Hunger and poverty are closely related. The issues of trade and development affect millions of the world’s poorest people. Some of the work below barely mentions hunger and yet much of it reflects a path toward that goal of empowering the poorest, —often in rural areas of developing nations— to improve their conditions.

Newest publications:

Standards and Agricultural Trade in Asia
LINK

Value-adding Standards in the North American Food Market: Trade Opportunities in Certified Products...
(#11) MORE...

Adding Value: Certified Coffee Trade in North America...
(#24) MORE...

 
Current Projects
 

A. Geographic Indicators Project

What do Parmigiano cheese, Tequila, Idaho potatoes, and Darjeeling tea have in common?

Geographical Indications (GIs) or appellations are a potentially unique form of competitive advantage available even for small farmers and enterprises. In more than a hundred nations, they are a unique expression of local agro-ecological and even cultural characteristics that have come to be valued as high quality traditions and are sometimes protected.

A multinational team is reviewing more than 100 studies and publications on the topic and gathering together new case studies in order to evaluate what different developing country origins have done and document best practices and lessons learned.

Our goal is to provide an objective 'Guide' to understanding, forming, and using GIs effectively. The 'Guide to GIs for Developing Countries' will be published by the UN's International Trade Center (see below for abstract).

The research team includes contributors that are among the world's most respected in this particular field of intellectual property:
♦ Fred Abbott (Edward Ball Eminent Scholar, Professor of International Law FSU)
♦ Daniele Giovannucci, (Team Leader)
♦ Justin Hughes (Director, Intellectual Property Law Program at Cardozo)
♦ Catarina Illsley (Head, GEA Grupo de Estudios Ambientales)
♦ Ricardo Juarez (Researcher FAO)
♦ Tim Josling (Professor Emeritus Stanford University)
♦ William Kerr (Agricultural Economics chair at University of Saskatchewan and editor of the Journal of International Law and Trade Policy)
♦ Bernard O'Connor (EU Attorney and Professor of Law, author of 'Agriculture in WTO Law' and 'The Law of Geographical Indications').
♦ Koen Oosterom Technical Cooperation Coordination International Trade Centre, UNCTAD/WTO
♦ Dwijen Rangnekar (Senior Fellow at the Centre for the Study of Globalisation and Regionalisation and the School of Law Warwick University)
♦ Kira Schroeder (Project manager INCAE-CIMS)
♦ May Yeung (Policy Analysis Research Associate The Estey Centre)
 

B. COSA, the Committee on Standards Assessment

The COSA (Committee on Standards Assessment) is also a program for building information and management capacity in sustainable agricultural practices at the global level. As a partnership between leading research institutions in consuming and producing countries, the COSA program aims to develop a rigorous assessment tool and to also train producers and other stakeholders to measure and understand the costs and benefits of undertaking different sustainability initiatives.

Over the past two decades there has been a rapid growth of voluntary standards systems (i.e. organic fair trade,…) promoting sustainable development within agriculture, especially in the coffee sector. Despite the rapid growth of such systems, there has been comparatively little objective research or information available on their actual impacts or costs and benefits.

The core of the methodology is an innovative "econo-enviro-social" tool to assess both the direct and indirect costs and benefits at the economic, environmental, and social levels. This tool will be implemented under different conditions (rainforest, semi arid plains, mountainous, etc.) and for both small and large producers using several hundred original case studies in three continents.

It is expected to generate a series of insights and recommendations that will serve governments, private enterprise, and producers to develop sound strategies with regard to sustainability initiatives. The research will cover at least six initiatives: Organic, Fair Trade, Rainforest Alliance, Utz Certified (EUREP-GAP), 4Cs, and Starbucks CAFE Practices. Although initially being developed for coffee, these approaches and lessons are designed to be adapted and applied to other commodities as well.

COSA is a project of the SCP, a global consortium of 20 institutions promoting sustainability. These include: CATIE, CIMS-INCAE, CIRAD, IISD, ICO, UNCTAD, and USAID. The Director of Research is Daniele Giovannucci.

The International Advisory Panel includes leading stakeholders and is currently chaired by the Executive Director of the International Coffee Organization.

The Scientific Committee is independent to  ensure  the  overall  rigor,  quality and objectivity of the research. Members include: Larry Busch of Michigan State University, Alain de Janvry of UC Berkeley, Steven Jaffee of the World Bank, Jeremy Haggar of CATIE, and Sietze Valeema of Wageningen University.

Publications

(Please note that this site has a select list of my recent publications (2000-06). This is only edited or published work. Please contact me for others, such as project reports and older publications.)

Some of my publications are listed first, assuming you might have come here for those. I will soon mount other excellent related publications. If you know of a useful writing on the subject that ought to be included, let me know.

 
AGRO-ENTERPRISE, MARKETS & RURAL DEVELOPMENT

Producing food is simply not enough for many developing nations to improve conditions as vast quantities are lost due to poor storage, flawed processing, inadequate transportation and dysfunctional markets. Besides, it is all the post-harvest aspects carried out by agro-enterprises that enable farmers and economies to go beyond simply being raw materials suppliers and to benefit from the value they add. This value also happens to boost entire economies in many of the poorer nations since it can contribute more to employment, rural development, and GDP, than just the crop production itself. Being effective in these areas of adding value by processing, packaging, meeting high standards, etc. also allows effective participation in trade.

