Identifier
Created
Classification
Origin
06KIGALI193
2006-02-27 18:16:00
UNCLASSIFIED
Embassy Kigali
Cable title:  

DEMAND FOR RWANDAN SPECIALTY COFFEE ON THE RISE

Tags:  PGOV EAGR ETRD RW 
pdf how-to read a cable
VZCZCXYZ0003
RR RUEHWEB

DE RUEHLGB #0193/01 0581816
ZNR UUUUU ZZH
R 271816Z FEB 06
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC 2423
INFO RUEHXR/RWANDA COLLECTIVE
UNCLAS KIGALI 000193 

SIPDIS

DEPT FOR AF/C

SIPDIS

E.O. 12958: N/A
TAGS: PGOV EAGR ETRD RW
SUBJECT: DEMAND FOR RWANDAN SPECIALTY COFFEE ON THE RISE


UNCLAS KIGALI 000193

SIPDIS

DEPT FOR AF/C

SIPDIS

E.O. 12958: N/A
TAGS: PGOV EAGR ETRD RW
SUBJECT: DEMAND FOR RWANDAN SPECIALTY COFFEE ON THE RISE



1. Summary: Ambassador hosted an event February 24 for a
visiting delegation from the Specialty Coffee Association of
America, which represents the USD 20 billion U.S. coffee
industry. This first annual coffee event showcased the
exceptional quality of Rwandan specialty coffee and marked
the beginning of this year's coffee harvest, expected to
double for the third consecutive year. Members of the
Rwandan government, media, private sector, and the
diplomatic community joined representatives of the coffee
industry in recognizing the achievements of the Rwandan
coffee industry. In just five years, since 2001, Rwandan
coffee has become one of Africa's great success stories and
a major export, generating high demand in the international
market and translating into a better quality of life for
Rwandans. End summary.

High U.S. Demand for Rwandan Specialty Coffee
--------------

2. Opening the event, Ambassador remarked that the U.S. has
been in partnership with Rwandan coffee investors and
cooperatives to expand the production and export of
specialty coffee through a comprehensive USAID-funded set of
programs. This partnership between the two countries has
produced a remarkable level of achievement in the Rwandan
coffee industry.


3. Green Mountain Coffee Roasters recently introduced a
line of "Special Reserve" coffees appealing to the most
discriminating coffee connoisseur. The first coffee to be
marketed as "Special Reserve" was the Rwandan Karaba
Bourbon, described as "an extraordinary discovery that pairs
classic East African attributes with unexpected depth and
body." It sold out within days of going on the market.
Starting mid-March 2006, Starbucks for the first time will
showcase a Rwandan coffee (Blue Bourbon) for two months in
its "Black Apron Exclusives" line, a category of coffee
reserved for the "best of the best" coffees, in 5,000 retail
outlets across the U.S. Launched in April 2004, this
premium line features rare, fine coffees in limited
quantities. Thousand Hills Coffee Company, established in
2004, sells Rwandan coffee exclusively and aims to support
social initiatives, such as schools and community centers,
with some of its profits.


4. In a February 20-24 visit to Rwanda to congratulate and

thank the Rwandan farmers for their Blue Bourbon coffee,
Starbucks presented 20 cows and 300 goats as a direct
premium to the top coffee producers in the Western Province
who produced the coffee for its "Black Apron Exclusives"
line. Starbucks hopes that Rwanda will become a regular
producer for its "best of the best" coffee promotions.

Development of Specialty Coffee Industry
--------------

5. Until recently, Rwanda did not produce high-quality
coffee. Farmers produced low-grade beans as their main cash
crop, and the sector is only now recovering from the
devastation in 1994. Thanks to the support of USAID,
Rwandan coffee farmers began producing high-quality coffee
for the first time in 2001. Today, Rwandan coffee has
become known as one of the "the best of the best" coffees in
the world. In 2005, Rwanda exported 1,100 tons of high
quality coffee, earning top prices for the coffee growers.
These coffee revenues have resulted in better health care,
education, and housing in coffee farming communities, giving
Rwandan farmers hope for a better future.


