71823 Rapid Strategic Environmental Assessment of Coffee Sector Reform in Burundi Final Report THE WORLD BANK May 2011 © May 2011 The International Bank for Reconstruction and Development World Bank The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments that they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory nor the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. 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Rapid Strategic Environmental Assessment of Coffee Sector Reform in Burundi THE WORLD BANK © Simone McCourtie/World Bank v TABLE OF CONTENTS Abbreviations......................................................................................................vii Acknowledgments...............................................................................................ix Executive Summary............................................................................................. 1 1. Introduction.................................................................................................... 5 1.1. Background............................................................................................. 5 1.2. Why an R-SEA and Not an EIA?............................................................ 5 1.3. Objectives of Rapid Strategic Environmental Assessment................ 6 1.4. Methodology for the R-SEA................................................................... 6 1.5. Structure of the Report........................................................................... 7 2. Burundi’s Coffee Sector................................................................................ 9 2.1. Coffee Production.................................................................................. 9 2.2. Coffee Processing................................................................................ 11 2.3. Coffee Marketing................................................................................. 11 3. Reform in the Coffee Sector...................................................................... 14 3.1. Coffee Value Chain under the Reform............................................. 15 3.2. Reform in Coffee Sector Institutions................................................... 17 4. Environmental and Socioeconomic Issues, Gaps, and Recommendations for the Coffee Sector in Burundi.............................. 19 4.1 Production Phase.................................................................................. 19 4.2. Processing Phase.................................................................................. 30 4.3. Marketing Phase................................................................................... 38 5. Action Plan................................................................................................... 43 6. Communication Strategy........................................................................... 47 7. Conclusions.................................................................................................. 55 Annexes 1 Matrix Environmental and Socioeconomic Issues, Gaps, and Recommendations..................................................... 57 2 First Workshop for the Preparation of the Strategic Environmental Assessment of the Coffee Sector Reform in Burundi......................................................................................... 61 3 Reforms in the Coffee Sector and Their Impacts in Other Countries .......................................................................... 62 4 Organizational Structure of Burundi Coffee Growers ................ 66 5 Summary of Major Coffee Certification Schemes...................... 67 6 Certification of Kagombe Coffee Association........................... 68 References ......................................................................................................... 69 © Jumaine Hussein vii ABBREVIATIONS ABEC Association of Burundi Exporters of Coffee ACE Alliance for Coffee Excellence ARFIC Autorité de Régulation de la Filière Café BAP Burundi Agribusiness Program BOD5 Biochemical oxygen demand CNAC Confederation of National Associations of Coffee Growers COOCAFÉ Consortium of Coffee Cooperatives of Guanacaste and Montes de Oro CWS Coffee washing station DPL Development Policy Loan EIA Environmental Impact Assessment FBu Burundi franc GAP Good agricultural practices GEF Global Environment Facility GoB Government of Burundi IFC International Finance Corporation InterCafé Association Interprofessionnelle du Café du Burundi (InterCafé Burundi) IPM Integrated pest management ISABU Institute of Agronomic Sciences of Burundi LDCF Least Developed Countries Fund MAE Ministry of Agriculture and Livestock NPK Nitrogen, phosphorus, and potassium OCIBU Office du Café du Burundi OECD Organisation for Economic Co-operation and Development PA Protected area PAGE Projet d’Appui à la Gestion Economique PAIR Bugesera Natural Region Rural Infrastructure Project PES Payment for environmental services PO Peasant-based organization PPDMA Projet de productivité et de développement des marchés agricoles R-SEA Rapid Strategic Environmental Assessment SEA Strategic Environmental Assessment SIL Specific Investment Loan SLWM Sustainable land and water management SODECO Société de Déparchage et de Conditionnement (hulling and processing com- pany) SOGESTAL Sociétés de Gestion des Stations de Lavage (washing stations’ management company) USAID United States Agency for International Development © Arne Hoel/World Bank ix Acknowledgments The following evaluation team members participated in the data collection, analysis, and production of this report: Paola Agostini, Anil Kumar Hooda, Ana Maria Gonzalez Velosa, Paul-Andre Turcotte, Daniel C. Clay, Jumaine Hussein, Jean-Pascal Nguessa Nga- nou, Nicaise Ehoue, and Madjiguene Seck. The team would like to thank Francis Fragano, Indira J. Ekanayake, Jorge E. Botero, Diji Chandrasekharan and Fernando Loayza for their peer reviews, as well as Tom Lenaghan for his valuable information. The team would like to thank representatives of the Bu- rundi coffee value chain (Ministries of Agriculture and Environment, ARFIC cooperatives, civil society, InterCafé, nongovernmental organizations, private sector producers, and SOGESTAL) for their invaluable inputs, discussions, and contributions. 1 Executive Summary A reform in Burundi’s coffee sector is currently under way. Even mental and socioeconomic issues and gaps in the coffee sector, though the reform was launched by the government of Burundi as well as recommendations for addressing them; (v) an action in 1992, it was only in 2008 that implementation fully started. plan outlining priority activities to be developed in the short and The purpose of the reform is to restructure the coffee sector, fo- medium term, and (vi) conclusions. cusing on the following processes: privatization of the industrial units (especially washing/depulping stations and hulling units), Burundi’s Coffee Sector and the Reform liberalization of government control among the production and export agencies, and reform of the state coffee institutions. Coffee growing is one of the most important productive activities in Burundi. Coffee, mainly of the Arabica variety, is the country’s To improve the reform process, a Rapid Strategic Environmen- primary export crop. Coffee accounts for more than 60 percent of tal Assessment (R-SEA) was recommended. The goal of this R- all of Burundi’s export earnings, depending on the year. Around SEA is to analyze the environmental and socioeconomic aspects 2.3 percent of the country’s total land area is under coffee cultiva- along the entire coffee value chain to provide strategic direction tion, and between 50 and 67 percent of all households depend on for the sustainability of coffee production, processing, and com- coffee farming for their livelihood. Mixed farming (coffee trees mercialization. intercropped with subsistence crops such as bananas or beans) is practiced throughout the country on arable land, which is ap- An R-SEA rather than an Environmental Impact Assessment proximately 35 percent of the country’s total land area. Unfortu- (EIA) was developed because an EIA focuses on proposed physi- nately, the coffee sector suffers from low and declining production cal developments and projects such as highways, power stations, despite some improvement efforts. After the reform and with the water resource projects and large-scale industrial facilities, while support of the Projet d’Appui à la Gestion Economique (PAGE), the R-SEA focuses on proposed actions at a “higher� level, such some farmer organizations have already started to receive training as new or amended laws, policies, programs, and plans. In addi- and support to improve farm productivity. tion, an R-SEA is policy and institutionally centered, while an EIA is impact centered. There are two types of coffee processing in Burundi: washed and fully washed. The vast majority of Burundi’s coffee is fully This R-SEA was developed with the following specific objectives: washed, evidenced by the extensive presence of coffee washing • To assess the risk for possible environmental and social im- stations (CWSs), most built in the 1980s. One of the most sig- pacts resulting from the coffee sector reform, and propose nificant changes promoted by the reform has been the privatiza- alternatives and mitigation options for possible negative im- tion of the washing stations: out of a total of 156 CWSs, are pacts and to enhance the positive impacts. 23 newly established and 13 are now privately owned (formerly state-owned) stations. These 13 more efficient CWSs are owned • To identify the institutional, legal, and regulatory aspects by the Swiss company Webcor and constitute 23.1 percent of the that are needed along the entire coffee value chain for the Burundi’s wet mills. development of an environmentally and socially sustainable coffee sector that can contribute to economic development Prior to the onset of reform, coffee cherry prices were set each and poverty alleviation. year by the government. The cherries were typically blended with others of the same grade based on physical characteristics This report is divided into six sections: (i) introduction; (ii) a and not on the basis of quality (as judged by cupping scores and description of Burundi’s coffee sector; (iii) a brief explanation of profiles). Without incentives to participate in specialty markets the reform in the coffee sector; (iv) a description of the environ- and no traceability of the coffee, Burundi’s producers and CWS 2 Rapid Strategic Environmental Assesment owners had little interest in improving quality or obtaining certifications for specialty coffee. With the reform, the former open country auction system has been eliminated in favor of a rapidly evolving contract system. Also, the reform permits farmer as- sociations and private enterprises to sell their coffee through direct sales contracts to coffee buyers, large- ly on their own terms for freely negotiated prices. Besides these changes, the reform created two © Arne Hoel/World Bank new organizations: the Autorité de Régulation de la Filière Café (ARFIC) is a public enterprise whose mission is to represent the Burundi government in the coffee sector. The second organization, InterCa- fé, is an autonomous organization of professionals that guide the development strategy for the value chain. Environmental and Socioeconomic Issues, Gaps, and Recommendations Other expected effects of the reform in the production phase are: for the Coffee Sector in Burundi land degradation due to unsustainable coffee production practic- es, changes in farms’ productive systems and biodiversity loss, and Several environmental and socioeconomic issues have been oc- expansion of the agriculture frontier into the country’s protected curring, or could arise, from the coffee sector reform in each of areas. Potential socioeconomic issues during the production phase the phases of production, processing, and marketing. However, include possible farmer dependence on coffee production as the if well managed, the reform could end up generating positive only significant source of income and possibly an increase in social socioeconomic and environmental impacts. conflicts due to requests for more land for production. In the production phase, several environmental issues could arise In the coffee processing phase, there are several environmental from the reform. An increase in coffee production could lead to issues that could be exacerbated by the reform. An increase in increases in agrochemical pollution due to uncontrolled use of coffee production will lead to an increase in the demand for wa- fertilizers and pesticides. Based on a limited set of data available ter from the washing stations. In the 1990s, before the reform (from the Ministry Agriculture and the U.S. Agency for Interna- and with a production of 180,000 tons of cherries, the volume tional Development [USAID]), a back of the envelope calcula- of water used by the CWSs was 2,880,000 cubic meters (m3).3 tion shows that an increase in coffee production from 180,000 After the reform, with an estimated production in the year 2015 tons of cherries (production in 1990 as shown in the figure 5) of 240,000 tons of cherries, the volume of water could increase to 240,000 tons, which is the estimated amount for 2015 after to a level of 3,840,000 m3. the reform, would increase the levels of urea utilization from 7,500 tons to 10,000 tons.1 Recently InterCafé decided that Other environmental issues that could arise in the processing urea should no longer be recommended as fertilizer, but instead phase are water pollution from processing in the CWSs and in- a fertilizer mix of nitrogen, phosphorus, and potassium (NPK).2 creased solid wastes due to increased coffee processing. The main The increase in coffee production from 180,000 tons of cherries socioeconomic issues that the reform could generate or aggravate to 240,000 tons would presumably increase the use of this new are the poor representation of farmers in coffee processing, loss fertilizer from 12,000 tons to 15,000 tons. of employment due to privatization of CWSs, increasing con- flicts due to a lack of transparency and efficiency in the privatiza- tion process, and inadequate hygiene conditions and practices 1. This calculation is based on the conservative assumption of for workers. constant use of kilogram of urea per ton of coffee pro- duced and no significant changes in the amount of trees planted during the period of time considered. It is possible Finally, in the marketing phase, a successful reform could lead that as farmers increase their crops (number of trees and/ to the clearing of land for the construction of new roads/trails or area planted), they might proportionally use more urea or heavier use of existing roads to transport larger amounts of because they could be operating with cash that allows them to buy such inputs. coffee. Within this phase, potential socioeconomic issues are in- 2. The fertilizer change is recommended because research creasing conflicts due to inadequate distribution of benefits, in- has shown that as a result of severe land degradation on the coffee plantations, potassium and phosphorus are also 3. Sihimbiro (2009) estimates that the volume of water used by needed in addition to nitrogen. the CWSs is 16 m3 of water per ton of cherries. Coffee Sector Reform in Burundi 3 creased dependence of farmers and producers on volatile coffee prices in the international market, and poor financial returns due to farmers’ lack of direct sales knowledge. Actions/Recommendations © Arne Hoel/World Bank The foregoing issues highlight a series of institutional, policy, and capacity gaps that can be addressed by key actions/recom- mendations. The recommendations are focused for the most part on developing the capacities of institutions and coffee growers, strengthening environmental governance, and en- abling policy to support technological and financial measures. For example, in the production phase, an integrated pest manage- ment program adapted to the region’s particular characteristics is highly recommended to prevent and/or reduce agrochemical introduction of a payment-for-environmental-services program, pollution due to the uncontrolled use of fertilizers and pesticides. including carbon trading; (iii) demarcation of protected areas to In the processing phase, the water required by the CWSs would avoid expansion of the agriculture frontier; (iv) development of significantly be reduced after implementing the recommenda- a training program on water and solid waste management; (v) tion to use water-saving processing technologies. Assuming that development of a capacity-building program for enhancing en- water recycling is possible in every situation, with partial recy- forcement and monitoring of environmental and social standards cling the amount of water required by CWSs in 2015 (3,840,000 (both for production and processing); and (vi) implementation m3) could be reduced to 2,544,000 m3. With complete recycling, of a capacity-building program for coffee cooperatives. the water required could be reduced to 1,080,000 m3.4 Funding to implement the action plan can be raised through It is expected that by following the recommendations outlined the Global Environmental Facility (GEF)5, TerrAfrica Least in the document, the reform process will create an enabling Developed Countries Fund (LDCF), the World Bank’s Specific environment for a long-term sustainable coffee sector that will Investment Loan (SIL),6 and the World Bank Development contribute to the development of the agriculture sector, the re- Program Loan (DPL)7. duction of poverty levels and improvement in ecosystem man- agement, thereby providing positive socioeconomic and envi- There is great potential for the coffee reform to generate benefits ronmental results. for both the farmers and the country’s economy. If successful, implementation of the reform should go a long way toward Considering the environmental and socioeconomic issues, an stimulating coffee production and improving productivity, action plan has been developed, and is to be implemented dur- while at the same time providing a boost to Burundi’s economy ing the reform. The plan contains both short-term (two years) and alleviating poverty. and medium-term (three to five years) actions. The proposed key short-term actions are (i) the implementation of a training program on shade-grown coffee and integrated pest management; (ii) issuance of regulations making the prep- 5. The GEF provides grants to developing countries and aration of municipal land-use plans mandatory; (iii) issuance countries with economies in transition for projects related of environmentally sound criteria, standards, and regulations to biodiversity, climate change, international waters, land for the CWSs; (iv) development of studies about the potential degradation, the ozone layer, and persistent organic pol- lutants. These projects benefit the global environment, link- for recycling water in the CWSs economically; (v) development ing local, national, and global environmental challenges of a coffee certification program; and, (vi) development of a and promoting sustainable livelihoods. market study on the potential of coffee to access niche markets 6. The SILs support the creation, rehabilitation, and main- and on diversification strategies such as receiving payments for tenance of economic and social infrastructure. SILs can finance consultant services and management and train- carbon and environmental services. ing programs. SILs help to ensure the technical, financial, economic, environmental, and institutional viability of a The proposed key medium-term actions are (i) initiation of the specific investment. They also support the reform of poli- preparation and implementation of municipal land-use plans; (ii) cies that affect the productivity of the investment. 