1. The Guide to Developing Agricultural Markets and Agro-enterprises.
   Editor of multivolume online database. Partly housed at: LINK
   
   Abstract: The Guide is a series of straightforward and practical (rather than an academic) papers by leading global experts and presented in a specially designed format as brief basic teaching tools with resources for more in-depth expertise. They address topics relevant to the design, monitoring, and assessment of projects and interventions for the promotion of agricultural enterprises and markets in developing countries.
   
   Purpose:
   From cotton to cattle to cut flowers, agribusiness cuts across many sectors. An agribusiness can be classed as part of the industrial, the agricultural, or the service sectors. It can be both rural and urban; it can be a small informal enterprise or a technologically sophisticated multinational.
   
   Agribusiness generates a significant, and often major, part of the GDP of most developing countries, and is a major factor in employment, food security, rural development and urban migration. Yet, efficient and equitable markets within which diverse agro-enterprises can thrive, do not happen without active private sector support and institutional guidance. Our purpose is to facilitate the sharing of knowledge and experience between practitioners throughout the world to equitably foster such markets.
   
   Sources and Stakeholders
   The Guide is a collaborative effort between the world's leading development organizations and private sector experts: USAID, IDB, J.E.Austin, UNIDO, FAO, Chicago Board of Trade, USDA, ITC, Rabobank, ACDI/VOCA, Chemonics, UNCTAD, CARE, DAI, CIRAD, CGIAR, NRI, and leading universities such as Harvard, Purdue, and Sao Paolo.
   
   Its direction and content are guided by an Advisory Panel chaired by Dr. Ray Goldberg, Professor Emeritus, Harvard Business School and by Daniele Giovannucci with the members of the Markets and Agribusiness Team of the World Bank.
   
   Audience
   The Guide is aimed at development professionals including project designers and analysts, project officers, Ministry staff, NGOs and executing agencies, and investment/trade promotion personnel.
   
   Objectives
   • Provide up-to-date references to information and experts in each field.
   • Pose the key questions which task managers and other practitioners should ask when initiating analysis or intervention designs
   • Provide an operational road map through the project cycle or through various analytical and consultative processes
   • Include a number of illustrative good practice cases and innovative ideas
   
   
2. Basic Trade Finance Tools: Payment Methods in International Trade.
   World Bank. Daniele Giovannucci. 2002. LINK
   
   Abstract: The increasing participation of relatively inexperienced enterprises in international trade calls for a concise and jargon-free, general reference to the many ways by which traders can arrange for payments to be made and the relative merits, of each from a risk standpoint. The most common methods i.e. letters of credit, are covered in some detail including examples.
   
   
3. Rural Energy: A Practical Primer for Productive Applications.
   ESMAP Department World Bank. Jerry Weingart and Daniele Giovannucci. 2004. PDF 259KB
   
   Abstract: Lack of access to reliable and affordable electricity services in rural areas significantly diminishes the opportunities for the development of many economically productive activities, including irrigation, agro-enterprise, and fishing. Reliable and affordable energy is a vital input to many agricultural and post-harvest processes. Adding energy to agricultural production and processing is an important way to grow beyond subsistence farming and the selling of raw materials toward the potential of added value. Fortunately, there are decentralized and commercially proven energy alternatives including those that harness renewable energy. Many of these are now technically and financially viable, even in remote rural areas. This learning tool provides an overview of these technologies and their appropriate applications in the field, and includes best practice examples used on a significant scale in agriculture, aquaculture, fishing, and related enterprises (e.g., food processing) in many developing countries. It explores necessary considerations in the choice of energy and how such projects could be formulated and executed.
   
   
4. The Basics of a Business Plan for Development Professionals.
   World Bank. Nick Fante, Daniele Giovannucci, Cheryl Edelson Hanway. 2001. LINK
   
   Abstract: A business plan is not only for private sector companies that seek financing. It's rigor encourages a thorough assessment of every important aspect related to the feasibility and sustainability of a project or enterprise. It covers topics that are sometimes overlooked or insufficiently addressed in development projects such as: market orientation; market analyses; detailed operational procedures; intangible assets; and realistic financial projections. Therein lies its value to development initiatives: providing a thorough, private-sector style strategy to help ensure a well-planned and viable project. This covers the basic components and how to formulate one.
   
   
5. Fixing the Leaky Bucket: Why Agribusiness Matters.
   In Sustainability of Agricultural Systems in Transition.
   Madison WI: American Society of Agronomy Journal. May 2001. Daniele Giovannucci.
   
   Abstract: As many development agencies and academia continue throughout the 1990s to be mired in a production oriented mindset, this paper sets out a simple argument for valuing post-harvest approaches that can, by reducing losses and adding value, contribute more to farmers than they would gain from modest productivity increases. Paying attention to the entire chain thus helps optimize food security in a sensible manner. The paper very briefly outlines the 4 gaps to achieving this in most countries and suggests some ways forward.
   
   
6. Market Information Services.
   World Bank publication in multi-volume series. Daniele Giovannucci with Andrew Shepherd. 2001
   
   Abstract: Information is the lifeblood of most market economies. Nevertheless, attempts to jump start information flow by creating Market Information Services (MIS) usually fail. The author brings together experiences and lessons from experts in the field on the reasons for such common failures and what can be done to avoid them. Critical topics such as institutional structure, dissemination methods, and funding are outlined to guide the reader through the basic issues that must be addressed in order to create successful MIS.
   
