Coffee, just like copper, is a Zambian economic strength, that, if fully exploited, will not only grow the economy, but carve a space in the global economy for the country as does copper production.
Zambia is a coffee producing country with the potential to export US$1 billion worth of coffee each season, directly benefiting various regions like the Northern province as well the national economy.
Coffee, the US$100 billion Global Industry
According to Business Insider, coffee is the second most sought-after commodity in the entire world, with an industry that is worth over $100 billion across the globe. In terms of exporting alone, the industry is valued at $20 billion and continues to be on the rise—on average, 500 billion cups of coffee are consumed on Earth every year.
Americans consume 400 million cups of coffee per day, equivalent to 146 billion cups of coffee per year, making the United States the leading consumer of coffee in the world. Coffee represents 75% of all the caffeine consumed in the United States.
Globally, there are just over 70 major players of coffee, and the top coffee brands, retailer chains, roasters, and coffee shops include Starbucks, Costa Coffee, Illy, McCafe, Tim Horton’s, Gloria Jeans, Nescafe, Folgers, Keurig, and Nespresso; a bulk of them spread over the United States of America and Europe.
Zambia, in this whole mix, exports 70% of its coffee production to the United States of America and Europe.
Global Market Intelligence for Coffee
To understand the potential of Zambian coffee, there is need to listen to global intelligence chatter in market reports that have international trade impact.
Modor Intelligence, a market leader in global consumer and market intelligence, published a report about the “Coffee Market – Growth, Trends and Forecasts (2019 – 2024)”, and the insights include the following;
The global coffee industry is growing at a significantly by producing products almost exclusively in developing nations. As per the survey conducted by the National Coffee Association in the United States, more than 70% of the consumers prefer at-home coffee preparation. There has been a gradual shift observed from soft drinks to coffee drinks among consumers.
The consumers prefer Nespresso coffee machines, coffee brewers, and drip coffee makers to prepare coffee at home. South America is the largest producer of Coffee in the world whereas, Europe being the largest producer of high-quality coffee. Germany, Italy, France, Spain, and the United Kingdom are the dominating coffee consumers in the European region.
The global coffee market is available as whole bean, ground coffee, instant coffee, coffee pods and capsules by product type. By distribution channel the market is segmented as on-trade and off-trade. Where off-trade segment is further segmented as supermarket/hypermarket, convenience stores, specialist retailers and others.
Arabica Coffee is showcased as the one on high demand.
Modor Intelligence Report noted the key market trends were that Arabica coffee market is highly produced coffee in the world followed by Robusta. Companies around the world are focusing on the principles of zero waste and circular economy, by launching fresh ground coffee pods in two flavors, namely 100% Arabica Ricco and 100% Arabica Aromatica, certified by the Rainforest Alliance. These pods can be collected with food waste and are totally compostable. Companies are performing product innovations mainly on Arabica coffee.
Europe is a major market for high-quality coffee.
Many companies in Europe are marketing coffee as an artisanal product rather than a commodity. The coffee entry in Europe is sourced through the ports covering Antwerp, Bremen, Hamburg, Genoa, Le Havre and Trieste. By distribution channel, supermarkets in Europe are the main point of sale for a broad assortment of coffee, be it capsules or single-origin varieties. It has helped them to become sustainable and efficiently cater to the preferences, and expectations of consumers.
Manduku Homestead, Mubuyu Farm to Café Espresso
When visitors arrive at the Lusaka or Livingstone international airports, they are greeted with the aroma of brewed coffee from Café Expresso, the world class coffee and restaurant. Many well-travelled business people find it hard to leave Zambian airports without sipping a cup or two of an americano or latte.
Before the coffee gets to Café Espresso, it starts from a remote as the Manduku homestead in the North; led by communal farmer Morris Manduku, who occasionally produces coffee from a small planation of a dozen of trees, and selling it upstream in the production value chain.
With Café Espresso manning the gateway of Zambia at the airport lounges, other coffee brand outlets that are a must try in Lusaka include Brew Me Cafe, PeaBerry Cafe, The Deli, The Cake Bar, Uptown Cafe, and Taste By Rootz.
One of Zambia’s success stories of Coffee production is Mubuyu Farm, the plantation where the Munali Coffee is produced and exported. Founded by a Dutch family 50 years ago, the farm is a major player in exporting of Zambian Coffee, and host all year-round Coffee Safaris.
They boast of their natural production processes, and their inclusive farming approach that include Cherry picking, Pulping, Washing, Fermentation, Sun drying, Storing, Roasting and Packaging.