7. DPLs provide quick disbursing assistance to countries in 4. According to Sihimbiro (2009), the demand for water to support of structural reforms in a sector or the economy as treat one ton of cherry is 10.6 cubic meters of recycled a whole. DPLs support the policy and institutional changes water if it is done partially, and to 4.5 cubic meters of needed to create an environment conducive to sustained recycled water if it is done completely. and equitable growth. © Arne Hoel/World Bank Coffee Sector Reform in Burundi 5 1. Introduction 1.1 Background The R-SEA work was conducted by the World Bank in consul- tation with the Burundi’s Regulatory Authority for the Coffee Prompted by the coffee sector’s generally weak performance and Sector (Autorité de Régulation de la Filière Café, or ARFIC) and the steep fall in international coffee prices, and considering cof- the Ministry of Environment. The assessment was designed to fee can account for more than 60 percent of all export earn- examine current policy, institutional, and legal gaps regarding ings depending on the year, the government of Burundi (GoB) the achievement of environmentally and socially sustainable cof- launched a reform process in 1992 to restructure the coffee sec- fee production. This assessment also recommends enhancements tor, partially by privatization. for environmental and socioeconomic gains that already form part of the overall goal of the coffee sector reforms. The reform strove to improve incentives throughout the value chain to promote production of high-quality coffee. The out- This R-SEA draws from a review of the literature, field visits, and break of the war in 1993 put an end to the reform process, and four workshops held between January 28 and March 10, 2010. the political and economic collapse that ensued further contrib- These workshops were conducted with stakeholders to help rec- uted to the coffee sector’s deteriorating performance. On De- oncile different perspectives and to identify a series of measures cember 17, 2008, the coffee sector reform entered an operational to help reduce the potential for adverse effects on the natural and phase with the initiation of the following processes: (i) privatiza- human environments and provide an enabling environment for tion of the industrial units (especially washing/depulping sta- sustainable coffee production. tions and hulling units), (ii) liberalization of government control among the production and export agencies, and (iii) reform of 1.2 Why an R-SEA and Not an EIA? the coffee institutions. The Strategic Environmental Assessment (SEA) and Environ- In October 2009, the World Bank Board approved the $25 mil- mental Impact Assessment (EIA) are structured approaches for lion Third Economic Reform Support Grant (ERSG III) for the obtaining and evaluating environmental information prior to GoB. This Development Policy Loan (DPL), among other ac- decision making in the development process. The information tivities, supports the GoB’s coffee sector reforms. At the time the consists for the most part of predictions about how the envi- DPL was prepared, no significant environmental impacts were ronment is expected to change if certain alternative actions are foreseen. However, it was recommended that the potential en- implemented and advice on how best to manage subsequent en- vironmental and social impacts of the coffee sector reforms and vironmental changes. Both assessments include predictions and mitigation options be analyzed by 2010. evaluations of social, economic, and health impacts as well as environmental impacts. Ideally, both tools should be used in the This work has been conducted to assist the GoB in meeting this early stages of the planning process. The key principles for both recommendation and focuses on a policy-centered Rapid Stra- the SEA and EIA are the involvement of stakeholders, a trans- tegic Environmental Assessment (R-SEA). This R-SEA analyzes parent and adaptive planning process, consideration of alterna- the environmental and socioeconomic aspects along the entire tives, and the use of the best possible information for decision coffee value chain to provide strategic direction for the improve- and policy making. ment of coffee production and commercialization. Because of the short timeline and the moderate probability that the reform An EIA focuses on proposed physical developments, such as may cause negative impacts, an R-SEA was chosen as the appro- highways, power stations, water-resource projects, and large- priate analytical tool. scale industrial facilities. An SEA focuses on proposed actions 6 Rapid Strategic Environmental Assesment © Jumaine Hussein at a “higher� level, such as new or amended laws, policies, pro- of this R-SEA is to inform and influence the process of imple- grams, and plans (UNEP 2004). The EIA has a proven track menting the new coffee sector reforms and indirectly inform record for addressing environmental threats and maximizing the policy dialogue regarding sustainable coffee production for opportunities of specific projects, but is not suitable for plans national development. and programs that are more influenced by policy factors than by technical criteria. The SEAs address these policy factors and The key objectives of this R-SEA are: take into account the fact that the environmental effects as- sociated with policy reforms are often indirect, occur gradually • To assess the risk of possible environmental and social im- over the long term, and are difficult to assess accurately (OECD pacts of the coffee sector reform and propose alternatives 2006). The SEA is policy and institutionally centered, while the and mitigation options to address the negative impacts and EIA is impact centered (thus the EIA requires data collection). enhance the positive impacts. These assessment tools complement but do not substitute for each other. • To identify the institutional, legal, and regulatory improve- ments that are needed along the entire coffee value chain Given the above considerations, it was decided that an SEA was for the development of an environmentally and socially the most appropriate tool to assess the impacts and issues result- sustainable coffee sector that can contribute to economic ing from the coffee sector reform implemented by the govern- development and poverty8 alleviation. ment of Burundi. In addition, because of the short timeline, the lack of sufficient qualitative data, and the moderate probability The GoB has already started reforms in the coffee sector by ini- that the reform may cause negative impacts, a rapid SEA for the tiating the privatization of the existing CWSs and conducting coffee subsector was proposed. EIAs of the CWSs’ effluent. However, while the CWS EIAs fo- cus on the environmental impacts of specific investments, the R- 1.3 Objectives of Rapid Strategic SEA offers an opportunity for a sectorwide environmental and Environmental Assessment social analysis of the coffee reform. Strategic Environmental Assessments are intended to help policy 8. Burundi ranks 167th among 177 countries on the 2007 UN Human Development Index, and 7 out of 10 Burundians live makers better understand the links between environmental, eco- below the poverty line. In addition, of a total rural popula- nomic, and social factors in sector policy reform. The purpose tion of around 7.2 million people in 2008, approximately 4.7 million are considered poor. Coffee Sector Reform in Burundi 7 © Curt Carnemark/World Bank 1.4 Methodology for the R-SEA The consultation process was accomplished through a series of four workshops, which highlighted the priority environmental The R-SEA was built on following required activities: and socioeconomic issues associated with the coffee sector. The workshops also helped identify and prioritize suitable actions to • Desk work for literature review address these issues. • Consultation process with main stakeholders The first workshop was held in Bujumbura on January 28, 2010. • Interviews with key stakeholders During the meeting, the implementation methodology for the R-SEA and an initial inventory of issues identified by the con- • Analysis of information recollected sultants was presented. Workshop participants described the ac- tivities of the coffee sector and their possible environmental and • Validation of SEA results socioeconomic consequences. The outcome of this workshop was a list of the priority environmental and social issues relating • Communication strategy. to coffee production (annex 2). Because the coffee sector reform is a sector- and countrywide This workshop was followed by interviews with key officials of program, the R-SEA covered the entire country. Evidence gath- the various institutions managing the coffee sector. A working ered through research and consultation with stakeholders was paper was then prepared describing the state of the coffee sec- used to produce the SEA, including identifying the scope for im- tor and explaining impacts of the reform. This document was proving institutional structures and governance processes under distributed to all participants of the first workshop. Two more the planned coffee sector reforms, notably those relating to the workshops followed, on February 17 and 24, 2010, with the farmers and the private sector in coffee production, including support of ARFIC. During these workshops, a working group specialty coffee for niche markets. consisting of representatives from all institutions involved in the 8 Rapid Strategic Environmental Assesment coffee sector identified key environmental and socioeconomic 1.5 Structure of the Report effects of the reform and decided on suitable measures to en- hance the positive impacts and to reduce any negative impacts. Chapter two briefly describes the coffee sector in Burundi and reviews the phases of production, processing, and marketing. On March 9 and 10, 2010, a workshop with an enlarged group Chapter three describes reform in the coffee sector that has been was held to finalize the R-SEA by reviewing, modifying, and implemented by the GoB. Chapter four presents the main envi- validating the key recommendations and measures identified in ronmental and socioeconomic issues that could arise from the cof- the previous steps. These measures have been integrated into a fee sector reform. Along with presenting the issues, chapter four proposed action plan included at the end of this document. describes the existing legal, regulatory, institutional, and capacity gaps along the coffee value chain, as well as recommendations to Finally, a communication strategy for the R-SEA of coffee sector address them. Chapter five consists of an action plan that sets out reform in Burundi was prepared based on stakeholder analysis, short- and medium-term actions. Chapter six presents the com- level of knowledge on environmental issues and sensitivity, po- munication strategy, which assesses target audiences’ interests and tential political influence, and acceptance or preference for dif- defines how to convince them to be accountable for the environ- ferent media. ment. The final chapter includes the R-SEA’s main conclusions. Coffee Sector Reform in Burundi 9 2. Burundi’s Coffee Sector 2.1 Coffee Production Around 2.3 percent (60,000 hectares [ha]) of the total land area in Burundi is under coffee cultivation.9 Though coffee is grown throughout the country, except in the Mugamba province, the most productive regions are Buyenzi, Mumirwa, and Kirimiro in the northeast. Figure 1 shows the locations of CWSs around which coffee cultivation areas are distributed. The country’s main forests, natural parks,10 and wetlands in the north are sur- rounded by coffee cultivation, and the likelihood of encroach- ment is potentially high in a country with high levels of defor- estation.11 Between 600,000 and 800,000 Burundi households (out of the total 1.2 million households) depend on coffee farming for their livelihood. These rural families are among the poorest in the country. Coffee production is well represented across gender, age, ethnic, and income groups. The same is true regarding employ- ment at CWSs. Coffee washing, drying, grading, storage, and © Simone McCourtie 9. This figure has increased as a result of the coffee sector reform. 10. Burundi has 14 protected areas: 2 national parks, 6 natural reserves, 2 monuments, and 4 protected landscapes, all owned by the state and managed by the National Institute for the Environment and Nature conservation. In addition, there are three community and private protected areas, a sacred forest and two arboretums. The protected areas of Burundi cover approximately 157,923 hectares, 5.6 percent of the total country land mass. Some of these have been other processing steps are a significant source of employment in declared but are not yet managed. Burundi. Some of these tasks tend to be dominated by men, such 11. In total, between 1990 and 2005, Burundi lost 47.4 percent as the washing and working at the drying tables, while women of its forest cover, or around 137,000 ha. Currently, only 152,000 forested hectares remain in the country—none of tend to be employed in the sorting and grading operations. which is considered an intact forest. Uncontrolled cutting of trees for fuel wood, agricultural clearing, and livestock graz- ing are the main causes for the nearly complete defores- Mixed farming (coffee trees intercropped with subsistence crops tation of the country. The ethnic civil war and the subse- such as bananas, beans, and others) is practiced throughout the quent collapse of government conservation efforts further country on arable land, which is approximately 35 percent of the reduced forest areas and resulted in increased poaching of wildlife. In addition, high population density on mountain total land area. Each farm has between 50 and 250 coffee trees. slopes resulted in heavy soil loss and damage to agriculture. Most of the coffee farmers reside in the country’s higher eleva- For more information, see “Burundi Forest Information and tions of 1,500 to 2,000 meters (5,000 to 6,600 feet). These high Data,� Monfsbay.com and rainforests.mongabay.com/ deforestation /2000/Burundi.htm. elevations, coupled with abundant rainfall, enable Burundi’s 10 Rapid Strategic Environmental Assesment Figure 1. Burundi’s Coffee Washing Stations Source: Schluter/Société Trader Café. Suisse. coffee farmers to produce mostly Arabica coffees. Arabica trees, in the construction of CWSs during the prereform period12 did mainly of the Bourbon variety, account for 98 percent of the to- not translate into the expected increases in production. Coffee tal output. For generations, and continuing today, the Bourbon production in Burundi has actually declined over the 27-year pe- variety, highly prized in specialty coffee markets, has been the riod, as shown in the trend line in figure 2. Specifically, between coffee of choice grown by producers in Burundi. The remaining 1983 and 2007, Burundi produced on average 26,700 metric 2 percent of output is from robusta trees, mostly found in the tons of green coffee annually—virtually the same as in the 1950s Imbo plain, alongside the Rusizi River and Lake Tanganyika. and 1960s, and considerably less than the anticipated 60,000 The coffee sector suffers from low and declining production. In- 12. From 1980 to 1993, Burundi developed a program (partially creasing coffee production has not materialized due to lack of funded by the World Bank) to construct CWSs and plant trees. The number of trees increased from 90 million to more inputs in coffee cultivation. The expansion of coffee cultivation than 220 million (with variations depending on the source), to more than 4 percent of Burundi’s land area and investments and 133 CWSs were built and equipped. Coffee Sector Reform in Burundi 11 tons per year. In 2007, the production was Figure 2. Green Coffee Production in Burundi only around 18,000 tons. 45,000 40,000 In addition, with the advent of social in- 35,000 stability and political conflict, Burundi’s 30,000 production declined precipitously as farm- 25,000 tons ers abandoned their coffee trees and the 20,000 government was unable to provide the level 15,000 of support needed for proper extension 10,000 services. Consequently, during this period 5,000 Burundi was unable to respond to a new 0 1983–84 1984–85 1985–86 1986–87 1987–88 1988–89 1989–90 1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–2001 2001–2 2002–3 2003–4 2004–5 2005–6 2006–7 2007–8 2008–9 2009–10 market demand for specialty coffee. Pro- ducers were essentially left behind, having to compete in the high-volume, low-price commercial grade coffee markets. Cof- Source: Dan Clay, Michigan State University. fee trees are still very old, and less than 50 percent of the original coffee farms are still under production. devoted to subsistence crops. Coffee and tea are the two leading cash crops in Burundi, but coffee alone accounts for more than 2.2 Coffee Processing 60 percent of all export earnings depending on the year. Coffee exports are the main source of cash income for rural families. Coffee processing in Burundi is of two types: washed and ful- ly washed. Washed coffee is depulped using traditional manual Although the country has one of the best varieties of coffee when methods on the farm or using hand-turned mechanical depulp- compared to other coffee-producing countries in East Africa, since ers available in the community. Washed coffee is then sun dried 1993 Burundi (and Rwanda) has experienced the lowest producer at the farm on mats, or simply on the ground. prices on the continent (figure 4). Undoubtedly this is linked to the extent of conflict in the region and the barriers this places Fully washed processing is completed in CWSs through a multi- on moving to higher-paying, direct-sales contracts. Also impor- step process of wet processing, which involves presorting of the tant is that farmers were largely disenfranchised from the coffee cherries, then cherry flotation, mechanical depulping, fermen- sector because they shared no ownership and were paid only a tation, washing, and soaking. The fully washed coffee is then minimal, government-determined floor price for their cherries. sun dried on raised tables to reach approximately 10–12 percent While production during the prereform period was ostensibly an moisture content before being placed in sacks for storage. The “independent farmer� activity, it was nonetheless subject to gov- result from both methods is the production of parchment coffee, ernment control. By setting coffee prices artificially low, the GoB in which the dry coffee beans are still encased in a thin outer effectively deterred farmers from investing in their trees or in fer- shell known as parchment. From there the coffee is transported tilizers, mulch, and other inputs to improve production. Indeed, to the dry mill where some coffees are further hand sorted and many farmers abandoned their coffee trees and some even pulled all are dry milled to remove the parchment, electronically sorted them out and replaced them with other crops, mostly annual food to remove defective beans, graded by size, and polished. Figure 3 crops, thought to be more desirable and needed. documents the multistep fully washed process. In addition, coffees in a given region were typically blended with Most of Burundi’s coffee is fully washed, which is a prerequisite others of the same grade based on physical characteristics and to producing high-end coffee. This has been possible due to the not on the basis of quality (cupping scores and profiles). Further- extensive presence of CWSs that were built in the 1980s. more, the processed coffees from all CWSs and wet and dry mills resulted in a green coffee that was destined for the large inter- 2.3 Coffee Marketing national commercial markets, where it was blended with other coffees around the world and sold at open auction at prevailing Agriculture accounts for 35 to 50 percent of the country’s gross world prices. These CWSs and dry mills were not geared, in their domestic product (GDP), 80 percent of export earning, and infrastructure or practices, to produce higher-quality coffees and employs 90 percent of the population. It relies on small-scale they were not capable of producing smaller, traceable lots of farming in a country where 90 percent of the cultivated land is green coffee that could be sold on the specialty market. 12 Rapid Strategic Environmental Assesment SEA –  coffee sector Reform     Burundi   Figure 3. Fully Washed Coffee Processing (Wet and Dry Milling)   Source: Paul-André Turcotte. Because   there  were  no  improved  practices,  no  traceability,  and  no  differentiated  coffees  for  the specialty market, there was little interest among Burundi’s producers or CWSs during this  Coffee Sector Reform in Burundi 13 Figure 4. Comparative Prices to Farmers in East African Countries 2.50 Burundi Ethiopia Kenya 2.00 Rwanda price (US$ per pound) Tanzania Uganda 1.50 1.00 .50 .00 1976 1980 1985 1990 1995 2000 2005 2008 © Curt Carnemark/World Bank 14 Rapid Strategic Environmental Assesment 3. Reform in the Coffee Sector In the early 1980s, after nationalization of the coffee sector The outbreak of the war in 1993 put an end to the reform pro- in 1976, the GoB, with financial support from the World cess, and the political and economic collapse that ensued further Bank, made substantial efforts to increase coffee cultivation contributed to the coffee sector’s deteriorating performance. In and the production of fully washed coffee. After initial success addition, a number of initiatives were not implemented because with increasing the share of fully washed coffee, the share de- of differences over coffee sector reform strategy; the coffee sector clined and coffee production remained stagnant (recall figure is of major economic, political, and social significance. Reforms 2). Prompted by the sector’s weak performance and the steep resumed in 2005 with the coffee sector policy reaffirmed in a fall in international coffee prices, the GoB launched a reform presidential decree on liberalization of all links in the coffee sec- process in 1992 to restructure the industry, including partial tor, resulting in a new organizational and operational arrange- privatization. ment for the sector. © World Bank Coffee Sector Reform in Burundi 15 © Jumaine Hussein The GoB, through PAGE,13 commissioned a study to determine productivity, and prices was and still is considered an essential the best strategy for the disengagement of the state from the cof- component of the growth and poverty reduction strategy and fee sector in order to (i) increase coffee farmer incomes; (ii) en- one of the main themes of the private sector development objec- hance sector competitiveness to ensure its sustainability; and (iii) tives of the ERSG program. secure best returns on state assets. The coffee reform strives to (i) improve incentives throughout It was only on December 17, 2008, based on the exit strat- the value chain to promote production of high-quality coffee, egy of the state, that the coffee sector reform entered a truly (ii) increase CWSs’ and dry mills’ efficiency through privatiza- operational phase with the initiation of several processes: (i) tion, (iii) enhance sale revenues by fostering competition among the privatization of the industrial units (especially washing/ exporters; and (iv) modify state intervention by converting the depulping stations and hulling units); (ii) the liberalization of sizeable public entity the Office du Café du Burundi (Coffee government control over issues concerning coffee processing Board of Burundi, OCIBU) into the nonprofit Coffee Market- and managing export agencies, and (iii) the reform of coffee ing Board. institutions. Key developments taking place during the present reform are The reform was supported by the World Bank’s Third Economic changes along the coffee value chain as a result of privatization of Reform Support Grant (ERSG III) of $25 million, which was the CWSs, direct investment, and the transformation of coffee the second in a programmatic series designed in 2009 to help the institutions, including the entry of certifier organizations. Sec- GoB transition the country’s economy from postconflict and to tions 3.1 and 3.2 describe both of these reform areas. design and implement policies to accelerate growth and promote human development. Because Burundian coffee has potential 3.1 Coffee Value Chain under the Reform for successful sales in specialty markets, improving production, Over the past few years, as this coffee reform has gained strength, 13. Projet d’Appui à la Gestion Economique (Economic Man- there have been a number of critical changes in the production agement Support Project) is financed by the World Bank for the restructuring of organizational and operational arrange- and processing of coffee in Burundi. The country’s coffee is still ments for the sector. produced by smallholder farmers, but there have been some sub- 16 Rapid Strategic Environmental Assesment stantial changes in processing and the wet and dry mills, as well as in the marketing phase. 