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MEMBER OF THE MONTH

Last updated: April 30, 2008

EAFCA Member of the Month

MEMBER OF THE MONTH - May 2008:

ZIMBABWE COFFEE MILLS


Zimbabwe Coffee Mills Ltd.The Zimbabwe coffee industry has faced numerous challenges in the last couple of years, chief of which has been the effect of the national land redistribution program. Unfortunately, this exercise has had a devastating effect on the coffee industry, as those coffee estates that have been resettled have not remained productive and in most cases the coffee plantations have been pulled out. The remaining farmers have been wary of increasing production owing to the uncertainty surrounding their own land tenure. 

For instance, the 2004/2005 season saw a national crop of approximately 3,500 tonnes, with just less than 2,000 tonnes of that being delivered to Zimbabwe Coffee Mills Limited for processing and selling. In the 2005/2006 season, the mill received 1,650 tonnes of the national crop, which was estimated at 2,200 tonnes. 

As an illustration of the continuing effects of the land redistribution exercise, in 2004/2005 Zimbabwe Coffee Mills Limited processed coffee for 51 commercial growers and 96 small scale growers. In 2005/2006, those numbers had declined to 22 and 56 respectively. 

Zimbabwe Coffee Mills Limited, however, continues to procure pre-season financing on behalf of growers. As an organization in its own right, Zimbabwe Coffee Mills Limited has striven to remain operational for the sake of the remaining coffee growers by extending its operations into activities related to, but not entirely dependant on, coffee processing alone. 

Zimbabwe Coffee Mills Ltd.To that end it has procured various essential inputs on behalf of growers. The Mills strives to maintain its high standards of processing, in order to maintain its reputation on the world market and thus continue to maximize selling returns for its growers. 

It continues to improve and develop its service to growers, an example of which is the introduction of a web based software program whereby individual growers are able to dial in to the company’s website wherever they are in the world and to obtain accurate, confidential and upto date information on the status of their coffee deliveries and sales. This innovative product is probably the first of its kind in the African coffee industry. 

Zimbabwe Coffee Mills Limited also continues to promote the interests of the small scale coffee sector. One of the directors of the Mills and one of the country’s top cup producers took on the small scale sector portfolio a few years back, in which role he is helping to develop both the quality and the yield of the small scale growers’ coffee. The Mills is also offered forward financing to the top 20 small scale growers which was repaid with the 2006/2007 season crop proceeds.

Another positive development in the industry concerns the roasted coffee sector. Several private coffee estates have developed roasted coffee ventures with some success. One example of a Zimbabwean roasting project is Safari Roasting Private Limited, which is growing its local market share with a high quality product and which has also generated export interest.

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See previous Members of the Month:

arrowApril 2008

March 2008

February 2008

January 2008

December 2007

November 2007

October 2007

September 2007

August 2007

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