The Gourmet Coffee Project

Back to previous page      
 

Speech by C. Dengue for the presentation of the Gourmet Coffee Project at the informal JAG, 

Wednesday 12 April 2000.
 

 

Good morning, Ladies and Gentlemen.

First of all I would like to thank ITC for giving me the opportunity to address the participants at ITC’s annual JAG meeting here today.
 

 

The Common Fund for Commodities – or CFC – is an autonomous inter-governmental development institution established within the framework of the United Nations.

It is a partnership of 104 member states and three intergovernmental institutions.

The CFC is located in Amsterdam.
 

 

The main objectives of the Fund are to improve the opportunities and prospects of commodity producers in two ways:

  • by financing commodity development projects with special focus on Least Developed Countries, and
  • as a catalyst in mobilizing trade and investment resources into the commodity sector.
 

 

The Fund operates under the novel approach of commodity focus in stead of the traditional country focus. Focus is on the more general problems of particular commodities. Problems which cut across geographical and political boundaries. The Fund also assists projects which aim to alleviate poverty through commodity development.
 

 

The Common Fund provides financing through two different windows:

The First Account Net Earnings can finance:

  • projects which can minimize physical marketing and trading risk,
  • assistance to improve legal and policy frameworks,
  • facilitation of trade finance and market risk management,
  • piloting of market risk pooling through producer co-operatives and small traders organizations,
  • awareness raising and training.
 

 

The Second Account can finance:

  • applied research and development and transfer of technology and know how,
  • productivity and quality improvements,
  • marketing and market development,
  • diversification and value addition,
  • improving efficient utilization of resources,
  • sustainable commodity development including improving environmental conditions.
 

 

All member countries with suitable projects can submit proposals. Submission is made through the relevant International Commodity Body with the endorsement of this body.

There are 24 International Commodity Bodies which cover most of the commodities of interest to Developing Countries. Funding is in the form of grants or loans or a combination.
 

 

You have just been presented with a number of examples of the benefits obtained and the lessons learned from the Gourmet Coffee Project. From our point of view some of the most important are the following:

  • the Project has proven that the producers can exploit the gourmet market,
  • the requirements for this have been identified – it is not only a question of quality but also of delivery, quantity, consistency homogeneity and other parameters,
  • the success of the Internet auction has shown that here is a door for development countries to enter the market,
  • the absence of marketing infrastructure in most producing countries could be addressed by Web based solutions in the short term, and
  •  there is a need to develop Web sites which allow you to trade.
 

 

A project of this kind has once again proven the value of cooperation between the Common Fund for Commodities and the International Trade Centre.
 

 

What are the next steps ?

As you have heard, the outcome of the Gourmet Coffee Project will be presented at the International Coffee Organization in London in May. All are invited to attend this presentation.

The Common Fund will welcome any project proposal which seeks to address the constraints defined by this project. Such project proposals would obviously be subject to approval by the International Coffee Organization.

Ladies and Gentlemen. Thank you for your attention.
 

Back to previous page