The document discusses how intellectual property can be used to increase export income for African producers. It provides examples of initiatives in Ethiopia and Ghana that have successfully used IP tools like trademarks, licensing, and branding to capture more of the value of their distinctive coffee and cocoa products in international markets. By focusing on intangible aspects like quality, reputation, and brand identity, these producers have been able to negotiate higher prices that better reflect the true value and premium nature of their goods. The document advocates developing IP strategies as a core part of business models to allow African countries and producers to benefit more from the exports of their distinctive products.

1. Distinctive
values in
African
exports
How Intellectual Property
can raise export income
and alleviate poverty

2. In sub-Saharan Africa,
something quite new
is happening with
Intellectual Property.
IP is now being used
in business strategies
to boost export income
for large numbers of
African producers.
Contents What’s all the buzz about?
-5 The intangible nature of business today
These innovations use Intellectual Property
6-7 The scale of opportunities
(IP) in export strategies that involve literally
8-9 Developing an IP strategy
millions of producers and are showing a new
0-49 Product briefs
and exciting direction for success. This booklet
explores some of the possibilities for large-scale
opportunities to increase export income and
improve the security of that income for millions
all over sub-Saharan Africa.

3. The Ethiopian fine coffee Divine Chocolate Ltd,
sector has been in the news owners of the Divine
over the last couple of years chocolate brand, now
with a ground-breaking 45% owned by Ghanaian
initiative that challenged the cocoa growers, has
existing order in specialty also been in the news
coffee, and to date has celebrating 0 years of
brought more than 80 coffee rapid growth.
distributors on board.
3

4. 98 007
Production Production
Intangible value has grown costs costs
Distribution
in importance worldwide Distribution
margin
margin
Intangible value is the value of the non-physical characteristics Intangible Intangible
of a product, such as its uniqueness, reputation, or tradition. value value
I n recent decades the intangible
value of products in developed
country markets has overtaken the
An everyday product, such as a man’s
tie, offers an example of this shift. Just
5 years ago, about half the retail price
distribution. As little as 5% is being
returned to the producers for the
materials and manufacturing costs.
physical value as the main source of of a tie represented its physical value –
corporate income. In 98, 6% of the materials and manufacturing costs – Intangibles 9– Tangibles The management of IP
market value of Standard Poor’s while the rest went to the costs of When Philip Morris paid $.9 billion assets can no longer be
500 companies could be attributed to distribution. to buy Kraft, the second largest food
tangible assets and 38% to intangibles. Little or none of the price represented company in the world, only $.3 billion considered a discretionary
By 998, only 5% of their assets were the design, brand, or other intangible of that price was the value of Kraft’s
function, nor is it solely
tangible, while 85% were intangible. value of the tie. In contrast, today, tangible assets – hundreds of food
This shift in the value of assets reflects around 95% of the price goes to the production and packaging facilities, the domain of the legal
the ability of these intangible assets to rewards for the design or brand (the for products from cheese and veggie
generate income. product’s intangible value) and to burgers to coffee, candy, and soft
department. It must
drinks. be treated as a core
Kraft also had an IP portfolio –
Market value of Standard Poor’s 500 companies its technological know-how, brands, component of business
0% 0% 30% 40% 50% 60% 70% 80% 90% 00%
trademarks, trade secrets, licenses, strategy.
patents, and other forms of IP. The
difference, $.6 billion, was the price Ron Carson
Innovation Asset Group
tangible intangible paid for Kraft’s intangible assets, it’s
assets assets truly great source of earnings.
6% 38% 98
Business has changed music, producers in rich countries use
With intangible assets being so various forms of IP tools to own and
important to their income, IP control the intangible aspect of their
tangible intangible management stands at the core of products.
assets assets business strategies for producers and For them, IP is not merely a “legal
5% 85% 998 businesses in the developed world.
Whether they produce computer
issue,” it is the base of their business
strategy, the means by which they
software, home appliances, candy, or achieve their business objectives. n
4 5

5. Not only established Small company innovates for a place in the market
Another US company offers an example of how the analysis of the
multinational corporations! consumer market led to the identification of intangible values
that were central to a small company’s business strategy. A small
company called Method, Inc. was a manufacturer of home cleaning
products, such as dishwashing soap, laundry detergents, and air
Producer cooperative manages its brand fresheners. Noting that household products were considered a
The experience of a US agricultural producer organisation offers a good sluggish, “anti-design,” and unemotional product category, the
example of how producers employed IP tools as part of their overall business Method company, which had fewer than 0 employees at that
strategy. Sunkist Growers, Inc. is a cooperative created by independent time, saw its chance to carve out a
farmers who banded together in 893 to garner more profit from their successful niche in this industry,
produce. In the early 960s, Sunkist’s licenses were non-royalty agreements. which is dominated by a handful of
But by the mid-980s, Sunkist developed a profitable licensing program that manufacturing giants such as Proctor
included royalties. This change contributed to growth Gamble and Colgate-Palmolive.
in revenues over a 0-year period from $3
million to almost $. billion. Sunkist’s Method focused on the intangible values
licensing program is continuing of its products. One of the founders, a
to expand decades after it chemical engineer, designed cleaning
first began: from 005 to liquid formulas that didn’t involve
006, the program grew animal testing and were biodegradable. Method
by nearly 5%. also used packaging design for consumer
appeal. The company hired a designer to create
a signature look for all of Method’s products.
Consequently, the company’s bottles for dish
soap and laundry detergent were designed to
look like bowling pins and figure eights.
After Method spent a couple of years building
up its company profi le, Target, one of the
largest retailers in the US, gave Method a
chance and began selling its products. Today,
Method’s products can also be found in other
major US retail chains and in the UK. Its
annual revenue, at about $7 million, is small
compared to that of its huge competitors, but
the company has successfully used creative
packaging design, innovative names and
scents, and eco-friendly contents to create
an emotional brand whose value and
competitiveness rests on intangible assets.
6 7

