Transcript Empowering Burundi Coffee sector

Empowering Burundi Coffee sector
BIRARONDERWA Dismas- Junior
FERGADIOTIS Andromaque
HAKIZIMANA Désiré
NIYONGABO Jean-Baptiste
NTIMA- Chantal
Drivers of the business

Among 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 sector

Loss of interest in coffee farming:
Low price
Temptation to replace
coffee by other crops (
Banana and potatoes)

Revenue distribution not well structured through the
value chain;

Rural exodus: no young farmers

Land breakup

Lack of fertilizers
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-MuyingaKirundo);
Description of the business

Period 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
overcome
Challenges
Low Coffee price ;
Weak production: soil erosion and
climatic perturbations
Oldness of coffee trees
Lack of information
Lack of fertilizers
Strategies
Increase cherry coffee Price
Provide information on environmental
protection techniques ( Radio Talk
Shows, workshops,…)
Stimulate farmers to replace old
coffee trees
Organize training on conditions of
harvesting, selling and all agricultural
practices
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
Coffee cost is not evaluated;
The taxes issues
Competition with neighbors
markets;
The process of privatization
of coffee sector should be
accelerated: Interest
investors in the sector
reducing charges (e.g:Taxes)
Integration of research in
the sector
Advocacy to the
government for taxes
regulations
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