   
7. Warehouse Receipts: Facilitating Credit and Commodity Markets.
   World Bank. Daniele Giovannucci, Panos Varangis, Don Larson. 2000. LINK
   
   Abstract: The lack of access to credit is a severe constraint for many farmers. Warehouse receipts are an important and effective tool for creating liquidity and easing access to credit. Such schemes also offer additional benefits such as providing storage to smoothe the supply and prices in the market, improving grower incomes, and reducing food losses. The paper describes the steps of interaction involved in a warehouse receipt system, sets out the essential questions to be asked regarding the critical conditions for its success and illustrates the roles of the key actors in setting up and running such a system.
   
    
8. National Trade Promotion Organizations: their role and functions.
   World Bank. Daniele Giovannucci. 2000. LINK
   
   Abstract: Although trade promotion organizations (TPOs) can be a cost-effective tool for developing trade and exports, their usefulness varies significantly from country to country. The author reviews the principles of establishing and structuring successful TPOs, clarifies their roles and defines their specific functions.
   
   
9. Engaging Civil Society to Create Sustainable Agricultural Systems: Environmentally-Friendly Coffee in El Salvador and Mexico.
   In "Thinking Out Loud" by the Latin America and the Caribbean Civil Society Team, The World Bank. Daniele Giovannucci, Peter Brandriss, Esteban Brenes, Ina-Marlene Ruthenberg, Paola Agostini. 2000.
   
   Abstract: Farmers are interested in both markets and sustainability, so how can the two effectively link? While supply chains are indeed evolving to facilitate the necessary linkages, civil society organizations serve as a vital component not only to facilitate farmer adaptation in the field but also to help provide a measure of equity in the relationships between producers and various market actors such as traders, wholeslers, and processors. This paper illustrates some of the key experiences and lessons learned in two of the first project efforts designed to develop innovative market-oriented approaches toward environmental and social sustainability by developing and applying standards such as Organic and Rainforest Alliance.
    

10. Guide to Geographical Indications for Developing Countries.
    This book reviews the practical pros and cons of different approaches to Geographic Indicators (GI). Its purpose is to guide producer groups, policymakers, and development agencies to make informed choices about formulating and developing GIs effectively. The Guide to GIs will explain the costs and benefits and assess the different instruments available to developing countries so that they know what to consider in making choices to develop a particular region as a GI.

    The research reviews the choices made in Guatemala, Jamaica, Mexico, Ethiopia, India, Colombia, Kona, and Mongolia and also integrates the information from more than 100 other studies on the topic.

    GIs offer a unique form of competitive advantage that benefits even small farmers and enterprises. In more than a hundred nations, GIs offer powerful means to foster and protect local agro-ecological settings and even traditional cultural characteristics that have come to be valued. Most GIs, in addition to serving as a form of differentiation tend to also encompass high levels of quality. Preferred market access and price premiums are the typical results of a successful GI.

    However, successful GIs are not easy. They require considerable time to develop. They also require organizational and institutional structures to formulate, maintain, and monitor the GI as well as ensure the equitable participation of the diverse participants in a region. Most of the case studies and literature reflect the fusion of  four primary factors that appear to commonly influence their outcome.

    A brief introduction to GIs is available and the Guide to GIs for Developing Countries will be available in the latter half of 2007. GI Key Points: PDF 133KB

 
AGRICULTURE STANDARDS

To participate in trade today, nearly every product needs to meet several types of standards. These vary from those designed to ensure food safety to those for different quality characteristics to those that promote social and environmental “fairness”. Therefore, standards are now the rules of the game and have enormous implications for developing countries that find it difficult to comply. The use of standards has grown enormously in this decade and many producers and agro-enterprises are scrambling to adapt. This section covers more of the work on social and environmental standards that are often called ‘sustainability standards’; many of them improve conditions that help to avert hunger by protecting natural resources and supporting the social and economic structures of local communities.

11. Value-adding Standards in the North American Food Market - Trade Opportunities in Certified Products for Developing Countries.
    Pascal Liu (Ed.), Alice Byers, and Daniele Giovannucci (FAO. Rome 2008). LINK
    
    Abstract: This publication analyzes the use of voluntary standards and certification schemes in the food markets of the United States and Canada. With its large population and its high individual purchasing power, North America provides considerable opportunities for developing country exports of value‑added agricultural products. Consumers are increasingly attentive to the social and environmental aspects of food production as evidenced by the significant expansion of certified food sales in both natural food stores and mainstream supermarket chains. The publication assesses the volumes, trends, and market opportunities for the most popular voluntary standards and focuses on environmental and social certification schemes such as organic and fair‑trade that use a registered on‑product label targeting consumers. Tropical fruits, coffee, and cocoa are the main product categories examined.
     
