Improving coffee quality and achieving certification
MDF’s support to SMS will enable smallholder coffee farmers to be trained and certified in producing quality coffee.
Part of the global ECOM Group, Sustainable Management Services (SMS) PNG serves a worldwide network of one million farmers with the mission to improve their economic, social, environmental, and health conditions. It does this by building and managing transparent supply chains to improve yields and quality, building income for farmers.
Together with its export partner Monpi Coffee Exports (MCEL), SMS currently connects over 3,000 farmers to high grade coffee markets through international roasters such as Starbucks, Nestle and Kraft.
The global coffee market has grown by over 50% since the 1990’s1, with global specialty coffee shops forecast to grow at a CAGR of 10% between 2017 and 20212. The potential exists to introduce PNG as a specialty origin to younger professionals and consumers3. This trend is expected to rise both in traditional European and North American markets but also in emerging markets such as China and India with a growing middle class.
Approximately 85% of PNG coffee is produced by smallholder farmers. Fluctuating coffee prices, poor knowledge of how to produce high-yielding, quality coffee and lack of access to coffee markets discourage farmers, who resort to other quick income alternatives if the coffee price is not right. As a result, PNG coffee production has stagnated over the last decade.
In partnership with MDF, SMS has begun to train and certify an additional 1,000 smallholder farmers, enabling the export of 3,000 more bags of coffee in 2019 and capturing a growing global market for sustainably produced certified and/or specialty coffee from Papua New Guinea.
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