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Speciality coffee demand could boost Africa's sector

Friday, January 30, 2015

Subject

Coffee outlook for Africa.

Significance

The expansion of formal certification on the continent is allowing Sub-Saharan African (SSA) producers to capitalise on the unique characteristics of beans produced in its highly varied microclimates to market niche 'mark of origin' coffees. Ethiopia (the world's fifth largest producer) continues to dominate SSA output, though other East and East African states (notably Ivory Coast) are increasing production.

Impacts

  • Fears caused by proposed changes to South Africa's land ownership rules could drive more of its farmers to set up ventures elsewhere in SSA.
  • Crop damage in Malawi, Mozambique and Madagascar caused by tropical storm Chedza will depress production, hurting GDP growth in Malawi.
  • China's short-term investment in SSA agriculture is likely be limited to technology transfer and small-scale private farming projects.
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