(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

ii. Addressing supply-side constraintsDevelopment of productive capacities is necessary to increase Burundi’s exports of specialty coffee.Years of declining yields and quality mean that significant efforts are also required to strengthenproduction. Entering specialty markets, which command significant price premiums, has long beenidentified as the best strategy for Burundi, but the country still has to exploit its potential for producingand marketing high-quality coffee.Improvements in the production of coffee are needed on both quantitative and qualitative fronts.The current objective is to increase production to an expected annual volume of 40 to 60 thousand tonsof green coffee, as well as to reduce the cyclical production pattern observed in the 2000s. Increasingyield will require a combination of actions (e.g. fertilization, planting of new trees, training of farmers toadopt efficient and sustainable growing techniques) and a supporting environment for farmers (role ofproducer associations, funding for research and availability of extension services, etc.). Increasing theefforts and care dedicated to growing coffee will be critical to ensure the quality of beans. It will alsodepend on the reform’s success in offering farmers sufficient incentives to improve yield and quality, asfailing to do so could lead farmers to focus on alternative crops instead.iii. Improving export promotion and marketing strategiesTo deal with the growing complexity of global coffee markets, Burundi must rethink its currentpractices related to specialty coffee. As highlighted in World Bank (2010a), the quality improvementsenvisaged in Burundi’s coffee sector will be fruitful only if they are complemented by carefully designedmarketing strategies aimed at improving revenues from coffee sale and penetrating specialty markets.Proper gathering of market information and, more importantly, its dissemination along the value chainare essential to understand price trends and supply and demand dynamics. The specialty markets relyincreasingly on the development of long-term partnerships between producers and roasters or retailers.Countries that have successfully transitioned toward specialty markets have managed to build a strongimage of their coffee industry to attract such partners.Entering specialty markets will require adequate marketing capacities. Specialty coffee marketsprimarily value quality (determined largely on the basis of cupping profile). Therefore, an important prerequisitefor Burundi’s participation in these markets is the production of high-quality coffee beans interms of both grading and flavors. But certification requirements and links to specific origin (e.g.“relationship model” that puts a “human face” on coffee) are equally important. The followingdimensions need to be addressed to strengthen Burundi’s marketing capacities (USAID 2008):- improvement of CWSs’ and dry mills’ capacity to ensure coffee lot traceability anddifferentiation by quality;- elaboration of an effective marketing strategy and enhancement of market intelligence at alllevels of the value chain;- acquisition and maintenance of certifications (e.g. fair trade, organic) 77 ;- branding and image building;- development of cupping capacity is critical, notably at the regional/local level;- availability of information technology for business and marketing purposes;- capacity to organize regular strategic buyer/roaster tours;- participation in trade shows, industry workshops, tastings, etc.This overview shows increasing export of specialty coffee will require concerted efforts to address thebarriers that directly affect trade costs as well as supply side constrains and export promotion andmarketing strategies. The characteristics of specialty markets as well as the necessary requirements to77 See Annex 5 in World Bank (2011c) for a summary of major coffee certification schemes, their returns anddefining characteristics.63 / 153