3.1.1 Changes in the Coffee Pro- duction Phase: Changes to Improve Productivity Smallholder farmers are still in charge of the country’s coffee production, but the reform © Paola Agostini/World Bank included several actions intended to improve productivity. Under PAGE, which targeted 21 CWSs across the country, associated farmer or- ganizations have received training and regular support for improving productivity. The train- ing is aimed at increasing farmers’ capacities to: • Adopt improved agronomic practices, • Use organic fertilizers and compost, • Replicate coffee plants, the country’s wet mills.16 The private mills are located mostly in the northern parts of Kayanza and Ngozi. These are high eleva- • Plant and maintain new trees, and tion areas known for their quality coffee. In addition, the newly installed CWSs are more efficient, consuming less water, energy, • Ensure availability and timeliness of agricultural inputs and and human resources compared to the older CWSs. plant material for the replacement of older and less produc- tive trees.14 3.1.3 Changes to Coffee Marketing 3.1.2 Changes in the Coffee Before 1991, coffee prices paid to the farmers were dependent Processing Phase: Changes in the on coffee marketing entirely controlled by the GoB. Starting in Ownership of CWSs and Drying Mills 1991, Burundi implemented an open country auction system, replacing the state export monopoly that had been in place for The process from cherry to green coffee had been the exclu- many years. However, responsibility for running the auction was sive domain of the GoB during the prereform period. All of still under tight state control (OCIBU) and did not permit di- the CWSs had been owned and operated by the state, as were rect sales to market buyers. OCIBU was also in charge of overall the two dry mills managed by the Société de Déparchage et de industry coordination and marketing. According to Clay, Deluc- Conditionnement (SODECO, the state’s hulling and process- co, and Ottaway (2007), the auction system quickly evolved into ing company). The reform established new private CWSs and a weekly closed-bid auction or “tender� for only those export- privatized some of the government-owned CWSs. During the ers belonging to the Association of Burundi Exporters of Coffee prereform period, there were 133 state-owned CWSs, and no (ABEC). In 2005, as a reaction to a build-up of unsold coffee private CWSs. Today there are a total of 156 CWSs in Burundi stocks at the time, the weekly export auction was modified to (for locations, see figure 1), which include 23 newly established accelerate sales and to reduce finance charges. These changes also CWSs and 13 privatized (formerly state-owned) CWSs. These resulted in the legitimization of direct sales outside of the ten- 36 are now owned by Webcor15 and constitute 23.1 percent of der system. However, OCIBU retained regulatory control over such sales, and if the proposed sale price was below a composite 14. A plan to renovate farms was designed in 1993, but was never implemented due the conflict, the lack of a clear average tender price for that week, OCIBU had the authority to vision and strategy for the coffee sector, and the lack of prohibit the sale. With the reform, the former system has been funding. Coffee farm renovation has been discussed since, but with no visible results. Intercafé is determined to create and stabilize production and quality. Among the programs a strategy to attract donors and public and private support developed by Webcor, one has been designed to supply for farm rehabilitation. As part of this strategy, a program to fertilizers and pesticides and a system of mulching and replant 7 million trees is now in place and is expected to be pruning old coffee trees (Roast Magazine May 2010). implemented starting in 2012. 16. The majority of coffee still runs through the old system, so 15. The Webcor Group of Geneva, Switzerland, became there time and space to guide the reform to ensure mini- owner of 13 CWSs in Burundi. Webcor’s goal is to improve mum socioeconomic and environmental negative effects. Coffee Sector Reform in Burundi 17 eliminated in favor of a rapidly evolving contract system. At the arbitrating between coffee sector actors in case of conflict; same time, the reform now permits farmer associations and pri- contributing to policy formulation; monitoring national and vate enterprises to sell their coffee through direct sales contracts international production and market tendencies; and au- to coffee buyers, largely on their own terms for freely negotiated thorizing professional licenses. With the creation of ARFIC prices. Since 2008, OCIBU no longer fixes floor prices for coffee (through Order Nà100/99 1 June 2009 on the Creation, sales. Buyers and sellers can freely negotiate the terms any time Mission, Organization and Operation of the Regulatory Au- of the year. However, the liberalization process is still not com- thority of the Coffee), OCIBU disappeared. plete and some remnants of state control remain. • InterCafé, an autonomous professional organization, fi- 3.2 Reform in the Coffee Sector Institutions nanced from coffee sector resources, is composed of pro- fessionals from all the links in the coffee value chain. It is responsible for guiding coffee sector development strategy The coffee sector in Burundi had been composed mainly of two (box 1). actors—coffee growers and the state—and characterized by the presence of two subsectors: washed and the fully washed coffee. Kimonyo and Ntiranyibagira (2007) present a succinct descrip- tion of the reform in the coffee sector in Burundi and its evolu- tion until 2007. The five main institutions that existed in 1980s during the state’s intervention were SOGESTAL,17 SODECO,18 OCIBU,19 ABEC,20 and the Confederation of National Associa- tions of Coffee Growers (CNAC).21 With the reform, new orga- nizations in a new institutional setup were created: Box 1. InterCafé • Autorité de Régulation de la Filière Café (Regulatory Author- ity, ARFIC) is a public enterprise for the coffee sector aimed InterCafé is an association of coffee professionals in at ensuring the prerogatives of the state. The state maintains Burundi and is a forum for consultation and decision making. InterCafé’s objectives are: its presence in several roles, such as ensuring product qual- ity control and redaction/enforcement of norms for coffee • Participate in defining the medium- and long- quality; providing information to all operators in the sector; term objectives of the government’s coffee sec- tor policies. 17. The Sociétés de Gestion des Stations de Lavage (Washing • Serve as a premier chamber to amicably settle Stations’ Management Company, SOGESTAL) comprises disputes between the operators in the coffee five public-private companies set up as joint ventures sector. responsible for buying coffee cherries, managing washing/ depulping stations, and the sale of parchment or mercan- • Represent the coffee sector to the GoB. tile coffee. 18. The Société de Déparchage et de Conditionnement (Hull- • Determine quality specifications of Burundian ing and Processing Company, SODECO) was set up by and origin coffee and make proposals to ARFIC. is largely owned by the state to manage the two dry mills used to transform parchment coffee into the final product • Promote and market the coffee sector at nation- (green coffee), as well as the coffee packaging and ware- al and international levels. housing. SODECO has the most to lose in the process of privatization since most of them have low adaptive capac- • Compile coffee sector statistics in collaboration ity. New types of coffee grower associations are emerging with ARFIC and disseminate information to mem- and are purchasing and building CWSs. bers. 19. The Office du Café du Burundi (Coffee Board of Burundi, OCIBU) was responsible for all functions of the sector, but • Participate in coordinating and financing of from 2005 was responsible only for coordination and regula- coffee sector services in collaboration with the tion of the sector, which are of considerable functional Ministry of Agriculture. importance. The reform eliminated the OCIBU. 20. The Association of Burundi Coffee Exporters (ABEC) was cre- • Determine the percentages or fees to be levied ated 1992. ABEC continues to operate through the reform, annually on all raw coffee sales to finance the and its members are active in coffee export. The increase in activities undertaken by InterCafé and the royal- direct sales after the reform is expected to change ABEC’s ties payable to ARFIC. operating methods. 21. The Confederation of National Associations of Coffee • Collect established levies and monitor expendi- Growers (CNAC) is an umbrella organization of coffee tures made on behalf of the sector. growers (see annex). Because of the coffee reform, the marketing of the fully washed coffee, which was previously Source : Compiled by author. controlled by OCIBU, is now conducted by CNAC. 18 Rapid Strategic Environmental Assesment © Curt Carnemark/World Bank Coffee Sector Reform in Burundi 19 4. Environmental and Socioeconomic Issues, Gaps, and Recommendations This chapter summarizes the significant envi- ronmental and socioeconomic issues that can result from the reform in each of the phases in the coffee value chain: production, process- ing, and marketing. These issues were identi- fied during the consultations and assessment process. It was not possible to measure impact due to lack of data. © Paola Agostini/World Bank Looking through the lens of the World Bank’s safeguard polices, the following four policies helped in determining the potential environ- mental and socioeconomic issues resulting from the reform of the coffee sector in Burundi: • OP/BP 4.01 Environmental Assessment • OP/BP 4.04 Natural Habitats • OP 4.09 Pest Management • OP/BP 4.36 Forests levels, and improve ecosystem and natural resources manage- ment. The issues, gaps, and recommendations are summarized The socioeconomic and environmental issues related to the re- in the matrix included in annex 1. In addition, priority actions form in the coffee sector can be explained by a series of institu- derived from the recommendations are presented in the action tional, policy, and capacity gaps that are described in this chap- plan presented in chapter 5. ter, which also includes recommendations for mitigation. The recommendations focus mostly on strengthening environmental 4.1 Production Phase governance, developing the capacities of institutions and coffee growers, and enabling policy to support technological and finan- 4.1.1 Environmental Issues cial measures. Implementation of these recommendations will help ensure that the coffee reform creates an enabling environ- The main environmental issues within the production phase re- ment for a long-term, sustainable coffee sector that will contrib- lated to the coffee sector reform implementation are discussed in ute to the development of the agriculture sector, reduce poverty the following sections (see also annex 1). 20 Rapid Strategic Environmental Assesment Figure 5. Coffee Value Chain Map under Different Scenarios of Evolution with Reform Burundi coffee value chain map before reforms (circal 1990) international commodity markets market sales/export auctions (OCIBU) mechanism SODECO managed (~30,000 tons of green coffee) dry milling government mills (SODECO) SOGESTAL managed (~38,000 tons of parchment) wet milling on farm ~ 20% 133 government CWSs (fully washed) ~ 80% (washed) (~180,000 tons of cherries) cherry production smallholder cherry production Burundi coffee value chain map during reforms (circa 2009–10) international specialty commodity markets ~90% market market ~ 10% sales/export auctions/contracts ~ 80% direct sales ~ 20% mechanism SODECO managed (~18,000 tons of green coffee) dry milling government mills (SODECO) ~ 50% private mills ~ 50% SIVCA, SONICOFF, Bucafé, and others SOGESTAL managed (~23,000 tons of parchment) wet milling on farm ~ 20% private 120 government CWSs ~ 55% (washed) CWSs ~ 25% (~110,000 tons of cherries) cherry production smallholder cherry production Burundi coffee value chain map after reforms (circa 2015) international market commodity markets ~50% specialty market ~ 10% vertical integration sales/export auctions/contracts ~ 50% direct sales ~ 50% mechanism (~40,000 tons of green coffee) dry milling privatized SODECO mills ~ 30% new private mills ~ 70% SIVCA, SONICOFF, CBC, Bucafé, and others (~50,000 tons of parchment) wet milling on farm ~ 15% 60 private CWSs ~ 35% (washed) 133 privatized CWSs ~ 50% (fully washed) (~240,000 tons of cherries) cherry production smallholder cherry production producer owned private enterprise owned government owned Source: Dan Clay, Michigan State University. Land degradation due to unsustainable coffee production practices fee in 1990 to 110,000 tons in 2009. However, possible increases Issue in income due to the reform may induce farmers to expand the areas under coffee cultivation and use marginal lands on steep Currently, as shown in figure 5,22 coffee production by small- slopes for other annual crops. This can cause soil erosion in high holders has decreased, from around 180,000 tons of cherry cof- rainfall areas and deposition on fertile lowlands in the absence of protective measures. Also, elimination of shade cover for in- 22. Figure 5 depicts the coffee value chain under different creased coffee production can cause significant impacts on vari- scenarios according to the evolution of the reform. Data included in the figure are also relevant for other issues ous soil quality parameters, including topsoil erosion, leading to included in the chapter. land degradation. Coffee Sector Reform in Burundi 21 Gaps Land degradation in such situa- tions can be a result of the following problems: farmers’ lack of knowl- edge on sustainable land and water management (SLWM) technolo- gies; lack of policy incentives for SLWM; lack of regulations related to preparation of land-use plans and sustainable coffee production; and the lack of institutional monitor- © Paola Agostini/World Bank ing capacity to enforce regulations. With regard to the latter, the new institutions created with the reform (ARFIC and INTERCAFÉ ) do not have the organizational setup or ser- vices to ensure the implementation and management of environmental and social aspects of coffee produc- tion. Other institutions in charge of environmental governance in the country, such as the Ministry of the Environment, also do not Another recommendation proposes the introduction of incen- have the required monitoring and enforcement capacity. tive mechanisms, such as the payment for environmental services (PES),25 to compensate farmers for the downstream benefits they Recommendations generate by keeping the slope well managed. This mechanism will contribute to the development of sustainable production measures by providing concrete benefits and financial returns To address these issues, several recommendations have been pro- to the farmers. The preparation of a PES program will need to posed. First, it is recommended that adequate training programs include visits to successful programs in other countries, prepara- be developed for extension agents and farmers on SLWM tech- tion of PES policies, and analysis of potential PES implementa- nologies. Of the two main technologies to be promoted, the first tion in Burundi. is the cultivation of shade-grown coffee,23 which provides habitat for a great number of other species, helps maintain genetic di- Land set aside from sustainable coffee production will need to versity, prevents soil erosion and land degradation, helps moder- be inserted in land-use plans: thus, the importance of issuing ate climate change, and provides alternative sources of income regulations that make mandatory the preparation of municipal within niche markets. The second technology recommended in land-use plans, with criteria, standards, and guidelines related the training programs is the application of mulching techniques to sustainable production (slope farming, presence of trees, that increase coffee productivity. Using proper techniques, cof- farming close to river banks, and so forth). The current revi- fee cultivation can become an important strategy for combating sion of the Land Code Decree (Law No. 1 / 008 of Septem- soil loss, because coffee has proven to be one of the least erosive ber 1, 1986) offers an opportunity to make land-use plans a crops grown in the region.24 Coffee production, if mulched and mandatory tool for all of Burundi. Under consideration is the shade grown, is one of the most important strategies Burundi addition of some core indicative triggers for Burundi’s ERSG can develop to fight against soil erosion. V, including having the Council of Ministers issue a regula- tion making the preparation of municipal land-use plans with 25. PES is a voluntary and mutually beneficial market-based 23. Shade-grown coffee is grown under a canopy of diverse agreement between consumers and suppliers of eco- species of shade trees, often on small farms using traditional system services. The main principle within the PES is that techniques. the beneficiaries of the environmental services are will- ing to pay a price for the service and the providers of the 24. Data from neighboring Rwanda (with almost identical agro- services are being compensated with a payment that is ecological conditions and cropping systems) that estimates greater than the cost of providing the service. The most soil loss (in tons per hectare) by crop type demonstrates common ecosystem services considered for the PES are that coffee is the least erosive crop cultivated in the region. climate change mitigation (through carbon sequestration Considering 12 different crops, coffee had an average soil and storage), watershed services, landscape beauty, and loss of 0.3 tons per hectare, followed by banana at 1.5 tons biodiversity conservation. Costa Rica and Nicaragua have per hectare. a significant amount of experience in establishing PESs. 22 Rapid Strategic Environmental Assesment Figure 6. Pesticide, Fertilizer Uses, and Coffee Production in Burundi 7,000 18,000,000 urea—tons pesticide— hectoliter 16,000,000 6,000 sprayer—unit fungicide—tons seed—kilo 14,000,000 bag—unit 5,000 12,000,000 4,000 10,000,000 8,000,000 3,000 6,000,000 2,000 4,000,000 1,000 2,000,000 0 0 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 Source: Dan Clay, Michigan State University. criteria, standards, and guidelines related to sustainable coffee Increased agrochemical pollution resulting from uncontrolled production mandatory. use of fertilizers and pesticides Issue It is also recommended that a capacity-building program be es- tablished for relevant institutions, such as the Ministry of En- Coffee farmers use around 50 tons of pesticides per year, ap- vironment, Ministry of Agriculture, ARFIC, InterCafé, and proximately 30 percent of the total pesticides imported annually. NGOs, working in the coffee sector to monitor the implementa- Currently, InterCafé imports the pesticides and distributes them tion of sustainable technologies and enforcement of regulations. to the coffee growers according to the number of trees cultivated. Although production levels have strongly fluctuated year to year, Finally, the recommendations propose that Burundi participate the number of trees planted has remained stable, and thus there in a TerrAfrica26 partnership on SLWM in Sub-Saharan Africa. is little variation in the total amount of pesticides imported and This partnership aims to address land degradation by scaling up used (figure 6). harmonized support for effective and efficient country-driven, sustainable land-management practices that improve land pro- If farmers respond to the incentives and either increase the num- ductivity, climate resilience, and economic growth. ber of trees planted or intensify production, the result could be the use of fertilizers in larger amounts and/or in an unsustainable manner. If coffee becomes profitable, then farmers will plant more coffee and very likely the amount of fertilizers will increase 26. TerrAfrica consists of 20 African governments, the African accordingly. As farmers increase their production and/or amount Union’s New Partnership for Africa’s Development Plan- ning and Coordinating Agency, regional economic and of trees planted, they might have enough cash to buy increasing subregional organizations, the United Nations Conven- amounts of inputs. tion to Combat Desertification Secretariat and its Global Mechanism, the Food and Agriculture Organization, the International Fund for Agricultural Development, the Afri- Based on a limited set of available data (from Ministry Agricul- can Development Bank, the United Nations Development ture and USAID), a back of the envelope calculation shows that Programme, the United Nations Environment Programme, the World Bank, the European Commission, bilateral donors, an increase in coffee production from 180,000 tons of cherries and civil society. (production at 1990 as shown in the figure 5) to 240,000 tons, Coffee Sector Reform in Burundi 23 which is the estimate for 2015 after the reform, would increase • Increases the risk of poisoning and death by improper han- the levels of urea use from 7,500 tons to 10,000 tons.27 Recently dling of pesticides, and InterCafé decided that urea should no longer be used as fertilizer, but recommends a fertilizer mix of nitrogen, phosphorus, and • Increases the likelihood of creating stockpiles of obsolete potassium (NPK).28 The increase from 180,000 tons of cher- pesticides. ries to 240,000 tons would presumably increase the use of this new fertilizer from 12,000 tons to 15,000 tons. However, due to Gaps the high price of the fertilizer mix in the last crop