IACO’s Coffee Sector Development Strategy for

Africa: A Template

Frederick S.M. KAWUMASecretary General, Inter-African Coffee Organisation (IACO)

Presented at the International Certification Conference, Yamoussoukro, Côte d’Ivoire – September 2014

Background• The Inter-African Coffee Organization (IACO) is

an African intergovernmental organization • Originally formed by the Heads of State of

eleven (11) African coffee producing countries in who met in Antananarivo, Madagascar, in Dec 1960.

• IACO Membership increased from the original 11 to 25 countries

• Its Headquarters is in Abidjan, Côte d’Ivoire.

Objective at Inception

The objective of IACO was to: study problems of African coffee, in particular its production, processing and marketing, to ensure access to markets at optimum prices, to promote the consumption of coffee in Africa, and to undertake promotional activities to increase demand.

The New Vision

A modernised coffee industry in Africa that focuses on quality and productivity,

where producers are competitive and profitable.

The New Mission“International Commodity Body

equipped to serve the growing interests of African coffee producers, relevant to

the emerging challenges and opportunities, and aiming to strengthen

and build the image and position of Africa’s unique coffees in the global

coffee industry.”

Key Constraints to be Addressed

1. Low productivity and declining production2. Declining quality3. Shortcomings of research & extension

services4. Value chain inefficiencies:

- Low producer’s share of the export coffee price- Poor market information flow - Poor access to market

5. Inadequate policy support in most countries

1. Strategy to Improve Production• Rehabilitation & replanting of old farms

– Micro-vegetative multiplication technology (i.e., tissue culture)

– Macro-vegetative multiplication (establishment of Mother Gardens for cutting and grafting)

– Expansion of coffee nurseries– Empower cooperatives & farmer associations– Training in nursery management and old coffee

rehabilitation techniques• Improve Extension and Advisory services

– Training, organising farmers, supplying planting materials agric. inputs, facilitating credit services, etc

1. Strategy to improve production (cont’d)

• Improving ProductivityYields are very low, 250-600 kg/Ha, against 2000 - 2500 kg/Ha in Vietnam and South America – which suggests that Urgent action is needed on Africa’s part!

- Ensure that good cultivars are multiplied and adequately supplied

- Ensure that farmers are well trained on GAP and package recommendations are effectively disseminated to farmers

1. Strategy to improve production (cont’d)

• Improving Productivity (cont’d)

- Improve Extension and Advisory services -- Explore PPPs;- Training of the producers in the adoption

of Good Agricultural Practices (GAP);- Adoption of environmentally friendly approaches (e.g. shade, organic fertilisers, etc.- Facilitating access to credit and agricultural

inputs (fertilisers, etc.)

2. Strategy for Quality Improvement

• Training of all coffee industry players in the value chain regarding quality at all stages;

• Proper application of improved processing practices;

• Establish coffee processing facilities and coffee quality taste laboratories;

• Research on coffee processing to fine tune available technologies or generate new practices;

• Introduces verified technologies from elsewhere.

2. Strategy for Quality Improvement (cont’d)

• Improvement of practices in coffee handling from the farm-gate through the value chain to avoid contamination through Ochratoxin A or Aflatoxins;

• Access to coffee certification programmes that assure improved quality while also engendering benefits in environmental stewardship and social responsibility.

3. Strategy to Strengthen Coffee Research

Despite its crucial role in technology generation (variety development, agronomic practices, etc.) and providing technical backstopping, coffee research is weak and marginalized. Thus, there’s urgent need to strengthen research in most Member States.

• Establishment of an autonomous National Coffee Research Institution or Centre– In view of the economic importance of coffee,

there is need for the establishment of an autonomous or semi-autonomous coffee research institution or centre by each member state.

3. Strategy to Strengthen Coffee Research (Cont’d)

• Building the Capacity of National Research Centers- Set up effective research system with all required disciplines, laboratories and communication facilities;- Establish effective human resource development programs; - Establish incentive mechanisms to maintain experienced researchers; - establish dependable budget sources – Government

must invest in coffee research and development.

3. Strategy to Strengthen Coffee Research (Cont’d)

• Establish linkage with National, Regional and International Research Institutions- Need for exchange of information and experience;- Need for collaborative research activities to tackle cross-cutting challenges and pull human and financial resources together;- Need for participation in international and regional

workshops, conferences, etc. for experience sharing, partnership building, etc.

3. Strategy to Strengthen Coffee Research (Cont’d)

• Modernize Coffee Research Methods and Facilities for Productivity and quality Improvement

- Adopt modern research methods (in vitro techniques) to accelerate breeding and multiplication process- Develop varieties (high yield, good quality and tolerant to major pests and environmental stress- Fine tune available agronomic technologies and develop new practices that are least cost and efficient - Develop more efficient disease screening techniques

3. Strategy to Strengthen Coffee Research (Cont’d)

• Establish viable Research and Extension Linkage (RELK)- Verify and demonstrate research based technologies on on-farm through Farming Systems Research (FSR), farmers’ participatory approach- Train Subject Matter Specialists (SMS) and Development Agents (DAs) to ensure effective transfer of technologies to the end users, the farmers

4. Strategy to Improve Market Efficiency

Improve Market InformationAssess the level of access to market

information by the farmers and explore the means to close the gap;

Support inter-professional bodies to provide timely and relevant information to coffee producers;

Support the development of reliable data collection & dissemination systems.

4. Strategy to Improve Market Inefficiency (Cont’d)

Improve Internal and External Marketing Assess farmers’ better access to local and

international markets;Empower farmers to negotiate for fair farm

gate prices;Infrastructure development – e. g. feeder roads;Market promotion and research for better price

and sustainable buyer-producer relationships.

5. Strategy to Resolve Policy Issues

• Urgent need for a comprehensive policy on Agriculture so as to define priority interventions and ensure optimum resource allocation:– Establishment of Working Groups on

different sub-sectors;– Establish Agenda for each sub-sector;– Establish Priorities and Set Goals;– Develop the Plans for each sub-sector.

6. Other strategic Areas to be Considered

(a) Governance & Institutional Development for Farmer Based organizations(FBO)

• Building the capacity of the cooperatives and farmer organisations– Business skills development– Accountability– Leadership development

• Developing a sense of responsibility for their industry– Holding elected leaders accountable for the coop or

association– Empower them to engage the traders and buyers and

purse the best interest for their members

6. Other strategic Areas to be Considered (Cont’d)

(b) Empowering the Youth• Develop a youth engagement campaign for

coffee:– Invite interested partner organisations (PPP)– Target unemployed university graduates – Involve the school leavers (waiting to join University)

• Train the youth – intensive orientation and equipping with required skills;

• Provide youth with a survival kit;• Deploy the youth.

6. Other strategic Areas to be Considered (Cont’d)

(c) Empowering the Women• Support the empowerment of women in the

coffee industry:– Pay attention to the issues affecting the women– Support for women groups aimed at helping the

women deal with specific challenges – Support policy initiatives aimed at resolving issues of

marginalisation of women in the coffee sector

• Support training programmes aimed at equipping the women to improve their skills, etc.

Way Forward• Make each country a competitive coffee producer

– Improve the productivity of coffee farmers– Improve the quality of the coffee– Exploit the advantage of producing both Arabica and

Robusta coffees– Address sustainability issues (including certification)

• Improve governance in the sector• Effective engagement of the Youth• Address policy constraints that hinder efficiency

in the coffee sector

Thank you

Merci beacoup