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How Rwanda’s coffee industry plans to recover from COVID-19 induced disruptions
Rwanda’s coffee prices have taken a hit on the international global market as the effects on the supply chains take their toll on agriculture exports, but could they rebound back soon? Uwera Robinah, International and Regional Market Development Specialist at the National Agriculture Export Board joins CNBC Africa for more.
Mon, 13 Jul 2020 11:42:47 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Workforce challenges have led to delays in coffee production and processing
- Logistical disruptions have resulted in high transportation costs and pricing uncertainties
- Market uncertainty has impacted coffee sales and contracts, leading to revenue losses
Rwanda's coffee industry has been grappling with significant challenges due to the disruptions caused by the COVID-19 pandemic. Uwera Robinah, an International and Regional Market Development Specialist at the National Agriculture Export Board, shed light on the various obstacles faced by the sector in a recent interview. She highlighted three main areas of concern: workforce challenges, logistical disruptions, and uncertainty in the market.
The workforce challenges have been a major hurdle for coffee farmers and exporters in Rwanda. Due to restrictions and safety measures in place to combat the spread of the virus, there has been a shortage of seasonal workers. This shortage has led to delays in crucial work in coffee plantations and washing stations, impacting the overall production process.
In addition to the workforce issues, logistical challenges have also plagued the industry. Disruptions in transportation channels have resulted in high transportation costs, both by road and air. The costs of airlifting roasted coffee to its destinations have soared, adding to the financial burden faced by exporters. Roadblocks and pricing uncertainties have further complicated the transportation of coffee to key markets.
Moreover, the uncertainty in the market has been a significant challenge for Rwanda's coffee sector. With many buyers stepping back and contracts being lost during the lockdown, the demand for Rwandan coffee has taken a hit. Coffee sales in various outlets like supermarkets, coffee shops, and micro roasters have seen a decline, leading to a decline in revenue for exporters.
To address these challenges, the National Agriculture Export Board (NAEB) has implemented several initiatives to support coffee farmers and exporters. One key strategy has been the exploration of online sales platforms for both roasted and green coffee. By shifting towards virtual exhibitions and online sales, NAEB has been able to secure orders for Rwandan coffee, despite the disruptions caused by the pandemic.
Additionally, NAEB has been engaging with buyers through organized meetings and sample requests to maintain communication and sustain business relationships. While face-to-face buyer visits have been restricted due to the pandemic, virtual interactions and sample shipments have allowed for continued engagement with international buyers.
Although the pricing of coffee has been impacted by the challenges in the supply chain, efforts are being made to negotiate and discuss pricing with buyers to ensure the sustainability of the industry. By adapting to the new normal and leveraging online platforms, Rwanda's coffee industry is striving to recover from the setbacks caused by COVID-19 and emerge stronger in the post-pandemic era.
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