Enhancing Coffee Quality in Rwanda: A Cost Benefit Analysis of Government Policies
-
Published:2023-12-03
Issue:23
Volume:15
Page:16513
-
ISSN:2071-1050
-
Container-title:Sustainability
-
language:en
-
Short-container-title:Sustainability
Author:
Jenkins Glenn P.1ORCID, Mbakop Ludovic2ORCID, Miklyaev Mikhail13ORCID
Affiliation:
1. Department of Economics, Queen’s University, Kingston, ON K7L 3N6, Canada 2. Department of Economics, Eastern Mediterranean University Famagusta, North Cyprus via Mersin 10, Famagusta 99628, Turkey 3. Cambridge Resources International Inc., Cambridge, MA 02140, USA
Abstract
Over the past two decades, Rwanda has positioned itself as a leading producer of specialty coffee. The strategic move from ordinary to specialty coffee has overall been economically beneficial to the country. However, the multitude of incentives provided by both the Government and international donors spawned a rush to build a large number of coffee washing stations (CWS) throughout Rwanda. This trend gave rise to an oversupply of these plants, with most operating below their processing capacity. Our study uses cost benefit analysis to estimate the economic welfare loss that Rwanda has suffered owing to the combined effect of the oversupply of CWS, the coffee zoning policy, and the government regulated cherry coffee prices. Our results reveal that, if the coffee industry were rendered more competitive by dint of a reduction in the number of CWS, then the annual savings to Rwanda would be substantial. Furthermore, farmers could potentially receive prices that are 150% higher than the mandated fixed prices they are currently been paid. Our analysis could potentially be beneficial to Rwandese policy makers in devising fairer incentives to keep farmers interested in coffee farming, thus ensuring the sustainability of the coffee value chain in the long term.
Funder
Cambridge Resources International
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction
Reference37 articles.
1. Chunan-Pole, P., and Angwafo, M. (2011). Yes Africa Can: Success Stories from a Dynamic Continent, The World Bank. 2. Tracking the Quality Premium of Certified Coffee: Evidence from Ethiopia;Bart;World Dev.,2018 3. Tamru, S., and Minten, B. (2018). Investing in Wet Mills and Washed Coffee in Ethiopia: Benefits and Constraints, International Food Policy Research Institute (IFPRI). Available online: https://ebrary.ifpri.org/digital/collection/p15738coll2/id/132772/rec/110. 4. Mbakop, L., Jenkins, G.P., Leung, L., and Sertoglu, K. (2023). Traceability, Value, and Trust in the Coffee Market: A Natural Experiment in Ethiopia. Agriculture, 13. 5. Minten, B., Tamru, S., Kuma, T., and Nyarko, Y. (2014). Structure and Performance of Ethiopia’s Coffee Export Sector, International Food Policy Research Institute (IFPRI). Available online: https://ebrary.ifpri.org/digital/collection/p15738coll2/id/128188/rec/176.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献
|
|