Chapters 8.32
8.32-Coffee Value Addition
Kate Smith, University of Guelph, Canada
Suggested citation for this chapter.
Smith,K. (2022) Coffee Value Addition,In Farmpedia, The Encyclopedia for Small Scale Farmers. Editor, M.N. Raizada, University of Guelph, Canada. http://www.farmpedia.org
Introduction
In the agro-industry there are few commodities with such an enormous market demand as coffee; the annual coffee trade is worth more than 100 billion dollars globally (ITC, 2018) (Murthy & Madhava Naidu, 2012). Within this enormous industry, 80% of the coffee is grown by 25 million smallholder farmers (Fairtrade Canada, n.d.). The price of coffee averages $20.72/lb by the end of its production, with subsistence farmers earning $1.50, or 7%, of its value (Thurston, 2013). Due to this gross imbalance between the cost of producing the raw commodity and related compensation, smallholder farmers are unable to increase the scale of their production or complete more of the processing cycle due to a lack of income. There are many simple processes and strategies subsistence farmers can incorporate into their crop production that will, over time, enable them to produce a higher value product and earn a more equitable income for their labour. This paper will focus on how to add value to coffee beans at the beginning of the production cycle, thus maximizing profits for smallholder farmers.
Selective Harvesting
Few issues harm the potential value of a coffee crop more than black or broken beans. Completing at least two rounds of selective harvesting prior to a mass harvest can significantly increase the quality, and thereby value, of the beans (Sivetz & Michael, 1963). This method is more labour intensive than the traditional method, which may present a barrier to some farmers. However, it is low cost, requires no additional equipment, and is a simple way to increase profits.
Additional information
Quality Processing
Regardless of the harvesting method chosen, value can still be added during the processing stage of the coffee production process. There are two main types of processing: wet and dry. Dry harvesting is the drying of the bean while still inside the coffee cherry, and using a husker to remove the fruit once dried (Daviron, Ponte, & TCARC, 2005). Wet processing involves removing the fruit from the bean while still fresh, and then drying the beans (Daviron, Ponte, & TCARC, 2005). In both, the fruit becomes a waste product that can be used as a source of supplementary income (See Maximizing Plant Usage section) (Galanakis, 2017). The wet method is considered superior and leads to less bean breakage, resulting in a higher grade association at selling time, and thus a greater profit (Dicum & Luttinger, 1999). In addition to removing the fruit prior to drying, a few additional steps can help minimize labour, accelerate the drying process, and recapture valuable water for reuse. Many coffee pulping machines can be operated either manually or electrically, allowing the farmer to choose the method that best suits their ability and budget.
Coffee pulping machinery vendor
Natural fermentation is the most common method of removing the mucilage from pulped beans. This simple, albeit long, process involves placing the beans in large troughs or tanks. Over time, yeast and bacteria grow on the beans until they are numerous enough to form pectic enzymes, which break down the mucilage (Galanakis, 2017). The beans are then washed to stop the process. The addition of a small amount of pectic enzyme, such as pectinase or polygalacturonase, can aid in accelerating this demucilation from an average of 36 to 8 hours (Sivetz & Michael, 1963). This increased speed also results in a reduction of growth of undesirable microorganisms, reduces the labour requirement, completes the process in a more practical timeframe for farmers, improves the taste, acidity, and value, and reduces the cost of troughs as the beans are able to be processed more quickly (Sivetz & Michael, 1963) (Peterson, 2013). The money saved on troughs allow for the purchase of pectic enzymes, which retail for between $40-70 USD, with approximately $0.10 enzymes/lb of beans required for demucilation (Alibaba, 2018) (Sivetz & Michael, 1963). This process is safe for humans as the enzymes target pectin. If this process is utilized, the beans will be ready by morning, allowing the entire day’s sunlight to be capitalized on, further increasing process efficiency (Sivetz & Michael, 1963).
Enzyme vendors
https://www.alibaba.com/showroom/pectinase-enzyme.html
Immediately following the demucilation, drying the beans is essential to prevent bacteria and insect activity on the beans (Obra, 2013). Coffee cherries start with a 50-65% moisture content which needs to be reduced to 12% or less (Sivetz & Michael, 1963). Washed pulped coffee dries approximately three times faster than its whole fruit counterpart – a significant amount of time in a 5-18 day process (Sivetz & Michael, 1963). Instead of leaving the beans outdoors on large sheets or screen bottomed trays, the creation and use of solar stills can help optimize this procedure.
A solar still uses solar energy to heat a volume of water, resulting in evaporation of clean water that condenses on the angled lid of the still, and is directed into a water holding receptacle for reuse (All About Water Filters, 2018). In addition to producing up to 8kg/day of clean water, this method protects the beans from the elements, especially rain, leading to more uniform and accelerated drying, and is low cost (Sivetz & Michael, 1963) (Deeto, Thepa, Monyakul, & Songprakorp, 2018). Efficiency can be further optimized by adding a one inch layer of thermal insulation beneath the beans and spreading the beans out into a ½ inch layer (Sivetz & Michael, 1963). With this method, the labour intensive process of stirring the beans is unnecessary, and ill advised. The moisture removed from the beans needs to build up within the still in order for it to condense on the lid and ultimately drain out; if the still is opened to stir, the water and heat causing the beans to dry out will be lost and slow down the process. Additionally, speed can be optimized, and labour minimized, by not removing the beans overnight, but instead wrapping the stills with an insulating material to conserve heat, enabling an extension of the coffee dehydration process.
