Before privatizing the coffee industry in Burundi in 2008, all coffee production was under the control of the state-owned company Sogestal, which is now virtually bankrupt. As a result of this privatization, the situation of small coffee producers has deteriorated. The government, under pressure from the World Bank, transferred most of the washing stations it used to control to foreign or multinational companies, leaving small coffee producers with very little to support themselves.
Coffee is very important to Burundi, accounting for 80% of the country's export earnings and supporting the livelihoods of 55% of the population, approximately 750,000 families, the majority of whom are smallholder farmers. In 2007, the president of Burundi at the time declared that coffee belonged to the producers until it was exported. This agreement allowed them to oversee the supply chain and gave them the right to receive 72% of the revenue from international coffee sales. But in reality, little or none of that has happened.
In 2008-2009, the Government of Burundi transitioned towards full privatization of the coffee industry, reportedly due to pressure from the World Bank. The World Bank's support for public health programs in Burundi, for some obscure reason unknown to us, was supposedly linked to reforms in the coffee sector. As expected, these reforms have been a disaster. Today only a small portion is classified as “specialty coffee” and receives premiums higher than the world market price. But just as damaging as the undervalued price of Burundi coffee is the decline in volume. The amount of coffee produced has been declining over the past 20 years, even with privatization. Today a coffee tree in Burundi produces less than 1 kg of Cherry per harvest season, while in Colombia a coffee tree produces 20 Kg on average.
In conclusion, we can say that in Burundi, which is today the third poorest country in the world, income from coffee represents the difference between food security and hunger for a large part of the population. However, the country is currently in the process of re-tooling a new reform of the sector, risking further undermining the livelihoods of its people.
In conclusion, we can say that in Burundi, which is today the third poorest country in the world, income from coffee represents the difference between food security and hunger for a large part of the population. However, the country is currently in the process of re-tooling a new reform of the sector, risking further undermining the livelihoods of its people.
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