season, only 1,000–1,500 tons were used, and urea was also still being used. Inadequate use of pesticides and fertilizers can be caused by farmers’ lack of knowledge on the risks and precautions to be Two types of insecticides are currently been used in Burundi: taken in terms of health, water and soil contamination associated Lamdalm for the first round of treatment and Iron 200 for the with poor handling of fertilizers and pesticides, and possible al- second round of treatment.29 These pesticides have been tested ternatives such as integrated pest management (IPM). Although by the National Agronomic Research Institute (ISABU) and InterCafé has suggested improving pesticides and fertilizers, approved by the National Approval Committee. Iron 200 has there are still no adequate regulations on handling pesticides and proven less toxic and less harmful that the ones previously used, fertilizers to prevent mismanagement, and if there were regula- for example, Fury, because it is more diluted.30 Because the use tions, the coffee sector institutions lack the monitoring capacity of pesticide depends on the size of the total coffee farms, and it is to enforce them. expected that the reform will not significantly change the size of the farms, increase in pesticide volume will be marginal. Recommendations However, intensive pesticide use within coffee production could There are several recommendations that can address the pesticide present health and ecological concerns that require attention. and fertilizer issues. First, implement a capacity-building pro- Under-regulated pesticide use threatens farmers and other rural gram for farmers on safe management and handling of fertilizers residents with exposure to toxic substances in the workplace or and pesticides. Second, develop an IPM program;31 even though in water supplies from contaminated water sources. Farm work- there has been improvement by changing the pesticides to some ers, usually unaccustomed to technical coffee production sys- like Iron 200, which has been proven less harmful, an IPM pro- tems, encounter an array of chemicals that are supposed to be gram would significantly prevent additional negative en- applied with protective gear, including clothing that frequently vironmental and health impacts. The World Bank PRODE- goes unused in the heat and humidity of tropical environments. MA PPDMA (Projet de Productivité et de Développement des Besides its use, inadequate handling and disposal of waste pes- Marchés Agricoles)32 produced a pest management plan that can ticides also generate environmental risks. The systematic use of be adapted and implemented to minimize risk and optimize the pesticides commonly generates the following negative effects: effective use of pesticides. Also, ISABU is attempting to develop biological pesticides that could be useful to reducing chemical • Promotes the creation of resistant strains of crop pests, pesticide usage. Nongovernmental organizations (NGOs) and the private sector can also be contacted to find support for IPM • Increases the risk of contamination of soil and water by pes- adoption and extension. ticides, • Reduces the cost of production when used unnecessarily in There is already a proposed program to train producer groups in plantations, pest and pesticide management. This program will involve: 27. This calculation is based on the conservative assumption of the constant use of a kilogram of urea per ton of coffee 31. Definition of Integrated Pest Management (IPM): the care- produced, with no significant changes in the amount of ful consideration of all available pest control techniques trees planted during the period of time considered. and subsequent integration of appropriate measures 28. The change in fertilizer has been recommended because that discourage the development of pest populations research has discovered severe land degradation on the and keep pesticides and other interventions to levels that coffee plantations, and potassium and phosphorus are are economically justified and reduce or minimize risks to now also needed in addition to nitrogen. human health and the environment. IPM emphasizes the 29. Iron 200 is the trade name of the insecticide that was pro- growth of a healthy crop with the least possible disruption cured through the public ARFIC procurement system for distri- to agro-ecosystems and encourages natural pest control bution to farmers via the Cooperative Federations in 2010. mechanisms. From the UN Food and Agriculture Organiza- 30. To treat 60 coffee trees, 3.5 milligrams of Iron 200 need to tion, www.fao.org/agriculture/crops/core-themes/theme/ be diluted in 15 liters of water. For the same amount of pests/ipm/en/. trees, 6 milligrams of Fury need to be diluted in 15 liters of 32. The PRODEMA PPDMA works toward increasing productivity water. and development of agricultural markets in Burundi. 24 Rapid Strategic Environmental Assesment • An analysis of existent and potential diseases and pests to evaluate real and potential need for pesticides, • The integration of biological and mechanical practices to help reduce pesticide use, • The use of different types of pesticides to pre- vent the development of pests’ resistance, © Paola Agostini/World Bank • A system of pesticide purchase based on es- timated production and possibly centrally managed by producer organizations, • A training program for pesticide importers and users regarding management and use, and • The creation of a recovery and/or disposal system for empty containers and obsolete pesticides. Promoting shade-grown coffee, as opposed to with other agricultural crops. However, with the need to in- sun grown, is recommended because sun-grown coffee requires crease coffee production, farmland could be cleared for coffee higher amounts of chemical fertilizers as well as a range of insec- plantations, leaving them without shade trees or other cash ticides, herbicides, and fungicides. crops essential for food production. Sun coffee plantations re- sult in loss of tree cover and fragmentation of habitat and cor- In terms of regulations, Decree-Law No. 1 / 033 contains gen- ridors for diverse communities of flora and fauna, resulting in eral provisions on the management of pesticides, and Order No. decreased biodiversity. 710/837 and 710/838 of October 29, 2001, identify the pes- ticides approved and banned for agricultural use in Burundi. Finally, Ordinance No. 710/406 of March 24, 2003, establishes Gaps a national code of conduct for pesticide management, and sev- eral ordinances authorize or prohibit the use of some specific Lack of farmer knowledge and lack of incentives for improving pesticides. Unfortunately, the above legislation has not been coffee production with environmentally sound techniques ex- fully applied; the institutions applying them lack resources, the plain this issue. In such situations, farmers change their produc- legislation has been written in a language not understood by the tion systems from a multipurpose to a monocrop farm. main users, and the laws are not well disseminated. The recom- mendation is thus to increase the capacity of the Ministry of Recommendations Agriculture to enforce and monitor the application of the laws. These laws will need to be in harmony with the Ministry of Technical and financial assistance programs should be provid- Environment’s overall environmental legal framework, and the ed to enable coffee farmers to develop and implement proper responsibilities of the implementing and monitoring agencies farm development plans for their productive systems, including regarding enforcement must be clearly defined. Also, the laws keeping plantations under shade and maintaining or restoring will need to promote the prevention of adverse effects of pesti- levels of biodiversity, nutrient recycling, and diversification in cides on the environment and health at all levels of the pesticide farm produce. A mosaic of farms with multiple-use trees not lifecycle: production, transport, storage, use and/or handling, only diversifies sources of income for the farmers and reduces disposal, and recycling. environmental risks, but also allows for the creation of biological corridors that contribute to the connectivity of protected areas. Changes in farms’ productive systems and biodiversity loss Figure 7 shows several coffee plantation scenarios using dif- Issue ferent levels of shade. These scenarios range from traditional cultivation, which is the most complex, most similar to pris- Traditional coffee in Burundi is often grown as part of an agro- tine forest and the one with the least environmental impact forestry system in which tree species are cultivated together on the original ecosystem, to plantations in which coffee is Coffee Sector Reform in Burundi 25 Figure 7. Coffee Plantations with Different Shade Levels: From sun coffee to shade grown coffee—reach- ing the triple bottom line of environmental, social, and economic sustainability Source: http://www.coffeehabitat.com/2006/02/what_is_shade_g/. 26 Rapid Strategic Environmental Assesment ©f Jumaine Hussein grown on its own and in direct sunlight. This last scenario is would be best to start pilot projects in zones that are more prone the least complex and the one with the highest environmental to polyculture and where farmer–innovators can experiment. impact. In addition, visits to successful polyculture projects throughout the world will facilitate a better understanding of the techniques A sustainable, productive system for farmers is one that promotes and stimulate the required changes. A complete technical map polyculture: the mix of coffee plantations with various types of should be prepared, documented, and formatted/disseminated trees and other plants that produce additional sources of income in such a way that producers can easily assimilate the informa- and consumption. In addition, deforestation to cultivate sun cof- tion. These new agricultural technologies should be widely dis- fee produces global greenhouse gas emissions, which contributes seminated to existing farmer associations and farmers who are to climate change; shade-grown coffee helps moderate climate not members of these associations. change and protects coffee plants during extreme weather. The trees within a shade-grown coffee plantation help mitigate the Expansion of the agriculture frontier into protected areas effects of drought and extreme heat by keeping a moist, cool mi- Issue croclimate beneath the canopy. Also, shade trees protect against harsh winds, excessive light, soil erosion, and land degradation. In Burundi, there are no buffer zones around the 14 protected areas (PAs),33 agricultural areas (including coffee areas) and hu- Polyculture can generate additional products, such as timber, man settlements are located at the edges of the PAs. Figure 8 fruit, fuel wood, and medicinal plants as well as provide shelter indicates the location of the country’s PAs; the main PAs and for- for animals, birds, and insects. In addition, polyculture provides carbon sequestration that can lead to payoffs in the future. 33. Kibira National Park, Bururi Natural Forest Reserve, Mongue Natural Forest Reserve, Rusizi Natural Reserve, Ruvubu National Park, Gisagara Protected Landscape, Lake Ma- New techniques should be developed to promote agroforestry banda/Nyanza Protected Landscape, Mukungu-Rukam- as a base model. The GoB should set up demonstration plots basi Protected Landscape, Kinoso Protected Landscape, to model and disseminate information about the environ- Rumonge Natural Forest Reserve, Vyanda Natural Forest Reserve, Kigwena Natural Forest Reserve, Northern Burundi mental and financial benefits of integrated agroforestry prac- Protected Aquatic Landscape, Natural Monuments of tices. Because of the existing monoculture coffee tradition, it Karera Falls, and Nyakazu Break. Coffee Sector Reform in Burundi 27 Figure 8. Location of Protected Areas in Burundi Tanzania Democratic Republic of Congo Source: Institut National pour l’Environnement et la Conservation de la Nature (INECN). ests are surrounded by coffee trees. Considering that arable lands This situation legally exposes the PA system to many pressures, are scarce,34 the expansion of coffee plantations could extend to including local population encroachment and potential mining protected areas, especially in some localities. exploration and exploitation. Figure 9 shows the land suitable for coffee plantations in the In addition, the existing PAs lack sufficient patrols to deter country. The PAs overlap the areas suitability for coffee cultiva- harmful activities. For years, people living close to the areas con- tion. Thus, there is a possibility that some farmers could expand tributed to the protection of these areas by not allowing excessive their coffee plantation onto their annual cropping area and use use of them. However, this situation could rapidly change with protected/forest areas for their annual cropping or for an expan- the need for land for additional crop production. sion of coffee plantations. Recommendations Gaps The borders of the existing protected areas should be clearly PAs are vulnerable to encroachment, mainly because their physi- marked. The Decree-Law No. 1 / 6 of March 3, 1980, Estab- cal boundaries are not clearly demarcated, and some of them, lishing National Parks and Nature Reserves and Law No. 1 / 02 like Ruvubu National Park, do not even have a clear legal status. of March 25, 1985, on the Forestry Code, define the legal status of PAs with regard to the prohibition of their sale and lease and 34. Because of demographic pressure, the arable lands are parceled out carefully, and the national average of land special measures for conservation of flora and fauna and set the available to every household is just 0.38 ha. special rules governing their administration, management, op- 28 Rapid Strategic Environmental Assesment Figure 9. Map of Land Suitable for Coffee Plantations in Burundi Source: Institut des Sciences Agronomiques du Burundi (ISABU). eration, monitoring, and protection. In addition, a decree was Finally, the development of community-based conservation enacted in 2000 to demarcate a national park and four natural measures35 in the PAs could offer local communities an alterna- reserves, but it did not include the remaining PAs. However, the tive activity that protects the PAs integrity while also contribut- above laws present gaps in terms of PA management and gov- ing to improving their livelihoods. ernance, and the institutional capacity to disseminate the code and enforce regulations is weak. This capacity needs to be built 4.1.2 Socioeconomic Issues through a specific training program. The budget also needs to be increased to finance effective monitoring and enforcement. The main socioeconomic issues in the coffee production phase are the potential dependence of farmers on coffee for income 35. Including payment for the environmental services provided by the PAs. Coffee Sector Reform in Burundi 29 and the potential for conflict over the need for more land for production (see also annex 1). Dependence of farmers on coffee production for income Issues With anticipated higher returns from coffee growing, there is a risk that farmers opt for producing only coffee. This will increase dependence on a single product that has a volatile price on in- ternational markets. A large drop in international coffee prices could have a devastating effect on coffee farmers’ income. Gaps Becoming dependent on a single product is caused by a lack of training programs for farmers on diversification of rural income sources and a lack of start-up capital for other income-generat- ing activities. Recommendations It is recommended, as mentioned earlier, that training programs on diversification of rural income be provided—on farm and off farm—for farmers and extension agents. Also, to promote crop diversity in farm production and reduce dependence on coffee, a revolving fund should be established to finance initial expendi- tures to support income-generating activities. © The GEF Increase in conflicts due to request for more land to be put under production Issue Increased demand for land for coffee production can cause statutory systems operating in parallel, which makes it difficult disputes among farmers unless their land ownership is clearly to resolve conflicts over land. defined and public lands are effectively protected from en- croachments. Intensified cultivation in uplands could cause Recommendations detrimental effects on downhill farms, another potential source for disputes. Land tenure clarification and land-use planning are essential components of natural resources management. Planned devel- Gaps opment will limit land-use conflicts and thus reduce the risk of overlapping uses of the same land, and it will help in the man- agement of those disputes that do arise, such as in the creation of Potential disputes could arise from the uncertainty of land ten- new protected areas or mining areas. Land plans, including land ure, the lack of land-use plans, and the lack of knowledge on capability classification and suitability maps based on factors how to intensify production on the same land rather than ex- including soil susceptibility to erosion, would help concentrate panding into new lands. development efforts in the areas most conducive to the produc- tion of high-quality coffee. Burundi is one of the most densely populated countries in Af- rica.36 Land tenure is currently based on both customary and contributed to greater food and resource scarcity in rural 36. In 2005, the rural population density (rural population per areas. In 2008, the rural population accounted for almost 90 square kilometer of arable land) was 728.4. This density has percent of the country’s total population. 30 Rapid Strategic Environmental Assesment © Paola Agostini/World Bank The development of land-use plans should be complemented by processing of fully washed coffee. Using this water, which con- a training program for farmers on sustainable production inten- tains large amounts of organic matter that is difficult to degrade, sification. for drinking, irrigation, cultivation, or washing could negatively affect the health of farmers and their families. 4.2 Processing Phase The discharge of organic pollutants into waterways has ecologi- 4.2.1 Environmental Issues cal impacts that reduce the levels of oxygen for aquatic plants and wildlife. According to a study cited by Sihimbiro (2009), degradation of residual organic matter in these waters increases Some of the main environmental issues that can result from the the levels of BOD5 (biochemical oxygen demand).37 Loads of coffee sector reform in the processing phase are water pollution, approximately 3,000 to 10,000 milligrams per liter have been re- increased water demand, and increased solid waste (see also an- ported by Burundi CWSs, while the standard should be around nex 1). 20. Also, the pH of the wastewater that goes into the aquatic environment has reached high acidic levels of around 4 and 5, Water pollution from coffee processing in the washing when it should be between 6.5 and 7.5. This usually occurs after stations the fermentation of sugars, which produces organic acids and acetic acid. These combined effects result in a saturation of the Issue natural assimilative capacity of receiving rivers, rotten odors, and disruption in the food chain by destroying the fauna and flora. Discharges of solid and liquid secondary byproducts from more In addition, poor decomposition of manure causes foul odors than 150 coffee cherry depulping/washing stations represent a major source of water pollution. “Effluent� from the CWSs 37. BOD5 refers to the amount of dissolved oxygen consumed flows downhill and into the stream or river below. This consti- in five days by bacteria that biologically degrade organic tutes one of the greatest environmental concerns related to the matter. Coffee Sector Reform in Burundi 31 Table 1. Environmental Effects of Two Coffee Washing Stations Rivers Gasarara (Kiyovu)a Mbizi (Gahahe)b Before the coffee After the coffee Before the coffee After the coffee Measures season season season season 1. pH 7.50 5.1 6.86 4.80 2. Turbidity (NTU TE/F) 47.00 303.0 56.00 850.00 3. Conductivity 87.90 179.0 77.60 2,710.00 (S/cm) 4. Sulphides (mg/l) 0.12 3.2 0.16 7.00 5. Ammoniacal 1.26 5.0 1.48 1.72 nitrogen (mg/l) 6. Nitrate (mg/l) 0.26 61.2 0.40 110.70 7. Nitrite (mg/l) 0.00 0.8 0.00 1.10 8. O-phosphate 21.00 62.4 24.9 141.10 (mg/l) 9. Optical Turbid More turbid Turbid More turbid appearance 10. Fecal coliform 9.00 Presence 84.00 Presence 11. E. coli 77.0 144.0 Source: Chemonics International 2009; Policy Study Sectoral Water Use and Health, USAID Burundi Policy Reform Project, 2009. Gasarara (Kiyovu) is a private CWS owned by a SOGESTAL. There has been a water treatment system installation on a pilot basis funded by a USAID project. However, at this juncture, it is difficult to assess its efficiency. Mbizi (Gahahe) is a private CWS owned by WEBCOR. Water-efficient technology has been installed, but its impact has not been analyzed. that can spread up to about 5 kilometers downstream from cof- With increased coffee production, the water requirement for fee processing areas. cherry processing would increase, as would the effluent that would need treatment for safe disposal. Table 1 provides the results of a study on two private CWSs by conducted by Chemonics (Bullock and Niyonkuru 2009) for Around 20 percent of coffee is being washed on the farms. With the preparation of the water policy. The results of the studies the reform, as long as the privatization of CWSs continues and show that the pH decreases and turbidity increases. There was production increases, it is expected that a lower percentage of also a significant increase in nitrites, nitrates, and phosphates coffee will be washed on the farms and more will be fully washed that, in fact, could make the water useful for agricultural irriga- in the private CWSs. tion. Gaps However, more information is required to better understand the environmental impacts of CWSs, particularly regarding water The lack of information limits the capacity to establish appropri- quality changes. In late 2009, three different donors simultane- ate regulations, enforcement, and develop training. More quality ously conducted three studies on environmental and social prob- information is needed regarding water quality changes due to lems caused by CWS effluent. Unfortunately, none are complete. coffee processing. 