THE AFRICAN COFFEE MARKET THE CASE OF MALAWI COFFEE INDUSTRY) BY HARRISON B. KALUA CHIEF EXECUTIVE OFFICER MZUZU COFFEE PLANTERS COOPERATIVE UNION AND CHAIRMAN OF COFFEE ASSOCIATION OF MALAWI

2.0. BACKGROUND: MALAWI FACTS 2.1. NAME : REPUBLIC OF MALAWI, gained independence in 1964 from Britain. 2.2. CAPITAL CITY, LILONGWE, in Central Region with population slightly over 15 Million 2.3.  LOCATION South Central Africa bordered as follows: East and South : Mozambique West : Zambia North : Tanzania

2.4. AREA 365 Miles long 52 Miles Wide 2.5. GEOGRAPHICAL FEATURES        Has three Lakes:         - Lake Malawi (NYASA), 3rd largest Lake in Africa and 9th largest Lake in the World.         - Other Lakes include Lake CHIRWA and Lake Malombe.        - Has some good plateaus and mountains including Mulanje Mountain.

2.6. POPULATION Between 17 and 18 million ( 2017 Estimates) 2.7. CLIMATE   Sub tropical with rainy season ranging from October and November to  May and June.

2.8. AGRICULTURAL EXPORTS Tobacco Tea Sugar Cotton Legumes Coffee Wood Products

3.0. MALAWI COFFEE FACTS 3.1. ORIGIN First Coffee tree planted in Malawi, Zomba came from ROYAL BOTANIC GARDEN, EDINBURGH in 1891. This first variety named NYASA was taken to UGANDA

3.2. VARIETIES - All coffees in Malawi are of ARABICA. - First variety introduced by Scottish missionaries succumbed to FUSARIUM WILT - GEISHA AND AGARO were later imported from Ethiopia by DR Sidiqi a Researcher. Many varieties were screened for fusarium wilt, AGARO and Geisha were selected and promoted throughout Malawi. - Currently, Malawi has the following varieties: GEISHA AGARO Mundonovo Cattura SI 28 Catimor 129 Populations NYIKA (Local selection) and so many land races.

3.3. CUP PROFILES AND FLAVOUR RANGES       - Medium acidity       - Medium body       - Good sweetness Top Lots comprise of the followings:  Floral fragrances Lemon – Lime Acidity Stone – Fruit Flavour Clean, Milk Chocolate Finish Sweet Citrus Berries, Fleshy Fruits, Tea

3.4. MAIN GROWING REGIONS AND PRODUCTION SYSTEMS I. ESTATE SUB-SECTOR - Thyolo, Mulanje, Zomba in Southern Malawi - 900 to 1200 meters above Sea level - High input use - Under irrigation by majority - No shade - 2 to 4mt per ha of Green beans - 3000 to 5555 trees per ha

II. SMALLHOLDER SUB-SECTOR Chitipa, Rumphi, Nkhata-bay, Mzimba Districts in the North of Malawi.   Ntchisi,Dedza and Ntcheu Districts in Central Region. MZUZU COFFEE  promotes Smallholder Coffee production in Malawi. 1200 to 2500 metres above Sea level.                low input use Organic certification Fair Trade certified Grown under shade Yields of 500 to 1500 kgs per ha of Green Beans 3000 to 5555 trees per ha

3.5.       FLOWERING            - October to December 3.6.      HARVESTING            - April to October 3.7.     ANNUAL PRODUCTION            -  1500 to 8000 mt 3.8.     PROCESSING          - Wet and Centrally 3.9.     FERMENTATION              - Done in Tanks              - Some use mechanical demucilage

3.10.  DRYING - On raised Platforms 3.11. NEAREST PORT - Beira in Mozambique - Dar es Salaam in Tanzania - Durban in Republic of South Africa

4.0.  COFFEE MARKETING 4.1. OUR VISION GREAT SOURCE OF UNIQUE COFFEES FOR NICHE MARKETS

4.2. WHAT WE ARE DOING      - INVESTING IN QUALITY IMPROVEMENT PROGRAMS ( believing that Marketing is an uplifting factor for improved productivity) i.e. Field Management, Central Washing Stations, Micro Washing Stations.     - CUPPING OF COFFEES AT ALL LEVELS     - REGULAR TRAINING AND SUPERVISION TRACE ABILITY     - INVESTMENT IN CERTIFICATION ACTIVITIES: i.e. Fair Trade, Organic, Rainforest Alliance ( in pipe line).

4.3. WHAT WE ARE SEEING    - ACHIEVING SCORES OF 80 percent and above on SCAA scale for 82 percent of the Coffees we are producing DEFINED PREMIUM TARGETS FOR VARIOUS GRADES AND SCORES    86% Score and Above    84.1 to 86%    82.1 to 84%  80 to 82%

- LINKED WITH VARIOUS BUYERS AND ROASTERS IN THE SPECIALITY MARKET - THROUGH JOINT MARKETING INITIATIVES, maintained our presence in the Market. -  CONSISTENCE IN OUR QUALITIES AND GAINING GOOD REPUTATION -  CONSISTENCE ON OUR DELIVERY PROMISES AND ENSURING QUALITY OF COFFEE IS MAINTAINED THROUGH OUT THE SHIPPING PERIOD. - VOLUMES OF EXPORTS FOR OUR MICRO LOTS INCREASING

4.4. HOW WE SELL OUR COFFEES        I. GREEN BEANS MARKETING          - Thank God, Coffee Exports in Malawi are completely free from Government controls.          - Every producer exports on his/ her own.          - NO AUCTIONS BUT Sales done through:             a. Direct contacts / Negotiations             b. Tendering             c.  Internet auctioning             d. Forward Contracts        -  COFFEE SOLD ON              a. FOB. OR              b. EX WARE HOUSE OR              c. FOT. OR              d. CF. OR              e. CIF

4.5. WHAT GUIDES OUR PRICING         - USE OF GROSS MARGINS at Farmer level, Cooperative level or Union level.         - Gross margins use at Farmer level critical. 4.6. HOW TO FIND MALAWI COFFEES         www.coffeemalawi.com          www.mzuzucoffee.org

5.0. CONCLUSION - ARE YOU A SPECIALITY BUYER?,TALK TO US   - ARE YOU A SOCIALITY ROASTER?,TALK TO US - DO YOU WANT JUST ONE BAG OF TOP MOST QUALITY COFFEE?,TALK TO US - DO YOU WANT TO INVEST IN SPECIALITY COFEE PRODUCTION?,TALK TO US