Market Coverage

Over the last 3 decades, a growing number of voluntary sustainability standards (VSSs) have emerged to enhance environmental conservation and improve the livelihoods of millions of smallholder producers across different sectors, including agriculture, forestry, mining, and fisheries.

There are now over 400 VSSs operating across the planet. They set requirements and provide support services for producing and selling products in a more sustainable manner. This provides manufacturers, retailers, and consumers with information about a product’s origin and its potential impact on local communities and natural environments.

We explore the market trends and sustainability challenges facing different commodity sectors to better understand the potential—and pitfalls—of VSSs. This involves examining VSS-compliant production trends and volumes, companies’ sustainable sourcing commitments, and the effects of VSSs on farmers’ prices and incomes. Our aim is to provide VSS-setting bodies, governments, and value chain actors with recommendations for how to make production, consumption, and trade more sustainable.

Commodities

We focus on commodity sectors to learn about sustainable production and consumption patterns, market dynamics, and the potential opportunities and challenges facing VSSs.

Featured

Banana

Cocoa

Coffee

Cotton

Palm Oil

Soybean

Sugar

Tea

Commodities We Work On

Agriculture

Forestry

Timber

Fisheries

Mining

Commodities Series

The Sustainable Commodities Marketplace Series examines sustainable market trends for key agricultural commodities. Each series provides the latest market updates and focuses on a different overarching theme. The first explored the potential to increase sustainable production in least developed countries, and the second delved deeper into commodity price dynamics and farmers’ livelihoods.

Global Market Report: Bananas prices and sustainability

Downward price pressure from buyers and retailers—coupled with global economic disruptions, climate change, and rising production and living costs—is threatening the profitability and livelihoods of smallholder banana farmers. VSSs can help them receive up to double the average price for conventional bananas.

Global Market Report: Cocoa prices and sustainability

The proportion of cocoa produced in compliance with VSSs grew from just 1.5% in 2008 to between 27% and 47.3% in 2019. Farmers selling VSS-compliant cocoa are usually more protected against market shocks and can get up to 30% higher prices than those growing conventional cocoa, but this doesn't guarantee higher profits.

Global Market Report: Coffee prices and sustainability

More than 1.1 million farmers grew VSS-compliant coffee in 2019. But increased farm-gate prices derived from adopting VSSs are not enough to meaningfully raise farmers’ crop incomes due to recurring dynamics in the international coffee market, a lack of demand for VSS-compliant coffee, and rising production costs.

Global Market Report: Cotton prices and sustainability

Sustainable cotton is in high demand, with VSS-compliant cotton production doubling every 2.5 years, on average, since 2008. Farmers in some regions can receive up to 50% higher prices and 20% higher crop incomes for growing VSS-compliant cotton, compared to conventional cotton.

Global Market Report: Palm oil prices and sustainability

Smallholder farmers, who account for two fifths of crude palm oil production globally, get the lowest prices and profits of all actors in the value chain. Some VSSs have introduced initiatives to provide them with financial assistance, but evidence of the direct effects of VSSs on farmers’ incomes is limited.

Global Market Report: Soybean prices and sustainability

The soybean sector is one of the biggest contributors to greenhouse gas emissions in global food systems. VSSs operating in the sector support practices that can help build resilience and advance climate action, while potentially providing higher prices to compliant producers. However, less than 3% of soybeans are produced in compliance with VSSs globally and there is no formal system for setting minimum prices and premiums for certified soybean producers.

Global Market Report: Sugar cane prices and sustainability

Cultivating and processing sugar cane provides livelihoods for more than 100 million people in 120 countries. But many sugar cane farmers in developing countries live in poverty and do not have the capacity to negotiate the prices they receive at farm gate. VSSs have been working in the sector for over a decade but still have work to do to ensure farmers are rewarded for implementing more sustainable practices that show results.

Global Market Report: Tea prices and sustainability

In 2019, at least 1.67 million tonnes of VSS-compliant tea was produced by more than 1 million farmers, representing at least a quarter of global tea production. However, evidence of VSSs’ impact on tea farmers’ incomes is limited and tends to be very context specific.