[S4:E16] Articles Read: Local Consumption In Nigeria

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This episode compares a new program in Nigeria to a successful program from Colombia to develop local markets for coffee.


Read the original article here: Local Consumption In Nigeria

The original thread in X:

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This episode is part of a mini series on local consumption, which happens when coffee is consumed within the same country, where it was produced or grown. In a previous episode, I dug deeper into the economics of local consumption to get a better understanding of how it was developed in countries like Brazil and Colombia. Once we have a better understanding of how it works in one place, we can begin to try to replicate the success in other places.

For example, the successful model used Colombia was a Toma Café program, which was an organized marketing effort created by coalition of coffee roasters and producers in Colombia.

Ana María Sierra, the executive director of Toma Café attributed the success to what she calls integrative marketing. One of the fascinating aspects of this mass marketing campaign was Toma Café shared its marketing research with small and medium sized producers who typically can’t afford such material. In this way, small and medium sized coffee producers could better target the consumers that the marketing material was developing.

This development of demand is something I’ll touch on in a later episode about tastemakers.

Nigeria found success with a program called LaCoFe, which is similar to Colombia’s Toma Café program. They are both organized, industry-level marketing campaigns meant to stimulate an entire market to benefit many businesses. Typically when one thinks of a marketing campaign, you think about one business trying to increase their number of customers. The LaCoFe program in Nigeria has a much larger scope. It quote, "aims to promote the Nigerian coffee culture and community as a whole."

So let’s dive in. This is my article titled "Local Consumption In Nigeria."

This article was adapted from a Twitter thread on the same subject, which I’ll link to in the episode homepage.

The original article titled, "How is coffee consumption changing in Nigeria?" Was published by the Perfect Daily Grind. And the article discusses what coffee culture currently looks like in Nigeria, we’re the local industry would like to go, and how they’re trying to get it there.

According to the article coffee consumption levels in Nigeria are low and consumption is largely of instant coffee. One reason this is significant is that instant coffee is largely produced with the lowest grade coffee; commodity coffee. This coffee is very often the cheapest coffee a farmer has and therefore the one generating the least amount of revenue. There’s also estimated that between 90 and 95% of the coffee consumed in Nigeria is imported. There are many coffee producing countries, such as Colombia and Mexico, who forbid importing coffee. This is an understandably protectionist measure. Indonesia does not forbid importing coffee. And that means that Indonesians can drink cheaper coffee produced in Brazil than what is produced in Indonesia. That doesn’t help to encourage local consumption.

The LaCoFe event was developed with a theme of quote, "coffee, culture, and community." This is a quote from the website. Bellafricana.

Exhibitors, partners and stakeholders will showcase and engage the richness, uniqueness and versatility of the Nigerian coffee value chain through carefully curated events. There will be a guided tour to a coffee roastery in Lagos, live art performances, book readings & an exposé into all the ways in which coffee is consumed in Lagos and Nigeria.

This is very similar to a successful program developed by Colombia called Toma Café. Which encouraged coffee consumption anytime of the day, not just the morning and also highlighted diverse coffee drink recipes.

The following is a quote from a presentation by Ana María Sierra titled Innovation and Integrative Marketing, the Engine For a Sustainable Market Growth. The Colombian Toma Café case.

The Toma Café program increased volume by a reported 36% in seven years. This increase in consumption was stimulated by a campaign set to increase the promotion, education, research and innovation in local coffee. “It was about glorifying tradition and propelling modernity."

Local consumption creates a virtuous cycle.

According to CABI an international not-for-profit organization. Quote, "increasing domestic consumption provides the opportunity to cushion small holder farmers against green coffee price volatility, and will lead to better retention of coffee incomes in the producing countries." End quote.

By consuming something produced locally more money flows within the country, as opposed to flowing out as is the case when purchasing imported coffee. It also helps create pride and local craftsmanship. Consumers are proud to drink a coffee made locally and producers are proud of their fellow countrymen find value in their product. In this way it helps perpetuate cultural identity.

Local consumption, supports local farmers.

Getting local markets developed that can compete with export markets is a great way to support local farmers and help lift them out of poverty. We’ve seen programs like this work and for that reason, I’m hopeful for the program in Nigeria.

This is Michael Wright and that was me reading my article titled "Local Consumption In Nigeria."