee than cooperatives, cooperatives usually distribute profits as dividends to members. However, some farmers have not received payments for years, casting doubt on the credibility and sustainability of the cooperative system.

• 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 : FLAVOUR FACTS

So wild coffee, coffee that comes from beans collected in a coffee forest, does it taste better? We would rather say ‘no’, or ‘not necessarily’. The best coffee has a high quality control: it comes only from ruby red fruit. If the berry is not ripe, the bean will not have the same taste. But in the deep forest, the farmers take all the coffee fruit off the tree, including the underripe and overripe cherries. 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 knocked over the fruit, or baboons and birds may have eaten it – animals love the ripe coffee fruits…

So the result is not so good. But as an experience? Being in the woods and drinking rich, thick wild coffee can’t be beat.

CUPRIMA'S ETHIOPIAN COFFEE LINE CUP

At CUPRIMA , we’re all about coffee with attitude! We select our coffees for pure quality and rank them based on their SCA value. Our lineup? Nothing but the coolest, most exceptional coffees, whether they’re wild or not.

Click here for the complete line-up

COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, sourcing sustainably and establishing long-term partnerships with our customers and suppliers, facilitated by our local offices, is key. Our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through our EFICO FOUNDATION.

By supporting innovative and scalable projects in coffee producing countries, along with the coffee roasting community and institutional partners, a positive ripple effect is put into motion.

Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively impact coffee farmers’ livelihoods, prosperity and environment. The multi-stakeholder approach adopted is unique and is a dynamic tool to foster partnerships. The EFICO FOUNDATION is about PEOPLE: from coffee farmers, their families and local communities to coffee roasters and coffee lovers.

To date, we report back on about 86 projects in 18 producing countries Discover them on our website.

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

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 project label, signifying support for sustainable development projects by coffee roasters. By featuring the label on their packaging, roasters contribute to initiatives backed by the EFICO FOUNDATION . The label clearly 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.

The label has undergone a transformation and now includes not only the EFICO FOUNDATION logo and the slogan ‘Coffee for People, People for Coffee’ but also a QR code. This code links directly to the EFICO FOUNDATION Partnership Impact Report Page.

Guatemala

OVERVIEW

Colombia

Tanzania

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

Solar Panels for Cooperative Nuevo Sendero

Healthy Homes for coffee farming families

COLOMBIA

GUATEMALA

GUATEMALA

Entrepreneurs in action: 4th Bachelors in coffee project

Kilimanjaro Water & Food for All

GUATEMALA

TANZANIA

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

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

An optimal irrigation system was installed across 136 hectares of coffee farms in Lambo and Silverdale.

The partners involved have contributed to essential improvements in key water infrastructure, such as installing a new water intake on the Weruweru River and building sedimentation tanks. These upgrades have facilitated the shift from traditional, water-intensive furrow irrigation to more efficient, modern irrigation systems.

Meanwhile -as part of the broader ‘Kilimanjaro Water & Food for All’ initiative, 2,024 trees have been planted in the Weruweru River sub-basin. This side effort simultaneously promotes reforestation, conservation and agroforestry, helping to restore ecological balance and protect vital water bodies in the Kilimanjaro region.

PROJECT ACTIONS AND RESULTS

ACTION HIGHLIGHT

In 2024, 2,024 native trees were planted in the Weruweru basin -including species like African Cordia (Mringaringa), Ficus (Mkuyu), and Newtonia Buchananii (Mkufi).

POSITIVE PURSUITS

→ These trees enhance ecosystem resilience, capture CO2 , support water balance, and create wildlife habitats.

→ This agroforestry initiative improves local livelihoods and promotes sustainable land management in the Kilimanjaro region, benefiting both the community and the environment.

ACTION HIGHLIGHT

Several key improvements were made to enhance irrigation systems and water management practices.

Upgraded Water Delivery

Open furrows previously used to direct water from catchment areas to fields were replaced with closed pipelines. This upgrade improved efficiency by 60-70%.

Reduced Flooding Practices

Smallholder farmers have transitioned from traditional flooding methods to more sustainable practices, conserving water and ensuring its efficient distribution across fields.

Restored Farmland Productivity

With improved irrigation and water management techniques, agricultural farmlands now utilize water more effectively, promoting healthier crop growth and higher productivity.

Installation of an Optimized Irrigation System

An efficient irrigation system was installed across 136 hectares of coffee farms in Lambo and Kyumasha (Silverdale), designed to optimize water use and support sustainable coffee production.

POSITIVE PURSUITS

Each step reflects a focused improvement that contributes to the overall sustainability and productivity of the farms.

→ The introduction of closed pipelines and systems like drip irrigation and sprinklers has enhanced water efficiency by 50%, resulting in a 70% reduction in water consumption. These methods have also significantly minimized water loss due to leakage, evaporation, and pollution.

LOOKING AHEAD – WHAT’S NEXT ?

→ Agricultural productivity increased, thanks to more precise water distribution. Previously unproductive fields were restored to cultivation, boosting overall farm output.