32 Rapid Strategic Environmental Assesment tion. The study should identify ways of treating CWS effluent and create a set of standards that will ultimately be legally binding on the CWSs. Second, it is recommended that cri- teria, standards, and regulations be issued for the CWSs’ water manage- ment and treatment. The regulations to be prepared (for this and all the environmental issues) should comply with the Environmental Code (Law No. 1/010 of June 30, 2000) that es- tablishes the procedure for assessment of environmental impacts of all devel- opment projects. This Environmental Code has long existed, but has never been fully implemented because the regulations, standards, and criteria for compliance have not been developed. In addition, one of the core indicative triggers suggested for the approval of © Jumaine Hussein Burundi’s ERSG V is the issuance of regulations and standards for CWSs by the Council of Ministers. These regulations and standards will need to ensure environmentally sound waste and water management. Based on the regulations, a manual or The CWSs that were being managed by the government-owned set of guidelines on wastewater management and pollution con- SOGESTALs were not subject to any environmental monitor- trol should be prepared for CWS owners and workers. Already ing and the effluent was being disposed of without treatment to there is a proposal for a standard environmental protection plan streams and water bodies because of to the absence of treatment for the CWSs.38 Also, as the CWSs begin to take part in certifica- standards. New depulping/washing stations are now being built, tion processes, they will need to fulfill environmental standards but without taking into account environmental and social con- and criteria, including pollution control systems. Some of the siderations. Some of the new stations with new technology have CWSs have adopted single fermentation systems that are taking the advantage of producing high-quality coffee, but use large better care of the wastewater. However, not all the CWSs have quantities of water. made this system change (USAID 2008). Because of the lack of specific regulations to control the envi- Finally, and as mentioned previously, Burundi’s environmental ronmental impacts of the CWS and wastewater disposal, water institutions need capacity-building programs to improve their pollution is a serious concern. There is inadequate capacity to ability to monitor environmental compliance. monitor compliance of the private CWSs. Increased water demand from CWSs due to increased coffee Recommendations processing To address these gaps, there are several recommendations. It is Issue essential to complete and consolidate the studies that analyzed the CWSs’ social and environmental impacts to have a compre- CWSs are estimated to use between 15 and 20 m3 of water per hensive understanding on the effects of actual CWS effluents, ton of cherries, or between 75 to 100 m3 per ton of parchment including their effect on the quality of receiving water bodies 38. This proposal was sponsored through the International De- downstream and the effects on the existing agricultural produc- velopment Agency grant administered by PAGE. Coffee Sector Reform in Burundi 33 coffee—this estimate assumes CWSs do not recycle water, which is the case with most sta- tions in Burundi.39 Consider- ing the country’s capacity, the amount of water used in the country by the CWSs ranges from 450,000 to 600,000 m3 in years of low production and 2,650,000 to 3,500,000 m3 for © Jumaine Hussein years of high coffee produc- tion. A quick calculation shows that in the 1990s, before the reform and with a production of 180,000 tons of cherries, the water used by CWSs was 2,880,000 m3.40 After the re- form, with an estimated produc- Recommendations tion of 240,000 tons of cherries in 2015, the water used would increase to a level of 3,840,000 m3. Since none of the country’s To address the potential for increased water demand, the first CWSs, as of January 2010, recycle or treat the water, this same recommendation is to develop a capacity-building program on amount of water is being—and potentially could be—released. new water-saving processing technology for cooperatives and owners of CWSs.43 New technology for depulping and wash- Burundi’s current CWSs obtain their water from local springs ing has been developed; it consumes less water than most of the and small streams. The water is provided to 35.5 percent of the CWSs in Burundi. This technology also reduce the time required CWSs either as “gravity fed� (spring or stream farther up the for the fully washed coffee process, which is an arduous task for hill),41 fed by mechanical pumps (56 percent of the stations), the workers, and reduces the cost for water treatment. The new typically from a stream or river down the hill, or a combina- technology also produces a better quality of coffee. tion of both (8.5 percent of the stations), depending on the volume of cherries being processed and the extent of the flow The water required by CWSs would be significantly reduced from above, which is usually a function of recent rainfall lev- with the implementation of water-saving processing technolo- els. Increased production and coffee processing would result in gies. Assuming that recycling of water is possible in every situa- increased water demand, which could cause a scarcity of this tion, with partial recycling the amount of water required by the essential natural resource. CWSs in 2015 (3,840,000 m3) could be reduced to 2,544,000 m3. With complete recycling, the amount of water would be Gaps 1,080,000 m3. Sedimentation tanks/septic fields would still be Lack of knowledge and initial capital to apply more efficient necessary even for the new machines, but the water required technologies that use and recycle water rationally are two of the would be significantly reduced. gaps that can lead to increased water demand. Further, there are no regulations or monitoring mechanisms to ensure compliance Lenaghan, Jean-Pierre, and Nkeshimana (2010), in their study by the CWSs. The ideal technology would enable the processing Calculating Costs for SOGESTAL Coffee Washing Stations, rec- of a high-quality coffee using as little water as possible.42 ommend a shift to a new generation of depulping technology (from basic “McKinnon� depulpers to Penagos/Pinhalense de- 39. These levels of water volume refer mostly to the basic “McK- pulpers) that is water efficient; does not require large motors, innon� depulpers that are the traditional equipment for all the SOGESTAL CWSs. to simultaneously get rid of mucilage and pulp. Because 40. Sihimbiro (2009) estimates that the volume of water used by water conservation and pollution are serious concerns, this the CWSs is 16 m3 of water per ton of cherries. technology is ideal for the coffee sector (Clay, Delucco, 41. Building CWSs on sloping ground so the supply of water and Ottaway 2007). reaches them by gravity at all stages of the treatment is 43. According to Sihimbiro (2009), with recycling, the demand especially common in areas where electrical energy is for water to treat 1 ton of cherry coffee is reduced as fol- constrained. lows: from 16 m3 of water without recycling, to 10.6 m3 of 42. Between 2002 and 2007, 10 private CWSs were built in recycled water if it is partially recyled, to 4.5 m3 of recycled Burundi, some of which were equipped with depulpers water if it is completely recycled. Recycling, however, is not known for their low water consumption and their ability possible in every circumstance. 34 Rapid Strategic Environmental Assesment the receptor aquifers have already reached their saturation capacity for self-purification. Gaps The gaps include a lack of knowledge and a lack of initial capital to purchase and apply more efficient technologies in the CWSs and to develop solid waste recycling programs, as © Paola Agostini/World Bank well as the absence of regulations and moni- toring to enforce environmental solid waste disposal requirements in the CWSs. Recommendations Develop a capacity-building program on solid waste disposal and technologies for the reutilization of pulp and mucilage for coop- eratives and owners of CWSs. In particular, complicated water storage, or circulation systems; produces coffee pulp represents a valuable source of energy and can be parchment without fermentation; and generates less pollution used for anaerobic biogas production, among other products. from effluents. Their study demonstrates that the new technol- When properly separated and stored, pulp can undergo aerobic ogy would also help reduce the financial costs for CWSs.44 The decomposition and be turned into a fertilizer that is clean and new technology could potentially compensate for the increase readily usable for plants.46 Pulp and mucilage can also be turned in water demand resulting from increase coffee production and into biofuel and animal food, eliminating pollution while in- processing.45 creasing sources of income. Establishing a revolving fund for cooperatives so that they can Lessons learned from other countries can guide Burundi’s pro- buy more efficient technology for CWSs is also recommended. cess. A summary of the impacts of the reforms that have been It is also important to consider introducing incentive and financ- observed in the coffee sectors in Rwanda, Ethiopia, Costa Rica, ing mechanisms for CWSs investing in water quality and water and Cameroon is presented in annex 3. Thanks to the coffee efficiency improvements. reforms, producers have obtained a better price for their coffee and have a renewed social interest in coffee production, while Increased coffee processing results in more solid waste better protecting the environment at the same time. In some of these countries, a key positive environmental improvement has Issue been the adoption of modern water recirculation and wastewater Coffee-processing technologies lead to the generation of solid treatment technologies in the depulping/washing stations. These organic matter, mainly coffee pulp and mucilage, which if inade- technologies have reduced the negative impacts on water streams quately treated contaminates soil and aquifers. Pulp accounts for and groundwater in Rwanda, Ethiopia, and Costa Rica. approximately 43 percent of the volume of fresh weight of cher- ries, or approximately 28 percent of dry matter. The pulp, a solid 4.2.2 Socioeconomic Issues matter full of sugar and pectins, is very difficult to degrade. The mucilage represents about 5 to 10 percent of the cherries and its The main socioeconomic issues that can result from the coffee biochemical decomposition produces polluted wastewater. Ac- sector reform in the processing phase are the poor representa- cording to Sihimbiro (2009), in addition to the environmental tion of farmers, loss of employment and increasing conflict due impacts caused by the disposal of wastes, another problem is that to privatization, and unsanitary conditions and practices in the CWSs (see also annex 1.) 44. The objective of the study was to calculate the real pro- duction cost for CWSs that are managed by the SOGE- STALs. The model was based on five CWSs selected to represent a range of typical conditions. 45. The same study suggests that SOGESTAL will need to increase the volume of coffee processed to compensate 46. Other techniques can also be used, such as using earth- for the loss of privatized CWSs and help overcome financial worms, which digest the organic matter, to accelerate losses. composting (vermicomposting). Coffee Sector Reform in Burundi 35 © Jumaine Hussein Poor representation of farmers in coffee processing Recommendations Issue With support from the World Bank through the ERSG, a law on the organic framework for agriculture precooperative groups During the prereform period, producers were largely disenfran- has been drafted and is awaiting adoption. This legislation will chised from the coffee sector: they had no ownership and were enable the cooperative organizations49 to have a 25 percent stake paid government-determined prices. Even though farmers’ asso- in the CWSs. The adoption of the draft law is currently proposed ciations are now stakeholders in coffee sector institutions, from as one indicative trigger for ERSG V. With the reform, current local levels to national confederation,47 there are still no specific CWSs under SOGESTAL will need to develop a new institu- regulations governing associations and cooperatives and their ar- tional model in which most of the operating processes will be ticulation is unclear. Participation of farmers in the associations managed directly by farmer cooperatives. Also, the stations’ new is low (15–20 percent),48 and the organizations and cooperatives private owners should consider working out collaborative agree- have little capacity to mobilize and manage funds or develop ments with cooperative unions to share management responsi- activities for the coffee value chain as a whole. bilities and roles (Lenaghan, Jean-Pierre, and Nkeshimana 2010). Gaps In addition a capacity-building program should be established The existing legislations such as the 1992 Law on Non-Profit Or- for cooperative and farmers’ associations that covers the laws and ganizations and the 1996 text on cooperatives are not adequate. regulations affecting the coffee sector, more sustainable tech- In addition, organizations do not have sufficient knowledge to nologies for coffee production and processing, marketing and adequately adapt to the new circumstances resulting from the certification, and financial management and procurement. reform. Loss of employment due to privatization of CWSs 47. See annex 4 for more information on the structure of the associations. Issue 48. According to the 2008 Agribusiness Program Semester Report (USAID 2008), the low participation of farmers in There is significant concern that the reform, and specifically the associations is because of a lack of information on services provided to members; inadequate mastery of cooperative privatization of the CWSs, could cause CWS workers to lose principles; lack of vision among farmers concerning liber- their jobs. alization/privatization of the coffee sector; lack of interest; little differentiation between services offered to members 49. Referred to as “pre-cooperatives� in the draft law, the term and nonmembers; and poverty among coffee farmers cooperative was judged to be inappropriate to these enti- (lack money needed to join). ties because the size of their capital base is relatively small. 36 Rapid Strategic Environmental Assesment © Paola Agostini/World Bank Some of the state-owned CWSs are at risk of being closed be- cluding personnel expenses. So far there have been no job cuts,51 cause of poor location and strong competition from smaller and and this would not likely affect CWSs operational staff, but the more efficient CWSs. In addition, many CWSs will become challenge exists and compensation measures should be explored. owned and operated by private sector companies50 that will ver- tically integrate with dry mill operations, and this vertical in- Gaps tegration will carry on to the marketing functions as well. It is anticipated that in 5 to 10 years, the bulk of dry processing will The gaps are inadequate financing and limited management ca- be performed by new, smaller mills. Currently, the private mills pacity to expand the number of efficient CWSs to keep workers process approximately half of the country’s coffee, and the two employed. state-owned SODECO mills, with a capacity of 30,000 tons each, process a smaller fraction of this amount. Figure 5 shows Recommendations that by 2015, about 30 percent of the coffee can be expected to To avoid or cope with potential employment losses, a capaci- be processed in the privatized SODECO mills (which are less ty-building program for the farmers’ associations will help the competitive due to their size) and the remaining 70 percent will farmers acquire skills so that they can work in the efficient CWSs be processed in new, more efficient, private mills. These changes with new sustainable technologies. Training would also be rec- could cause CWS employees to lose their jobs. ommended for those in mid-level positions at the CWSs and who need different qualifications that are adequate for a chang- The study to estimate the costs for SOGESTAL CWSs (Len- ing sector. Also, if the reform achieves its goals of increasing pro- aghan, Jean-Pierre, and Nkeshimana 2010) has suggested that duction, increasing activities to accomplish coffee certification, to become more competitive without needing subsidies and pre- and increasing the number of CWSs, significant job losses may venting further financial losses, this organization and the CWSs not occur. For example, sorting the cherries by hand guarantees will need to adjust their high and inflexible indirect costs, in- quality in the coffee that is sent to for processing. Sorting should be performed by trained workers capable of identifying damaged 50. It is expected that by 2015 there will be 133 privatized CWSs 51. The private company Webcor has kept employees from the and 60 new private CWSs. former public CWSs. Coffee Sector Reform in Burundi 37 © Curt Carnemark/World Bank kernels that the machines did not discard. Thus, increased pro- Gaps duction levels and interest for high-quality coffee could require a higher number of employees to act as sorters. Increased rentabil- Inadequate dissemination about the procedures involved in the ity of the CWSs will allow for the establishment of new CWSs, privatization process have caused criticism and concern among with new employment possibilities. In addition, at a higher level, some of the involved parties. there are in the key managers that could become part of the new coffee sector structures proposed by the reform. Finally, if there Recommendations are job losses, employees need fair compensation. Developing a communication strategy about the benefits and ef- Increasing conflicts due to nontransparent and inefficient fects of the coffee sector reform will help diminish concerns and privatization process mitigate potential conflicts. This strategy needs to be prepared and implemented to reach all stakeholders and address all envi- Issue ronmental and socioeconomic issues. In addition, the regulatory Farmers’ organizations are particularly concerned about the agency will need to be strengthened to adequately supervise the privatization of the CWSs because they their income comes privatization process. from sale of coffee cherry prices from the public CWSs, and now the rules have changed. Inadequate hygiene conditions and practices for workers Issue In 2007 and 2008, large-scale contracts were established with a coffee broker operating in the New York area. These agreements In addition to the improper use of pesticides and fertilizers, poor have been controversial because some people believe they are not hygiene conditions and practices that can lead to health prob- fully transparent and because of the large commissions paid to lems still prevail in the CWSs. the brokers. 38 Rapid Strategic Environmental Assesment Table 2. Modes of Transporting Coffee in Process Cherry Parche Green coffee Carried by men on their backs or by By truck: CWS or transit warehouses By truck: Warehouses of the facto- bicycle: Field crop to the collection to the hulling factory ries to Dar-Es-Salam harbor (Tanza- centers or the washing stations nia) In pick-up or truck: Collection cen- Boat: From Dar-Es-Salam to the ter to the CWS destination country Source: Compiled by author. Gaps of existent roads and the construction of new roads and trails in rural areas could cause land degradation, erosion, and biodiver- Even though new CWSs are applying better practices and gen- sity loss. erating fewer problems, there is no regulation that ensures that every CWS will follow proper health standards. Also, there is Gaps no monitoring of sanitation conditions in the CWSs. Workers and CWS owners also need training regarding proper working Gaps include inadequate regulations, resulting in nonexistent or hygiene conditions. inadequate land-use plans, and weak institutional monitoring capacity to enforce regulations. Recommendations Recommendations To overcome this issue, standards and regulations on hygiene and sanitation for CWSs should be developed, issued, and mon- Regulations should be developed and implemented to make En- itored. A capacity-building program should be designed for the vironmental Impact Assessments (EIA) mandatory and existing environmental institutions regarding health and security com- roads should be rehabilitated to accommodate heavier traffic. pliance. The capacity-building program for workers and owners When rehabilitation of roads is needed, it should be performed should stress hygiene standards, for themselves personally and according to environmental standards. In addition, a capacity- for the work environment. Finally, as the certification process building program should be implemented to provide institu- successfully advances, it is important that workers have guaran- tions with the tools to enforce regulations. teed, safe working conditions to sustain the certification. 