dr congo green coffee marketing
TRANSCRIPT
Green Coffee Marketsin the
Democratic Republic of Congo
byKambale Kisumba Kamungele
Justin, Caroline, Enrico and Diego
An Production
Contents• Country Profile• Coffee Industry• Production• Consumption• Supply Chain• Future Outlook• Market Analysis• Environmental Impact Source: www.justfoodnow.com
Why DR Congo?• Climate• Temperature• Land / soil• Hydrography• Rainforest
• Mixed Production• Arabica• Robusta
D.R.C.Kinshasa
Country Profile• Population : 79,375,136• Area : 2’344’858 Km2 (1/3 of USA)• GDP: $63.27 billion• GDP Growth: 8.4%• Referred to as:• “D.R.C.” or “Congo-Kinshasa”
D.R.C.
Profile of Coffee Industry• Began in 1898• Produces Arabica and Robusta• Dry and Wet Processing• Harvest Period: October-
September• Ports of Evacuation:• Matadi & Boma, DRC• Mombasa, Kenya• Dar-es-Salaam, Tanazania
D.R.C.Matadi &
Boma
Dar-es-Salaam
Mombasa
Production Methods Production by Province in 2010(as % of total production)
FARM:• Mostly Manual Labor done by Small
Scale Farms.• Very Few organized plantations
POST-HARVEST:• Sun Drying Method is used for ROBUSTA• ARABICA is Washed or Semi-Washed
PROCESSING :• Conventional Full-Equipped Processing
Plants (Sorting/Homogenizing/Grading) Source: ONC
Production• 43% Arable Land• Robusta• Primarily in the Northeast
and Southwest Lowlands• Petit Kwilu
• Arabica• Higher elevations areas to
the East• Blue Mountain, Bourbon,
Rumangabo
Production by Species(approximate locations)
Robusta (72%)Arabica (28%)
Petit Kwilu (Robusta)
Source: Ministry of Land Affairs
Sources: ONCUSDA
Domestic Consumption• DR Congo is mostly a tea-drinking
country• Most consumption is instant coffee
imported from Cote d’Ivoire, Kenya, Uganda, and India
• Best coffee is exported and lower quality grades are roasted locally
• Limited number of cafés in urban centers, mostly for the expatriate consumers
• In the Eastern Arabica growing region, there is new trend of local coffee consumption (ex. Café Kivu)
www. joeypro.com
The Trouble with Data in the DRC
2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
10000
20000
30000
40000
50000
60000
70000
Comparing Data Sources(Annual Coffee Production in DRC)
USDA ONC Average
Smuggling• Smuggling is a MAJOR issue in the
DRC
• 70%+ of coffee production is smuggled across the borders
• Over $80 million in 2015• Or 0.13% of GDP
D.R.C.
Source: ONC
Supply Chain
Farmers
Dry Processing Wet ProcessingFully Washed
Traditional
Intermediaries
Processing Mills-
Exporters
Green Coffee Market
International
Domestic
Regional
Roasting
Exporting
Smuggling
Future Outlook• Increasing Demand for Specialty Coffee
• Arabica/Robusta Producer
• Robust potential for development• Relations with International Organizations• Capacity-building for local actors to access
international funds• Access to major markets and players
• Strengthening of the Supply ChainSource: Starbucks
Starbucks Blend
Market AnalysisOpportunities- Increasing Global
Coffee Consumption- Business Climate
Improvement Policy- Niche Market
Development (Specialty Kivu Arabica & Washed Petit Kwilu Robusta)
- Local Consumption - Global Climate
Change
Threats- Aging of plantations
& Farming Population
- Political Instability- Hyper-taxation &
Administrative Hassle
- Pest & Diseases- Smuggling into
neighboring countries
Mitigations- Improve
International perception through better governance
- Cross-border partnerships
- Associate with networks of businesswomen
- Promote specialty coffee industry
- Create wealth and jobs in rural areas
Environmental Impact• Carbon Footprint of production:
• Extensive system with minimum inputs and low yields• Mixed farming / intercropping• Some improved planting materials
• Limited to no use of chemicals: • Pesticides• Fungicides• Preservatives
• Per capita CO2: 0.1 metric tons• Compared to Italy at 6.7 metric tons
www.worldbank.org, 2011 IntercroppingSource: Musarama.org
Climate Change• Changes in rainfall
• More intense and destructive rainfall
• Longer dry season• Increased temperature • Environmental degradation• Increased risk of disease
• Cassava Mosaic Virus
• Lack of information is a critical barrier
LowMediumHigh
Climatic Risk to the Biome(Projections for 2071-2100)
Source: IPCC
Viva la Robusta!