In its Vision 2020 plan, Rwanda set ambitious goals for its development. Between 2000 and2020, the country targets per capita GDP growth from $250 to $900, which implies that the overall economy needs to expand by over 600% when population growth is taken into account. Coffee has traditionally been one of Rwanda’s most important export sectors and one of the most important cash crops for close to half a million coffee grower families. Coffee exports accounted for about 58 million US$ and 60% of total exports in the early nineties but experienced a severe crisis so that revenues were down to 20 million US$ in 2001 and represented 30% of total exports.
In 2002, a National Coffee Strategy, developed with the participation of all stakeholders, was adopted. It targeted investments of $70 million in order to raise projected total receipts to above $600 million by 2010. Members of the coffee cluster committed to coordinate twelve programs. Upgrading capacity of coffee associations and farmers, and replanting of trees were fundamental to building a strong Production pillar. Carrying out a (GIS) Geographic Information System study and ensuring that CWS were placed in Rwanda’s top 50 coffee producing districts were deemed a priority. Furthermore, quality control systems, market information and innovative branding activities were core actions needed in Sales and Marketing. Strengthening OCIR Café’s capacity and providing a financial framework throughout the coffee chain were identified as two essential priorities in upgrading of institutions.
Since the Strategy was developed in 2002, farmers have begun to see the value in producing coffee since cherry prices have more than doubled since 2003. The capacity to fully wash cherries has also significantly improved so that, in 2006, average prices gained by Coffee Washing Stations (CWSs) for their coffee translated to a premium of 45 cents per lb over the New York C-Price (the standard reference price for coffee worldwide), placing Rwandan fully washed coffee firmly in the fine coffee and specialty price range.
Coffee has again become one of the country’s foremost exports, with receipts growing at an average of 30% per year during the period of 2002 to 2006. Despite little overall growth in the quantity of fully washed coffee being produced, Rwanda’s coffee industry has gained a positive profile and created tremendous demand for its high quality bourbon Arabica. Longterm relationships with household names such as Starbucks and Marks & Spencer have the potential to complete the transformation of the industry.
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| National_Coffee_Strategy_Rwanda_2009-2012.pdf | 2.71 MB |