4.3.2 Socioeconomic Issues 4.3 Marketing Phase The main possible socioeconomic issues that could arise from 4.3.1 Environmental Issues the coffee reform in the marketing phase are conflicts over ben- efit distribution, farmer dependence on volatile international Most of the potential environmental impacts of the coffee sector coffee markets, and poor financial returns because of inadequate reform in the marketing phase are closely linked to the potential direct sales knowledge (see also annex 1). impacts in the other phases. Clearing of land for loads and heavi- er road use are the two additional environmental issues within Increasing conflicts due to inadequate distribution of ben- the marketing phase (see also annex 1). efits Issue Clearing of land for the construction of new roads and trails or heavier use of existent roads A nontransparent privatization process and inequity in privatized coffee processing can lead to monopolization of the financial ben- Issue efits resulting from the reform. In turn, these can lead to an un- Table 2 shows the different modes of transportation for coffee in balanced distribution of revenues along the value chain, leaving its different stages. Increases in coffee production and the need the coffee-growing farmers out of the increased financial gains. to transport larger amounts can generate heavy use of existent This issue has been the main concern for farmers’ associations. roads and/or the opening of additional access roads or trails. An adequate transport facility is key for transporting high-quality coffee according to buyer demand.52 However, the heavier use the cherries the coffee farmers have just a few hours to get 52. For example, to ensure good quality coffee, after picking them to the CWS for depulping. Coffee Sector Reform in Burundi 39 Gaps Currently, the structure of the grassroots groups, unions, and federations is not able to ensure a smooth transition from two players (state and producers) to a largely competitive multistakeholder system. Farmers’ organiza- tions currently lack the capacity to participate in all segments of the coffee value chain and claim an equitable distribution of benefits. Recommendations Strengthen farmers’ organizations and imple- © Simone McCourtie/World Bank ment capacity-building programs to help farmers participate and become involved in the coffee process under fair and transparent conditions. In addition, farmers should participate in certification processes to ensure that ben- efits are distributed fairly among all the par- ticipants. Several certifications, such as Fair Trade, guarantee that producers receive a se- cure minimum floor price and an additional premium for certified organic products. Also, producers are able to sell to importers directly, eliminating un- Increased dependence of farmers on volatile coffee prices in necessary middlemen who retain part of the financial benefits.53 the international market Equitable distribution of benefits should also include gender Issue considerations. Traditionally, men outnumber women in coffee Though Burundian coffee represents less than 1 percent of sales associations, CWSs, and local roasters. Most of the capital lies on the world market, the livelihoods of several thousand house- in the hands of men, despite the fact that banks are often eager holds and exporters in Burundi are directly related to coffee and to lend to women and women’s groups due to their almost uni- its price.54 During the prereform period, farmers received their versally lower default rates. Programs that will enable women incomes for the sale of coffee cherry from the government. Prices to participate in these and other professional roles in the coffee and thus income received was minimal, but at least producers sector will be an important investment for government, organi- could count on it. With the opening of the coffee export market zations, and households. to local and international participants, coffee prices and revenues for the farmers will be more vulnerable to international market Full implementation of reform regulations are expected to re- changes. With liberalization, there is greater exposure to interna- sult in liberalization based on the principles of competition and tional price fluctuations. transparency, which should be enforced by the relevant institu- tions. Farmers’ associations, once strengthened, will be able to Gap participate in the different phases of the coffee sector develop- ment and increase their bargaining power. The concern about vulnerability to international coffee prices exists because of a lack of knowledge about coffee production alternatives and about niche markets, which are more stable in price. Also, once Burundi’s coffee is certified for specialty mar- kets, farmers’ incomes will increase. 53. It is worth emphasizing that not all middlemen are unneces- sary. Some can play an useful role in the coffee value chain 54. Coffee accounts for more than 60 percent of Burundi’s ex- by bearing the risks and costs that would otherwise only be port earnings, and around half of the country’s population assumed by the producers. depends on coffee for income. 40 Rapid Strategic Environmental Assesment Recommendations been received.56 All of the certification schemes have significant start-up and maintenance costs: for example, additional labor A national certification system as well as a coffee traceability (time) costs for the producers, CWS equipment/infrastructure, system (box 2) should be key elements of the reform. The low extension services, as well as the charges for inspectors/auditors chemical input and high quality potential of Burundi’s coffee coming from Nairobi or Europe. Additionally, it takes a certain means that farmers can consider a variety certification programs, amount of time to fulfill all the requirements and obtain the which define environmental and social standards. Burundi’s cof- certification. UTZ and others may require only a year to cer- fee strategy should plan on meeting these standards through tify, but, for example, organic certification typically requires a improved environmental (organic, shade-grown, biodiversity three-year waiting (cleansing) period. The challenge for producer friendly coffee) and social management (fair trade). The major groups is to ensure that their upfront and continuing invest- coffee certification schemes and their returns and defining char- ments in certification will be recovered and prove their worth acteristics are summarized in annex 5. All of them are based on over the long term. Already the USAID–Burundi Agribusiness standards designed to improve environmental management and Project is helping other CWSs to achieve certification. As new yield higher prices and other socioeconomic returns. Certifica- certifier companies come to Burundi, competition among them tion helps mitigate price volatility risk. will help lower certification costs. The country has slowly started the certification process of its cof- In addition, among the producers who have started a certifica- fee and is entering specialty markets. Currently only 10 percent tion process, none has ever been confronted with any environ- of the country’s coffee that is internationally sold goes to spe- mental or social obligation before. The certification needs to cialty markets.55 Only one grower association (Kagombe) and come hand-in-hand with a capacity-building program for the their CWSs have obtained international certification from UTZ. farmers’ organizations and their members. Such a program will This has been an important accomplishment that has brought also need to provide tools to help farmers develop the financial higher prices, higher productivity, a stable buyer relationship, management skills to overcome or cope with price fluctuations. and increasing interest from other coffee producers. However, Preventing international market fluctuations is beyond anyone’s much remains to be done, especially by InterCafé, which is the reach, but it is possible for farmers to learn how to adapt and new institution representing the private sector and grower as- maintain sufficient levels of income. sociations that could play a key role in the local development of certification systems. Supporting the certification process will ensure that Burundi rapidly develops a distinguished brand, that institutions are in Support is needed to partially cover the costs of the certifica- place to ensure that coffee production meets the needs of a rap- tion, at least in the initial phases before financial returns have idly changing market, and that farmers’ groups improve their production and acquire the expertise to obtain certification. In addition, under consideration is a plan for InterCafé to develop Box 2: The Traceability Concept of Specialty a centralized national system to certify producers, processing Coffee plans, and warehouses being adapted to various situations across Lot traceability is critical for meeting the demands of the country. The system would include a tracking scheme—de- specialty coffee markets. It requires that every cof- veloped and managed by InterCafé—that traces the locations of fee cherry received at a washing station on a given coffee throughout its different phases, as well as the renovations day be separated in a way that preserves the iden- in market development. These systems can be incorporated by tity of lots in terms of their place of origin (for exam- farmers’ organizations as an interim measure that allows the pro- ple, which hill or which farmer association). The lot’s identity must be maintained through the entire value ducers’ organizations to improve their product at their own pace, chain, including depulping, fermentation, washing, until capacity is developed to adopt international certifications. soaking, drying, and dry milling. There are different systems for assuring traceability, but most commonly Burundi, because of its particular social and environmental con- lots are tagged with cards indicating a number and siderations and advantages, has the potential to create an image date. This enables coffee traceability from farm to that will allow it to distinguish itself from other regions. A dis- point of sale. cussion group to expand on this goal should be created by Inter- Not only does traceability enable both buyers and Café and include experts to develop a plan for its achievement. sellers to isolate higher quality lots and price them accordingly, but it also helps quality control by isolat- ing defective lots (for example, “potato taste,� com- 55. With the reform it is expected that 50 percent of the coffee mon in Burundi) so they can be quickly addressed. will be sold to the specialty markets and the remaining to commodity Source markets. : Author’s compilation. 56. See annex 5 for an example of a certification experience. Coffee Sector Reform in Burundi 41 © Arne Hoel/World Bank Poor financial returns due to farmers’ lack of direct sales Despite existing for more than 10 years, farmers’ organizations knowledge and their structures remain fragile. There number of members has decreased: less than 15 percent of coffee growers58 are mem- Issue bers, although these figures differ greatly from one area to the other. No real diagnosis of the viability of these organizations has During the prereform period, farmers’ involvement in coffee yet been made, but it appears that their low pooling of resources marketing phases was minimal. Previously, direct coffee sales and services and weak bargaining capacity, among other defi- were nonexistent; currently, approximately 20 percent of coffee ciencies, could quickly become a bottleneck for the continuity is directly sold (the remaining through auctions and contracts). of reform. If increasing numbers of CWSs improve coffee quality and help build relationships with buyers/roasters, direct sales marketing Recommendations will increase substantially as a sale mechanism.57 A capacity-building program for farmers on all issues related Gaps to the commercialization and certification of coffee is essential. By 2015, direct sales will account for 50 percent of coffee export- With increased knowledge and participation in the marketing ed (see figure 5). Lack of knowledge and understanding about phase, the reforms should help producers benefit from the more marketing procedures could therefore have a significant negative competitive market conditions, sell at higher prices, and lead to impact on farmers’ income. higher incomes. 57. Some of Burundi’s coffee will remain lower in quality, includ- 58. In 2007, farmers were grouped in a confederation, five ing the “washed� segment. This coffee will follow the desti- federations, 133 unions (1 for each of the CWSs still owned nation of all coffee prior to the reforms and sold by contract by the government), and 2,136 associations with approxi- at close to New York commodity prices and wholesale mately 120,000 members, representing 15 percent of the prices in commercial blends. estimated total number of coffee farmers in Burundi. © Jonathan Ernst/World Bank Coffee Sector Reform in Burundi 43 5. Action Plan This action plan includes the actions recommended to address (LDCF), World Bank’s Specific Investment Loan (SIL),2 and the the environmental and socioeconomic issues resulting from the World Bank Development Program Loan (DPL).3 Considering coffee sector reform. The actions have either a short-term (two the potential environmental benefits that could result from the years) or medium-term (three to five years) timeline. Each action implementation of this action plan, the GoB could seek financ- has a specific institution responsible for its implementation. The ing through a GEF and LDCF grant in multifocal areas of land plan also includes a cost estimate for each action. degradation, biodiversity, and adaptation to climate change. The implementation of the action plan will require considerable The proposed action plan is tentatively scheduled to start in July coordination by government agencies and ministries as well as 2011. Each component will include training and knowledge- political will to ensure sustainable results. sharing activities. Financing for implementation of the Action Plan can be ob- tained through various sources such as: the Global Environmen- tal Facility (GEF),1 TerrAfrica Least Developed Countries Fund © Jumaine Hussein 2. The SILs support the creation, rehabilitation, and mainte- nance of economic and social infrastructure. They can finance consultant services and management and training programs. SILs help to ensure the technical, financial, eco- nomic, environmental, and institutional viability of a specific 1. The GEF provides grants to developing countries and investment. They also support the reform of policies that countries with economies in transition for projects related affect the productivity of the investment. to biodiversity, climate change, international waters, land 3. DPLs provide quick-disbursing assistance to countries with degradation, the ozone layer, and persistent organic pollut- external financing needs to support structural reforms in a ants. These projects benefit the global environment, linking sector or the economy as a whole. They support the policy local, national, and global environmental challenges and and institutional changes needed to create an environ- promoting sustainable livelihoods. ment conducive to sustained and equitable growth. 44 Rapid Strategic Environmental Assesment Proposed Management Action Plan Production phase Responsible Estimated cost Potential Actions institution(s) Timeline (US$) financing Implement training Ministry of Agriculture, 3 – 5 years 1,000,000 GEF, LDCF, SIL, program on shade- Ministry of Environ- TerrAfrica grown coffee and ment, ARFIC, Inter- integrated pest man- Café agement Issue regulations mak- Ministry of Regional 2 years 100,000 DPL, TerrAfrica ing mandatory the Planning and Urban preparation of munici- Development pal land-use plans Initiate the prepara- Ministry of Regional 3 – 5 years 2,000,000 DPL, TerrAfrica tion of municipal Planning and Urban land-use plans (50% Development municipalities) Introduce a payment Ministry of Environ- 3 – 5 years Program de- GEF, LDCF for environmental ment sign: 500,000 services program (50% Implementa- of municipalities) tion: 2,000,000 Demarcate PAs (50% Ministry responsible for 3 – 5 years 2,000,000 GEF, LDCF demarcated), giving forests and land use preference to those PAs with higher risk of encroachment Subtotal 7,600,000 Processing phase Responsible Estimated cost Potential Actions institution(s) Timeline (US$) financing Issue environmentally Ministry of Environ- 2 years 200,000 GEF, LDCF, sound criteria, stan- ment DPL, SIL dards, and regulations for the CWSs in accor- dance with the East Africa Community and buyer countries Conduct studies inves- Ministry of Environ- 2 years 100,000 DPL tigating the potential ment, SOGESTAL for harvesting rainwa- ter and economically recycling water in the CWSs Develop a training Ministry of Environ- 3–5 years 400,000 GEF, LDCF, program on water, ment, ARFIC, Inter- DPL, SIL irrigation, and solid Café waste management Coffee Sector Reform in Burundi 45 Actions Responsible Timeline Estimated cost Potential institution(s) (US$) financing Develop a capacity- Ministry of Environ- 3–5 years 300,000 DPL, SIL building program for ment, ARFIC, Inter- enhancing enforce- Café ment and monitoring of environmental and social standards (both for production and processing) Subtotal 1,000,000 Marketing phase Responsible Estimated cost Potential Actions institution(s) Timeline (US$) financing Develop a coffee Ministry of Agriculture, 2 years 300,000 GEF, LDCF, SIL certification program, ARFIC, InterCafé such as organic, fair trade, biodiversity friendly, or certifica- tion of origin Conduct a market ARFIC, InterCafé 2 years 300,000 GEF, LDCF, SIL study for the potential of accessing niche markets and employ- ing diversification strategies such as re- ceiving payments for carbon and environ- mental servicesa Implement a capac- ARFIC, InterCafé, Min- 3 – 5 years 500,000 GEF, LDCF, ity-building program istry of Environment, DPL for coffee coopera- Ministry of Agriculture tives and the private sector Subtotal 1,100,000 Total 9,700,000 © Paola Agostini/World Bank Coffee Sector Reform in Burundi 47 6. Communication Strategy The purpose of this communication strategy is to sensitize stake- R-SEA gives strategic directions that will help produce sustain- holders in the coffee industry to environmental issues related able coffee and proposes mitigation measures to offset possible to coffee production. This strategy was drafted after reviewing negative effects and enhance positive effects. This communica- previous studies, conducting research, and interviewing different tion strategy complements the R-SEA by providing a program actors. A series of meetings and interviews in Burundi helped to disseminate the key messages. identify stakeholders and define their characteristics, level of knowledge on environmental issues and sensitivity, potential The economic, social, and even political interest groups have dif- political influence, and acceptance or preference for different ferent views on how the reform process in the coffee industry is media. unfolding. The Burundi government, through local government, the Ministry of Agriculture and Livestock, and the Ministry of This communication strategy assesses the situation based on Spatial Planning, Tourism, and Environment, is working hard to stakeholders’ characteristics and interests (table 3), and on the ensure the success of this reform and that all stakeholders reap existing communications tools’ strengths and weaknesses. An the benefits. inventory of the media landscape (box 3) was used in the analy- sis to determine the best communication channels. This analysis ARFIC, the governmental regulation institution, and InterCafé, of the media and stakeholders’ characteristics identified radio as the association of all professional families working in the coffee the appropriate medium for this campaign. Radio has proven its sector, from farmers to exporters, have been assigned manage- ability to reach coffee growers, the primary audience, as well as ment of the coffee industry, but are not yet fully operational. many others actors in the coffee sector. Civil society groups and nongovernmental organizations defend earth-friendly agendas or put forward antiglobalization ideas. The dissemination plan specifies the messages most likely to Growers, well organized into associations, federations, and con- reach the targeted audiences and result in a behavior change with federations at the hill, community, and regional levels, are at- a positive effect on the environment. The plan also defines the tempting to be the focal point in this reform, claiming that “the objectives of the radio campaign, its implementation, and how coffee is for growers, from the cherry to export,� as stated by the the content will be monitored, evaluated, and adjusted. president of Burundi in his famous speech. CNAC, the national confederation of coffee growers’ associations, consists of 650,000 Situation Analysis coffee growers accounting for 128,000 households. Powerful in numbers, these growers vigorously lobby the government to ob- The reform of the coffee sector in Burundi has stirred up a tain funding and credit guarantees that will allow them to buy lot of passion. The challenge lies in the multifaceted, real, or washing stations and, most of all, have a voice in the reform supposed interests of different stakeholders in the coffee sec- process. tor, each wanting to maximize their gains rather than adopt a «win-win» attitude. The Rapid Strategic Environmental Assess- Public depulpers, such as SOGESTALs, do not feel sufficiently ment (R-SEA) analyzes the environmental and socioeconomic involved in the reform because their financial power is limited. aspects at all levels of the coffee value chain. In addition, the Private washing stations (such as Webcor) claim that they have 48 Rapid Strategic Environmental Assesment not yet received a full return on their invest- ment in this privatization because of the antagonism and lack of support from coffee farmers. Strengths and Weaknesses of Existing Communications The communications campaign implement- ed during the coffee reform included radio, television, and newspapers at the local, re- gional, and national levels to reach out to © Yosef Hadar/World Bank the public and provide a wide forum for discussion. Public and private radios have large audiences, while televisions are limited to government officials and those living in cities. However, major industry players have little knowledge of environment issues. Farmers listen to the radio frequently, the most popular medium, and actively partici- pate in discussions on coffee reform issues. However, the design of the message content is often inappropriate. Because of their low educational level Radio: The Medium of Choice and, for some, their illiteracy, coffee farmers have a low level of understanding of some aspects of the