Identifier
Created
Classification
Origin
07LUSAKA1016
2007-09-05 14:43:00
UNCLASSIFIED
Embassy Lusaka
Cable title:
ZAMBIAN COFFEE PRODUCTION: INFORMATION FOR THE U.S.
how-toVZCZCXRO8917 RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN DE RUEHLS #1016/01 2481443 ZNR UUUUU ZZH R 051443Z SEP 07 FM AMEMBASSY LUSAKA TO RUEHC/SECSTATE WASHDC 4873 INFO RUCPDOC/DEPT OF COMMERCE WASHDC RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
UNCLAS SECTION 01 OF 03 LUSAKA 001016
SIPDIS
SIPDIS
STATE FOR USITC (LSCHLITT AND FYINUG)
E.O. 12958: N/A
TAGS: OTRA ETRD ASEC ZA
SUBJECT: ZAMBIAN COFFEE PRODUCTION: INFORMATION FOR THE U.S.
INTERNATIONAL TRADE COMMISSION
REF: A) SECSTATE 113452
B) LUSAKA 810
C) 06 LUSAKA 1421
UNCLAS SECTION 01 OF 03 LUSAKA 001016
SIPDIS
SIPDIS
STATE FOR USITC (LSCHLITT AND FYINUG)
E.O. 12958: N/A
TAGS: OTRA ETRD ASEC ZA
SUBJECT: ZAMBIAN COFFEE PRODUCTION: INFORMATION FOR THE U.S.
INTERNATIONAL TRADE COMMISSION
REF: A) SECSTATE 113452
B) LUSAKA 810
C) 06 LUSAKA 1421
1. (U) This cable provides background information on Zambia's coffee
industry, in response to Ref A action request to assist the U.S.
International Trade Commission in the preparation of its annual
reports.
--------------
TEXTILES
--------------
2. (U) Please see previous reporting (Refs B and C) for information
on Zambia's textile industry.
--------------
COFFEE: STATISTICS
--------------
3. (U) Coffee Sector Details:
Type of coffee produced: Arabica
Main varieties grown: SL28, F6, and Catimor 129
Production cycle: 7-8 years
Harvesting time (peak): June/July
Method of processing: Wet processing
Main export destination: Europe, U.S., and Japan
ICO membership status: Exporting member
4. (U) Coffee Producing Areas (Cultivated Hectares):
Southern Province: 975 hectares
Lusaka Province: 350 hectares
Central Province: 413 hectares
Copperbelt Province: 250 hectares
Northern and Luapula
Provinces: 1,555 hectares
--------------
Total 3,543 hectares
(Note: This total reflects both mature and immature coffee
fields.)
5. (U) Coffee Production and Exports (in metric tons):
Crop Year
April-March Production Qty Exported
-------------- -------------- --------------
1984/85 397 377
1985/86 618 598
1986/87 515 499
1987/88 450 432
1988/89 260 244
1989/90 1,313 1,294
1990/91 1,329 1,309
1991/92 1,792 1,772
1992/93 1,531 1,514
1993/94 1,582 1,536
1994/95 1,232 1,196
1995/96 1,580 1,544
1996/97 2,167 1,844
1997/98 2,627 2,285
1998/99 3,450 3,358
1999/00 2,200 2,180
2000/01 5,868 5,832
2001/02 5,000 4,531
2002/03 6,500 6,036
2003/04 6,500 5,811
2004/05 6,800 6,585
2005/06 6,500 6,017
(Source for data in paragraphs 3 through 5: Zambia Coffee Growers'
Association)
--------------
COFFEE: GENERAL BACKGROUND
--------------
6. (U) Zambia is well-suited for irrigated coffee production, with
favorable climatic conditions and abundant land resources. Low
international prices, however, have discouraged commercial farmers
from diversifying into coffee production. Other factors that
restrain production levels are the strong Zambian Kwacha and high
interest rates (making it difficult for farmers to expand or
purchase equipment/machinery). According to the Coffee Board of
Zambia, the sector is also held up by international trade barriers
and insufficient resources to promote Zambian coffee abroad.
