Wednesday, March 15, 2017

How Is The Yemeni Civil War Affecting Coffee Producers?

At one point in time, Yemen was known for its historic cities, beautiful landscapes, and good coffee. Now, however, the Yemeni Civil War has been stretching on for two years. Farming coffee in a war-gripped country is hard. Exporting it is nearly impossible.

I spoke to Dylan Terry and Natasha Froshina of French NGO ACTED, which has been working in Yemen since 2013 to find out more about the impact of the war on coffee production. Their aim is to reduce poverty and food insecurity through coffee. And now, more than ever, there is a demand for their work.

SEE ALSO: How Myanmar’s Coffee Trade Is Dictated by Infrastructure

Yemen

ACTED provides technical training for coffee farmers in the Governorate of Raymah, Yemen. Credit: ACTED

Introducing Yemeni Coffee

Yemen has a long history of coffee production. While Ethiopia may be the birthplace of coffee, others claim that Yemen is where it was first drunk. And even today, Yemeni coffees can be remarkable, with a typically acidic, fruity, and complex profile.

Yet these complexities extend far beyond the palate. Production here is challenged at each stage of the supply chain, from the ecology of where coffee is produced (consistent water shortages have led to soil erosion) to the lack of a functioning central government (there’s no administrative agency to fill out the phytosanitary reports needed for customs import control). And that’s not to mention the – extremely dangerous – logistical challenges in transporting the coffee.

The International Coffee Organization (ICO) estimates that 2015/16 fell to 130k MT (down -13% year-on-year), the lowest level since 2002/03.

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Coffee Production in Yemen. Statistics credit: ICO Statistics

Challenges Facing Coffee Production in Yemen

This isn’t to say that exporting coffee from Yemen used to be easy: most coffee traders attest that it has always been a challenge. However, the difficulties have been elevated to a whole new level. According to Natasha, the blockade imposed on Yemen has made it almost impossible to export coffee. Traders’ only option is to make the dangerous voyage through Northern Yemen into Saudi Arabia.

But war doesn’t always stop trade, so why is this? Military checkpoints, damaged port infrastructure… Natasha tells me that there are numerous logistical challenges to exporting coffee right now. However, the primary obstacle is the lack of a functioning central government. Without this, there is no agency (such as the Ministry of Agriculture or Ministry of Trade) to certify that the contents being loaded into a container are in fact coffee. This means getting an importing country to accept the cargo is impossible.

The ACTED team also tell me that they are also concerned about the absence of a Yemen Coffee Origin Certification scheme. Exporters blending other natural processed coffees (such as Ethiopian coffee), and labelling it as Yemeni, has become a great concern for traders.

This situation hurts producers. They aren’t able to benefit from international prices, which historically have favored Yemenis coffee with price premiums. Instead, they can only access the low-paying domestic market. It also makes it difficult to import basic products, such as fertilizer, seeds, de-hullers, and even scissors for pruning the trees.

What’s more, difficulties accessing credit has been exacerbated by the the central bank’s move from Sana’a (Houthi-controlled capital) to Aden (Hadi-controlled capital). According to Dylan, the only alternatives to this bank are private organizations that are often shady.

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Technical training is provided to producers in Yemen. Credit: ACTED

How Can Support Be Provided for Yemeni Producers?

ACTED has been working in cooperation with EuropeAid to support over 1,600 coffee producers across the Raymah Governorate. They are providing technical training, investments in mills, support in forming cooperatives and establishing irrigation, and workshops on business planning and marketing.

They take positive steps forwards, only to face new difficulties. In October 2016, they organized a cupping in Amman, Jordan to showcase the quality of Yemeni coffees. However, the only viable way to transport the coffee out of the country was in a UN Cargo plane.

ACTED will continue to organize events and provide this support. In the meantime, we hope for peace in Yemen and prosperity for its coffee producers.

Article written by Kyle Gooch, with special thanks to Natasha Froshina and Dylan Terry of ACTED.

Perfect Daily Grind is not affiliated with any of the individuals or bodies mentioned in this article, and cannot directly endorse them.

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