Solar stills can be purchased as a complete item, as individual components, or can be fashioned from pre-owned items by the farmer. Based on which option the farmer chooses, the costs range from $0-200 per still (International Engineering & Trading Co, 2018). In summary, solar stills require minimal maintenance, minimal labour, require only free solar energy, are safe to use, expedite the drying process, minimize bacterial growth, and produce water, a lucrative by-product, making them a valuable investment and addition to the production process.
Helpful Links
Localized Roasting
On average, raw beans garner $1.50/lb, while roasted can resell for $7.25/lb (Thurston, 2013). If a collection of smallholder farmers worked together to afford a coffee roaster, this would facilitate an increase in profit. Specialty coffee represents 17% of imports and 40% of revenue in the coffee market (Daviron, Ponte, & TCARC, 2005). Additionally, it reduces shipping, storage, production time, and transportation fees if roasted locally (Thurston, 2013). Although there are monetary inputs the roaster adds, the net profit is far greater.
Maximizing Plant Usage
A large percentage of the coffee plant is wasted during the bean extraction process. This waste could serve as a subsidiary income source for subsistence farmers and an increased line of protection from poverty if the beans are of poor quality or there is a meager harvest yield. During the pulping process, most of the coffee cherry is discarded or used during the demucilaging process, which is unnecessary with the addition of enzymes (Dicum & Luttinger, 1999). These fruits are versatile foodstuffs which can be transformed into beverages, canned goods, dried fruit, flour, and coffee filler. Coffee cherry beverages such as qishr, a wine, have been enjoyed for centuries while newer blends like Cascara, a tea, are gaining in popularity due to their introduction into mainstream coffee chains such as Starbucks (Hardie, 2017). Chutneys and jams require minimal additional ingredients, have a long shelf life, and transport well. However they are labour intensive and the hot sugar could cause burns. A dried coffee cherry is easy to make as the solar stills or drying equipment is already owned. Space does, however, need to be available, as this may be significant. Coffee flour is a conventional flour alternative that is gaining global interest and there are companies in this business who cater to, and offer supports for, smallholder farmers creating this product (CF Global Holdings Inc, n.d.). Similarly, companies are beginning to invest in the production of dried and roasted ground cherries as a filler in Arabica coffee blends, similar to the current use of Robusta as a cheap coffee filler. This final option would require partnership with a company, however, this could be beneficial to the farmer as the partnership could offer supports that would otherwise be inaccessible to the farmers.
Helpful links
Marketing the Products
“Take advantage of packaging as a strategic weapon and marketing tool for the entire business, especially within a highly competitive food industry” (Rundh, 2005). This applies to the coffee industry where there are many options available to consumers and proper marketing is essential to success, however, there are also many ways to set yourself apart. Considering the market is international, personal interaction will not be as effective as clever, attractive packaging, accreditations, and company associations or promotion (Pay, 2009). This step is essential if the coffee can be roasted locally, resulting in a complete and finished product sent to market. However, accreditations and distinctions, such as fair trade, certified organic, rainforest alliance, UTZ certified, and “produced by women” can still greatly increase the value of the product if the farmer is only able to grow and dry the beans (Fairtrade Canada, n.d.) (Cuellar, 2013).
Once some additional income has been generated, a smallholder farmer, or farmer cooperative, may have the ability to afford small scale packaging machinery. Such equipment can be purchased online for $600-1000 USD and is capable of producing small “pillow pouches” of product (Alibaba, 2018). This packaging style is airtight for long-term storage, can operate using personalized, pre-labeled bags, and is the most economic design on the market today (Viking Masek, 2018). Although such small packets may be difficult to sell commercially in developed countries, they are an ideal size for use in a hotel’s complimentary breakfast buffet and room amenity assortments, as road side or gift shop keepsakes, or for a local coffee shop to feature. For value to be maximized on specialty products with tourists as the target audience, packaging should, in addition to the aforementioned marketing features, display the region or farm of origin, and include a biography, name, photograph, or signature of the farmers who grew and packaged each pouch. These unique details add a valuable personal touch that cannot be achieved through mass production (Davis, 2018). Additionally, bright, rich colours are more likely to draw attention and are subconsciously suggestive of the bright, rich flavour of the coffee contained within, further increasing consumer attraction to the product (Shi, 2013).
With domestic tourism increasing, a local partnership with a hotel or café would provide economic stability and guarantee that the farmer’s crop will be purchased, decreased export and transport costs, provide a unique commodity for local hotels, and would be at the correct economy of scale for a small business start-up (Tawii, 2017)(Thurston, 2013).
Helpful Links
Conclusion
As indicated in the above sections, there are many strategies, methods, and equipment that can significantly improve the production efficiency, quality and value of a coffee crop for smallholder farmers, NGOs, and related associations.
References
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