(Ecofin Agency) - Rwanda plans to double the volume of roasted coffee it exports, The East African reports.
The switch to roasted coffee by the nation is due to lower revenues from raw coffee exports. This is explained by price volatility on the international market. Exports revenues for the commodity indeed slumped from $40.5 million in 2015 to $36.8 million this year, according to statistics from Rwanda’s agricultural exports office. Through this move, the government wishes to fully profit from roasted coffee’s added value on the international market and subsequently increase exports revenues.
“The price for roasted coffee tends to multiply when sold on the international market,” saysEric Rukwaya, marketing manager of Rwanda Farmers Coffee Company.
Some experts indicated that the kilogram of raw coffee is sold at 300 Rwandan francs ($0.36), while a kilogram of roasted coffee goes at 4,000 Rwandan francs ($4.9).
Let’s highlight that while Rwanda currently has 15 coffee-roasting companies, only 0.04% of coffee produced between January and September has been roasted.
The nation now expects 54 billion Rwandan francs ($66.3 million) from its coffee exports for the 2016-2017 season and plans even to increase by 29% this revenues, by 2018.