World Coffee Producers Forum Chair urges coffee producing nations to improve domestic consumption
Coffee-growing African nations make pennies against the dollar for doing the harder part of the job, deeming the business - worth less than a bean in colloquial terms. CNBC Africa’s Ridhima Shukla spoke to Juan Esteban, Chairman of the World Coffee Producers Forum to learn how African businesses can take a bigger bite of the market and the tax barriers holding them back.
Tue, 14 Feb 2023 11:03:20 GMT
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AI Generated Summary
- African coffee growers face obstacles in accessing the global market due to tax barriers and market dynamics, hindering their ability to maximize their potential in the industry.
- Improving quality and productivity is crucial for African nations to enhance their competitiveness and appeal to evolving consumer preferences in key markets like the U.S., Europe, and Japan.
- The World Coffee Producers Forum serves as a platform for advocacy and knowledge sharing among producers, aiming to address challenges such as inequitable taxation and the impact of climate change on coffee production.
Coffee-growing African nations face challenges in accessing the global coffee market and benefiting from their high-quality land and climate for coffee production. In a recent interview with CNBC Africa, Juan Esteban, Chairman of the World Coffee Producers Forum, shed light on the tax barriers and market dynamics that hinder African coffee growers from maximizing their potential in the industry. Esteban emphasized the importance of quality and productivity in coffee production, urging African nations to invest in research and development to increase their competitiveness. Additionally, he highlighted the significance of improving domestic coffee consumption in producing countries to stimulate market growth. With the U.S., Europe, and Japan leading coffee consumption globally, Esteban encouraged African countries to tap into new market trends and consumer preferences by offering innovative coffee products. The interview also addressed the ecological costs of modernizing coffee farming practices and the need for sustainable solutions that prioritize the well-being of farmers and the environment. Esteban criticized the disparity in taxation between green coffee and processed products, citing protectionist measures that benefit consuming countries at the expense of producers. He called for a more equitable distribution of value along the coffee supply chain to ensure fair compensation for African farmers. The World Coffee Producers Forum serves as a platform for producers to advocate for their interests and raise awareness about the challenges they face. By fostering cooperation and knowledge sharing among coffee-producing nations, the Forum aims to empower farmers and promote sustainable practices in the industry. Esteban expressed concerns about the impact of climate change on coffee production, citing recent fluctuations in prices and availability due to erratic weather patterns. He underscored the need for global collaboration to address the long-term effects of climate change on coffee cultivation and mitigate risks to producers. As the coffee market continues to evolve, African nations must navigate complex market dynamics and advocate for policies that support their growth and sustainability. By addressing key challenges and fostering innovation, African coffee growers can position themselves as valuable players in the global coffee industry.