→ These initiatives have improved water availability for downstream users, who are educated and trained in effective water management practices by the local Water Stewardship Committee.

→ Additionally, energy generated through gravity has reduced diesel and electricity use in pumps and motors by up to 95%.

→ Overall, these smart initiatives contribute to significant water savings, lower fuel costs, improved crop health, all while contributing to environmental sustainability. It represents a positive advancement for farmers, the local community, and the planet.

This project contributes to This project contributes to

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.

KILIMANJARO COFFEE SUPPORT LOCAL FARMERS BUYING COFFEE

COFFEE TANZANIA TUMAINI, KILIMANJARO

The coffee linked to this flagship project is called Tanzania ‘Tumaini’, meaning ‘Hope’ in Kiswahili. This fully washed Rainforest Alliance coffee has a balanced cup, fine acidity, milk chocolate body with fruity flavours, berry and tobacco notes, bright sweetness and rounded with smooth finish.

It is produced by APK, a business owned by a family group with deep roots in Colombia under the leadership of Alejandro Galante, which makes APK uniquely Tanzanian with a Colombian feel.

EFICO FOUNDATION

PROJECT: ‘KILIMANJARO WATER & FOOD FOR ALL’

Coffee Specs

Species: Arabica

Varieties: Bourbon, Kent, N39, KP, F6

Picking: Hand Picked

Processed: Washed coffee - via semisubmersive channel, saves 85% water consumption vs traditional washing method

Drying: 50% sun-dried and 50% mechanical dryer with temperature control in slack combustion silo

Harvest: runs from July to October, with August being the peak

EFICO COFFEE: TANZANIA TUMAINI, KILIMANJARO

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

SEABRIDGE functions as an advanced logistics service hub and distribution platform tailored specifically for the coffee industry, strategically positioned within the port of Zeebrugge, Belgium.

Its primary aim is to excel in providing solutions for the storage, sustainability, and traceability of green coffee. Its comprehen -

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 it boxes, bags, big bags, or bulk shipments, SEABRIDGE 's adaptable logistics solutions are meticulously tailored from the point of origin to the final destination. The warehouse infrastructure at SEABRIDGE is meticulously designed to maintain optimal storage conditions for green coffee, employing highly automated processes for precision.

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

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

LOOKING AHEAD

Dear Stakeholders, Partners and Friends of EFICO,

Reflecting on 2024, it’s clear that the year has been shaped by a range of challenges, driven by geopolitical tensions, global economic shifts, significant logistical disruptions, and severe climate shocks. Extreme weather events have affected nearly every agricultural sector, including the global coffee production. Fluctuations in supply and demand, shifting consumer expectations, currency instability, a volatile C-Market, evolving sustainability priorities, and stricter regulatory frameworks are all affecting the landscape for everyone involved.

THE FUTURE: FROM GLOBAL UNCERTAINTY TO COFFEE INDUSTRY RESILIENCE

For EFICO -as a European importer and trader of green coffee, these dynamics are particularly pronounced. European legislation, such as EUDR and CSRD, requires increased compliance and accountability. However, with nearly a century of experience, EFICO has proven its ability to adapt and thrive. Our solid financial and administrative framework, complemented by in-house expertise and a network of trusted global partners and experts across the coffee value chain, ensures we are well-prepared to manage these complexities.

As we navigate this transformation, EFICO’s focus remains steadfast: connecting origin and destination with positive impact. By supporting coffee producers in adapting to regulatory and environmental demands and ensuring reliable solutions for roasters, we meet the needs of today’s dynamic market. Our commitment to sustainability,

collaboration, and quality drives innovation and resilience, preparing us to lead with confidence in a changing world.

EFICO remains committed to adapting responsibly, leveraging nearly a century of experience to foster innovation, promote collaboration, and nurture long-term partnerships. This approach ensures resilience, quality, and sustainable growth throughout the value chain. As we approach this remarkable milestone, we are ready for what lies ahead -prepared not just to adapt but to lead with confidence.

EFICO’S TARGETTED ACTIONS FOR FUTURE READINESS STARTING THE YEAR STRONG: LAUNCHING NICARAGUAN FOREST POSITIVE COFFEE

EFICO is kicking off 2025 with the introduction of the Nicaraguan Forest Positive Coffee pilot project, focusing on carbon insetting within the value chain and reaffirming its commitment to sustainability and climate action.

This pilot marks the beginning of a broader effort, as EFICO aims to expand this model to other origins, creating a replicable framework that integrates environmental stewardship with economic growth. This project stands as a powerful example of how we are putting its values into action, setting a positive tone for the year ahead.

COMPREHENSIVE CARBON FOOTPRINT CALCULATING

In 2025, EFICO’s major priority is to calculate the full carbon footprint across the entire coffee value chain -from farm to doorstep. By collaborating with top experts in the field, EFICO is incorporating this data to assess its

greenhouse gas emissions, ensuring that its operations align with sustainability objectives. This effort is about more than just numbers; it reflects our commitment to taking responsibility for its environmental impact and finding innovative ways to minimize it. By making data-driven decisions, EFICO aims to enhance efficiency, reduce emissions, and create long-term value for all stakeholders across the coffee value chain.

