Coffee Value Chain Study - College of Agriculture & Natural Resources

Programme pour la Promotion de l'Agro-Industrie Et des Entreprises Rurales (PAIR)

Coffee Value Chain Study

January 31, 2008

17 Rue de Coton, Quartier GATOKE BP 1643 Bujumbura, Burundi

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ABREVIATIONS AND ACRONYMS

%

: Percent

ABEC

: Association Burundaise des Exportateurs du Caf?

ACE

: Alliance for Coffee Excellence

avg

: Average

BAP

: Burundi Agribusiness Program

BCC

: Burundi Coffee Company

BRB

: Banque de la R?publique du Burundi

CDM

: Centre de D?pulpage Manuel

CEO

: Chief Executive Officer

CNAC

: Conf?d?ration Nationale des Associations des Caf?iculteurs

COPROTRA : Compagnie pour la Production et la Transformation du Caf?

CQC

: Coffee Quality Center

CWS

: Coffee Washing Station

CoE

: Cup of Excellence

DAI

: Development Alternatives Inc

DVD

:Digital Video Disc

DPAE

: Direction Provinciale de l'Agriculture et de l'Elevage

EAFCA

: Eastern African Fine Coffees Association

Etc.

: Etcetera

EU Fbu ft. GDA GOB ha ICO ICT INADES ISABU IT

: European Union : Francs Burundais : Feet : Global Development Alliance : Government of Burundi :Hectares : International Coffee Organisation : Information Technology Communications :Institut Africaine pour le D?veloppement Economique et Sociale :Institut Agronomique de Burundi : Information Technology

17 Rue de Coton, Quartier GATOKE BP 1643 Bujumbura, Burundi

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Kg

: Kilogram

km

: Kilometers

lb.

:Pounds

MFI

: Micro-Finance Institution

MSU NGO OCIBU OTF p. PAGE PAIR PEARL PO

: Michigan State University : Non-Governmental Organization : Office des Cultures Industrielles de Burundi : On the Frontier Group : page : Programme d'Appui ? la Gestion Economique : Programme pour la Promotion de l'Agro-Industrie et des Entreprises Rurales : Partnership to Enhance Agriculture trough Linkages : Producer Organization

QC

: Quality Control

SA

: Soci?t? Anonyme

SCAA

: Specialty Coffee Association of America

SDL

: Station de Lavage

SH

: Sustainable Harvest

SIVCA

: Soci?t? Industrielle pour la Valorisation du Cafe

SODECO : Soci?t? de D?parchage et de Conditionnement

SOGESTAL : Soci?t?s de Gestion des Stations de Lavage

SONICOFF : Source of Nile Coffee

SRD

: Soci?t? R?gionale de D?veloppement

STTA

: Short Term Technical Assistance

TBD

: To be Determined

UK

: United Kingdom

U.S.A

: United States of America

USAID

: US Agency for Intenational Development

US$

: American Dollar

VC

:Value Chain

vs.

: Versus

yr

: Year

17 Rue de Coton, Quartier GATOKE BP 1643 Bujumbura, Burundi

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TABLE OF CONTENTS

1. Introduction....................................................................................... 1

2. Methodology..................................................................................... 1

3. Analysis of Burundi Coffee Context.......................................................... 2

3.1 Infrastructure Expansion.............................................................. 3

3.2 Trends in Coffee Production......................................................... 3

3.3 Initial Reforms......................................................................... 4

3.4 Auction/ Tender System.............................................................. 4

3.5 Recent Reforms and Recovery....................................................... 5

4. Summary of Global Market Trends, Growth in Specialty Coffee and Regional

Producer Prices................................................................................... 6

4.1 Global Market Trends................................................................. 6

4.2 Specialty Coffee Industry Focus on Quality....................................... 6

4.3 Regional Comparison of Coffee Production and Producer

Prices over Time....................................................................... 7

5. Coffee Value Chain Analysis.................................................................. 10

5.1 Profile of the Burundi Coffee Subsector........................................... 10

5.2 Coffee Value Chain Map............................................................. 13

5.2.1 Value Chain Map before the Liberalization............. ............... 13

5.2.2 Value Chain Map at the start of Liberalization......................... 14

5.2.3 Value Chain Map Current Situation.................................

15

5.3 Estimates of Coffee Value Chain Costs............................................. 17

5.4 Constraints and Opportunities for Adding Value.................................... 19

5.4.1 Privatization of Coffee Value Chain...................................... 19

5.4.2 Production.................................................................... 21

5.4.3 Processing.................................................................... 24

5.4.4 Market Development...................................................... 24

6. BAP Five- Year Action Plan..................................................................... 32

6.1 Anchor Project Approach.............................................................. 33

6.1.1 Levels of Intervention....................................................... 34

6.1.2 Leader and Training Hub Approach............................................. 35

6.1.3 Industry Engagement........................................................ 36

17 Rue de Coton, Quartier GATOKE BP 1643 Bujumbura, Burundi

v 6.2 Components, Actions, Indicators and Targets....................................... 37

6.2.1 Subsector Reform and Privatization...................... .................... 37 6.2.2 Coffee Quality Improvement in Production/Processing................ 43 6.2.3 Specialty Coffee Market Development................................. 46 6.2.4 Cupping Labs and Training in Support of Quality and Marketing.... 48 6.2.5 Information Technology and Communications.......................... 48 6.3 BAP overarching Targets and Indicators.............................................. 50 Annex 1 : Specialty Coffee Product Differentiation.................................... 51 Annex 2 : Map of Burundi Indicating Coffee Washing Stations and Potential

Pilot Sites.......................................................................... 52 Annex 3 : BAP Coffee Anchor Program Timeline........................................ 53

17 Rue de Coton, Quartier GATOKE BP 1643 Bujumbura, Burundi

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