Success Story: Rwandan Farmers Coffee
Rwanda's distinctive altitude, rainfall patterns, and volcanic soils are uniquely-suited for growing rich and flavorful coffee. Recognizing significant potential demand for premium Rwandan coffee, CHDI began working in February 2007 with 6,500 Rwandan coffee farmers to help strengthen their organization, expand operations, increase sales, and ultimately develop their company, called Misozi Coffee Company, into a profitable enterprise that is sustaining increased incomes and encouraging further investments in farmers' communities.
Among its first steps, CHDI loaned $23,000 to Misozi to support improvements to coffee washing stations and provided technical and marketing support to the coffee farmers. As a result, by the end of 2007, Misozi farmers had increased their production volumes by 20% to 198 metric tons. To translate increased volumes into increased incomes, CHDI also helped to expand the farmers' coffee sales by over 30%, to $700,000, at an average price of $3.79/kg. The farmers collected 100% of the profits and also repaid the CHDI loan. Reflecting its market-driven philosophy, CHDI also worked with Misozi and other coffee farmers across Rwanda to develop and market a new brand of premium, fairtrade coffee called Rwandan Farmers. This coffee is being sold directly to retailers such as Sainsbury's in the United Kingdom, avoiding middle men and returning more profit to the farmers.
Today, Rwandan coffee farmers' revenues are continuing to increase, and consumers in Europe are enjoying the delicious Rwandan coffee. To expand this success, CHDI is working in 2008 to facilitate Rwandan Farmers coffee sales to retailers in the United States and to apply a similar approach to other crops and products in Rwanda and Malawi.
