Ocir-café predicts shortfall in coffee production

Coffee projections from Rwanda Coffee Authority are likely not to be met because of limited coffee trees and an irregular growing cycle.

Saturday, July 18, 2009

Coffee projections from Rwanda Coffee Authority are likely not to be met because of limited coffee trees and an irregular growing cycle.

"Compared to the projections and according to the trend in the production cycle it will be slightly below the target,” said Pontien Munyankera the head of planning at Ocir Café.
Munyankera in an interview with Business Times said that the coffee body projected 23,000 tonnes of total coffee production including 5,000 tonnes of fully washed coffee this year but 8,300 tonnes of coffee have been registered in the first half.

Munyankera said they are targeting 18,000 tonnes by the end of September. September is usually the end of the coffee year that begins in October.

About 4,900 tonnes have been exported earning revenue worth $10m and other 3,000 tonnes are in the warehouses waiting to be exported.

It is estimated that more 7,500 tonnes of green coffee are on local commercial centres.

The 23,000 tonnes target was also revised in April from 28,000 tonnes including 15,000 tonnes of fully washed coffee at the beginning of this year.

Munyankera said that figures were revised because the number of coffee trees in production was estimated at 60 million but after the coffee census in February it was identified to be lower than that.

The shortfall is also attributed to some coffee washing stations that did not work because of unpaid bank loans while others started late due to delays in he process of acquiring loans.

According to Munyankera, discussions were held with commercial banks to release loans, a move that affected negatively projections of fully washed coffee. Out of 141 coffee washing stations, 120 washing stations were operational.

The other reason is the character of farmers who are small holders with scattered farms and luck of production figures. Ocir Café intends to have crop focused where people will be selected and their production will be measured.

Coffee price have also registered a decline of 15 percent from 4,900 tonnes of coffee first half 2009, valued at $10 million compared to same period last year where $12m was earned from the same quantity.

Prices of fully washed coffee last year were at $3.6 per kilogram now at $3.4 per kilogram while ordinary coffee ranges from $1.8 to $2.5 per kilogram respectively.

Ocir Café is still optimistic and with high hopes because buyers of Rwandan coffee on international market are still committed to buy it.

Ends