economic, social, and Many radio stations were created in a postconflict context, af- environmental issues in the coffee sector. ter decades of violence between the two main ethnic communi- ties, the Hutus and the Tutsis. These radios have served multiple Recently established by CNAC, the Murimyi Wikawa Girijamb functions across the country, each contributing in its own way to newsletter, (Coffee Growers, Have the Voice) deals mainly with media diversity. Even though radio’s themes revolve around cul- coffee industry issues and is published every quarter. While man- ture, education, evangelism, Islam, trade, youth, or social prob- agement change in the coffee value chain remains an essential el- lems, these themes all converge in their mission to be a key tool ement for its development and sustainability, the messages com- for reconciliation, dialogue, peace, and development. municated focus solely on the positive or negative aspects of the reform. They have failed to highlight the environmental factors Radio Campaign: Message, Format, and and the reform’s contribution to the welfare of rural households. Content The World Bank, through PAGE and USAID/DAI-PAIR, has The key message of this radio campaign is how to produce qual- made available financial resources to implement communica- ity coffee while protecting the environment. The campaign goal tions campaigns that will help ensure the success of the coffee is to raise awareness about the effects of coffee production on the reform. However, it is difficult to assess the impact on the be- environment and convince the public to take positive preventive havior, attitudes, and practices of the different stakeholders in action. Each radio program will be centered on one key mes- the coffee sector. sage, based on the recommendations in the R-SEA, on how to produce earth-friendly coffee. Inventory of the Media Landscape The radio campaign will also target women because they are ma- In Burundi, there are three television stations, five newspapers, jor stakeholders in the production and daily maintenance of the three media houses, and twelve radio stations. After an assess- fields, while husbands typically perform the heavier tasks, such ment of the media landscape (see box 3), radio was chosen as the as trimming trees, putting down pesticides, or going into town most effective medium for this campaign. to sell their products. Coffee Sector Reform in Burundi 49 © Arne Hoel/World Bank Coffee growers are the primary audience for this campaign, there- • Water, pulp, and collection center management for earth- fore the radio program should be scheduled around their typical friendly processes; work schedule. To maximize participation, the radio program will be broadcasted in the evening when coffee growers are at home • New coffee processing technologies for better land protec- to provide an opportunity for discussion with family and peers. tion and improved productivity; It will be rebroadcasted in the early morning when they are in the • Success stories such as in SLC Kagombé, Bwayi, Kinyovu, field and can experiement and apply the techniques learned. and experiences from other countries; Different formats will be used to achieve the objectives of pro- • Coffee prices and premiums; viding information, education, and enrichment, as well as pro- vide a forum for feedback: • Better investment of coffee proceeds for purchases of build- ing material, radios, bikes; and last but not least, • Magazines, with a series of interviews with key players in the coffee sector and coffee growers at weekly market and • Ideas, desires, and mindset of coffee sector stakeholders. CWSs; Monitoring and Evaluation • Focus group in SLC with the station chief and the associa- tions of coffee growers; Listening Clubs will be created in various communities to ensure that regular, proactive, and interested audiences can evaluate and • Panel discussion and interactive panel discussion with ex- give feedback on campaign content. Evaluation forms will be perts answering questions from the public; and distributed to assess how much was understood and how well the messages were received and appreciated. • Skits and events focused on key campaign themes After each show, the team will prepare a summary to help evalu- The themes addressed in this campaign are: ate and adjust campaign content. To reach an even wider audi- ence, these summaries will be published in newspapers and bul- • Impacts of coffee production on the environment; letins dedicated to coffee issues, such as the French and Kirundi newsletter produced by the Ministry of Agriculture and by the • Protection of soil and the effects of fertilizers, pesticides, Centre Multimedia de Gitega. and other chemicals on the environment; Table 3. Stakeholder Analysis 50 Level of knowledge on envi- Impor- Implications and Stake- ronmental tance to requirements of Areas of holder Characteristics issues Expected results Activities Effects project the change resistance Coffee Between 600,000 and Medium Awareness of Find and or- Coffee trees are High Must be educat- Fear of losing growers 800,000 households, farm environmental is- ganize trainers well kept, lead- ed in protecting revenues. owners, or people who sues and respon- at the hill level ing to better the environment significantly depend on sible behavior who will edu- and sustainable and be account- coffee production. toward the cate farmers. productivity. able. environment. CNAC It includes 650,000 coffee Medium Awareness of Training in The coffee Medium Needs to Risk of losing (associa- growers, accounting for environmental environmental sector is well or- increase its power to tions/fed- 128,000 households. It is issues and moti- issues and ca- ganized in each influence and influence erations the umbrella organization, vate farmers to pacity build- region and capacity to help coffee prices of coffee covering the entire asso- behave responsi- ing. information is protect produc- and to help Rapid Strategic Environmental Assesment growers) ciative structure. It empha- bly regarding the exchanged and ers and help coffee grow- sizes lobbying for govern- environment. disseminated. them increase ers improve ment funding and credit their productivity their lives with guarantees that will allow more rev- them to buy CWSs and, enues. most of all, have a voice in the reform process. Local Not much involved in the Low Become an Training in In each com- Medium Must be involved Fear of administra- management of the cof- agent of change environmental munity, the in daily manage- unpopularity tion fee sector. by making issues and ca- local authority is ment of farms by pushing citizens aware of pacity build- involved in the and help farmers local popula- environmental ing. development understand envi- tion to better issues and help of sustainable ronmental risks. protect the enforce existing coffee. environment. laws and regula- tions on environ- mental protec- tion. Level of knowledge on envi- Impor- Implications and Stake- ronmental tance to requirements of Areas of holder Characteristics issues Expected results Activities Effects project the change resistance Ministry of Eager to promote the High Introduce laws Remind them The government High Must ensure Fear of Agriculture coffee sector, which ac- and regulations of their role as ensures that the populations and unpopularity and Live- counts for 60% of all export concerning the regulators and coffee sector agricultural assets because of stock earnings. It is trying to be environment promoters of brings in rev- are protected, pushing bet- more involved in strategies and ensure their sustainable enues. while allowing ter protection that will ensure greater implementation. development. greater and sus- of environ- productivity. tainable coffee ment. productivity. Ministry of Has not yet promoted High Introduce laws Remind them The techniques High Must avoid Fear of Regional standards for protection of and regulations of their role as used in the environmental unpopularity Planning, the environment. It is work- protecting the regulators and coffee sector consequences because of Tourism, ing on new water regula- environment promoters of increase pro- of larger natural pushing bet- and Envi- tions and widening of the and ensure their sustainable ductivity and resources ter protection ronment protected areas. implementation. development. respect the exploitation of the envi- environment. ronment. ARFIC New state institution re- High Be more re- Remind them Better produc- High Must ensure that Fear of hav- sponsible for the regulation sponsible for of their role tivity and more state and farm- ing a smaller of the coffee sector. the regulatory as regulators environmental ers' interests are role as coffee aspects related of the coffee protection. protected. industry be- to environmen- sector and comes more tal protection. their responsi- lucrative. Initiate laws bility for initiat- and regulations ing laws. concerning the environment. InterCafé New institution bringing Medium Become an Training in A powerful or- High May become Fear of not together coffee industry agent of change environmental ganization that the main actor having a professionals, deals with by making its issues and ca- can lead the in Burundi coffee voice in regu- operational issues. members more pacity build- sector. export. lation and aware of envi- ing. negotiations. ronmental issues and helping enforce existing laws and regula- tions on environ- Coffee Sector Reform in Burundi mental protec- tion. 51 continued on the next page Level of 52 knowl- edge on environ- Impor- Implications and Stake- mental tance to requirements of Areas of holder Characteristics issues Expected results Activities Effects project the reform resistance Public Group of five companies Medium Promote bet- Convince Better produc- High Needs to rede- Fear of not depulpers that handle the washing ter treatment them of the tivity and more fine its role as having a public/ stations. They belong to of pulp and benefits of environmental CWSs are being voice in regu- private the state, or are mixed protection of the using earth- protection. privatized. lation and SOGESTAL with the state as a major- environment. friendly negotiations. ity. They would like to keep techniques the washing stations but for producing do not have the funds to sustainable purchase them. coffee. Private WEBCOR purchased 13 High Major player in Convince Better produc- High Must introduce Fear of losing depulpers CWSs in the first privatiza- environmental them of the tivity and more earth-friendly their invest- (WEBCOR tion while other groups protection. benefits of environmental and recycling ments. Rapid Strategic Environmental Assesment and oth- have built their own CWSs. using earth- protection. techniques. ers) Dissatisfied with the privati- friendly zation because they have techniques not yet fully benefited from for producing investment. sustainable coffee. Societés SODECO is a state compa- High Promote better Convince Better produc- High As new and Fear of not de Depar- ny managing two hulling waste treatment them of the tivity, but more smaller units are having a charge mills. The other plants are and protection benefits of environmental created by the voice in the (SODECO private. of the environ- using earth protection. private sector, regulation and ment. friendly-tech- they may gradu- and negotia- others) niques for a ally disappear. tions. sustainable coffee. ABEC Gathers the various groups Medium Become key Training in Better produc- Medium Existence may Fear of losing of exporters. Struggling to player in the environmental tivity, but more be threatened its market become a lobby group promotion of sus- issues and ca- environmental by the creation share. in control of the coffee tainable coffee pacity build- protection. of InterCafé. export. for export. ing. Civil soci- Defends coffee growers’ High Major player Training in Environment is Medium Must assert their Fear of not ety (NGOs, rights, environment, and at local and environmental protected and role as protectors being part of and so antiglobalization. national level for issues and ca- farmers’ rights of the environ- the decision forth) awareness build- pacity build- are respected. ment and lobby making ing and knowl- ing. more for farmers' edge sharing. rights. Coffee Sector Reform in Burundi 53 Box 3. The Media Landscape in Burundi There are three televisions: National Television—Created in 1984 with funding from the French government, this radio covered part of the country until 1987 and extended its coverage to the whole country in1992. Télévision Renaissance—Private, approved in 2006 with funding from the Martin Luther King Center, its programs are mainly music, movies and cultural programs. It has news editions in French and Kirundi. Héritage Television—Private, approved in 2007, the program focuses on Christian education and evangelization. There are seven newspapers: Burundi Quotidien covers general news and is owned by the government. Burundi Realites covers general news and is owned by Burundi Realites International, Ndongozi, Ubumwe, Le Renouveau, Iwacu, and Arc-en-ciel. The press agencies are Agence Burundaise de Presse owned by the government, and Aginfo et NetPress. There are 15 radio stations: In 1992, a new law, Decree-Loi No. 1/01 of February 4, 1992, was enacted, regulating the press in Burundi and ending the state monopoly on radio broadcasting. Since 1995, many radio projects and private radio associa- tions have emerged, each contributing in its own way to media diversity. Radio National—Established in May 1960, is owned by the government and has had two channels since 1977: one broadcasting in Kirundi and the other in Swahili, French, and English. Radio Scolaire Nderagakura (RSN)—Created in 2000, RSN is a public radio station aimed at promoting educa- tion in Burundi. Radio CCIB FM +—Created June 16, 1995, became the first private radio station to broadcast in Burundi. It is owned by the Chamber of Commerce, Industry, Agriculture, and Handicraft. Radio Umwizero (Hope), now called Bonesha (Scout)—Created in 1996 at the initiative of the French Association for Humanitarian Action, and was founded by the French Foreign Minister Bernard Koutchner and is funded by the European Commission. Scout’s primary purpose is to maintain a dialogue with Burundi youth to promote to peace and reconciliation initiatives. It has also played a key role in conflict prevention and national reconcilia- tion efforts. Radio Culture—Created in 1997, Radio Culture emerged under the push of former Communications Minister Frederic Ngenzebuhoro. Defined at its creation as an apolitical radio station, its broadcasting is limited to the promotion of cultural values in Burundi. Radio Ivyizigiro (Hope)—Mainly evangelical, Hope was created in 1999 by the Pentecostal Church with the support and funding of World Outreach Initiatives. Its mission is to spread the word of God. It broadcasts in four languages (French, Kirundi, Kiswahili, and English). Since 2007, it has broadcasted news and current affairs. Radio Publique Africaine—Created in 2000, the radio contributes to national reconciliation and development by claiming solutions to social problems. It is oriented specifically toward local community and intends to be “the voice of the voiceless.� In 2005, three new radio stations were added to serve the regions of Ngozi, Makamba, and Ruyigi. Radio Isanganiro (Meeting)—Created in 2002 under the initiative of Studio Ijambo and journalists, with the sup- port of the NGO Search for Common Ground. The objective was to contribute to reconciliation and peace, while maintaining a firm commitment to address underlying problems such as land issues and the inequities of mismanagement. Radio Isanganiro broadcasts nationwide 16 hours a day, in addition to covering southern Rwanda, eastern Democratic Republic of Congo, and western Tanzania. Its programs are also available online at www.isanganiro.org. continued on the next page 54 Rapid Strategic Environmental Assesment Box 3. The Media Landscape in Burundi (continued) Renaissance FM radio—Founded in 2004 by Innocent Muhoza, a former journalist, the radio is funded by the Martin Luther King Center and wants to be a citizen radio. It seeks a better understanding of the major chal- lenges facing the society and focuses on economic and sociopolitical debates. Its main target audience is the educated elite. Radio Mariya—Created as a Catholic radio station in 2004 by the Radio Maria Rome of Italy, Radio Mariya was the first station to be located in the interior of the country and to be broadcasting from Gitega. Its goal is to spread evangelical messages of joy, hope, and reconciliation. Radio Ijwi ry’Amahoro (Voice of Peace)—Launched in 2006 under the supervision of the Conference of Catholic Bishops of Burundi. Besides religious programs, it focuses on programs on peace, justice, mutual acceptance, reconciliation, and gradual development. Radio Agakiza—Created in 2007, the objective of this radio is to share the gospel and to familiarize listeners with the biblical truths and their applications in their daily life. It also aims to encourage people to participate in the development of the country. Radio Salama (Peace)—created by the Islamic Alliance of Burundi, its programs are designed to spread Islam through training, preaching, and books. It also has programs aimed at strengthening friendship, solidarity, and mutual assistance between Muslim societies. It broadcasts in five languages: Arabic, English, French, Kirundi, and Swahil. Rema FM Radio—Created in 2008, this is a private radio station owned by One Group Communication Plus. Focusing on politics, it was the first local radio station to air a 24-hour news program. Coffee Sector Reform in Burundi 55 7. Conclusions The coffee sector reforms have begun the process of liberaliz- During this coffee reform process, the government will be key in ing the coffee sector, reforming its institutions, and privatizing providing support in the form of regulatory oversight and strate- the processing facilities. The reforms have not been completed, gic direction for the sustainable development of the coffee sector and although important results have been achieved, the reforms in Burundi. Even though there is an apparent willingness to move have also generated or have the potential to generate a series of toward environmental responsibility, especially to access certified environmental and socioeconomic issues throughout the phases markets, once regulations and standards are adequately estab- of production, processing, and marketing. These issues need to lished, it is essential that the GoB ensures that farmers and owners be addressed to ensure improvements in and sustainability of the of the CWSs and drying mills comply with the national regula- coffee sector. The issues are mostly relate to: tions, in the areas of both labor and environmental protection. • The lack of knowledge, of farmers, the private sector, and At the same time, it is necessary to strengthen the capacities cooperatives, regarding environmentally sound production, of farmers’ associations and cooperatives to be real partners in processing, and marketing practices. the coffee sector development, especially to share in the man- agement of coffee processing and navigation of the certification • The lack of municipal land-use plans to zone land according process to gain entrance to specialty markets. Farmers’ active to its optimal use. participation in managing coffee-processing plants and adop- tion of technology and certification systems needs to be fostered. • The lack of specific environmental and socioeconomic regu- Even further, new institutional arrangements between farmers, lations for the coffee sector. GoB has prepared the frame- processors and exporters should be promoted to help them col- work law on environment and its environmental strategy, laboratively achieve common goals (Lenaghan, Jean-Pierre, and but has not yet produced the regulations needed for sustain- Nkeshimana 2010). able coffee production and processing. • Insufficient institutional capacity to monitor and enforce compliance with environment and socioeco- nomic regulations. The coffee reform has the potential to generate significant benefits for farmers and the country. The R-SEA has estab- lished a series of recommendations to address potential environmental and socioeconomic issues. The recommenda- © Jumaine Hussein tions involve legal, institutional, capaci- ty-building (for farmers, producer asso- ciations, and institutions involved with the coffee sector), and policy measures involving different stakeholders. 