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Six washing stations selected for the 2010 pilot Coffee Washing Station Turnaround Program
In January 2010, OCIR Café and TechnoServe partnered to launch The Coffee Washing Station Turnaround Program. The purpose of the program is to support improved management of washing stations that have the potential to become profitable. Fully washed coffee is commanding a growing percentage of total production and is generating a significant price premium. As a result, some washing stations have achieved strong performance in 2009, showing that profitability is achievable. However, many washing stations are currently unprofitable and face numerous challenges, both externally driven (i.e. variable climate and production cycle) and internally driven. Key internal challenges include non-strategic washing station placement, weak management and governance, high operating costs, lack of investment in production and poor management of debt limiting availability of additional credit. The Turnaround Program is designed to help washing stations achieve sustainable solutions to these key internal challenges.
OCIR Café and TechnoServe launched a pilot of the Turnaround Program for the 2010 season by seeking six private and cooperative owned coffee washing stations that were unable to make a profit in 2009 but demonstrated the potential to become profitable within two years. OCIR Café received 23 applications and compiled detailed financial information on the stations, interviewed station managers and visited a few of the premises. The applications were assessed along three dimensions: the financial potential to return to profitability, the quality of management and governance based on the manager’s knowledge of the coffee washing station operations and industry and the commitment to paying farmers premium prices. The six selected washing stations are: Ntyazo CWS, CWS Musambira, Cogiproca, Ingoboka Gashashi, SDL Gitesi, SDL Nyakizu.
The six washing stations selected to participate in the pilot Turnaround Program will receive assistance from OCIR Café and TechnoServe to enable the stations to become profitable in the next two years. Each will receive a business advisor to provide coaching and training on business management, washing station operations, and credit and market access. Each will also receive a governance advisor to help washing station management develop and maintain a strong governance structure. Additionally, the washing station will receive assistance in developing or strengthening its business plan and loan application for 2010. While only six coffee washing stations were selected for the pilot program for 2010, OCIR Café and TechnoServe expect to support 30 stations next year. All washing station managers are encouraged to apply for the 2011 Washing Station Turnaround Program and can contact Theophile Bazimaziki, the program’s governance advisor, at
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