12. Standards and Agricultural Trade in Asia.  Asian Development Bank Institute. 2008. Daniele Giovannucci and Timothy Purcell. LINK
    
    Abstract: The markets for agri-food products are changing at a pace that is unparalleled in modern history. Markets are increasingly open and increasingly homogenized toward international tastes and requirements for levels of quality, packaging, safety, and even process attributes such as socially or environmentally friendly methods. New distribution channels, dominated by larger firms including supermarket retailers, are imposing high performance demands on their value chains. In order to respond to these increasing demands, developing countries are facing an inexorable shift toward more industrialized models of farming systems. This shift presents new challenges for small and medium farmers’ access to markets and their ability to compete. The question for many countries—and not just developing countries—is what options are there for small farmers, which still comprise the great majority of the world's agricultural producers?
     
13. Salient Trends in Organic Standards: the Opportunities and Challenges for Developing Countries.
    In: "Standards and Trade: Challenges and Opportunities for Developing Country Agro-Food Trade" course. Washington, DC: World Bank Institute-USAID, Trade Standards Working Group. Daniele Giovannucci. 2006. PDF 224KB
    
    Abstract: An overview of the fundamental issues in the production, trade and regulation of organic products. It notes the changing consumer and trade environments that are driving organics beyond the realm of niche products toward an increasingly relevant position among other important agricultural standards. Rather than a comprehensive analysis it outlines key elements that are most relevant to developing country producers including the likely impacts of adopting organics and the salient trends drawing from recent empirical research and the current literature on the subject. Finally, this document briefly assesses the significant constraints and opportunities facing the sector in order to draw some practical policy and investment conclusions.
    
    
14. Food Quality Issues: understanding HACCP and other quality management techniques.
    VirtualPRO, the on-line journal of Industrial Processes Engineering at: www.revistavirtualpro.com
    Daniele Giovannucci and Morton Satin 2001 & republished 2006. (English and Espanol) PDF 318KB
    
    Abstract: A basic understanding of food quality issues in developing countries and introduces the reader to HACCP, its evolution, and other dominant methodologies for improving food quality.
    
    
15. Evaluation of Organic Agriculture and Poverty Reduction in Asia.
    IFAD. Daniele Giovannucci. 2005. (English and part in Chinese) PDF 1.1MB
    
    Abstract: This evaluation captures the small farmer's experiences of organic projects in different climactic regions and under different conditions. It uses recent research and examples, drawn primarily from the work of a team of nine researchers on 14 case studies in China and India as well as reviews of several other countries and more than 100 related studies and documents. The report reviews the characteristics of organic production and organic markets as well as the impact of organic methods.
    
    Its purpose is to draw concise lessons to help understand the processes that have led small farmers to diversify into organic agriculture and to identify the nature of the causal or contributing relationships — whether negative or positive — of government agencies, development projects, private companies, and NGOs. It also elaborates on a range of public sector roles and makes recommendations for both strategic approaches as well as specific project design.
    
    Generally speaking, the evaluation finds that there is significant evidence that organic methods could be favorable for small farmers. In fact, most of the cases clearly noted a number of direct benefits and related externalities from which it is reasonable to conclude that the promotion of organic agriculture methods among small farmers can be well warranted.
    
    
16. The Collective Formulation and Effectiveness of Public & Private Sustainability Standards: In special issue of Food Policy Journal, “Private Agri-food Standards: Implications for Food Policy and the Agri-food Systems”.
    Daniele Giovannucci and Stefano Ponte. 2005. LINK
    
    Abstract: In the former age of national capitalism, a measure of “market fairness” was embedded in a normative framework generated by government, labor unions, and perhaps religious authority. In the current age of global capitalism, new actors such as NGOs, industry associations and public –private partnerships provide the normative framework that corporations use for “social legitimacy”. In this context, certain standard-setting processes operate as new forms of “social contract ” where the state, rather than being directly involved between the parties, may provide a form of basic guarantee while (more or less accountable) NGOs and firms are in charge of hammering out the bargains. This article examines the dynamics of this new configuration through the case study of “sustainability ” initiatives in the coffee sector. It addresses four questions:(1) Are these standards effective in communicating information and creating new markets? (2) To what extent do they embed elements of collective and private interests? (3) Is “sustainability” content actually delivered to their intended beneficiaries? and (4)What is the role of public policy in addressing the shortcomings?
    
    
17. The State of Sustainable Coffee: A Study of Twelve Major Markets.
    International Coffee Organization, International Institute for Sustainable Development and UNCTAD. Daniele Giovannucci and Freek Jan Koekoek. 2003. LINK
    
    Abstract: The striking emergence of dynamic markets for certified organic, fair trade, and eco-friendly coffees (termed sustainable) firmly place the coffee industry at the forefront of developing innovative responses to the difficulties of rural development and trade. Fair trade, organic, and eco-friendly products are neither a panacea nor the full answer. Nevertheless, they are one of the few bright spots in developing country trade and provide considerable direct benefits to nearly a million coffee producing families that participate. Through strict environmental and social standards, improved governance structures, better communication channels and price premiums, these initiative help in the process of correcting for imperfections in the coffee market. This report reveals the structure and the potential for growth in Europe and Japan. It also reveals the trends and the challenges facing such products.
    
