Empowering Burundi Coffee sector

BIRARONDERWA Dismas- JuniorFERGADIOTIS AndromaqueHAKIZIMANA DésiréNIYONGABO Jean-BaptisteNTIMA- Chantal

Drivers of the businessAmong 70 countries growing and

exporting coffee, Burundi, meets the climatic conditions for coffee farming considering its geographical location;

Over 30% of Burundian Gross Domestic Product (GDP) comes from Agriculture;

90% of national foreign exchange is made by Coffee and tea (CIA fact book, 2012)

Challenges facing coffee sectorLoss of interest in coffee farming:

Revenue distribution not well structured through the value chain;

Rural exodus: no young farmers

Land breakup

Lack of fertilizers

Low priceTemptation to replace coffee by other crops

( Banana and potatoes)

Leading driver of the business Stimulate farmers to keep growing

coffee by increasing their price and making available all required inputs and techniques for producing high quality coffee

How to achieve this goal?

Progressive privatisation of coffee sector;

Improving relationship all along the coffee value

chain;

Encourage youth to create local farming organizations

Our business idea:

Implementing new washing

stations (8) in the north of

the country (Ngozi-Kayanza-

Muyinga-Kirundo);

Description of the businessPeriod of the business : Permanent; Washing station capacity: 1500 T/season;Capital investment: $ 9 16120(US Dollars); Turnover : about $ 6 millions (5 990 400);Annual Net Income Before Taxes: $ 1 685 568;Target market: Foreign emerging market (US, Chine, Russia…);Ownership: 5 young people;

Business Impact Coffee price is increased : 0.3$ to 0.6$

Farmers are motivated

Coffee quality production is improved and market more accessible

GDP is increased

Challenges and strategies to overcomeChallenges Strategies

Low Coffee price ; Increase cherry coffee Price

Weak production: soil erosion and climatic perturbations

Provide information on environmental protection techniques ( Radio Talk Shows, workshops,…)

Oldness of coffee trees Stimulate farmers to replace old coffee trees

Lack of information Organize training on conditions of harvesting, selling and all agricultural practices

Lack of fertilizers Suggest Farmers, government, and private sector to work in synergy for making available fertilizers

Challenges and strategies to overcome

Idleness of the privatization process by the government

The process of privatization of coffee sector should be accelerated: Interest investors in the sector reducing charges (e.g: Taxes)

Coffee cost is not evaluated;

Integration of research in the sector

The taxes issues Advocacy to the government for taxes regulations

Competition with neighbors markets;

Work in synergy with the government to ban the illegal sale to neighboring countries using policies

How to attract youth in our business Measures to be implemented by the government: Regulation of coffee price to promote farmers Facilitate young farmers access to finances by easing loans terms To initiate laws to innovate and facilitate agricultural loans to young farmers Work on policies

To use Social Marketing to really integrate youth in this business

interest and integrate young people in behavior changing

To use innovative ways including new ICT to make youth informed and integrated in the whole production process

Dear fellow East African delegates thank you for your kind attention