High prices, strong demand boost coffee production

Improved coffee prices on the local and international markets as well as high demand for Rwandan coffee prompted coffee farmers to increase production of the crop in the first quarter of this year.The National Agriculture Export Board revised farm gate prices of cherry to Rwf170 per kilogram in March this year from Rwf165 while the price at the coffee washing stations was increased to Rwf190 per kilogram.Celestin M. Gatarayiha, the Head of Coffee Division at National Agriculture Export Board (NAEB) told Business Times yesterday that production of green coffee for the first three months of 2012 surged by 25.7 percent to 1,594 metric tonnes compared to 1,268 metric tonnes in the same period last year as farmer were optimistic on cashing in on the favourable prices.With statistics indicating that Rwanda’s foreign exchange earnings from coffee for the first quarter of this year grew by 83.9 percent to US$5.9 million (Rwf3.5 billion) from $3.2 million (Rwf2 billion) in same period last year, coffee is likely to remain one the top drivers of the country’s exports this year. Last year, Rwanda generated US$75m (Rwf44.7b) from coffee exports, the highest revenue earned from coffee in the country’s history.Coffee revenues are projected to increase to US$157m (Rwf93.7b). The Board seeks to attain the target by increasing production of green coffee to 34,000 metric tonnes and improve quality.

News

High prices, strong demand boost coffee production