    
18. Emerging Issues in the Marketing and Trade of Organic Products.
    In Organic Agriculture: Sustainability, Markets, and Policies. Paris: OECD.
    Daniele Giovannucci. 2003. PDF 256KB
    
    Abstract: The paper begins with a macro view of the shifting regulatory, business, and consumer environments that are inducing fundamental changes in the global trade regime and increasing the demand for standards. This in turn has profound implications especially for small and medium producers. It discusses how in the case of organics, emerging trade standards may actually benefit the producers rather than being a barrier to entry. In order for organics to expand their appeal and enter mainstream distribution channels they will likely have to adapt some aspects of modern industrial agribusiness. However, a more industrialized approach means walking a fine line because this very approach may in some ways contradict the core organic values and risk alienating a loyal customer base. Recent research and examples outline the key issues like certification process, quality, and consistency that will require attention. The paper considers that further growth and meeting these demands and those of mainstream distribution channels will be difficult for most small developing country producers and will require a combination of public and private support.
    
    
19. Understanding Grades and Standards - and how to apply them.
    Daniele Giovannucci and Thomas Reardon. World Bank 2000. LINK
    
    Abstract: With the expanding globalization of trade, grades and standards (G&S) help to set the ‘rules of the game’ whose implications for developing countries are becoming increasingly relevant. While they are clearly important to trade, their formation and utilization is also undergoing a shift from being neutral market lubricants to also being tools of product differentiation. This implies a fundamental shift in the role of G&S from just reducing transaction costs of commodity market participants, to serving as strategic tools for market penetration, system coordination, quality and safety assurance, brand complementing, and product niche definition.
    
    The issues of who is forming G&S, their privatization, motivations, and the impacts on various market participants and poor people must all inform the strategic responses to the changes in the roles and nature of G&S. The definition of their usefulness and value goes beyond the sometimes artificial distinctions between quality and safety to more current distinctions between process and characteristics. All of these distinctions are predicted to become more relevant than ever as industries and governments, even in the most developed countries, are faced with a new sort of food security issue. In terms of international trade, G&S is becoming the hot topic of political economics in much the same way that tariffs were in the 1990s, with profound implications for regional and international agreements, particularly in terms of sanitary and phytosanitary (SPS) and technical barriers to trade (TBT).
    
    To complement this understanding, a practical outline of the principles of G&S is offered along with step-by-step guidelines for establishing them. The document includes examples as well as ample resources for further information.
     
20. Organic agriculture: a trade and sustainable development opportunity for developing countries.
    In the 2006 Trade and Environment Review. Geneva: UNCTAD.
    Sophia Twarog with commentary by Daniele Giovannucci, Gunnar Rundgren, and others. 2006. PDF LINK
     
21. Organic farming as a tool for productivity and poverty reduction in Asia.
    Daniele Giovannucci for the IFAD/NACF Joint workshop, Seoul, 13-16 March 2007. PDF 215KB
    
    Abstract: This concise synthesis paper is based on some recent developments and primarily on an IFAD evaluation of small farmer experiences of organic projects under different conditions in Asia - led by this author. It briefly reviews key issues ranging from the adequacy of fertilizers, labor, and plant protection to important considerations about certification and marketing. It finds significant evidence that organic methods could be favorable for small farmers but that the immediate impact on the farmer differs depending on the organizational support available and whether the farmer transitions to organics from traditional low-input methods or from conventional and more intensive methods of production. Some of the related externalities, including resource conservation and soil fertility, may be even more valuable in the long run. Evidence also indicates that the organic supply chains of processing and trade also earn more money. The paper considers that further growth and meeting the demands of increasingly mainstream distribution channels such as supermarkets will nevertheless be difficult for most producers and will require both the effective organization of small farmers and a combination of well-targeted public and private support especially in terms of research, extension, and market development.
     
22. Best Practices for Organic Policy: What developing country Governments can do to promote the organic agriculture sector
    Authored by Gunnar Rundgren with contributions from Patricio Parra, Felicia Echeverria, Mette Meldgaard, M. Yousri Hashem, Ong Kung Wai, Raymond Auerbach, and Vitoon Panyakuul. Published by UNCTAD in 2007 PDF LINK
    
    Abstract: This report offers practical guidance for the development of appropriate organic sector policies.  Its recommendations are based on the experiences of one of the most knowledgeable thinkers in the world of organics and drawn from decades of work in the field and from seven developing country cases.
     
23. Overview of Key Development and Trade Issues Emerging in Armenia and the Opportunities and Constraints of Organic Agriculture.
    Brief Issues paper prepared by Daniele Giovannucci for International Conference on “Organic Food and Organic Farming in Armenia - Towards Partnership and Sustainable Growth” November 2005. PDF 172KB
    
    Abstract: A brief report offering a basic understanding of the current situation and an overview of the future prospects for organics in Armenia. Organic agriculture and trade is certainly not going to provide the only solution to Armenia’s rural difficulties but it presents a viable approach that can be beneficial for a number of farmers and can also provide some valuable public benefits.

 
COFFEE

Coffee is one of the world’s most important commodities. It is produced and exported by nearly 60 developing nations and is crucial to the economies of several of them where it ranks as the top cash crop. Farmers use the crop income to pay for essentials such as education, healthcare, and foods they cannot produce. Yet it can be a difficult way to earn a living as producing countries receive only about 15 percent of the US$70 billion in global sales. Coffee is also the world’s leading agricultural crop in terms of innovation and use of social and environmental certification of sustainability. In fact coffees such as Organic, Fair Trade, etc. are one of the fastest growing segments and provide producers with somewhat better prices along with support for their efforts to be more sustainable. As such, coffee is the pilot case for the global movement to make all agriculture more sustainable and more fair for farmers.

