Rwanda Coffee Sells at Record Prices

Starbucks shuns Ethiopian

Trading Markets
September 10, 2007

Kigali, Sep 10, 2007 (Rwanda News Agency/Agence Rwandaise d'Information/All Africa Global Media via COMTEX) –

Coffee may be selling internationally at less than $30 a kilo but a recent competition in Rwanda has rated the local brands at a record $55 for the same quantity, RNA reports.

Last week in Kigali, there was The Golden Cup competition - the most esteemed prize where Rwanda's best coffees were auctioned to international buyers. Coffee from the north region based SDL Muyongwe washing station in Gakenke District earned the highest honor.

The next day this coffee was sold for over US$55 a kilogram to American companies Intelligentsia Coffee and Stumptown Coffee.

There were 10 stations that presented their coffees but four sold well above the $30 per kilo international price. The coffees came mainly from the weather friendly regions of the country - north, West and some parts of the south.

Though the other six sold at lower rates, they remained relatively competitive at between $7 and $15 per kilo. SDL Muyongwe washing station exhibited 360 kilograms in 60 kilogram pack.

Maxime Christen, one of the international jurors and employee of the Schluter Trading Company based in Switzerland said: "in our 150 years in the business, we have never seen prices as high as US$25 per pound for any African coffee."

"It is a great achievement, and shows that there are people willing to pay great prices for great coffee. The producers are beginning to see some spectacular rewards for all their hard work."

The month long competition, supported by the U.S. government aid agency - USAID, was a strict and meticulous contest. Government and the country's National University of Rwanda were also behind the event in addition to numerous international bodies.

The Agency's Rwanda office says the competition was developed to garner international recognition for Rwanda's burgeoning specialty coffee industry.

To encourage the production of the highest quality coffee, and to directly link Rwandan farmers to coffee connoisseurs worldwide, it adds.

The agency previously injected $10 million in 2000 over six years. Last November, another US$6 million marched up for the next five years. The new component came as part of the Sustaining Partnerships to enhance Rural Enterprise and Agribusiness Development - SPREAD project.

At the launch of the project back then, officials said it would work to better the coffee industry's links "from the seed to the cup."

Project director - Dr. Tim Schilling says the auction demonstrated that high quality Rwandan coffee is "sought after by some of the most prestigious coffee companies in the world."

One hundred thirty-eight coffees from across the country entered the Golden Cup, but only the top twenty coffees that continuously received high scores from cuppers (tasters) through a rigorous series of five evaluations were awarded and sold.

The coffees were evaluated for taste and quality by highly trained national and international juries. Judges came from as far away as Europe, Japan and the United States. The entire process was monitored by an independent consulting firm, Ernst & Young, in order to ensure fairness and transparency.

The Director for Counter Culture Coffee from the US - Peter Giuliano said he was "proud to participate in this event that signifies Rwanda's transition into one of the elite coffee producing countries of the world."

Smooth and seamless, with molasses

Intelligentsia Coffee that has been selling ZIRIKANA coffee from Northern Rwanda on its shelves describes a cup of it as "smooth and seamless, with notes of molasses, dark chocolate and black tea".

The company says this coffee is a unique departure from the classic profile of Rwandan coffees. Low in acidity, the coffee is heavy in body and finishes with a touch of spice and malt, it notes on its website.

September rankings by Coffee Review, a leading coffee buying guide since 1997 rates 'Rwanda Karaba coffee' sold by Allegro Coffee, a subsidiary of Whole Foods Market - highest at 96.

Coffee Review says the cup is "intense, high-toned aroma- flowers, butterscotch, and orange". It adds: "In the cup wine-like acidity, deep body and a continued buttery, honeyed, giddily floral character complicated by tart cherry, orange and pipe tobacco notes. Long, rich, flavor-saturated finish".

For who the coffee would be fit, the Coffee Review says it is the "social idealists who perceive no contradiction between the pure and the voluptuous".

Other coffees from Rwanda rated among the top 10 include 'Rwanda Rushashi' and 'Rwanda Kickapoo'. These coffees, like many produced in here, are certified 'Fair Trade' - meaning they are purchased from small-holding farmers at a "fair" or economically sustainable price.

Coffees from Brazil, Kenya, Ethiopia, Indonesia, Nicaragua, Bolivia, Guatemala and Costa Rica are also featured.

Starbacks shuns Ethiopian

Last year, Ethiopian Prime Minister Meles Zenawi was bitter with US coffee giant Starbucks over its refusal to recognise the brand names of Ethiopian coffee - 'Sidama' and 'Yirgachefe'.

Ethiopia launched a process to register the names of its finest coffees hoping that trademark would enable the country to capture a fairer share of the global market value associated with those names.

The government there alleges that Starbucks stood in its way. Apparently the company argued rather what is best for an Ethiopian farmer is a "geographical certification".

Although critics see this as a patronizing attitude, the United States Patent Office rejected Ethiopia's bid, claiming that 'Sidama' and 'Yirgachefe' are names "too generic" to earn a trademark registration.

Mr. Meles accused the company of exploiting African growers by offering very low prices for what he called the "best coffee breeds" compared to other places.

Meanwhile, the company has been selling Rwanda bourbon coffee in its thousands of stores across the US and Europe. Recently, President Paul Kagame was invited to address the annual shareholder meet in Seattle.