**Table III.4  Shares of Coffee Producers by Variety, 2001**

||Perce<br>|ntage<br>|
|---|---|---|
|Variety|Producers|Land Area|
|Tipica|75%|64%|
|Caturra|5%|8%|
|Both|16%|27%|
|Robusta|3%|1%|
|Total|100%|100%|

Source: Inventario de Caficultores Resultados, Consejo Dominicano de Café, Republica Dominicana (2002).

Inter-planting of _caturra_ and _tipica_ varieties has led to heterogeneous bean quality and problems in marketing high-quality Dominican coffee; as discussed below, negative price premiums on Dominican coffee are found in international markets. The third trend has two implications. First, the largest, most technologically advanced coffee plantations are found between 1,300 and 1,400 meters (relatively high elevations), and improved technology and farm size may contribute to more efficient production. Second, _caturra_ production at high elevations has fewer positive environmental externalities associated with it compared to _tipica_ production. _Caturra_ is generally not produced under shade; and the shade production widely prevalent in _tipica_ plantations significantly helps reduce soil erosion and enhances surface and ground water quality. More erosive practices at high elevations can reduce the environmental benefits associated with coffee production. Also, as mentioned previously, _caturra_ production is associated with higher use of fertilizer and other agri-chemicals, with potential to have negative environmental impacts. Pure stands of non-shade _caturra_ are mainly confined to the north-eastern part of the country.

# **Diversification into Fruit Trees: A Program Supported by GoDR**

Fruit tree rehabilitation is being promoted by SEA through the distribution of almost 5 million fruit trees. The fruit sector is being further enhanced through rehabilitation of processing facilities as part of “Programa Especial de Desarrolllo de la Fruiticultura Dominicana.” Some of these efforts have been aimed at coffee producers at lower altitudes (who are considered non-competitive). Plans also exist to provide assistance to small scale producers to increase productivity of food crops to diversify production and improve food security..

In recent years, diversification into fruit trees has been encouraged by GoDR for marginal coffee producers at low elevations. This strategy replaces coffee, while maintaining environmental benefits associated with tree plantings. Diversification into fruit tress has been recommended for small coffee producers in good growing areas (EDE, 2002). Diversification is a potential means of increasing the economic potential of their small landholdings, spreading cash and labor flows, reducing price and market risk.<sup>31</sup> Diversification programs also help by encouraging replacement of overgrown shade trees. Diversified coffee and fruit tree plantations also help prevent pests and diseases, and have the environmental benefits of shade grown coffee. Coffee/fruit tree interplanting helps prevent soil erosion. Leguminous trees have also been suggested for their ability to fix nitrogen and provide organic fertilizer.

> 31 In this report we raise the issue of diversification and emphasize the _potential_ benefits. Diversification is not, by definition, positive or negative.  It depends on the mix of activities that is selected. See Varangis, Siegel, Giovannuci, Lewin, 2003 for a detailed discussion on potential benefits and costs associated with diversification of coffee production.

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