Contributors: Brett Inder, Katy Cornwell, Sarah Meehan
In our last post Who’d grow coffee in Timor? we introduced the people behind the coffee industry: the coffee-growing households. Here, we focus on the trees.
Our research in Ermera in 2011 found coffee yields a mere one-fifth of the average by world standards, a result of poor tree health and maintenance and reflective of the inefficiencies inherent in small-scale operations.
Training, expert advice and economic incentives have long been recognised as essential to boosting the productivity of the coffee sector.
The trouble is, so far in Timor-Leste it appears training hasn’t been effective. Our study found:
How could training be more effective?
Economic research suggests that, to be most effective:
How about incentives?
In the world of economics, people respond to incentives – a well-known example in development economics is the success of the Oportunidades (PROGRESA) program in Mexico whereby families receive money conditional on their children attending school.
With little price reward for productivity and quality in the coffee industry at the farmer level, a cash transfer tied to coffee quality and output may provide this incentive to improve yields. In our report Coffee, Poverty & Economic Development in Timor-Leste we discuss a potential scheme whereby an additional payment, tied to coffee production, is made to farmers in the non-harvest season. Being tied to coffee yield, this scheme has the potential to make it economically “worth it” for growers to put in the extra labour, and bear the initial risk, involved in undertaking tree maintenance and related practices, which is much-needed in order to boost the coffee sector.
Economic incentives could also be considered at the “supply” level, with for example, performance-based bonuses paid to extension workers or other industry-based trainers for each farmer that receives training and subsequently follows it.
A range of trials might be needed to determine whether these economic incentives are effective in improving yield and quality. That then lays the platform for programs that can really make a difference to the livelihoods of these farmers and their families.