In the coffee roasting and distribution sphere of the Zambian coffee industry, you also have brands like Marika’s Coffee. Marika’s Coffee was established in 2007 by Teija Kuusela Lublinkhof, a coffee production and marketing genius. She says that her ambition is to roast the best Zambian coffee available for the local market and package it smartly in high quality packaging to guarantee freshness for longer.
Marika distributes eight international coffee machine brands, and two coffee brands to the local Zambian market. There are countless other examples of the local demand for coffee, especially amongst the affluent, all pointing to a simple fact that the country cannot ignore coffee and its economic potential.
Production of Coffee in 2018
The season ending September 2018 saw Zambia produce just over 2,300 tonnes of coffee, an increase of more 1,400 tonness compared to last year; a clear recovery trajectory to not only former glories but to get to maximise the potential of the country.
The world coffee production is fast growing as the demand for the product is mushrooming world over, and Zambia has an opportunity to become a leading producer in Africa. Zambia has a history of coffee production dating the early 1980s, and that must be revived and further developed in order to tap into the billion-dollar global market.
History of Greatness in Coffee
On March 22nd, 1987, the Food and Agriculture Organization published a research report titled Coffee Production in the Northern and Northwestern Provinces” of Zambia, whose objectives we “to develop and improve smallholder coffee production” and “to initiate and to expand coffee research”.
The research found that, “there are two main groups of coffee growers in Zambia, small-scale farmers and commercial farmers”. The reported concluded that “research has demonstrated that it is possible to obtain consistently high yields from well managed coffee under Zambian conditions, particularly when irrigation facilities are available”.
Furthermore, the research concluded that for the successful extension of the industry, there was need for training and development of farmers, provision of technical assistance, growth centred regulation of the industry, and credit facilities availed to farmers and the value chain.
FAO wrote “Lack of credit facilities, especially among the smallholder producers, has in the past discouraged potential growers”.
The report also noted that “an important function of the project was the establishment of nurseries and the distribution of coffee seedlings to growers”.
From 1984 to 1985, this research project had 1,185 farmers (small growers), growing 864,204 coffee trees spread over 431ha of land.
This initiative saw Zambia’s coffee production output increase to 380 tonnes in 1984 season from 153 tonnes from the previous season.
The International Coffee Organization (ICO) granted Zambia an initial quota of 330 tons in September 1984, which was later increased to 350 tonnes.
Zambia exported coffee for the first time in 1985, with a total of 377 tonnes mainly to quota markets (one parcel to a non-quota market). The quota has been increased to 450 tonnes for 1985-86.
Current Affairs of Coffee
African Farming, reported that “Zambia has the potential to produce 400 000 tons of coffee with an average value of US$1 billion by removing barriers that keep smallholder farmers out of the sector, say industry experts. ECI Africa, an international development and management consultancy, says coffee production can create more jobs, because it is so labour intensive.”
Such a potential means a lot, with a country that has a labour force of 6 million out of 8 million adults, there is room for further labour market development as many people can participate in the coffee production, distribution, and consumption value chain.
There are about 3,000 to 4,000 small scale farmers that feed into the national export pool; and that needs to be increased, and their capacity grown to ensure that the national potential is maximized.
Filling the Blank Spaces
Zambia, as government, farming households, and communities, need to invest in the value chain of Coffee in order to develop the value chain of coffee from farmer to end consumer. The same attention placed in Wheat, Tobacco, and Maize, must be placed in Coffee as it has the same demand.
Joseph Taguma told the African Farming that “, the coffee sector required long-term financing for tree crops to capture the huge potential of exportable production. Several studies conducted by experts have found the potential for the growth of the coffee sector lies in Zambia’s production of the globally competitive Arabica coffee variety.”
Coffee, world over is a premium product, and ignoring it is an opportunity cost Zambia cannot afford, as like it or not, all business happens in coffee shops in today’s world, and that must be exploited in that coffee is a tourist attraction.
In other advanced economies, coffee farms are now being turned into tourism attractions with business people, lovers of coffee traveling from afar just to spend time in coffee plantations, tasting the various types of coffees.
There is need for intelligent financing strategies to flow into the value chain of coffee to increase production, and also branding Zambia as a coffee economy, which by default is.
As you cannot ignore the availability of vast resources of copper in Zambia, you cannot ignore the coffee fertileness of the Northern, Copperbelt, Luapula, Northwestern and Muchinga provincial soil; a must invest in.