24. Adding Value: Certified Coffee Trade in North America.
    With Alice Byers and Pascal Liu (Food and Agriculture Organization of the U.N. Rome 2008). PDF 299KB
    
    Abstract: Coffee is the leading agricultural sector in terms of both the number and frequent use of social and environmental certification. This fast-growing category of certified sustainable coffees has emerged from almost negligible quantities in the late 1990s to approximately 4% of global green coffee exports in 2006 making it a multi-billion dollar segment of the industry. The US and Canada account for over one quarter of global coffee imports in value. Their consumers are increasingly attentive to the social, economic, and environmental aspects of coffee production as evidenced by the significant expansion of certified coffees into both gourmet and mass market channels. This chapter covers the market development and current statistics of all the certified sustainable coffees in North America including volumes, value, premiums, and their general trends at the global level.
    
     
25. Análisis Prospectivo de Política Cafetalera. FAO: Mexico.
    Giovannucci, Daniele y Ricardo Juárez Cruz. 2006. PDF 1.4MB
    
    Abstract: El sector cafetalero mexicano enfrenta distintos retos en materia de competitividad: sufre de un bajo nivel de rentabilidad en las fincas; los productores han respondido cada vez más a su baja rentabilidad por medio de la reducción del uso de insumos y mano de obra; y la calidad genérica del café de México ha disminuido en los últimos ciclos. Sin embargo, la cafeticultura mexicana tiene fortalezas que deben ser aprovechadas. Tiene fácil acceso a mercados lucrativos con fuertes y antiguos vínculos, principalmente en los EEUU y tiene un fuerte potencial de consumo en su mercado interno.Tiene un potencial considerable de calidad. México ha sido pionero y líder productor de cafés especiales y diferenciados tal como cafe orgánico y comercio justo. Existe un sinnúmero de organizaciones de productores que exportan directamente.
    
    Al analizar la estructura productiva de México - concentrada en los pequeños productores con altos costos de produccion y poca infraestructura - hay que concluir que la ventaja competitiva de México en el futuro no estará en la producción convencional. Las mejores oportunidades para los productores mexicanos apuntan hacia los cafés diferenciados. Sin embargo, la realidad del sector es que la mayoría de la producción no es ?diferenciada? y por consiguiente, ese segmento de la producción necesitará diferentes estrategias.
    
    Después de cincuenta años de tutela gubernamental, se ha avanzado muy poco pero los modestos resultados no se explican por la falta de recursos públicos. La política cafetalera a futuro, exige que sea el sector productivo quien toma el liderazgo y sea corresponsable de las acciones y de su financiamiento, como ocurre en los paises lìderes del sector.
    
    La competitividad de México y el bienestar de sus productores no se desarrollará apelando a su dotación de recursos naturales o sus precios bajos, sino con la capacidad de sus instituciones para ser innovadores y ágiles en su interacción con el mercado y sustentable en la formulación y aplicación de sus políticas publicas-privadas.
     
26. Yemen Coffee.
    Researched and written by Daniele Giovannucci, produced for the United States Agency for International Development and prepared with ARD, Inc. in December 2005. PDF 4.12MB
    
    Abstract: Yemen is one of the most unique and most storied coffees in the world. This assessment analyses the production, processing, and trade of Yemen’s coffee; the result of a broad assessement across most of the nation's producing regions. It's purpose is to identify the available opportunities and the existing constraints for increasing sustainability and improving coffee incomes. It identifies the key leverage points based on an assessment of local issues such as trade structures and water limitations as well as international trends and trade issues and suggests a series of sequenced and concrete interventions.
     
27. The Socialist Republic of Vietnam Coffee Sector Report.
    World Bank Report No. 29358-VN.
    Daniele Giovannucci, Bryan Lewin, Rob Swinkels. 2005. (English and Vietnamese) LINK, PDF 857KB
    
    Abstract: Vietnam’s meteoric rise to become one of the world’s largest coffee producers in world-record time has been matched by equally fast changes in policies and market structure. It has moved from a planned economy to a much more open market orientation and become one of Asia’s fastest-growing economies. While many benefits can be attributed to the coffee sector’s growth, there are also questions about how equitable the socioeconomic impact has been and about the overall sustainability of the sector. This paper offers a thorough look at the functions and trends of the sector within the enlightening context of its history and fundamental structure.
    
    
28. Coffee Markets: New Paradigms in Global Supply and Demand.
    World Bank. Bryan Lewin, Daniele Giovannucci, and Panos Varangis. 2004. LINK
    
    Abstract: More than 50 nations, almost all in the developing world, produce and export coffee, one of the world’s most valuable traded commodities. Some of these countries are dependent on coffee exports for a very significant portion of their international trade and export income. Between 17 and 20 million families are directly involved in coffee production and most are smallholders utilizing just a few hectares of land. During low price periods, evidence of considerable human hardships in many producing regions confirms coffee's importance as a primary-and sometimes only-source of cash income for many farmers.
    
