STiR coffee and tea magazine

STiR coffee and tea 41 donesia. This contributed to a loss of knowledge while underinvestment in the plantation sector led to a steady decline in plantation production. The state-backed monopoly ended in 1994 and since then a range of new business models and markets for Timorese coffee have been developed. Efforts to rehabilitate unproductive farms have also begun but a huge amount of work remains to be done. In Timor-Leste, coffee bushes are planted un- der the shade of larger trees that form continuous areas of forest. This is a form of agroforestry that provides a range of economic products and eco- system services. The shade trees help to stabilize the soils on steep slopes, increase the infiltration of rainfall to aquifers, sequester carbon, and pro- vide a habitat for a wide range of flora and fauna. They can also help to improve soil fertility by fix- ing nitrogen, and provide a source of timber and edible fruits. Other economical crops can also be grown within this system, including foods like ba- nana, taro, arrowroot, and spices such as ginger, turmeric, pepper, vanilla, and cloves. The government increasingly understands that establishing and maintaining productive agrofor- estry systems requires hands-on management – plus the significant use of labor and other inputs. In Timor-Leste many smallholder households minimize their labor input and make little or no use of other external inputs. This means that they don't make full use of proven approaches for improving production such as spaced planting, regular pruning, composting, and pest manage- ment. As a result, coffee trees are often old and overgrown, soil fertility is low, and production is affected by a range of pests and diseases. This re- duces average yields, which are among the lowest in the world, and amplifies climate induced varia- tions in annual yields. Many smallholders continue to live in poverty due to low and volatile production and inconsis- tent quality. Implementation of a simple package of good agricultural practices can triple coffee yields but most households need training and other sup- port to do this. Training by public extension offi- cers and private companies is poorly coordinated and insufficient. A survey of households from 25 communities in the main coffee growing region found that only 14% received training on coffee production during the past 4 years. The same sur- vey also found that training had very little impact on reported yields. This could reflect weaknesses in training delivery, and other constraints to farmers' adoption of new practices such as extreme poverty, a lack of access to financial services, household la- bor shortages, and insecure land tenure. Many coffee producing households rely on the crop for a majority of their cash income. This income is highly seasonal, and the incidence of household poverty is significantly higher in cof- fee producing areas. Households that lack access to formal financial services may use informal mechanisms to smooth their consumption. However, one survey found that 45% of coffee producing households significantly reduced their food consumption in the months preceding the harvest, with half of the surveyed households eating one or less meals per day. Hunger, and the need to seek other sources of cash income constrains household labor input during the pre-harvest period and discourages the adoption of new technologies. Help- ing smallholder farmers to access formal financial services would enable them to build up savings and to access credit on more favorable terms. This would complement and reinforce interventions to increase smallholder productivity. Pruning and replanting old trees is crucial for increasing productivity but leads to an initial loss of income until those trees return to full production. This temporary loss of income likely deters poor households. Insecure land tenure also reduces the incentive for investment by some households. Around 25% of the land planted with coffee is state owned and occupied by smallholder farmers who lack clear title. A survey found that 17% of households in Ermera district and 12% of households in Ainaro district perceived some risk of dispos- session within the next 5 years. A new land law was approved, but implement- ing regulations are still being developed and it will take time to resolve historical land disputes under the new legal framework. Improving the price that farmers receive for their coffee can amplify the benefits of increased production. This can be achieved by improving value chain efficiency, increasing local value addition, and increasing the share of ex- ports which are sold for a premium. Timor-Leste currently exports most of its coffee as a commodity-grade product with little or no differentiation. However, global demand for specialty coffees is growing rapidly and this provides a sig- nificant opportunity for Timor-Leste to achieve better export prices. High quality is the defining feature of specialty coffee and is assessed by examining the physical characteristics of unroasted coffee beans and the sen- sory profile of the roasted beans. Certifications and other intangible factors are also increasingly important for specialty coffee markets. Recent analysis highlighted supply chain transparency, product traceability, and the knowl- edge of value chain partners and consumers as factors that condition the un- derlying relationship between quality and create additional value. The success of initiatives to upgrade production, improve quality, and develop specialty markets hinges on close coordination across the value chain and between government, the private sector and other stakeholders. Numer- ous studies and assessments identified weak coordination as a constraint to developing the coffee sector in Timor-Leste but coordination recently began to improve. In 2016, following an initiative from ADB, a group of stakehold- ers representing all stages of the coffee value chain came together to form the Timor-Leste Coffee Association (ACTL). The colors of the Timor-Leste flag (and coffee mug).

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