Yemeni coffee processing project Note: This project has been cancelled, because the partners have not been able to fulfil their obligations.The partners (a Saudi food processor as applicant, a Yemeni entrepreneur as local partner and an Italian coffee processor as third partner) in this project will establish a coffee processing factory in the free zone of the city of Aden. For that they will enter into a joint venture company. They will make Arabian and Turkish coffee blends to a level that is export standard. Until now other companies only export unprocessed green coffee beans. The project will add value to the product in the producing country. For the local market the factory will process coffee bean hulls that are used as a local drink: Qishr.The activities of the joint venture will be procuring good grade of coffee beans from farmers, and processing the beans from hulling up to packing. The quality of the raw material will be improved by training farmers. A successful chain will increase the acreage of coffee production that itself is beneficial for the water consumption pattern of agricultural holdings as it will discourage them to produce the high water consuming qat.The market that the consortium aims for is within the Middle East, the projected maximum capacity of the project (approximately 1,200 tons annual) is a fraction of the total market.The distribution of the largest part of the products will be via the vast network of applicant. A small quantity will be used by applicant for its own processing activities (Iced coffee) and by the local partner for his own shops. The Qishr product will be marketed by the joint venture via the network of the local partner.Corporate Social Responsibility (CSR)The consortium has attached a "Declaration of Intent" to the application in which they pledge to implement many principles of CSR in the project. The issue of child labour was intensely discussed during the visit to the partners. During the meeting they gave several points on their strategy to avoid child labour at the supplying farms: training the women for very skilled treatment of the beans was one of them. The partners are also dedicated to including women in the work processes at all levels of the future company.Impact•	Employment and working conditionsThe project will create direct employment for 68 persons. In the two years after the project another twenty persons will be employed. Besides, additional income will be generated for coffee producing farmers.The primary working conditions are guaranteed to be good in the CSR charter of the company. Wages will be good; even for the basic work the consortium intend to pay 40% above the unofficial minimum wages. Also, social security and health insurance will be covered by the employer. Smaller benefits will also be available for the workers.•	Innovation / Transfer of knowledgeThe training for modern coffee processing processes are new for the country; also the practical issues on bean quality are new in a way that a processor is going to add income components for farmers to the production of good quality raw material.Besides that coffee farmers will be trained in important subjects concerning the production: water conservation, pruning, fertilising and so on.•	Chain effectsThe main chain effect will be that developments will take place at the 105,000 coffee producing farms: productivity will increase and profitability as well. The project will encourage also other parties in the market to invest in quality. Down the production chain, local wholesalers and retailers will benefit from the availability of the new Wish product.•	EnvironmentThe consortium will avoid pollution from the plant by installing filters and oxidisers to minimise emissions of odours that are generated with the process. Waste will be recycled as much as possible and a good waste collection service is available.The fact in itself to process the husks into the Qishr product leads to considerable less waste as in most plants the husks are waste.The cultivation of coffee at farmers' level will compete with the cultivation of qat. As water utilisation in coffee is much more efficient than in qat cultivation, water resources are less taxed.Systems to avoid soil erosion will be promoted.•	Position of womenThe consortium targets to employ 40% of its workforce from female origin. They will work on the production line, the packaging line and in the administration of the company also on higher levels. Establishing a production unit for producing high quality, exportable coffee with a capacity of 432 tons annually in one shift and produce 500 tons Qishr annually in an innovative way for the local market and introduce it in foreign markets.