Maravi

Coffee growers body warns of bleak future for industry

Coffee growers body warns of bleak future for industry
Written by Kabanda Chulu
Tuesday, August 04, 2009 3:22:04 PM

ZAMBIA Coffee Growers Association general manager Joseph Taguma has warned that the there is no future for the coffee industry in the country due to an absence of long-term financing facilities.

Taguma said the lack of long-term investment in the coffee industry had resulted in reduction of production from the peak of 6,000 metric tonnes per annum to 1,800 metric tonnes as at the end of 2008.

He said many loans offered by commercial banks to coffee growers were exploitative because half of the loan was interest and when prices fell, most farmers failed to pay back.

“We need government support if this industry is to thrive, since coffee is a tree crop and requires five to seven years to mature hence many banks are not interested in providing finances to coffee farmers because banks are interested in making quick money so government should come to aid this sector,” Taguma said. “And due to absence of long-term finance, we do not see any future not only for coffee but any tree crop and to a large extent, this is why many coffee farms have been placed under receivership or liquidation and these developments have resulted in declines in production from the peak of 6,000 metric tonnes to 1,800 metric tonnes as at 2008.”

And launching Nkwazi coffee at the just-ended Agricultural and Commercial Show in Lusaka, Taguma said there was need to promote local consumption of coffee.

“Nkwazi coffee is 100 per cent Arabica from Munama Farms of Ndola and in conjunction with the Coffee Board of Zambia, we want to promote local consumption by bringing on the market the best high quality coffee which can compete internationally anywhere in the coffee world,” said Taguma.

Labels: COFFEE, JOSEPH TAGUMA, ZCGA

posted by MrK @ 2:22 PM