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Zambia's Emerging Coffee Industry

Among all countries worldwide that produce Arabica coffee beans, Zambia in Central Africa plays a very insignificant role, with annual exports of approximately 6,000 tons, generating total revenue of about $85 million. However, the country is actively striving to increase production to 20,000 tons within the next decade and hopes to gain favor from numerous coffee buyers around the world.

Zambia's land area is roughly equivalent to Texas or the combined area of the United Kingdom and France. With a total population of about 11.5 million people, it is located on the Central African plateau and is primarily a tropical highland climate country, with most areas at elevations above 4,000 feet, and some coffee growing regions located at even higher altitudes.

Zambia first began commercial coffee cultivation in 1978, with its first export record in 1985. Due to the success of coffee cultivation and the government's hope to earn higher national income through coffee bean exports, the country actively sought foreign assistance to improve conditions for commercial coffee cultivation.

With vast land and abundant water resources, Zambia's coffee growing regions benefit from good irrigation conditions, making production costs relatively low, which compensates for the country's geographical disadvantage—being a landlocked nation. Zambia produces washed mild Arabica coffee beans, whose quality can be compared with neighboring Kenya, Tanzania, and Zimbabwe. Most coffee varieties grown in Zambia are Bourbon, with round-shaped beans, bluish-green color, high density, and a slight covering of silver skin. Zambian coffee has an acidic taste, but simultaneously possesses a round, thick, and viscous mouthfeel with excellent flavor.

This year, the total land area for coffee cultivation in Zambia reached 5,000 acres, with small-scale farms averaging around 200 acres, family-operated farms ranging between 20-550 acres, and large-scale commercial plantations mostly between 300-1,300 acres.

Coffee cultivation aligns very well with Zambia's general commercial system growers' operational strategies. They combine coffee cultivation with other farm operations (such as beef cattle raising, dairy products, flowers, and vegetables). Besides partial income from copper mines and other mineral exports, Zambia's main revenue comes from agricultural product exports. The income earned from coffee exports is invested in purchasing processing equipment and developing demand for other agricultural products in the country.

Zambia has a large unemployed population, and the coffee bean production process provides many stable long-term job opportunities. These positions are typically assigned by farm owners or managers, with different tasks distributed according to each season, which serves as a relief for the generally poor rural population of Zambia.

Most arable land in Zambia is allocated to its citizens, with only a small portion allocated to commercially operated foreign companies. This approach differs significantly from other neighboring coffee-producing countries. Additionally, because Zambia's population is not very large, compared to other countries, Zambia does not face problems of insufficient land and water resource allocation.

In fact, the Zambian government encourages converting existing cultivated land to commercial cultivation use, adopting a 99-year land lease policy rather than land sales.

Zambia only cultivates Arabica coffee varieties, mostly traditional Bourbon varieties. All coffee beans are processed using the washed method, and their quality level can be compared with Kenyan coffee. The combination of Zambia's coffee varieties and the altitude of the country's southern coffee growing regions produces coffee beans with mild yet rich flavors, belonging to a coffee type easily appreciated by the general public.

Because Zambia started coffee cultivation relatively late, it has been able to apply the latest technologies and environmental concepts simultaneously to the country's coffee industry, including precise water resource utilization, effective recycling of coffee pulp into compost, biological pest control, and ecological balance. Meanwhile, the country's coffee industry is dedicated to transforming traditional labor-intensive industries into mutually beneficial cooperative relationships with Zambia's rural population.

According to Zambian law, the country's coffee industry is primarily led by the Zambia Coffee Board, which authorizes most operational mechanisms to the Zambia Coffee Growers Association (ZCGA), jointly formed by coffee farmers.

This association was established in 1987 and currently has 70 large-scale farms and 530 small-scale farms as organizational members. All coffee farmers are members. The association's founding goal is to consider the interests of its members, primarily providing services in clerical data, coffee business development, various training, technical support, quality control, and marketing services.

