Coffee producers and four of the worlds largest coffee companies Friday sealed a far-reaching agreement to improve working conditions and environmental standards in the industry, reports the World Bank press review.
The Common Code for the Coffee Community is targeted at the mainstream coffee market, rather than the fair trade segment, and is the result of pressure from consumers, retailers and non-governmental organizations, industry officials said.
Producers and traders adopting the code will have to pay minimum wages, cease using child labor, allow trade union membership and stick to international environmental standards on pesticides and water pollution.
The code will be enforced by independent auditors and be evaluated regularly.
BBC Online adds, that the agreement was signed by coffee giants Nestle, Tchibo, Sara Lee and Kraft. The first coffee produced under the new code should come onto the world market following the harvest of 2005-2006.