    This study assesses the condition of the world’s coffee production and trade and illuminates the profound structural changes that have occurred in recent years. With ample data and thorough analysis of both production and consumption, it clearly illustrates the new trends in the coffee world. Based on this analysis and considerable experience in the coffee world, the authors offers solutions for reducing the impact of inevitable future price collapses and making coffee a less risky source of income for some of the world’s poorest.
    
    
29. The State of Sustainable Coffee: A Study of Twelve Major Markets.
    International Coffee Organization, International Institute for Sustainable Development and UNCTAD.
    Daniele Giovannucci and Freek Jan Koekoek. 2003. Complete Book: PDF 5.9MB; Executive Summary & Table of Contents only: PDF 1.9MB; Part I Overview & Main Conclusion only: PDF 1.2MB
    
    Abstract: The State of Sustainable Coffee provides the first comprehensive overview of the market conditions facing, organic, fair trade and shade grown or eco-friendly coffees (termed 'sustainable' coffees). It outlines the volumes, trends, distribution channels, major players, and price premiums in 12 nations across Europe and Japan, as a companion to an earlier North American report. While some common parallels exist, such as the priority for consistency and quality standards, the substantial inter-market differences emphasize the need to approach each country and sometimes each distribution channel with an appreciation for its unique distinctions.
    
    Overall, the striking emergence and growth of sustainable coffees has catapulted them quickly from a small niche industry to become a significant part of the mainstream market. Their growth has consistently eclipsed the growth rate of conventional coffee for more than a decade. As a result of their strict environmental and social standards, improved governance structures, better farm management, and price premiums, these sustainability initiatives are facilitating not only rural development but also agricultural trade competitiveness for developing nations.
    
    In agriculture, it is the coffee sector that has arguably developed the most advanced experience with certified organic, fair trade, and eco-friendly products that are now shipped from more than half of the coffee exporting nations. A number of other goods ranging from commodities such as tea and sugar to meats, fruits and vegetables are following the coffee sector's innovative sustainability models. Although these sustainably produced products are not a panacea, they offer one of the few bright spots in developing country agricultural trade and provide considerable direct benefits to the more than one million coffee producing families that participate.
    
    The book was published jointly by IISD, the International Coffee Organization and the United Nations Conference on Trade and Development with the support of the International Development Research Centre and the World Bank.
    
    
30. State of Organic Coffee: 2007 US Update.
    By Daniele Giovannucci and Andres Villalobos (CIMS). PDF 198KB
    
    Abstract: In 2006 imports of Organic coffee from most origins showed a considerable increase – likely the greatest of the decade so far - while premiums declined only slightly from healthy 2005 levels. Double and even triple certified coffees are becoming more common as other certified coffees also showed strong growth. Projections for 2007 indicate continued growth – likely into double digits – but much more moderate than in 2006. Having realistic data and trends is important for both coffee farmers and policymakers in producing countries to help determine their strategies and investments. Although the US is the world's single largest market for Organic coffees, there is no formal tracking of organic imports. This annual survey is conducted independently with the cooperation of nearly all of the industry’s significant importers and is provided as a public service (at no cost) for developing country producers.
     
31. Coffee.
    In M. Giugale, O. Lafourcade, and C. Luff, eds., Colombia The Economic Foundation of Peace. The World Bank. Daniele Giovannucci with Hector Arévalo, Juan Jose Echavarría, José Leibovich, Bryan Lewin, Santiago Montenegro, Nestor Osorio, Gonzalo Paredes, Diego Pizano, Luis Samper, and Panayotis Varangis. 2003. PDF 181KB
    
    Abstract: A frank and thorough assessment of what has worked and what has not in one of the world's most important coffee producing countries. Prepared for the transition of a new federal administration by a team of leading experts from across the spectrum of thinking on the topic.
    
    The paper succinctly reviews the anatomy and evolution of the sector as one of the drivers of modern Colombian development and then places its current status in the context of emerging market conditions and demands. It diagnoses main sectoral issues including the changing role of the National Federation of Coffee Growers, arguably the world's pre-eminent coffee institution, to suggest options for its adaptation toward the changing nature of demand and toward increasingly differentiated markets. It closes with a thorough set of policy recommendations to address: competitive foci, accountability , subsidies, smallholders and the rural poor, diversification and risk management.
    
    
32. Colombia Coffee Sector Study.
    Centro de Estudios para el Desarrollo Económico (CEDE) de la Universidad de los Andes.
    Daniele Giovannucci with José Leibovich, Diego Pizano, Gonzalo Paredes, Santiago Montenegro, Hector Arévalo and Panos Varangis. 2002. PDF LINK 625KB
    
    Abstract: A thorough analysis of the Colombian coffee sector prepared with leading actors that have since taken influential posts in (i.e. gov. minister). This report includes the history, structure, governance and the considerable impacts on poverty and livelihoods of a coffee sector organized like no other in the world.
    
    It is similar to the work prepared for the transition of a new federal administration but with more detail and published by one of the country’s leading economic institutes at the University of the Andes.
    