LUSAKA 00001016 002 OF 003
7. (U) Total national production in the 2005/2006 crop year was
approximately 6,500 metric tons. The 2006/2007 figure is not yet
available, but the Coffee Board of Zambia estimates that exports for
the period may have fallen to approximately 4,500 metric tons. This
represents a significant decline from previous years, due in part to
a drought in 2005. Some farmers have also experienced difficulties
recovering their operating costs and have uprooted their coffee
crops.
8. (U) Nevertheless, the Zambia Coffee Growers Association
anticipates that this figure will rebound, rising to 10,000 metric
tons by 2010, based on recent plantings and the Zambia Coffee
Growers' Association's ambitious plans to expand out-grower schemes
with small-scale farmers. A Coffee Board of Zambia representative
told Emboff that the industry's target is between 15 to 20 thousand
metric tons per year, in the specialty segment.
9. (U) A majority of the coffee exports head to European markets,
primarily Germany, the UK, Switzerland, and the Netherlands. The
remaining export markets include South Africa, Australia, Japan, and
the U.S. Local sales of roasted coffee account for less than 10
percent of total Zambian coffee production. Terranova Coffee
Estates of Mazabuka has become the newest addition to Starbuck's
line of high-end "Black Apron" coffees. In 2006, Terranova sold 108
tons of coffee to Starbucks. Colin Street, the owner of Terranova
Farm, stated that without USAID assistance, his coffee would never
have reached high-value markets such as Starbucks.
--------------
COFFEE: PRODUCTION
--------------
10. (U) Zambia produces Arabica coffee from plant seedlings that are
raised in on-farm nurseries. The coffee consists of two categories,
conventional varieties and semi-dwarf varieties, and is harvested
between March and July. The freshly picked coffee cherries
(red-hulled beans) are mechanically hulled, washed and sun-dried on
wire mesh trays. Many of the farmers endeavor to apply progressive
agronomic techniques, including prudent water usage, crop protection
and nutrition, "fertigation" (fertilizer in irrigation water)
composting of coffee pulp, biological pest control, and the
promotion of biodiversity.
11. (U) Large scale producers benefit from GRZ agricultural
incentives, such as VAT rebates, capital equipment purchase
discounts, and electrical rate reductions. Small-scale farmers or
outgrowers who do not register as agricultural enterprises are not
eligible to benefit from the agricultural incentives. Commercial
borrowing is not easily or widely available. Some banks have begun
to introduce agricultural loans, although the rates are not yet
competitive.
12. (U) The coffee sector provides employment to more than 2,100
permanent staff. Seasonal employment during the harvest season
provides a further 18,000 jobs. There are approximately 75
large-scale and 520 small-scale farmers who grow coffee in Zambia.
--------------
COFFEE: INDUSTRY INSTITUTIONS
--------------
13. (U) The coffee industry is relatively well-organized in Zambia,
with functioning structures and institutions to support its growth.
The Coffee Board of Zambia, a statutory government agency, is the
primary regulatory body. The Board oversees the growth of the
coffee sector, ensures the equitable distribution of GRZ resources
to small- and large-scale commercial farmers alike, and markets
Zambia's coffee brand/image oversees.
14. (U) The Zambia Coffee Growers' Association (ZCGA) is the
operating wing of the Coffee Board, which provides coffee extension
services and ensures quality control. It also provides
administrative, milling, warehousing, and shipping services to its
members and has the sole responsibility for export sales. ZCGA
members who meet certain criteria may conduct their own independent
marketing; however the ZCGA handles the logistics for all exported
products. The ZCGA is wholly owned and funded by its members
(coffee growers).