56 Rapid Strategic Environmental Assesment © Arne Hoel/World Bank Capacity building is also necessary for coffee sector institutions so environmental potential of permanent trees in coffee plantations that they can adequately fulfill their roles and responsibilities in is high (and could grow into a secondary and important forest), environmental management, technology development, the adop- not only through the possibility of accessing niche markets with tion of traceability and certification systems, and in the develop- high premiums, but also because of the possibility of payments ment of specialty markets and a brand image for Burundi coffee. for carbon and environmental services. Financial support in the form of start-up capital is also need- If successful, implementation of this coffee reform should go ed for coffee producers to develop sustainable coffee practices a long way toward stimulating coffee production and improv- that will mitigate the risk of negative environmental impacts ing productivity. Coffee is Burundi’s main export and the main and fulfill social and environmental responsibilities. Among source of cash income for around 600,000 poor rural families. the sustainable practices, the promotion of shade-grown coffee However, for production to be sustainable, farmers, associations, is of key importance because it promotes biodiversity conserva- and CWS owners will need to have adequate incentives to adopt tion; prevents soil erosion and land degradation; contributes to new technologies and negotiate their coffee sales competitively adaptation to climate change; allows farmers to access to niche and transparently. Ideally, the country’s coffee will get in to spe- markets, mitigating volatility of prices risk; provides alternative cialty markets, diversifying the sources of revenue and increasing sources of income for the farmers since they would not depend income for these families. only on a single crop; and might lead to payment for environ- mental services such as carbon. A better managed shade-grown Burundi’s dependence on coffee revenues means that every ef- coffee is expected to contribute to better livelihoods and better fort must be made to ensure this reform succeeds, and therefore natural resources management, especially in a country like Bu- mitigation of potential socioeconomic and environmental issues rundi, with very little forest area and where the economic and are of great importance, to both the farmers and the country. Coffee Sector Reform in Burundi 57 Annex 1 Matrix of Environmental and Socioeconomic Issues, Gaps, and Recommendations Coffee Production Phase Environmental Issues Gaps Recommended Actions Land degradation • Lack of farmer knowledge of SLWM • Develop training programs in SLWM technolo- technologies gies and climate change adaptation (shade- grown coffee and mulching) • Lack of policy incentives for SLWM • Introduce a mechanism of incentives (such as • Lack of regulations requiring payment for environmental services) preparation of land-use plans and sustainable coffee production • Issue regulations making mandatory the preparation of municipal land-use plans • Lack of institutional monitoring ca- pacity to enforce regulations • Develop capacity-building program on moni- toring and enforcement Increased agro- • Lack of farmer knowledge regard- • Develop capacity-building program for farm- chemical pollution ing risks and precautions related ers on safe management and handling of due to uncontrolled to the use of fertilizers and pesti- fertilizers and pesticides and on more sustain- use of fertilizers and cides and of possible alternatives able activities such as IPM pesticides (IPM) • Issue regulations on use of agrochemicals in • Lack of regulations on handling coffee farming activities pesticides and fertilizers • Develop capacity-building program on moni- • Lack of monitoring capacity of insti- toring and enforcement of agrochemical tutions to enforce regulations regulations Changes in farms’ • Lack of farmer knowledge on how • Provide technical and financial assistance productive systems to sustainably intensify coffee pro- programs to develop and implement proper and biodiversity loss duction farm development plans • Lack of policy and economic • Disseminate new agricultural technologies to incentives for the development farmers’ associations of sustainable, diverse productive systems • Set up demonstration plots • Introduce a mechanism of incentives (such as payment for environmental services) Expansion of agri- • PA boundaries not demarcated • Demarcate existing PA boundaries culture frontier into PAs • Existing PAs not sufficiently pa- • Increase budget and enforcement capacity trolled of PAs continued on next page 58 Rapid Strategic Environmental Assesment Socioeconomic issues Gaps Recommended Actions Dependence of • Lack of farmer training programs • Develop training programs for farmers and farmers on cof- on diversification of rural income extension agents on diversification of rural fee as a source of income income • Lack of start-up capital for other income-generating activities • Establish revolving fund Increase in conflicts • Uncertainty about land tenure • Clarify tenure due to request for more productive • Lack of land-use planning • Issue regulations requiring municipal land-use land plans • Lack of knowledge on how to in- tensify (but not expand) production • Develop training program for farmers on sus- without impacting environment tainable intensification of production Coffee Processing Phase Environmental Issues Gaps Recommended Actions Water pollution • Lack for regulations on wastewa- • Complete and consolidate previous studies ter disposal regarding CWSs environmental impacts • Lack of CWS monitoring for envi- • Issue criteria, standards, and regulations for ronmental compliance water management • Prepare manual/guidelines for owners and workers of CWSs on management of waste- water • Develop capacity-building program for institu- tions in charge of monitoring environmental compliance Increased water • Lack of knowledge and initial • Develop capacity-building program on new demand capital for applying more efficient water-saving processing technology technologies • Establish revolving fund for cooperatives to • Lack of regulations for and moni- help then buy more efficient technology toring of environmental require- ments at CWSs • Issue standards and regulations for water management • Develop capacity-building program on moni- toring environmental compliance Increased solid • Lack of knowledge and initial • Develop capacity-building on solid waste waste capital for applying more efficient disposal technologies and for solid waste recycling programs • Establish revolving fund for new efficient tech- nologies • Lack of regulations for and moni- toring of environmental require- • Issue standards and regulations for solid waste ments for solid waste disposal management • Develop capacity-building program for envi- ronment institutions Coffee Sector Reform in Burundi 59 Coffee Processing Phase (continued) Socioeconomic Issues Gaps Recommended Actions Poor representation • Lack of strong farmers’ organiza- • Develop capacity-building program for coop- of farmers in coffee tions and cooperatives eratives and farmers’ associations processing • Inadequate existing legislation • Issue cooperative legislation Loss of employment • Lack of financial and manage- • Develop capacity-building program for farm- due to privatization ment capacity to expand the ers’ associations of CWSs number of efficient CWSs • Establish revolving fund • Increase rentability of CWSs Increasing con- • Lack of communication strategy • Prepare and implement a communication flicts due to lack of for the coffee sector reform strategy transparency and efficiency in privati- zation of CWSs Inadequate hy- • Lack of regulations for hygiene • Issue standards and regulations on hygiene giene conditions and sanitation at CWSs and sanitation and practices for workers • Lack of monitoring of sanitation • Develop capacity-building program on conditions health and security compliance • Lack of hygiene training for work- • Develop capacity-building program for work- ers and owners of CWSs ers and owners Coffee Marketing Phase Environmental Issues Gaps Recommended Actions Clearing of land • Lack of regulations, resulting in • Issue regulations to make EIAs mandatory for construction of nonexistent or inadequate land- new roads/trails or use plans • Rehabilitate roads to accommodate heavier heavier use of exis- transport tent roads • Lack of institutional monitoring capacity to enforce regulations • Develop capacity-building program to provide institutions with tools to enforce regulations Socioeconomic Issues Gaps Recommended Actions Increasing conflicts • Lack of capacity of farmers’ • Strengthen farmers’ organizations and capac- due to inadequate organizations to participate in all ity-building programs distribution of ben- segments of coffee production efits and claim equitable distribution • Participate in certification processes to ensure of benefits fair distribution of benefits Increased depen- • Lack of knowledge about alterna- • Develop capacity-building program on niche dence of farmers on tives to coffee production markets volatile coffee prices in the international • Lack of knowledge about niche • Establish certification and traceability program market markets that are more stable in price • Lack of certification of coffee Poor financial returns • Lack of farmer knowledge about • Develop capacity-building program on mar- due to lack of farmer marketing procedures keting direct sales knowl- edge © Arne Hoel/World Bank Coffee Sector Reform in Burundi 61 Annex 2 First Workshop for the Preparation of the Strategic Environmental Assessment of the Coffee Sector Reform in Burundi Identification of Possible Issues in the Sustainable Development of the Coffee Sector 1. Production System • Develop capacity-building (technical, management, institu- tional) program for stakeholders in the sector 1.1 Planning and Management • Planning, management, and soil conservation 2. The Natural Environment and Biodiversity • Requires knowledge of the land by the development of a soil 2.1 Environmental Protection map meeting the needs of coffee by region • Awareness of populations and monitoring compliance with • Choice of appropriate planting locations the Law on Environmental Protection • Mastering the protection of soil by water often leads to 2.2 Processing of Residual Materials more water run offs • Mastery of techniques for treatment and control of solid • Streamlining management operations through the integra- waste and liquid according to standards tion of crops and shrubs associative agroforestry 2.3 Use of Chemical Pesticides 1.2 Improving Production • Rational use of biodegradable pesticides • Optimizing production techniques (cultivation techniques recommended) • Promotion of biological control • Optimizing the selection of adapted varieties and disease 3. Socioeconomics resistant crops 3.1 Increased Economic Dependence on Coffee 1.3 Quality • Diversification of crops (such as macadamia) • Promote production techniques of specialty coffee, organic coffee, and certified coffee giving access to the market spe- • Promotion of crop association and income-generating in- cialty centives • Establish quality standards 3.2 Transparency of Privatization Process • Promote good governance in the privatization process 1.4 Respect for the Rules in Force • Prepare a guide with environmental standards • Disseminate contents of the guide 62 Rapid Strategic Environmental Assesment Annex 3 Reforms in Coffee Sector and Their Impacts in Other Countries Kimonyo and Ntiranyibagira (2007) have discussed the reforms Experience from Cameroon shows that complete withdrawal of in neighboring countries Rwanda, Kenya, and Tanzania and their government from the coffee sector can have detrimental effects impacts on the coffee sectors. Table A1 presents the impacts of and that government’s role in providing support in the form of reforms in Rwanda, Ethiopia, Costa Rica, and Cameroon. With regulatory and strategic direction is critical for sustainable devel- the reforms, associated certification, and other obligations, pro- opment of the sector. ducers are receiving a better price for their coffee while improving environmental protection and social interest in coffee production. © Arne Hoel/World Bank Coffee Sector Reform in Burundi 63 Table A1. Reform Impacts in Other Coffee-Producing Countries Country Impacts Rwanda Institutional impacts • Highest level of political support for the development of Rwanda’s coffee sector proved crucial to the success of the program. • This political support greatly facilitated cooperation and coordination with local government authorities, access to finance for capital and operating costs, and stimulated farmers to replant coffee trees and improve the care of existing plantations. • New policies allow smallholder farmers greater choice to grow coffee, to interplant coffee with crops, and to contract with foreign purchasers. • Bilateral and multilateral development assistance, which helped unlock funding to revitalize the coffee sector. • Set up of cooperatives and unions, and training of their members to improve coffee quality, manufacturing processes, and marketing efforts. Environmental impacts • Integrating environmental mitigation measures in CWS design and construction, but are poorly managing liquid and solid effluent disposal (Chemonics International Inc. 2006). • Water recirculation systems decrease resource use. • Decrease in solid waste by use of sediment ponding systems and composting areas. • Creation of Traceability Systems from Farm to Destination Market, it also allows processors to recognize exceptional batches of coffee that can be treated separately and marketed at prices as high as four times the price of other coffees produced by the same CWS. Socioeconomic impacts • Growers have higher incomes from cultivating better quality coffee and producing specialty coffee. • By creating cooperatives and unions, farmers have benefited from the advantages gener- ated by economies of scale. • The Hutus and Tutsis work together on many initiatives to improve their standard of living., which has fostered postconflict reconciliation. Empowering economic liberalizations, such as the Rwanda coffee sector liberalization, may be conflict reducing rather than conflict gen- erating. In a postconflict environment, such liberalizations may serve as an important policy complement to more traditional reconciliation efforts (Boudreaux and Ahluwalia 2009). continued on next page 64 Rapid Strategic Environmental Assesment Country Impacts Ethiopia Institutional impacts • Set up of farmers’ cooperatives, for example, the Cooperative Union of Coffee Growers of Yirgacheffe. • Developed linkages with certifications process in coffee production (support from Oxfam America) to improve coffee quality. • Funding—revolving loan without interest of 150,000 dollars to be repaid over five years and to be reinvested in other cooperatives. Environmental impacts • Decrease in the amount of organic waste from the washing process and reduction in the amount of water use by 98.5 percent by using ecological transformation method in CWS. • Reduction in degradation of the water quality that local communities use for daily consump- tion. • Processing of the pulp and mucilage accumulation, the organic derivatives of washed cof- fee, into biofuel, fertilizer, and animal food to further increase the incomes of coffee growers. • Planting of shade trees in coffee plantations resulting in more biodiversity, flora and fauna, and nutrient cycling. Socioeconomic impacts • Generate additional profits by selling their beans in the international specialty markets. • Better coffee quality under shade resulting in slightly better prices. • Reduction in fluctuations in annual production. • Providing cooperatives with a loan made members responsible for the repayments and rein- forced the idea that they are the real owners of the investment. Costa Rica Institutional impacts • Development of coffee cooperative organizations in Costa Rica, an inspiring model for suc- cess in other countries, including Burundi. • COOCAFÉ, the Consortium of Coffee Cooperatives of Guanacaste & Montes de Oro and overarching federation of nine member associations, provides key managerial, marketing, and technical expertise. Environmental impacts • Reduced effluent through low-water-use technologies, water use by a factor of 10. • Vermiculture compost production from organic waste. • Levels of chemical inputs cut in half using pest control through integrated pest management (IPM) techniques. • Increased tree cover and biodiversity conservation, better nutrient cycling, soil fertility through reforestation. • Reduction in energy needs using solar dryers. Socioeconomic impacts • Production of very high quality coffee by smallholder producers resulting in higher incomes. • Fair Trade movement derived substantial premium. • Significant level of investments made in sustainable coffee production systems. Coffee Sector Reform in Burundi 65 Country Impacts Cameroon Institutional impacts • In contrast to above three countries, the government of Cameroon completely withdrew from the coffee production sector. • There have been no further investments, guidance, or subsidies for growers, which has made pesticides and fertilizers unaffordable. • Research stopped. Environmental impacts • Depleted soil. • Use of poor quality plant material. • Halt in the regeneration of old plantations and abandonment of the extension of better farming practices. • Decline in productivity, to 300 kilograms per hectare (kg/ha) compared to 816 to 1,032 kg/ha in Brazil. © Arne Hoel/World Bank 66 Rapid Strategic Environmental Assesment Annex 4 Organizational Structure of Burundi Coffee Growers Starting in 1996, associations of coffee growers emerged under The structure of growers’ associations in the coffee sector has the leadership and the support of the OCIBU. Capacity build- four levels of organizations, which represent less than 15 percent ing was provided by the African Institute for Economic and So- of producers. cial Development (INADES). The first association of growers dates back to 1997. confederation of national level coffee growers federation of cof- SOGESTAL level fee growers (includes several CWSs) union of CWS level coffee growers (several collines) association of cof- colline level fee growers (basic (part of a watershed) farmer organizations) Coffee Sector Reform in Burundi 67 Annex 5 Summary of Major Coffee Certification Schemes Certification Premium Characteristics Fair Trade $1.26 or $0.05 above con- Fair Trade certification addresses the social and environmental ventional issues surrounding coffee production, ensuring farmers a livable wage. Regardless of market price fluctuations, Fair Trade coffees receive a minimum of $1.26 or $0.05 above the world price if higher, and $0.15 if coffee is also certified organic. Organic 10–15% above conven- Organic coffee that is certified by a third party organization or tional agency and is grown without synthetic pesticides, herbicides, or fungicides. Requires a three-year waiting period. Rainforest 5–15% above convention- Works to ensure that coffee is grown on farms where forests are pro- Alliance al (premiums negotiated tected and rivers, soils, and wildlife conserved; workers are treated between producers and with respect, paid decent wages, properly equipped, and given buyers) access to education and medical care. Shade 18% above conventional A definition of coffee plants that are grown under a canopy of Grown shade trees, protecting them from intense sun exposure. By prevent- ing deforestation and providing a natural habitat for native birds and animals, shade-grown coffee helps preserve delicate ecosys- tems in coffee-producing countries. UTZ 5–15% above convention- UTZ CERTIFIED developed a code of conduct for growing sustain- CERTIFIED al (premiums negotiated able (environmentally and socioeconomically) coffee on the basis between producers and of the “good agricultural practices� of the European retail group. buyers) Less stringent standards than Fair Trade. Higher productivity through GAPs is an important goal. UTZ CERTIFIED Good Inside coffee is traceable from grower to roaster; they operate a track-and-trace system, showing the buyers of UTZ CERTIFIED coffee where their cof- fee comes from. UTZ claims to be the world’s largest coffee certifier. 68 Rapid Strategic Environmental Assesment Annex 6 Certification of Kagombe Coffee Association The Kagombe coffee association has been certified by UTZ In addition, as a result of the improved agricultural practices CERTIFIED. The association received support from the Dutch brought by UTZ CERTIFIED, on-farm coffee productivity has NGO Solidaridad to cover the initial costs. These initial costs in- increased significantly. Initial assessments conclude that coffee cluded inspection, training, improvements, equipment, and oth- production per tree has increased on member farms by nearly 30 er costs and totaled $30,000. The costs can be reduced through percent over the past two years, from 1.7 in 2007 to 2.2 in 2009. economies of scale in training and inspecting a larger number It has been verified that the higher productivity was not experi- of CWSs all at once. However, if considerable infrastructural enced in neighboring coffee-growing areas. The year 2009 was investments are required in new areas, the start-up costs could a “bad year� in the Burundi coffee production cycle. However, increase. Certification costs in subsequent years are considerably while Kagombe’s production was reduced by approximately 50 lower (in the range of US$7,000 to $10,000) because additional percent from 2008 (a “good year�), in the neighboring areas the training is targeted only to new farmers and inspection visits by reduction was approximately 70 percent. According to SOGE- auditors are considerably shorter. STAL Kirundo-Muyinga, even though Kagombe is only one of the 28 CWSs in its area, in 2009 it produced 20 percent of the In terms of economic benefits, so far, over the two years under green coffee. This improvement in productivity is also an impor- the scheme, the premiums paid to producers have totaled ap- tant step for reducing vulnerability to year-to-year production proximately US$39,000 or $19,500 per year on average, well fluctuations. above the program’s maintenance costs. In 2008 and 2009, all of the coffee from Kagombe was purchased by U.S.-based Paragon For the association, the returns and benefits received from the Coffee (a major U.S. importer) at a price of $1.50/lb. Cherries certification are well worth the initial and annual costs of the were purchased at the government set rate of 300 FBu/kg, but farmers later received a premium of 20 FBu/kg of cherries the investment. Other farmers are now interested in participating. first year and 23 FBu/Kg the second year, a 7.3 percent increase. 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Washington, DC: African De- Commercialisation du Café au Burundi.� Université de Genève. velopment Foundation. 71 www.terrafrica.org www.terrafrica.org TerrAfrica is a vehicle for country programs that implement objectives of the UN Convention to Combat Desertification, other environmental conventions, and the Comprehensive Africa Agricultural Development Program (CAADP) and Environ- ment Action Plan of the African Union's New Partnership for Africa’s Development Planning and Coordination Agency. TerrAfrica Secretariat / NPCA 1258 Lever Road Headway Hill P.O. Box 1234 Halfway House Midrand 1685 South Africa Contacts: Ousmane Djibo Ousmaned@nepad.org Rudo Makunike RudoM@nepad.org Tel. +27 11 256 3600/41 www.npca.org - www.terrafrica.org May 2011 o u r land — o u r wealth , o u r f u t u re , I n o u r hand s