What is a ‘biodiversity-friendly’ coffee plantation?

which produce 3 – 4 years after planted and have an economic life between 20 and 30 years Gal- loway and Beer, 1997. Coffee is cultivated under several structurally different production systems in Latin America. These systems conform a continuum from the more traditional ones, with higher diversity in the structure and composition of the shade canopy, to those with reduced shade and intense manage- ment Moguel and Toledo, 1996; Perfecto et al., 1996; Rice and Ward, 1996. Following a classifi- cation developed in Mexico using shade levels and management as indicators for intensification, we can distinguish five coffee production systems: rustic R, traditional polyculture TP, commer- cial polyculture CP, technified shade TS, and unshaded monoculture SUN, the first two classified as ‘traditional’ and the last two as ‘mod- ern’ Fuentes Flores, 1979; reviewed by Moguel and Toledo, 1996 Fig. 1. In El Salvador, it is possible to recognize these five systems, although the rustic and SUN systems are not important in the extent of production. The tendency to mod- ernization has been more significant in farms greater than 35 ha, while in smaller farms the traditional and commercial polyculture systems are predominant. As shown in Fig. 1, in rustic systems, coffee is grown under the shade of a natural forest where the understory has been replaced by coffee shrubs but the native forest canopy remains more or less intact. This system is the less intensive one, affect- ing minimally the composition and structure of the original forest. Farms under rustic system are rare in El Salvador. The traditional polyculture system resembles the rustic system in structure, but has a greater diversity due to the deliberate planting of economically valuable shade tree spe- cies by the farmer. This system is generally com- mon in farms less than 15 ha located in the lowlands between 500 and 800 m. In commercial polyculture, the shade trees are mostly planted rather than remaining from the original natural forest. Citrus, banana, avocado, and wood for timber are planted as alternative commercial products. This system is common in farms less than 15 ha distributed up to 1200 m. When the original forest has been entirely re- moved and replaced with a few tree species usu- ally Inga spp. to provide shade to the coffee bush, it is called a technified shade system. Under this system, coffee plantations have a controlled appearance and the density of the shade trees is low with considerable gaps between them. The density of shade trees follows an indirect relation- ship with the altitude where the farm is located: the higher the location of the farm, the lower the density of shade trees. This system is predominant among farms greater than 35 ha and located at more than 1200 m. In the unshaded monoculture system, the coffee plantation is exposed to full sun, and the land is completely stripped of all shade trees. The SUN plantations resemble tightly packed hedgerows and the coffee plant produces high yields, but the system is highly dependant on chemical inputs. SUN coffee plantations require elevated initial investments and are costly to maintain, which make them financially vulnerable to market swings. This system is uncommon in El Salvador and the area covered is limited. Farms with SUN production systems are only found at more than 1200 m in El Salvador. 3. What is a ‘biodiversity-friendly’ coffee plantation? Under the current trend towards reducing shade cover in northern Latin America Perfecto et al., 1996; Rice and Ward, 1996, farmers must have financial incentives to keep abundant and diversified shade in their coffee plantations. One of the intentions of promoting a biodiversity- friendly coffee is to obtain a premium over the market price that recognizes the value of shade cover in conserving biodiversity. The above de- scription of the different production systems, however, indicates that not all shade covers are good for conserving biodiversity. As shade cover becomes simplified, its importance as a refuge for biodiversity decreases. Therefore, it is necessary to define what constitutes a biodiversity-friendly cof- fee plantation. Researchers have indicated that for promoting biodiversity in a coffee plantation the presence of Fig. 1. Coffee production systems according to shade gradient and composition. Modified from Moguel and Toledo, 1999. a diverse shade canopy is essential, pruning prac- tices should have minimal impact on the epiphytic plants, mosses, and lichens, and the use of agro- chemicals should be reduced Perfecto et al., 1996. The Ministry of Environment and Natural Resources held a workshop during December 1997 in El Salvador to define certification criteria for a biodiversity-friendly coffee. Participants in- cluded coffee researchers, biodiversity researchers, conservation organizations, certification agencies, producers, importers, and exporters. According to the preliminary certification criteria developed at the workshop, a biodiversity-friendly coffee plan- tation must meet the following basic requirements: a the shade, in the part of the farm devoted to coffee production, must cover a minimum of 40 of the land with even distribution; at altitudes above 1200 m, average shade of 40 over the entire property is acceptable; b the shade of the coffee plantation must include as a minimum ten species of native trees, with a minimum density of 1.4 individuals of each species per hectare; c prescribed conservationist practices for managing forest, soil, and bodies of water must be adopted; d hunting and removal of flora and fauna for commercial purposes are prohibited; e solely authorized low-toxicity pesticides must be used following national and international standards for the application of agrochemicals; and f workers must be trained in the use, storage and application of agrochemicals.

4. Financial analysis of adopting the ‘biodiversity-friendly’ certification criteria