Programs and Events 2009
USAID-Supported Coffee Washing Station Pays Premiums to Farmers
Burundi agribusiness program CTO travelled to Kayanza Province on a field visit to USAID/Burundi Agribusiness Project supported coffee washing station of Bwayi.
The visit turned out to be an exceptional opportunity as this coincided with the distribution of the first-ever quality premium paid to Burundian coffee farmers at Bwayi Washing Station in Kayanza Province. Thanks to USAID-WB-IMF-fostered changes in the Coffee Marketing
Legislation in 2008, direct sales contracts are now permitted between Burundian producers and international coffee buyers/roasters/ importers. Further, the legislation permits the payment of a quality premium to those responsible for producing the "specialty" coffee (producers, washing station management teams and dry millers).
During 2008, Bwayi bought 808,464 kg of cherry. A total of 52.8 mT of green coffee was sold via direct sale contracts yielding a quality premium for farmers totaling $17,605.98 (21,087.371 FBU).
The farmers decided this premium should be divided among all farmers serving the station on a pro-rata basis to the volume of coffee they provided the station.
Farmers gathered at Bwayi to receive their "quality premium" payments which translated to an extra 25 FBU for every kg of cherry farmers brought to the station during the 2008 campaign.
Participation at the event was massive. Farmers present recognized the event was an honor for them and a real recognition of the hard work they invested in producing their coffee, with USAID/Burundi agribusiness project support. They left motivated and made a firm commitment to redouble their efforts in improving the productivity of their plantations, augmenting progressively the quality of their coffee in the hopes of attracting more buyers during 2009 and thus increasing the volume of coffee sold through direct sales.
DAI, USAID, the Managing Director of the SOGESTAL, the President of the Kayanza Provincial Farmer's Federation, the Bwayi Farmer's Cooperative President and the washing Station Manager were all present. DAI provided radio coverage of the event (both live and deferred coverage) in French and local language through Radio Isanganiro.
USAID Burundi agribusiness project was initiated in October 2007 under implementation by the U.S. firm Development Alternatives Inc, and an initial focus on the coffee value chain. Four coffee washing stations including Bwayi, Ngogomo, Teka and Murambi were selected to pilot the production of high-quality of coffee and farmer-buyer direct business relations. Eight more washing stations were included in the program toward the end of 2008, as well as new value chains focus including dairy and horticulture.