    El documento analiza la evolución del sector cafetero colombiano en la última década, periodo en el cual ha perdido valor. Se hace un diagnóstico de las causas que han generado el retroceso del sector y propone unas estrategias de política para que vuelva a ser competitivo en los mercados internacionales. De las conclusiones se destaca la necesidad de mejorar la eficiencia en la producción para poder competir a precios cada día mas bajos en el mercado mundial, se propone una estrategia para desarrollar negocios en los nichos de los llamados cafés especiales a los que se les reconocen primas superiores por parte de los compradores, y en el plano regulatorio se recomienda que la parafiscalidad que afecta al sector sea reformulada para que el impuesto que tributan los cafeteros sea bajo, estable y fijo en el tiempo. Con los recursos que se generen por esta contribución se deberán financiar los programas prioritarios para beneficio de los caficultores. Programas que de manera individual no pueden ser acometidos (Investigación o promoción). El rol de la institucionalidad cafetera deberá ser reformulado. Los recursos del café no deben seguir suplantando los recursos del Estado en obras públicas en las regiones cafeteras, pero la organización cafetera regional puede convertirse en un ejecutor importante de proyectos de inversión con recursos del presupuesto general de la Nación.
    
    
33. Dealing with the Coffee Crisis in Central America: "Impacts and Strategies”.
    World Bank Policy Research #2993. Panos Varangis, Paul Siegel, Daniele Giovannucci and Bryan Lewin. 2003. LINK1, LINK2, PDF ESPANOL 782KB
    
    Abstract: Coffee plays a major economic role in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Central America was among the hardest hit by the recent crisis that saw prices tumble to historic lows and remain there for a prolonged period. The document is a response to the need to understand both the underlying causes and to prepare alternatives in order to avoid a repeat. It points out that changes in supply and demand are structural in nature and imply a slow and only partial recovery of prices. These challenges call for new strategies for the Central American countries. It includes an analysis of the international coffee situation and country specific analyses, and explores options and constraints for increased competitiveness and diversification, and includes chapters dedicated to social, environmental and institutional dimensions of the crisis.
    
    
34. Managing the Competitive Transition of the Coffee Sector in Central America.
    This document represents the first joint effort of the Inter-American Development Bank, the World Bank, and the United States Agency for International Development to jointly cooperate with Central America governments in resolving the broad socio-economic crisis in the region due to the collapse of coffee prices in the early part of the 2000s. It served as the basis for regional meetings in Antigua, Guatemala (2002) and is not intended as a statement of policy. PDF 235KB
    
    Abstract: Section I describes the nature of the crisis and its magnitude as seen in the midst of it during 2001-02. Section II examines ways to improve the quality of Central American coffee, as a strategic competitive response to the crisis. Section III focuses on market opportunities and marketing management issues to be considered by coffee growers. Section IV discusses diversification programs as possible alternatives for non-competitive coffee farmers. Section V centers on environmental and social issues of coffee production. Finally, Section VI examines the role of public and private institutions: steps they can take to facilitate the competitive transformation of the coffee sector in the region and efforts to lessen the negative social impacts of the crisis.
     
35. The Future of Coffee: Lessons from niche markets in North America.
    Coffee & Cocoa International. Surrey, UK. DMG World Media Vol. 29 No. 1 March 2002. Daniele Giovannucci.
    
    Abstract: Highlights opportunities in high-quality and niche coffees that are among the few receiving a more substantial remuneration and providing benefits to producers in difficult markets of low prices. References to some data from recent North American business survey.
    
    
36. Market Trends: The future of sustainable coffees.
    Tea and Coffee Trade Journal. Vol. 174 No.2. February 2002. Daniele Giovannucci.
    
    Abstract: A brief review of the volume, value and trends for Sustainable Coffees in the North American market and some insights into corresponding trends elsewhere.
    
    
37. Who Shall We Blame: The international politics of coffee.
    Tea and Coffee Trade Journal. Vol. 174 No. 1. January 2002. Daniele Giovannucci and Panos Varangis. PDF 125KB
    
    Abstract: For several years there was a lot of finger pointing and accusations about who was to blame for the the most serious prolonged coffee crisis in history. This brief article sets the record straight with an evidence-based presentation of the market realities and briefly points to some potential avenues for solutions.
    
    
38. Sustainable Coffee Survey of the North American Coffee Industry.
    Jointly published by The Commission for Environmental Cooperation and The Specialty Coffee Association of America. Daniele Giovannucci. 2001. PDF 534KB, LINK ESPANOL, LINK FRANCAIS
    
    Abstract: The first attempt to understand the constraints and conditions of a major market for sustainable coffees. It is still the only effort to directly quantify the actual volumes and value for these coffees in North America. This report is based on structured interviews with 2098 firms and includes an assessment of the availability, the attributes, volume, and the value of such coffees in the US and Canada. It also includes data on the source countries, the premiums paid, and the trends for sustainable coffees.
     
39. Engaging Civil Society to Create Sustainable Agricultural Systems: Environmentally-Friendly Coffee in El Salvador and Mexico.
    Daniele Giovannucci with Peter Brandriss, Esteban Brenes, Ina Marlene Ruthenberg, and Paola Agostini. (The World Bank, 1999). LINK
    
    Abstract: Farmers are interested in sustainability and markets are interested as well, so how do the two link? While supply chains are indeed developing to facilitate the necessary linkages, civil society organizations serve as a useful component to help ensure farmer adoption in the field and a measure of equity in the relationships between producers and market actors. This brief paper illustrates some of the key experiences in two of the first efforts to develop innovative market-oriented approaches toward environmental and social sustainability by applying such standards (Organic and Rainforest Alliance) in the coffee business.