Ramadham Salum: CPC (Coffee Processing Company)

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By Sherri Johns

Burundi is struggling with lower coffee production volumes and lower prices compared to their counterparts in Uganda and Rwanda. The country gets nearly 70% of its foreign exchange from the coffee crop, 96% of it arabica. Production is from 25 million trees covering 70,000 hectares of farmland. Although the country is battling the effects of foreign exchange shortfalls, the government said in June it expects coffee production in 2018 to be 15,000 to 17,000 metric tons. Early this year President Pierre Nkurunziza said Burundi exported 10,000 tons of coffee in 2017 earning the country an estimated $29 million.

Ramadhan Salum was born and raised in the Kayanza province, Burundi. He founded Coffee Processing Company (CPC) in 2010 and acquired his first washing station in Buziraguhindwa near the border with Rwanda. He has since added Mbirizi and Shembati stations also in Kayanza and the Sehe washing station in Hibitoke province. All four stations reflect Salum’s passion for coffee and his commitment to his community. CPC buys coffee from hundreds of smallholders whom Salum supplies with seedlings. His company donated land for a school and provides financial support as well as infrastructure. He is now producing naturals at scale and experimenting with honey processing. Salum is currently building a dry mill in preparation for export micro lots that are color sorted on modern equipment as well as hand sorted.

Salum is a strong role model as an exporter and advocate for quality and for the farmers in Burundi. He takes good care of the buyers and farmers at washing stations and gets the lots through a sometimes-complicated exporting process. Often he can be seen at washing stations, international trade shows, and coffee cupping events.

Here he shares with STiR his insight as a Burundian exporter.

STiR: Sourcing specialty grade coffee direct from the washing stations is common these days. How important is it for you to visit the farms and washing stations you buy from?

Salum: Coffee is not just business, but it is also relationship between the buyer, the owner of the coffee washing station, and the coffee producers. It is important for buyers to come on ground and see what is being done in terms of producing good quality coffee. Buyers can learn as well contribute to improve the quality improvement at the origin

STiR: What do you look for on a farm visit?

Salum: I learn and share the experience for my buyers. My visits show support to the producers and offer motivation, not only a potential to purchase and “make deals”.

STiR: What always turns you away?

Salum: When coffee farmers are not well paid for their cherries it bothers me. Others come and try to offer less, I offer a good price for good quality and that action equates to ongoing relationships with farmers and washing stations. I respect them and vice versa.

STiR: What is your definition of transparency and what does it mean to your business?

Salum: Transparency is to share the information related to the business. Buyers should know the cost on each step along the value chain. This includes knowing the price farmers is being paid, processing fees, logistic fees etc. All must be detailed for the buyer to know where the price is paying is distributed.

STiR: The term “sustainability” is used in many contexts. What does sustainability mean to you?

Salum: Sustainability means: keep going the business I am doing now and in the future. This means that I must work with farmers, buyers, and other people involved in the value chain to keep things moving. It is also important that the way coffee farmers produce, and coffee washing is safe for the environment.  If not done today, tomorrow the business may not be there.

STiR: As an exporter, please describe the importance of coffee education to the success of your operation.

Salum: Coffee education is very important. Quality of coffee does not just happen. One must know how to produce great coffee. From farmers, wet millers, dry millers, cuppers, exporters, logisticians, baristas etc, each of these must know his role in the value chain.

STiR: What is the affect of a good education program on your employees and customers?

Salum: Employers are the ones who are involved on daily basis on producing good quality coffee. So, they need to be educated on good practices.

STiR: Who is your main export market currently?

Salum: Europe and the United States

STiR: Do customers there care enough to pay a premium for third-party certification or for a coffee where some of the proceeds support a “cause”?

Salum: Yes, they do if certified coffee tastes great also.

STiR: Is this a vocal minority, a single demographic, or the majority of consumers?

Salum: There are some buyers who do not care about this much. But they are more interested in quality. But the European market is focusing certification. All over the world, organic coffee is being sought.  Other certification like UTZ | Rainforest Alliance, 4C, Fair Trade are also being sought. It is a trend and we must adjust whilst not forgetting the sustainability of good taste.

STiR: Burundi, what are your biggest challenges in exporting?

Salum: Burundi is landlocked country. Trucks must take coffee to Dar Es Salaam or Mombasa. This makes us not very competitive. Buyers may seek to buy FOB (free on board) while many exporters in Burundi are selling FOT (free on truck). Despite this, Burundi exporters are being more flexible and are selling FOB Mombasa.*

*FOB Mombasa or FOB Dar Es Salaam means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays the cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination.