Sustainable Coffee in Burundi- What can private and private resources achieve together? –SUCAFINA & Kahawatu

1. GLF Expert Cluster: What can public and private resources achieve together? 10 June 2015 Presentation at the Royal Society 2. Who We Are Family Business A private, commercial company Trading commodities since 1905 East African coffee since 1950s Lead exporter in Uganda, Rwanda, and Burundi Gilbert Sindjou, Sustainability Manager Joint project A private, not-for-profit foundation Established 2012 In Burundi since March 2013 Improve rural income through coffee Nicolas Tamari, President of the Board of Directors 10/6/2015 Royal Society 3. Burundi & Coffee 10 million people 2nd poorest country (GDP per capita) 11.8% urbanization 59.55 year life expectancy Pre-war coffee exports: 40,000 MT Post-war: 11,000-20,000 MT 27 winners in 2014 Burundi Cup of Excellence 10/6/2015 Royal Society 4. Burundi Impact Potential Impact Cost to provide healthcare to a family in Burundi: $2 per year Cost to provide healthcare to one person in Switzerland: >$5,000 per year Coffee is 64% of export income Agriculture is 30% of GDP and 89% of employment Aid is 42% of the national income Brazil yield: 30 bags per hectare Burundi yield: 5 bags per hectare 10/6/2015 Royal Society 5. Transition 10/6/2015 Royal Society DRC Burundi Uganda Brazil Vietnam Costa Rica 6. The Numbers $128 K $950 K 479 Farmers 4000 Farmers 5 T of NPK fertilizer distributed 38k young plants sold Kahawatu trained the trainers Farmers trained in basic agriculture 200,000 seedlings planted Lead trainers only 35 T of NPK fertilizer distributed 170k young plants sold Trainers trained the farmers Farmers trained in soil analysis and erosion prevention + GAP 270,000 seedlings planted Lead trainers taught advanced subjects, farmers taught basics with 20% women in attendance and youth employment at nurseries 4 Partners 10 Partners Funded by Sucafina Endorsed by Ministry of Agriculture IFAD (UN) loaned us office space Funded by IDH, the Dutch sustainable initiative Active implementation by several departments of the government (mainly agriculture) Local trade organizations assist with implementation and costs Economies of scale and increased buy in of growers 10/6/2015 Royal Society ResultsSupport Received2013 2014 7. World Bank (IDA/GEF) contribution to Sustainable Coffee in line with private sector Burundi Coffee Sector Competitiveness and Sustainable Coffee Landscape Objectives Increase coffee productivity and improve its quality among small-scale coffee growers in Burundi. GEF objective: Increase sustainable land and water management practices in the coffee landscape in selected areas of Burundi. Budget: US$ 76.1M (IDA) + US$4.2M (GEF) Promotion of several PPPs schemes: (i) the modernization of the coffee processing facilities (ii) fertilizer subsidy and pest treatment programs (ii) coffee research program Partners: Sucafina, Ecom Agroindustrial Corp and Webcor Group, CNAC, Intercafe, Arfic. Components 2. Institutional strengthening and value chain governance 3. Coffee quality improvement and market access (incl.livelihood diversificatin) 1. Small coffee growers productive capacity enhancement (incl sustainable coffee landscapes and address sources of pollution) 8. Conclusion An integrated, sustainable supply chain, created during a transitional phase and developed through PPPs, is our license to operate for the next decade 10/6/2015 Royal Society