dr congo green coffee marketing

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Green Coffee Markets in the Democratic Republic of Congo by Kambale Kisumba Kamungele Justin, Caroline, Enrico and Diego An Production

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Page 1: DR Congo Green Coffee Marketing

Green Coffee Marketsin the

Democratic Republic of Congo

byKambale Kisumba Kamungele

Justin, Caroline, Enrico and Diego

An Production

Page 2: DR Congo Green Coffee Marketing

Contents• Country Profile• Coffee Industry• Production• Consumption• Supply Chain• Future Outlook• Market Analysis• Environmental Impact Source: www.justfoodnow.com

Page 3: DR Congo Green Coffee Marketing

Why DR Congo?• Climate• Temperature• Land / soil• Hydrography• Rainforest

• Mixed Production• Arabica• Robusta

D.R.C.Kinshasa

Page 4: DR Congo Green Coffee Marketing

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.

Page 5: DR Congo Green Coffee Marketing

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

Page 6: DR Congo Green Coffee Marketing

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

Page 7: DR Congo Green Coffee Marketing

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

Page 8: DR Congo Green Coffee Marketing

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

Page 9: DR Congo Green Coffee Marketing

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

Page 10: DR Congo Green Coffee Marketing

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

Page 11: DR Congo Green Coffee Marketing

Supply Chain

Farmers

Dry Processing Wet ProcessingFully Washed

Traditional

Intermediaries

Processing Mills-

Exporters

Green Coffee Market

International

Domestic

Regional

Roasting

Exporting

Smuggling

Page 12: DR Congo Green Coffee Marketing
Page 13: DR Congo Green Coffee Marketing
Page 14: DR Congo Green Coffee Marketing

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

Page 15: DR Congo Green Coffee Marketing

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

Page 16: DR Congo Green Coffee Marketing

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

Page 17: DR Congo Green Coffee Marketing

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

Page 18: DR Congo Green Coffee Marketing

Viva la Robusta!