--------------
COFFEE: USAID ASSISTANCE
--------------
15. (U) USAID/Zambia has worked closely with ZCGA and the Zambia
Coffee Board to facilitate the country's membership in the Eastern
African Fine Coffees Association. This has resulted in increased
exposure to international markets and has lead to higher quality
and, consequently, higher prices for Zambian coffee. USAID has
supported the attendance of coffee producers to industry trade shows
LUSAKA 00001016 003 OF 003
in the United States, Europe, and Japan. USAID has also furnished
expert technical assistance in production and processing
technologies, tasting, coffee preparation and marketing. As a result
of U.S. assistance, Zambian coffee growers have recorded significant
growth in sales to these specialty markets.
--------------
COFFEE: CONTACTS
--------------
Mr. Andrew Hamaamba, Board Chairman, Coffee Board of Zambia, P.O.
Box 90794, Lusaka. Tel/Fax: 260-21-125 2850; Email:
coffee@iwayafrica.com
Mr. Ben Zimba, Board Secretary, Coffee Board of Zambia, P.O. Box
90794, Lusaka. Tel/Fax: 260-21-125 2850; Email:
coffee@iwayafrica.com
Mr. Joseph Taguma, General Manager, Zambia Coffee Growers
Associations, Plot 7138, Mwembeshi Road, P.O. Box 35388, Lusaka.
Tel: 260-21-128 6447; 260-21-128 6972; Fax: 260-21-128 7654; Email:
jtaguma@zcga.co.zm and zcga@zcga.co.zm
Mr. Collin Street, Terranova Farms limited, P.O. Box 670128,
Mazabuka. Tel/Fax: 260-21-323 0365; mobile: 260-97-779 4423
Mr. Willeim Lublinkhof, Mubuyu Farms Limited, P.O. Box 33063,
Lusaka. Tel/Fax: 260-21-125 4141; mobile: 260-97-777 0278
Mr. H. Von Pezold, Kasama Coffee Company, P.O. Box 410208, Kasama.
Tel: 260-21-422 1591; Fax: 260-21-122 1887
Dr. Stephen Muliokela, Director, Golden Valley Agricultural Research
Trust, P.O. Box RW 50834, Lusaka. Tel: 260-21-121 3739; Fax:
260-21-121 3832; Email: gart@zamnet.zm
Mr. Likando Mukumbuta, Executive Director, ZATAC Limited, Private
Bag 207, Woodlands, 191A Chindo Road, Lusaka. Tel: 260-21-126 3512;
Fax: 260-21-126 3502
--------------
QBASSY POC
--------------
The primary contact person for Embassy Lusaka is:
Name: Mikael Cleverley
Title: Political/Economic Officer
Email: CleverleyMX@state.gov
Phone: +260-1-250-955
Fax: +260-1-252-225
MARTINEZ
SIPDIS
SIPDIS
STATE FOR USITC (LSCHLITT AND FYINUG)
E.O. 12958: N/A
TAGS: OTRA ETRD ASEC ZA
SUBJECT: ZAMBIAN COFFEE PRODUCTION: INFORMATION FOR THE U.S.
INTERNATIONAL TRADE COMMISSION
REF: A) SECSTATE 113452
B) LUSAKA 810
C) 06 LUSAKA 1421
1. (U) This cable provides background information on Zambia's coffee
industry, in response to Ref A action request to assist the U.S.
International Trade Commission in the preparation of its annual
reports.
--------------
TEXTILES
--------------
2. (U) Please see previous reporting (Refs B and C) for information
on Zambia's textile industry.
--------------
COFFEE: STATISTICS
--------------
3. (U) Coffee Sector Details:
Type of coffee produced: Arabica
Main varieties grown: SL28, F6, and Catimor 129
Production cycle: 7-8 years
Harvesting time (peak): June/July
Method of processing: Wet processing
Main export destination: Europe, U.S., and Japan
ICO membership status: Exporting member
4. (U) Coffee Producing Areas (Cultivated Hectares):
Southern Province: 975 hectares
Lusaka Province: 350 hectares
Central Province: 413 hectares
Copperbelt Province: 250 hectares
Northern and Luapula
Provinces: 1,555 hectares
--------------
Total 3,543 hectares
(Note: This total reflects both mature and immature coffee
fields.)