FOCUS ON NAVIGATING THE COMPLEXITIES OF EU LEGISLATION COMPLIANCE

The EU regulatory landscape is rapidly evolving, with the ‘Customs Single Window Certificate Exchange System’ serving as both the core and driving force behind this shift. This centralized digital platform connects the import, export, and transit systems of Member States to the Union, enabling the real-time receipt of original data. The EU has set ambitious goals to drive efficiency and transparency across borders, and this system plays a central role in achieving them.

The system is designed to enhance the legal and operational framework for information exchange and digital cooperation between customs administrations and other public authorities responsible for non-customs formalities at EU borders, including health and safety, environmental protection, food and product safety, and agriculture. The goal is to achieve seamless interoperability between customs and non-customs domains, ensuring more efficient and transparent movement of goods.

At EFICO, we are investing significant time and resources into understanding and aligning our operations with these evolving

requirements. By proactively preparing for these changes, we ensure compliance and position ourselves to lead the next phase of accurate and comprehensive regulatory registration and reporting.

PREPARING FOR THE CORPORATE SUSTAINABILITY REPORTING DIRECTIVE

(CSRD), FINE-TUNING EUDR COMPLIANCE, AND USING THE

EXTRA YEAR STRATEGICALLY

Preparing for the Corporate Sustainability Reporting Directive (CSRD) requires a comprehensive understanding of the evolving regulatory landscape and a proactive approach to ensure compliance. At EFICO, we are implementing robust systems designed to collect, manage, and report detailed sustainability data, covering environmental, social, and governance (ESG) factors. EFICO’s efforts are centered around aligning internal processes, ensuring transparency in our reporting, and integrating sustainability into the core of our business strategy. By investing in advanced data management tools, leveraging digital technologies, and fostering cross-departmental collaboration, we are not only focused on meeting regulatory standards but also positioning ourselves to gain a competitive edge. This approach reflects our commitment to sustainability and long-term value creation.

In parallel, the European Deforestation Regulation (EUDR) offers new opportunities for growth. The additional year granted for compliance provides us with a unique opportunity to strengthen our position and move beyond basic legal requirements. We are utilizing this extra time to focus on social inclusion, enhance our partnerships, and build lasting relationships that support our sustainability goals.

Our strategy includes closely monitoring our current partners, guiding them through this transition, and collectively building resilience. By December 2025, EFICO aims to not only meet all regulatory requirements but also establish a system that operates smoothly, fosters trust, and reflects our values of collaboration and mutual growth. This strategic approach will ensure that we not only comply but thrive in the evolving sustainability landscape.

TAKING STOCK: STRENGTHENING SOCIAL INCLUSION

Social inclusion is a fundamental pillar of EFICO ’s vision for the future. As we align with evolving social inclusion regulations, we collaborate with experts to ensure our initiatives scale and deliver greater impact.

By combining our internal expertise with external insights, we aim to develop programs that exceed compliance and create lasting positive change in the communities and value chains we serve.

This partnership-driven approach ensures our social inclusion efforts remain effective, aligned with best practices, and responsive to shifting regulatory and environmental demands.

SCALING UP THE EFICO FOUNDATION’S FLAGSHIP PROJECT: ‘KILIMANJARO WATER AND FOOD FOR ALL’

Building on the momentum of the EFICO FOUNDATION ’s 20th anniversary project, ‘KW&F4A’, we are scaling up our efforts. This project embodies our commitment to sustainable and inclusive growth by connecting farmers, exporters, importers, roasters, and other like-minded experts across the coffee value chain.

By focusing on agricultural regeneration and water efficiency, this initiative enhances livelihoods, restores ecological balance, and sets the stage for long-term prosperity. The learnings from this flagship project will guide our efforts as we replicate its success in other Tanzanian regions, further embedding sustainability and innovation into everything we do.

EFICO: MORE THAN EVER, THE TRUSTED ALLY FOR PARTNER ROASTERS

In these challenging times, EFICO is more committed than ever to supporting its roaster partners. By providing the reassurance they need to navigate the complexities of the everchanging coffee landscape, we help them stay ahead of the curve.

Our tailored approach ensures that roasters have access to a carefully curated selection of high-quality coffees, whether conventional, specialty, with specific certifications, or accompanied by certified carbon credits. This commitment to offering the best quality coffee is just the beginning. EFICO goes beyond product supply by providing valuable market insights, expert coffee knowledge, and flexible logistics solutions, all designed to help our partner roasters succeed.

Clear and direct communication is at the heart of our approach, keeping our partners informed about the evolving EU regulatory landscape and its practical implications. This transparency ensures that everyone is aligned and confident in navigating the regulatory changes together.

Furthermore, EFICO is deeply committed to promoting sustainable entrepreneurship. By empowering our partners to make informed decisions, refine their offerings, and align

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.

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.