86. Experts and Leaders agree: "No shortcut to Sustainability in Coffee"

July 10, 2018

I'm back from a 2 week trip to Rwanda related to coffee. This article that appeared earlier in the year in Daily Coffee News (by Roast Magazine) sums up much of what I have seen there: "There Is No Shortcut to Sustainable Coffee" The author, Jan von Enden, General Manager of the Hanns R. Neumann Stiftung North America, based in New York, states well what I often struggle to convey to well-meaning colleagues in the industry. He apparently gets asked one of these two questions frequently: “When you do a project, can I get exclusive access to the coffee?” and “Is it a SHG grade, certified and fully traceable?”

I get asked the supply side version of those 2 questions, but Mr. von Enden's good answers would be likewise applicable! I get asked, "I'm growing my coffee using all those best practices, where will I find the buyers willing to pay for it?" and "I want to grow a high-cup-score, fully-traceable coffee from a high elevation wet mill, do you know someone who will buy it at above $5.00/Kg green FOT Kigali?"

Mr. von Enden's wise answers, slightly paraphrased:
On finding buyers, “We encourage farmers to negotiate like true entrepreneurs — get out there and find more than one. If a buyer wants exclusivity, tell them it comes with a premium, so be willing to pay up…”

With regard to quality, we tell them, “It can take three to five years to develop a well-structured, sustainable and profitable supply chain that can deliver great coffee. Find investors who understand this and will take the time to get it right, and then we can figure out what to call the coffee, and what to charge for it over the long term.”

Artisan Coffee Imports is one of those companies that understands and is investing for the long term development of processes and human systems that can deliver high quality, despite the many and frequent obstacles to achieving that goal in a country like Rwanda.

65. Ejo Heza Women Improve Their Lives with Microcredit

January 25, 2017

Members of the Ejo Heza microcredit group and cooperative.

Today I had the joy and honor to revisit the leaders of the Ejo Heza women's group - a sub-group of the KOPAKAMA cooperative in the Rutsiro district of western Rwanda. [See this earlier blog post, too.] On this sunny day at their hilltop washing station overlooking stunning Lake Kivu, about 20 of the women were meeting with their microcredit savings & loan facilitator Claude.

To be a member of the microcredit group the women commit to putting their bonus money from coffee sales into their microcredit savings account. On top of that, they contribute 500 RWF (about $.60) per week. They asked me to help them get more buyers for their coffee so that they can put more money in their savings accounts. I told them I would try! There are about 125 women in the microcredit group and 280 in the women's coffee cooperative.

I asked if they would be willing, and they agreed, to share a couple of stories of how microcredit has helped them augment the income they have from coffee. The average woman in the group has 500 coffee trees.

UWIMNANA Teresa

1. UWIMANA Teresa: "I didn't have a good life before. But then with my saving and my coffee bonuses, I was able to get my first micro-loan of RWF 30,000 (~$36). I bought goods that I sold on the Kibuye-Congo Nile trail to travelers. I was able to pay back that loan, and get a new one for RWF 150,000 (~$180). With this loan I could open a small boutique shop which makes me happy. I am able to make my loan payments on time."

2.  MUKAGIRWA Vestin: "I borrowed RWF 30,000 (~$36) to buy beans [the edible kind] during the peak season for beans. I stocked these beans until the season when there are not so many in the market. Then I was able to sell my beans at a higher price. I was able to use the money to pay back the loan and to pay school fees for my children. Now I am using another loan to buy beans again."

Ideally we could gather statistics on the payback rate of this fledgling microcredit program or a study to show that it is having an overall positive impact. Without these things it is inaccurate to say the program is a huge success for the community. But certainly from these two stories and the smiles and interest I saw on the faces of the women who were there that day, it seemed that microcredit and their coffee cooperative was definitely a benefit to their lives.

A sample page from the ledger the coordinator keeps, recording each 60 cent savings deposit.