STiR coffee and tea magazine

STiR coffee and tea 51 So, there is infrastructure to leverage, and there's plenty of labor outside of the harvest season as well. What about market demand? Many coffee-growing countries are rapidly emerging economies that lack local manufacturing facilities for the es- sential products required to support growing trade. To fulfill the demands of emerging middle-class consumers, they rely on importing those products at a higher cost, adding to the envi- ronmental impact of a longer supply chain. Micro-manufacturing is one emerging trend driven by hyper- regionalization across the globe. Innovation in this space makes micro-factories economically feasible, and technology makes dis- tributed collaborative manufacturing and demand aggregation frictionless so that these micro-factories operate like individual lines of a larger factory to fulfill local and export demand. Micro-factories can scale quickly by onboarding new loca- tions through a business-in-a-box or franchise-manufacturing model. They leverage equipment sourcing volume, standardized manufacturing processes, and capital provided through inves- tors and low-cost financing. And what would these micro-factories produce? Agricultural waste byproducts such as those readily available in coffee-grow- ing areas are the topic of much innovation, especially for use in packaging (paper as well as alternatives to petroleum-based plastics), textiles (for home and apparel), construction materi- als (plywood and concrete alternatives), furniture and finishings from veneers to high-end laminate countertops and fixtures. Many of these goods are in high demand in emerging mar- kets and are not slowing down. The coffee cherry itself is cur- rently a waste byproduct that, when properly processed, has commercial value in food, beverage, pharmaceutical, and cos- metic products. By operationalizing and connecting these micro-factories and tapping into growing demand for the right products, busi- nesses that create local value can disrupt the cycle of systemic poverty in rural smallholder communities. Income Diversification: The Future of Coffee Income diversification is the key to a thriving coffee future, and these businesses can be a solution to create wealth in rural small- holder communities. In East Africa, a Kenyan entrepreneur has established a small but profitable business in banana fiber and is currently exploring how to convert banana fiber into burlap bags for coffee export. East Africa exports over 12 million bags of coffee annually, and all of those burlap bags are currently imported, so a sizeable local industry could be sustained. This would provide local jobs and enable these markets to produce their bags locally instead of relying on imports. In Central America, producers in Honduras and Guatemala are further processing high-value fruit concentrates, some of which utilize coffee cherry pulp. This not only adds value but also reduces coffee production's carbon footprint. Innovative companies use banana fiber in compostable al- ternatives to plastic and foam packaging. With slight modifi- cations, this could be implemented in micro-factories. Univer- sity projects are also converting agricultural byproducts such as spent sugar cane into construction materials. All of these projects require investment, expertise, and technol- ogy to scale. This is the puzzle I've been pondering, and it's coming together with the help of many thought partners, encouragers, and supporters. Ten times the income…one million coffee farmers… saving the future of coffee…seems doable and fun! 10X Impact Ventures (www.10xImpactVentures.net) was founded to disrupt the cycle of systemic poverty in rural smallholder communities and create local value for at least a million smallholders. Two women from a Rwandan coffee community discuss the possibility of using banana fiber from their own farms to create bags for coffee export. Photo curtesy 10X Impact Ventures Author Carli Rosencranz conducting research on ways to help Rwandan coffee farmers earn additional income. Photo curtesy 10X Impact Ventures

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