Due to Zambia's total coffee bean exports reaching 6,500 tons in 2003, the Zambia Coffee Growers Association is planning to activate a 1.5-ton capacity dry milling facility. This facility, funded by the European Union, will be built in Zambia's capital, Lusaka, which is also the headquarters location of the Zambia Coffee Growers Association and centrally positioned among the country's various coffee growing regions.

The facility was officially inaugurated by the Zambian President in April of this year and provides dry milling services for small-scale farms within the Zambia Coffee Growers Association. Small-scale farmers cannot afford to purchase their own dry milling equipment. These small-scale farms can also seek large-scale farms to perform dry milling and other post-processing work for their coffee beans.

In his inauguration speech, Zambian President Mwanawasa mentioned that the Zambian government's policy is to ensure small-scale coffee farmers receive substantial cash transaction incentives and technical support for coffee beans. He said: "To encourage small-scale coffee farms, we will adopt an 'outgrower' mechanism as our business strategy." (Translator's note: The meaning of "outgrower" is presumed to be "with government-operated post-processing facilities as the center, small-scale coffee farmers provide raw material supply of coffee cherries, while government-operated mills provide post-processing procedures, representing a compromise of public-private division of labor").

In fact, this mechanism is currently not operating very ideally. The total amount of coffee produced for export through this method currently reaches only 9 tons, mainly due to lack of input and irrigation facilities. Without good irrigation facilities, coffee cannot grow successfully or achieve sufficient yields within Zambia. Zambia's banking sector is not actively assisting small-scale coffee farms in urgent need of working capital. On the other hand, there is a deeply rooted old concept in Zambia: they consider borrowing as a "gift" that does not need to be repaid.

The Zambia Coffee Board is the responsible unit operating this mechanism. They have decided to transfer this mechanism to the Zambia Coffee Growers Association for management. The association currently plans to promote the "outgrower" concept to large-scale enterprise coffee plantations within the organization, providing compromised indirect assistance to their small-scale farm allies. Some large enterprises are already willing to provide doorstep extension services (the translator is also unclear about what specific service this is, and will write to the original author for details before adding a comprehensive description), input, irrigation facilities, and centrally managed post-processing facilities to continue this "outgrower" program.

Although international coffee futures market prices are currently low, several top-grade coffee beans produced in Zambia (such as AAA/AA grades) can still fetch good prices, especially when sold to Japan's specialty market, where they command the most favorable prices of approximately $1,900 per ton.

About 94% of Zambian coffee beans are sold to markets in Western Europe and Scandinavia (translator's note: Scandinavia generally refers to Northern European countries). In recent years, sales to the Japanese market have accounted for only 5% of total exports, while 1% flows to the US market through Western Europe re-exports. The Zambia Coffee Growers Association's future goal is to increase the total amount of coffee beans exported to Japan to 10% of total exports, and also hopes to have direct import-export cooperation opportunities with the US market.

In Zambia, coffee export trade is an emerging industry with high development potential and the ability to earn considerable foreign exchange differentials, so there is still possibility for vigorous development in the future. Coffee beans, along with tourism and other agricultural products, have already enabled Zambia to move away from an economic pattern overly dependent on copper mine exports.

Currently, the country still lacks capital investment and appropriate long-term marketing plans. Zambia must continue to rely on assistance from organizations like the European Union to promote its coffee beans to the world coffee market.

Setting aside small-scale farm plans for now, the country also has plans to continue expanding large-scale farms. However, five large farms have already stopped coffee bean production in the previous season due to lack of financial assistance needed for expansion plans.

Among existing members, most barely make a living by exporting the coffee beans they grow. Due to lack of external assistance and financial disadvantages, they must rely on these meager incomes to continue cultivating limited coffee beans, unable to expand their operations or update equipment. Currently, Zambia needs long-term financial support the most, preferably stable funding for at least 10 years, to effectively promote improvements in the country's cultivation environment and coffee quality.

