IACO 56th Annual Meetings- Report and Decisions

AFRICAN COFFEE SYMPOSIUM

Yaoundé, Cameroon, Tuesday, 29th November 2016.

The 4th African Coffee Symposium of the InterAfrican Coffee Organisation (IACO) was held on 29th November 2016 in BOUMA A Room of Hilton Hotel of Yaoundé, Cameroon, under the chairmanship of Mr. Bello Bouba MAIGARI, Minister of State, Minister of Tourism and Leisure of the Republic of Cameroon, representing the Prime Minister, Head of Government.

Under the theme : "Inclusive Value Chain Transformation in African Coffee Industry", the symposium was held in four sessions.

  1. First session

Moderated by M. Michael NDOPING, Managing Director for National Cocoa and Coffee Board of Cameroun (ONCC-NCCB), The session included three sub-themes :

  •  Performances on African Exports,
  • Status of Coffee Exports in DRC, and
  • Actions undertaken to increase coffee productivity, production and coffee quality in Africa : case of the fight against Black Coffee Twig Borer (Xylosandrus Compactus) in Ouganda.  

 

The first sub-theme, presented by Dr. Denis SEUDIEU from ICO focused on African coffee exports that have experienced a significant downward trend since 1990 compare Asian and Oceania countries. To enable Africa to reposition itself on the global market, the following proposals were made:

  • Increase productivity ;
  • Adopt new technologies ;
  • Improve competitiveness by finding niche markets.

The second sub-theme, presented by Mr. Kambalé K. KAMUNGELE focused on the DRC's experience in Coffee Export. After a brief overview of the current status of the coffee sector and his country's potential for coffee, he said that the Congolese Coffee will become competitive within five years.

However, there are still challenges to address, namely :

  • Inadequate access to inputs;
  • Inadequate Research;
  • High Logistics costs;
  • Binding Taxation;
  • Inadequate and outdated processing units;
  • Lack of funding;
  • Deterioration in terms of trade.

To meet these challenges, we must: 

  • Develop public-private partnerships and international cooperation;
  • Involve young people to boost production and consumption;
  • Implement tax incentive policies. 

The third sub-theme was a presentation by Dr. Godfrey Kagezi, NACORI, Uganda, on how to control diseases that affect coffee and particularly the infection caused by Black Coffee Twig Borer (Xylosandrus Compactus) in Uganda. After a description of the insect destructive nature, he presented the status of Research on eco-biological control by using alcohol and insecticide traps, identification of diseases and insects that can prevent the Borer from expanding its destruction zone.

The challenges are::

  • Identify all pest species;
  • Identify all diseases which attack the coffee tree;
  • Identify the Borer different modes of propagation and transmission.

To meet these challenges, it was recommended to:

  • Create cooperation bridges between states;
  • Create a regional network for the control of this insect;
  • Mobilize funding;
  • Develop strategies;
  • Assess the impact of Borer's ravages.
  1. Second Session

Moderated by Mr. Kilama LAJUL, Secretary of UCDA, Uganda, this session focused on two sub-themes:

-Promoting Inter-African Cooperation : How to strengthen cooperation between IACO member states in the quest for transforming the African Coffee Value Chain ;

-Coffee Global Market : Short-term volatility, long-term opportunity for African producers.

 

The first sub-theme was moderated by Mr. John SCHLUTER, Café Africa (Switzerland). It focused on the reconcilation between current production and potential demand for coffee by 2030. In order to cope with the decline in production in African countries, a number of actions should be taken:

  • Strengthening public-private partnership;
  • Improving production and productivity by creating a new generation of producers;
  • Establishing of an international Platform that could serve as bridge between producers and consumers ;
  • Mobilising substantial funds ;
  • Involving Finance Ministers in IACO different meetings.

The second sub-theme, presented by Mr. Abah OFON, Agri-Money Ltd, UK, explained that the coffee global market situation is marked by volatility in global prices.

To hinder this situation, Africa should :

  • Strengthen its domestic consumption ;
  • Develop its strategy to access niche markets, including the Japanese market ;
  • Resolve the lack of information on financial market ;
  • Mitigate effects of speculation on financial markets.

 

Panel 1 included the introduction by Mrs. Nancy CHERUIYOT from Kenya Commodities Fund on "Funding the African Coffee Industry", and three others by Aïnina AIDARA from the Financial Alliance for Sustainable Trade (FAST), by Benedict KANU from AfDB and by Itong Eric MONCHU from AFREXIMBANK. These three speakers gave an update of their financial support to the coffee sector and the prospects for medium-term funding. Among others, AfDB is setting up, in partnership with the OPCW, an African Coffee Facility which main objective is to meet the growing demand for coffee.

After discussions, the following recommendations were made :

  • Fund to boost production ;
  • Change the mindset of stakeholders in the sector ;
  • Stabilize the socio-political environment ;
  • Improve the quality of inputs ;
  • Establish an effective communication and marketing strategy.