5. (U) Coffee Production and Exports (in metric tons):
Crop Year
April-March Production Qty Exported
-------------- -------------- --------------
1984/85 397 377
1985/86 618 598
1986/87 515 499
1987/88 450 432
1988/89 260 244
1989/90 1,313 1,294
1990/91 1,329 1,309
1991/92 1,792 1,772
1992/93 1,531 1,514
1993/94 1,582 1,536
1994/95 1,232 1,196
1995/96 1,580 1,544
1996/97 2,167 1,844
1997/98 2,627 2,285
1998/99 3,450 3,358
1999/00 2,200 2,180
2000/01 5,868 5,832
2001/02 5,000 4,531
2002/03 6,500 6,036
2003/04 6,500 5,811
2004/05 6,800 6,585
2005/06 6,500 6,017
(Source for data in paragraphs 3 through 5: Zambia Coffee Growers'
Association)
--------------
COFFEE: GENERAL BACKGROUND
--------------
6. (U) Zambia is well-suited for irrigated coffee production, with
favorable climatic conditions and abundant land resources. Low
international prices, however, have discouraged commercial farmers
from diversifying into coffee production. Other factors that
restrain production levels are the strong Zambian Kwacha and high
interest rates (making it difficult for farmers to expand or
purchase equipment/machinery). According to the Coffee Board of
Zambia, the sector is also held up by international trade barriers
and insufficient resources to promote Zambian coffee abroad.
LUSAKA 00001016 002 OF 003
7. (U) Total national production in the 2005/2006 crop year was
approximately 6,500 metric tons. The 2006/2007 figure is not yet
available, but the Coffee Board of Zambia estimates that exports for
the period may have fallen to approximately 4,500 metric tons. This
represents a significant decline from previous years, due in part to
a drought in 2005. Some farmers have also experienced difficulties
recovering their operating costs and have uprooted their coffee
crops.
8. (U) Nevertheless, the Zambia Coffee Growers Association
anticipates that this figure will rebound, rising to 10,000 metric
tons by 2010, based on recent plantings and the Zambia Coffee
Growers' Association's ambitious plans to expand out-grower schemes
with small-scale farmers. A Coffee Board of Zambia representative
told Emboff that the industry's target is between 15 to 20 thousand
metric tons per year, in the specialty segment.
9. (U) A majority of the coffee exports head to European markets,
primarily Germany, the UK, Switzerland, and the Netherlands. The
remaining export markets include South Africa, Australia, Japan, and
the U.S. Local sales of roasted coffee account for less than 10
percent of total Zambian coffee production. Terranova Coffee
Estates of Mazabuka has become the newest addition to Starbuck's
line of high-end "Black Apron" coffees. In 2006, Terranova sold 108
tons of coffee to Starbucks. Colin Street, the owner of Terranova
Farm, stated that without USAID assistance, his coffee would never
have reached high-value markets such as Starbucks.
--------------
COFFEE: PRODUCTION
--------------
10. (U) Zambia produces Arabica coffee from plant seedlings that are
raised in on-farm nurseries. The coffee consists of two categories,
conventional varieties and semi-dwarf varieties, and is harvested
between March and July. The freshly picked coffee cherries
(red-hulled beans) are mechanically hulled, washed and sun-dried on
wire mesh trays. Many of the farmers endeavor to apply progressive
agronomic techniques, including prudent water usage, crop protection
and nutrition, "fertigation" (fertilizer in irrigation water)
composting of coffee pulp, biological pest control, and the
promotion of biodiversity.
11. (U) Large scale producers benefit from GRZ agricultural
incentives, such as VAT rebates, capital equipment purchase
discounts, and electrical rate reductions. Small-scale farmers or
outgrowers who do not register as agricultural enterprises are not
eligible to benefit from the agricultural incentives. Commercial
borrowing is not easily or widely available. Some banks have begun
to introduce agricultural loans, although the rates are not yet
competitive.
