There are so many considerations when developing a program. How do I know if renovation or rehabilitation is right for my supply chain?
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R&R program analysis does not start with determining the R&R need – rather it first starts with a broader analysis of the viability of coffee and the farmers’ willingness to invest, then an analysis of the farmer segments of the relevant context.
Is coffee - now or in the future - economically viable for farmers? What needs to be in place for farmers to be willing to invest in R&R?
Which type of value chain do farmers belong to? How ‘serviceable’ are they by value chain/sector actors?
What is the condition of trees and are farmers already making use of GAP?
To analyze the best program approach, we have determined eight questions that are used to determine coffee viability, farmer segmentation, and detailed R&R need.
By answering the following set of questions, we’re able to determine:
Rehabilitation and especially renovation require upfront investments. Determining the best technique to apply comes down to the conditions of the farm and interests of the farm owner. Considerations should include the reason for the declining yield, local availability of inputs, access to technical support, current market price and farmer finances, among other circumstances. Ultimately, it is important that R&R decisions are taken by farmers themselves, with support from other stakeholders as needed.
is required in some situations:
may be the first choice in many contexts given:
The mix of grants and loans depends on the ‘bankability’ of the R&R investment, and whether mitigation measures can decrease risks sufficiently. To determine whether loans or grants should be the prominent financing instruments, potential investors should analyze projected cash flows, and understand risks and their ability to mitigate them.
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Programs in this range of the continuum primarily cover costs through loans with embedded subsiders/grants to cover hight operating expenses.
Programs in this range of the continuum primarily rely on grants, and may have some elements of the programs financed by a concessional loan.
To better understand how countries’ needs and priorities for R&R differ we have developed data sheets on the top producing countries. These sheets can help you identify what type of actions are needed where.
The profiles highlight six topics relevant for R&R:
We distinguish between four drivers of R&R need, and highlight them with colors on profiles according to their relevance:
We highlight these icons on each country profile to indicate their significance in each country:
*All estimates and conclusions are high-level only and should, whenever possible, be triangulated with more detailed country level analysis.
There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.