UTZ CERTIFIED Good Inside

De Ruyterkade 6
1013AA Amsterdam
The Netherlands

1. Can you tell me the total value and total volume of UTZ certified
products sold in the last year?
In 2008, a total volume 78000 metric tons of UTZ CERTIFIED coffee was sold. UTZ receives
an administration fee for up keep of the traceability system which is 1.2 $cents per pound of
certified green coffee sold.
In addition to coffee, UTZ CERTIFIED has developed sustainability programs for cocoa and
tea and in 2010 the first certified volumes will be traded and traced through the UTZ
CERTIFIED system. UTZ CERTIFIED also provides traceability services for certified
sustainable Palm Oil for members of the RSPO (Roundtable on Sustainable Palm Oil). In
2009 approximately 80,000 metric tons of sustainable Palm oil have been traded through
the UTZ Traceability System. Users of the UTZ Traceability system for palm oil pay a
transaction fee of 2 US$ per metric ton for traceability services.
It is UTZ’s ambition to become self financing from the administration fees received for its
core activities.

2. Can you tell me the number of producer groups who sell products via
the UTZ system?
The number of certified coffee producers in 2008 (farms and group members certified
including smallholders) was 76,944.

3. Can you tell me the main countries UTZ works in?

We have producers certified in 23 origin countries. As we are a sustainability program
focused on supplying the mainstream roasters we follow the world coffee market with our
main countries being Brazil (37%), Vietnam (22%), Colombia (12 %) and Honduras (10%).

4. Can you tell me who owns the UTZ brand?

UTZ CERTIFIED is not a brand but an assurance label or trust mark for consumers, which
offers credible and traceable information to support the brand in showing its commitment to
sustainably produced and sourced products.
UTZ CERTIFIED is an independent multi-stakeholder initiative that was initiated by a
Guatemalan coffee grower and a European coffee roaster in 1997. It became an independent
not-for-profit foundation in 2002 partly subsidized, partly funded by revenue from its core
activities. It has an independent board and is an associate member of the ISEAL Alliance,
aiming to become a full member by December 2009.

5. Is there any way you have measured the financial benefit of UTZ certification
for producers?
According to Mureithi Kieu, General Manager of the Sasini Group in Kenya, “With the
implementation of good agricultural practices and record-keeping required for UTZ
certification we have been able to reduce our water use by 50% and production cost by at
least 12%. We achieved this decrease in costs for instance by reducing spraying and through
cheaper insurance premiums because of safety precautions”.

The Acatenango Cooperataive in Guatemala reported:

“Through improvements to our wet mill we reduced water usage by 98% (from 1 million to
18,000 liters per day). At the same time we increased production by 50%. The water is now
also recycled and treated. We found a decrease in the average percentage of defects from
11 to 3%. Production increased from 2.8 to 4.5 million kgs between harvest season 05/06

© UTZ CERTIFIED Good Inside 2009.

UTZ CERTIFIED Good Inside
De Ruyterkade 6
1013AA Amsterdam
The Netherlands

and 06/07. This is a 60% increase compared to a national increase of 9% in the same
period.”

Additional achievement studies are being carried out.

6. Do you charge producers for certification? If so, how much is it?

The UTZ CERTIFIED program is open to all producers of all sizes. We believe that the
program should stay accessible to all producers and therefore there is no membership fee to
be in the program or charge for certification per hectare.
We work with Dutch development organization Solidaridad to provide the tools and training
farmers need to achieve the certification. As part of understanding how to run one’s farm
efficiently and becoming a better businessman, the producer is in charge of paying for the
annual 3rd party independent audit of his farm in order to achieve UTZ certification. The cost
of an audit varies depending on the region but it is often earned back within two harvests.
UTZ is mindful of having two or three certifying bodies available in an area so as to keep
competition between the CB’s and prices down. UTZ is also open to combined audits in order
to keep costs of visits down for double certified farms.

"Utz Certified has the least stringent environmental criteria of any of the major certification
programs, weak enough to be basically useless if what you are looking for is ecologically-friendly
coffee."

The UTZ CERTIFIED Code of Conduct for Coffee is an internationally recognized set of
criteria for environmentally and socially responsible coffee production and efficient farm
management. The UTZ Code of Conduct is based on the international ILO conventions and
includes the principles of good agricultural practices balancing the three pillars of
sustainability: People, Planet and Profit. During the revision of the coffee code, stakeholders
from most of our producing countries (producers, NGOs, Governmental officials, technical
assistants, certification bodies) were involved in consultation workshops and over e-mail.
The Code of Conduct was revised taking into account the context in which small-scale
producers and large farms operate.

Furthermore, the UTZ CERTIFIED Code of Conduct for Coffee 2009 is based on a continuous
improvement model allowing producers to demonstrate that they are maximizing positive
impact on production each year. From year one the producer has to fulfill the core criteria
concerning safety, farm management and record keeping, employees and environmental
protection. In the subsequent years further more detailed requirements are added to these
points to assure that the producer develops over the years.

In the UTZ code, 87% of all criteria are mandatory after 4 years. The producer also has to
comply with a number of non-mandatory points. The continuous improvement system is
built into the code structure and is audited every year. The four year improvement system is
unique with its transparency and clear guidance. It should also be noted that in the third
year the concept of risk analysis is introduced, followed by the concept of the management
plan. This leads the producer to the Plan-Do-Check-Act (P-D-C-A) cycle, ensuring
improvement beyond the 4 years. Our experience with the reality on the ground shows that

© UTZ CERTIFIED Good Inside 2009.

UTZ CERTIFIED Good Inside
De Ruyterkade 6
1013AA Amsterdam
The Netherlands

the P-D-C-A cycle needs a careful introduction to the producer in order to add real value,
and for this reason it is not introduced before year three.

The FLO code consists of minimum requirements and progress requirements. Although the
company/producer group should show improvement, how this is implemented and monitored
on the ground is not transparently explained. Concerning implementation: about half of the
code consists of progress requirements.

Regarding the environmental criteria, practices such as efficient and safe use of pesticides
and fertilizers, and the use of Integrated Pest Management (IPM) techniques are very
important components of the code. In addition, the criteria for efficient water use and having
a water treatment system in processing can have huge environmental impacts in coffee
production, as this is one of the major sustainability issues. Also, coffee pulp from the
filtering system is in many cases re-used for fertilization of coffee fields. Other examples are
the use of good planting material and soil management. Non GAP related criteria such as no
deforestation and protected areas are included in the environmental chapter. In summary it
can be said that UTZ uses the improved agricultural and processing practices in combination
with addressing major issues such as deforestation to have a strong and continuing positive
impact on the environment.

The economic criteria of the Code set high standards for record keeping and traceability
requirements. This can be seen as the framework of a management system; a much needed
tool in origin countries, facilitating better understanding of the farmers of the impact of good
agricultural practices on their production and returns.

In June 2008, UTZ CERTIFIED became an Associate Member of the ISEAL Alliance and is
moving towards full membership (acceptance of ISEAL compliant multi-stakeholder approach
which is basis for full membership is expected for December 2009). This platform of
voluntary standard initiatives will enable UTZ to share knowledge and contribute to the
development of good social and environmental practices. UTZ CERTIFIED actively
participated in ISEAL’s initiative for the development of ‘Common Requirements for Group
Certification’, released in November 2008.

© UTZ CERTIFIED Good Inside 2009.