12. (U) The coffee sector provides employment to more than 2,100
permanent staff. Seasonal employment during the harvest season
provides a further 18,000 jobs. There are approximately 75
large-scale and 520 small-scale farmers who grow coffee in Zambia.
--------------
COFFEE: INDUSTRY INSTITUTIONS
--------------
13. (U) The coffee industry is relatively well-organized in Zambia,
with functioning structures and institutions to support its growth.
The Coffee Board of Zambia, a statutory government agency, is the
primary regulatory body. The Board oversees the growth of the
coffee sector, ensures the equitable distribution of GRZ resources
to small- and large-scale commercial farmers alike, and markets
Zambia's coffee brand/image oversees.
14. (U) The Zambia Coffee Growers' Association (ZCGA) is the
operating wing of the Coffee Board, which provides coffee extension
services and ensures quality control. It also provides
administrative, milling, warehousing, and shipping services to its
members and has the sole responsibility for export sales. ZCGA
members who meet certain criteria may conduct their own independent
marketing; however the ZCGA handles the logistics for all exported
products. The ZCGA is wholly owned and funded by its members
(coffee growers).
--------------
COFFEE: USAID ASSISTANCE
--------------
15. (U) USAID/Zambia has worked closely with ZCGA and the Zambia
Coffee Board to facilitate the country's membership in the Eastern
African Fine Coffees Association. This has resulted in increased
exposure to international markets and has lead to higher quality
and, consequently, higher prices for Zambian coffee. USAID has
supported the attendance of coffee producers to industry trade shows
LUSAKA 00001016 003 OF 003
in the United States, Europe, and Japan. USAID has also furnished
expert technical assistance in production and processing
technologies, tasting, coffee preparation and marketing. As a result
of U.S. assistance, Zambian coffee growers have recorded significant
growth in sales to these specialty markets.
--------------
COFFEE: CONTACTS
--------------
Mr. Andrew Hamaamba, Board Chairman, Coffee Board of Zambia, P.O.
Box 90794, Lusaka. Tel/Fax: 260-21-125 2850; Email:
coffee@iwayafrica.com
Mr. Ben Zimba, Board Secretary, Coffee Board of Zambia, P.O. Box
90794, Lusaka. Tel/Fax: 260-21-125 2850; Email:
coffee@iwayafrica.com
Mr. Joseph Taguma, General Manager, Zambia Coffee Growers
Associations, Plot 7138, Mwembeshi Road, P.O. Box 35388, Lusaka.
Tel: 260-21-128 6447; 260-21-128 6972; Fax: 260-21-128 7654; Email:
jtaguma@zcga.co.zm and zcga@zcga.co.zm
Mr. Collin Street, Terranova Farms limited, P.O. Box 670128,
Mazabuka. Tel/Fax: 260-21-323 0365; mobile: 260-97-779 4423
Mr. Willeim Lublinkhof, Mubuyu Farms Limited, P.O. Box 33063,
Lusaka. Tel/Fax: 260-21-125 4141; mobile: 260-97-777 0278
Mr. H. Von Pezold, Kasama Coffee Company, P.O. Box 410208, Kasama.
Tel: 260-21-422 1591; Fax: 260-21-122 1887
Dr. Stephen Muliokela, Director, Golden Valley Agricultural Research
Trust, P.O. Box RW 50834, Lusaka. Tel: 260-21-121 3739; Fax:
260-21-121 3832; Email: gart@zamnet.zm
Mr. Likando Mukumbuta, Executive Director, ZATAC Limited, Private
Bag 207, Woodlands, 191A Chindo Road, Lusaka. Tel: 260-21-126 3512;
Fax: 260-21-126 3502
--------------
QBASSY POC
--------------
The primary contact person for Embassy Lusaka is:
Name: Mikael Cleverley
Title: Political/Economic Officer
Email: CleverleyMX@state.gov
Phone: +260-1-250-955
Fax: +260-1-252-225
MARTINEZ