differentiation or de-commoditization of the coffee sector · target increase exports of fully...
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Differentiation or
De-commoditization of the coffee sector
Marcelo Pereira Magnere
CQI Coffee Quality Consultant
February 2015
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ACHIEVING OUR MISSION
We achieve our mission by working in coffee
producing countries in three fundamental
program areas:
Foster a global language of coffee quality and
value
Enhance producer livelihoods and industry
competitiveness
Collaborate to build supply chain reliability
Technical Services Global Partnerships Q & Educational
Programs
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What is de-commoditization or differentiation ?
Picture courtesy International Coffee Organization
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Target
Increase exports of Fully Washed Coffee (FWC) and export
revenues by 18%.
• In 2012, coffee accounted for almost 30% of Rwanda’s total export
revenue.
• If Rwanda were to double the amount of coffee exported as FWC, holding constant total coffee export volumes, it could expect a 10-
20% increase in coffee export revenues (3-6% increase in total
export revenues).
• Domestic value added is substantially higher for fully washed
coffee, compared with ordinary coffee (ORD) (FWC generates approximately $0.70-$0.10 more domestic value added per
kilogram).
Background
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Natural Coffee Semi-washed coffee Washed Coffee
Quality Coffee Methods
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How can I get a differentiated price for my coffee?
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CHALLENGES
Small holder farmers
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CHALLENGES
Price
195.6386111
111.2372222
164.96
170.16
0 50 100 150 200 250
GATE SALE PRICE CT/LB 2010/12
Brasil Costa Rica Ethiopia Colombia
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CHALLENGES
Certification
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CHALLENGES
Yield
Coffee Yields (MT/Ha)
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CHALLENGES
Knowing the customer
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Final Words
“Coffee Quality is just a consequence of investing in people.” Any coffee developing strategy must include farmer’s training and their inclusion in the coffee market by protecting their ownership throughout the value chain. As a result quality will come and profit will follow. The key words to end poverty are: Inclusion, Independence and Opportunity.
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THANK YOU VERY MUCH !!
Marcelo Pereira Magnere [email protected]
+251 935326742 +56 974712343 Skype: elcambur