Joseph Taguma, Senior General Manager of the Zambia Coffee Growers Association, said: "The central dry milling facility helps improve the average quality of our country's coffee beans, and provides another option—blending beans with similar flavors to achieve more stable standards. This process will be conducted under strict on-site supervision. We have also built a warehouse to store chemical inputs and fertilizers for member use. The association is also responsible for coffee bean quality control and mission-driven export services. Export sales and shipping are conducted by member. Thus, buyers receive dual benefits in terms of quality and service. Before export, coffee beans undergo quality testing by professional tasters, and after each tasting, opinions are compiled and provided to coffee farmers for future reference to achieve better quality in the future. Additionally, a permanent professional team has been formed to provide members with professional advice on cultivation, post-processing, and export operations."

In marketing, the Zambia Coffee Growers Association has developed a blended premium bean trademark called "Zambica," jointly produced by a few coffee farms approved by the association. The purpose is twofold: first, to give small-scale farms the opportunity to promote their products to the specialty coffee market, and second, to provide stable high-quality coffee bean supply.

A small portion of plantations also market their own brand trademarks to the specialty market, though all are shipped through the Zambia Coffee Growers Association. These plantation beans have very unique regional flavor characteristics and have received good international reviews. As long as their coffee beans pass the association's strict review standards, they can receive the association's quality certification seal. All coffee beans exported from Zambia must obtain this certification seal, ensuring buyers always purchase superior and impeccable quality coffee.

Generally, Zambian coffee grading includes AA, AA/AB, AB, PB, and other smaller bean grades, but can also be adjusted according to individual buyers' quality and size requirements.

These consistently performing plantations include: Isanya Estates, located in Zambia's Northern Province of Abercorn (now named Mbala) near the highlands of the southern Tanzanian border; Mpongwe Estates, located in the Luanshya area of Copperbelt Province; Mutuwila Estates, located in Central Province; Chamba Valley Estates, located in the highland area of Lusaka Province; Munali Coffee Estates, located in Southern Province, named after the nearby small hills they share borders with, discovered by David Livingstone; and Terranova Estates, located in the Mazabuka highland area of Southern Province.

Although Zambia is a landlocked country, it is not transportationally isolated. The country currently has multiple international and regional air routes, and railway and highway transportation systems are very advanced. Imports and exports can be conducted through the following ports: Durban Port in South Africa facing the Indian Ocean, Maputo and Beira ports in Mozambique, and Dar es Salaam port in Tanzania. Additionally, a route to the Atlantic Ocean via Namibia's Walvis Bay is即将通行, but currently, coffee goods destined for the Atlantic are all consolidated at Durban Port.

In terms of environmental conservation, most plantations include natural forest conservation areas with sufficient forest land and grasslands providing safe habitats for local wildlife, birds, and insects. The country's rivers and dams nurture abundant aquatic life. General tourists to Zambia can sometimes even spot traces of leopards, lynxes, hyenas, jackals, and other rare animals!

Coffee trees themselves provide good shelter for creatures like antelopes and hares. Many coffee farmers grow up and live in such environments, hoping to maintain them so that future generations can also enjoy such rich and unique natural environments.

In the typical Chamba Valley Estates, at an altitude of 1,300 meters, the plantation grows Bourbon variety coffee trees, irrigating the coffee gardens with spray irrigation equipment, while also interplanting original forest trees. Coffee beans are all processed using the washed method within the plantation and naturally dried in the sun. Chamba Valley Estates' coffee beans are currently the leading brand of Zambian coffee.

Tigg Siddle, Vice Chairman of the Zambia Coffee Growers Association, mentioned in a recent exclusive interview that the association plans to expand Zambia's total coffee production to achieve world-class status. "Currently, our country's annual production is only 6,500 tons, with really minimal influence in the world coffee market. Our goal is to increase total production to 20,000 tons within 10 years, but at this stage, long-term financial issues are the main bottleneck we face." The association previously received funding for its various development plans from the European Union's Enterprise Development Fund (EDF), but this funding program is about to expire.

To make Zambian coffee more renowned, the Zambia Coffee Growers Association plans to hold a roaster origin tour during May-June of next year. According to the association: "Participants only need to spend on round-trip airfare; all expenses here are covered by us."

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