 

  1. Third Session

Under the theme "Producer Capacity Building", HE Josefa SACKO, IACO former SG, was the moderator. Three sub-themes were presented :

  • Improving coffee consumption by value chain development : case of Cameroon ;
  • Challenges of domestic coffee processing and agribusiness incubation models ;
  • Boosting Coffee Productivity in Africa : Lessons from the Vietnam Experience, Nestlé, Neumann Kaffe, WCR.

African countries have developed many strategies to improve coffee domestic consumption.

In Cameroon, integrating coffee consumption into food habits through synergy of roaster activities, capacity building, fundraising, and improvement of coffee packaging, are among others, actions undertaken by the Cocoa and Coffee Interprofessional Council (CICC).

Kenya based its local coffee promotion strategy on young people. The idea is to involve young people in coffee growing and consumption and to provide them with the necessary funding.

Ethiopia as the leading producer in Africa consumes half of its coffee by tradition that dates back centuries, by developing multiple consumption points across the country and, in extension to some European markets. These actions are based on quality competitions between roasters, capacity building sessions, involvement of young people by training and project funding.

Côte d'Ivoire has recognized the need to renew its orchard and increase its production as a prerequisite for the promotion of domestic consumption. Like Cameroon and Ethiopia, the Government plans to install coffee kiosks in administrations, municipalities of Abidjan and across the country.

In Uganda, domestic consumption strategy is being renewed. This strategy owes its success to a rigorous planning process. Coffee, main source of foreign exchange, is replaced by tourism, which is also a boon for coffee promotion. An emphasis is put on coffee consumption so that it competes with tea. The goal is to cover the entire value chain. Local consumption will ultimately help to assess and improve coffee quality and label to invest in other promising markets.

In Nigeria, local coffee consumption strategy is based on its large population. In order to convince Nigerians to consume coffee, a communication strategy on coffee virtues and oriented towards opinion leaders including religious dignitaries, traditional, administrative and political authorities has been developed. However, scientific research continues to work to identify other virtues of coffee.

At the end of this panel, the following proposals were made :

  • Improve small producers capacity to adapt to new technologies ;
  • Multiply coffee points ;
  • Develop quality label ;
  • Develop a promotion plan ;
  • Establish a broad domestic consumer market on the continent and seek new markets, such as China ;
  • Involve young people and women in coffee production and consumption ;
  • Involve the private sector in the production chain ;
  • Create and strengthen producer organisations ;
  • Promote coffee virtues.

Panel 3 highlighted key elements to boost productivity in Africa, such as experiences of Vietnam, Ghana and Tanzania.

However, challenges to address include :

  • Professionalization, organisation and supervision of producers ;
  • Adoption of high-yielding varieties and development of intensive crops ;
  • Development of public-private partnership and setting up of an inclusive Platform between different stakeholders ;
  • The creation of socio-economic incentives for producers, including favorable credit conditions and input subsidies ;
  • Solving the problem of land ownership ;
  • Producers' adherence to new strategies for better productivity ;
  • Defining and implementing effective government policies ;
  • Support to producer organisations ;
  • Creation of extension networks for crop innovations ;
  • Producer capacity building ;
  • Adaptation to climate change and the fight against deforestation, diseases and pests ;
  • Diversification of crops ;

 

  1. Fourth Session

Under the theme "Youth and Women's Mobilisation for a Sustainable Coffee Industry in Africa and Community Development", this session was moderated by the Dr. Nagua COULIBALY from Coffee-Cocoa Council of Côte d'Ivoire.

The problem of aging African coffee producers requires active involvement and mobilisation of women and young people. Africa will have to :

  • Regarding women,
  • Establish an effective policy of changing attitudes that integrates gender approach ;
  • Facilitate access to production factors, eg funding and land ;
  • Encourage human resources sharing between countries ;
  • Integrate women in coffee production value chain ;
  • Create platforms bringing together stakeholders from public and private sectors, including women ;
  • Involve women in decision-making process (political, economic, etc…) ;
  • Regarding young people,
  • Take positive actions to attract young people to coffee sector ;
  • Establish a link between coffee and other aspects such as economic profitability, ecotourism ;
  • Create related services for youth around coffee sector ;
  • Encourage the use of ICT in this sector to attract young people.

For interconnection between coffee production and the three pillars of sustainable development (economic, social and environmental), we need a better production, better extension services, better marketing and public-private sector partnership Platform.

  • Gender promotion and integration ;
  • Mobilisation of youth in coffee production ;
  • Availability of inputs ;
  • Development of scientific research ;
  • Involvement of producers in the creation of varieties ;
  • Development of traceability of processed products ;
  • Development of a holistic approach ;
  • Definition of a legal framework for investment in coffee industry.