6. USAID-Rwanda estimates it has invested over USD 10
million in promoting and developing the Rwandan coffee
industry since 2001, building and rehabilitating coffee
washing stations, training farmers, training "cuppers"
(coffee tasters),organizing cooperatives, encouraging banks
to invest in coffee washing stations, and improving rural
infrastructure. USAID has also been encouraging farmers and
coffee washing station operators to maintain good discipline
and a good eye in picking the best coffee cherries to meet
the challenge of maintaining the high quality of coffee.
According to USAID, the investment has paid off, with Rwanda
now producing one of the world's best coffees, which has
helped reduce poverty and improve the livelihood of over
200,000 people in the rural areas. We anticipate this
increase in prosperity will also mitigate against
traditional rural conflicts.

Rwandan Coffee in the U.S.
--------------

7. Rick Peyser, President of the Specialty Coffee
Association of America and Director of Vermont-based Green
Mountain Coffee, provided a sense of how quickly and
strongly the demand for specialty coffee has been growing in
the U.S. In 1990, there were approximately 2,250 outlets
for specialty coffee in the U.S. Today, there are 20,000
outlets. In 1992, Starbucks had only 165 stores; today, it
has over 9,000 stores worldwide, with over 100,000
employees. He noted that specialty coffees are now taking
up more shelf space at the expense of larger, mass-market
brands, but that maintaining the competitiveness of
specialty coffee requires a lot of energy, time, and
discipline.


8. Thanks to USAID, he said, cuppers have been trained to
improve the quality of coffee, and the quality of Rwandan
coffee is on the rise. He noted that just last week,
Rwandan coffee was featured as the very first offering in a
new "Special Reserve" program launched by Green Mountain
Coffee that brings in limited supplies of very high quality
coffee. Prior to the arrival of the shipment, the coffee
was already sold out.

Government Initiatives to Promote Industry
--------------

9. Minister of State for Commerce Protais Mitali recounted
the long coffee tradition in Rwanda, which started in 1902
when the first coffee plants were introduced by German
missionaries in the southwest of the country. Since then,
coffee has played a prominent role in the socio-economic
development of Rwanda as a major source of income for rural
families and a major source of foreign currency for the
country in general. He noted that Rwanda has natural
features conducive to the production of high-quality coffee
beans, including high-altitude coffee growing zones,
predictable rainfall, and fertile volcanic soil.


10. Mitali noted that Rwanda recently launched a major
quality improvement program, focusing on boosting production
and quality, to ensure that its natural potential is fully
exploited. He said that the dissemination of modern coffee
production and processing methods to producers will ensure
that the natural quality of beans produced by Rwanda's
farmers is preserved. He added that the Rwandan coffee
sector is committed to improving the industry at all levels,
from production to primary and secondary processing, through
education on ways to improve production and investment in
coffee washing stations.


11. Recognizing that the American market offers numerous
advantages, both in terms of quality demand and social
responsibility, the Rwandan government, in cooperation with
USAID and other partners, would like to launch the "Cup of
Excellence" program in Rwanda, he said. Under this program,
a select group of national and international cuppers select
the very best coffee produced in a country in a particular
year. The Rwandan coffee industry has already approached
the U.S.-based program about setting up a program in Rwanda
and is looking for funding. He thanked USAID for its
support of coffee cooperatives and private investors in
increasing production of specialty coffee and promoting it
in the U.S. market.

Comment
--------------

12. In 2005, Rwanda exported an estimated USD 35 million in
coffee exports worldwide, including USD 5 million in coffee,
mainly specialty coffee, out of a total USD 6 million in
goods to the U.S. Of the USD 35 million in coffee exports,
specialty coffee exports worldwide generated approximately
USD 3 million in revenues, double that of 2004. As Rwanda's
number one agricultural export, coffee is playing a
significant role in Rwanda's economy, representing
approximately one-third of the total value of Rwandan
exports. Rwanda's emergence on the international market as
an exporter of "specialty coffees" could lead to a dramatic
increase in Rwanda's economic growth and development.
Despite recent budget cuts in its Development Assistance
funds and a recent decision to phase out the critical Title
II food aid program (Food-for-Peace),USAID foresees
continued, albeit reduced, support to the Rwandan coffee
sector in upcoming years, focusing on applying best
practices throughout the country in production and
processing techniques, as well as assisting the GOR in its
effort to double the number of coffee washing stations.

ARIETTI