COFFEE PROCESSING II

closed

The Second Coffee Processing and Marketing Project will continue efforts started under the first Coffee Processing Project (Credit 290-ET of March 20, 1972) to increase the country's foreign exchange earnings from coffee. The project has been designed to improve the quality of higher value washed coffee, and increase its share of total coffee exports from the present level of about 11 percent to around 30 percent. Pricing incentives will be used to stimulate improved utilization of existing washing facilities, and new washing, milling, grading and liquoring facilities will be constructed. Over three years, the project will: (i) construct about 60 washing stations and 150 km of new access roads; (ii) improve 72 existing washing stations; (iii) upgrade 300 km of existing rural roads constructed under the first project; (iv) provide milling, grading, and classification facilities; (v) assist coffee cooperatives; (vi) assist training and research; and (vii) strengthen the Ministry of Coffee and Tea Development (MCTD). At full development of the project, the increased production of washed coffee is expected to lead to incremental annual net foreign exchange earnings of about US$6.1 million equivalent.