6. Managing IP is a key element in
Exporting increasing Africa’s export income
distinctive A frica could develop business
strategies with IP built-in when
prices can be expected to return and
continue in the long term with the use
products exporting to developed country markets
where value is dominated by IP. Currently,
of high-yield industrial agricultural
methods worldwide.
for almost all non-mineral exports from African countries can increase export
Sub-Saharan Africa, valuable returns income by focusing on the intangible
from IP are being captured in the value of products and then controlling
importing country and not in the and managing that value through IP
African country of origin. strategies that can result in long-lasting
Unfortunately, strategies for export income gains.
development in Africa have relied too Capturing long-term income from
heavily on increasing the production the intangible value of African products
of commodities and establishing new in export markets, using intellectual
processing or manufacturing plants. property and business tools, is the key
These strategies have put Africa in opportunity being addressed by the
intense competition with other developing Ethiopian fine coffee sector and the
countries that are also increasing Divine Chocolate company.
production and manufacturing. It’s most common to think of IP
African countries and other developing in relation to creative products –
nations are competing with each other software, music, or literature, for
for a small part of the production returns. example. But physical products,
That is, they are competing for income including agricultural products
from the ever-shrinking physical value and manufactured goods, also have
of products. intangible value, such as their
uniqueness, high quality, or design.
Oversupplied and Underpriced
As producers in poor developing Distinctiveness is the Key
countries have continued to increase High quality and reputation are
the supply of goods, prices have steadily the intangible elements used in the
dropped. The decline in prices paid to successful IP initiative to increase export
producers from developing countries income from Ethiopian coffee. Ethiopian
IP controls the has been especially evident in the fine coffees are recognised globally as
agricultural sector, where commodity some of the best-tasting coffees in the
rewards that are prices have fallen over the last 30 years. world. However, the significantly high
paid to distinctive A recent upturn in some agricultural
prices has been seen because of
retail prices for these coffees were being
enjoyed by foreign coffee distributors
products in export conversion of acreage to crops as a and retailers, while the producers were
source of ethanol, but this increase is compensated at very low levels – around
markets unlikely to hold. Oversupply and low 5-0% of the retail prices. n
8 9

7. Another successful IP-based
business strategy was initiated
by cocoa farmers in Ghana.
G hana’s cocoa is known worldwide for its reliably high
quality within the industry but not by consumers.
Creating strong distinctive branding, guaranteeing
a fairer trade agreement with farmers, and giving
farmers ownership of the marketing company were
identified as the key strategies for the producers to
Ethiopian fine coffee capture higher levels of the retail price of chocolate
products made from their cocoa beans and to
trademarking and compete in a competitive, mature market.
licensing initiative In the 990s, Ghanaian cocoa farmers set up
their own cooperative business called Kuapa
Kokoo, which then helped establish the
Fairtrade chocolate marketing company
Divine Chocolate Ltd. Today the Divine
brand successfully sells their chocolate
products in the UK, US and elsewhere.
The brand’s Ghanaian roots are
explicitly displayed on the chocolate’s
packaging in the form of a pattern
of traditional Adinkra symbols,
and marketing communications
A coalition of stakeholders, including
growers, exporters, and government
representatives, established the
with their international buying partners.
In addition, new brand management
policies are being implemented which aim
emphasise the quality of the
cocoa as much as the Fairtrade
credentials.
Ethiopian Fine Coffee Trademarking and to increase overall retail values. These Because Kuapa Kokoo owns
Licensing Initiative, which registered the changes are helping the producers to a significant share of the
trademarks of Ethiopia’s most famous secure export prices that reflect the high company, it has meaningful
coffees – Harar, Sidamo, and Yirgacheffe – retail values of their fine coffees. Begun input into how Divine
in countries around the world. Companies in 004, the initiative has moved rapidly chocolate is produced and
that sell, or want to sell, a trademarked through the implementation phases and sold, and a significant share
Ethiopian coffee must obtain a license. has already contributed to increased in the profits. Most importantly,
The Ethiopian growers and exporters are income from exported coffee two to three with a major share in the Divine brand,
now in a position to engage more equally years ahead of schedule. n farmers can benefit from continuing improvement
in income security, as well as their level of income. n
0

8. IP in Action
Producers in other developing countries have also identified
the intangible value of their products and created successful
business models using IP tools to leverage that value for higher
income streams, including the following examples:
Whether leveraging their Brazil Cuba Uruguay
name, their image, their The company AmazonLife used both a A cosmetics company named Suchel Yerba maté is a traditional, tea-
patent and a registered trademark as IP Fragrencia developed a branding like beverage enjoyed in Uruguay,
reputation for quality, or some tools to increase export income. After campaign that drew on the reputation Paraguay, southern Brazil, and
other distinctive aspect of their the company developed and patented a of Cuban cigars, along with the cultural Argentina. The Ache Guayaki tribe of
product, these producers have process for creating “vegetal leather,” image of Cuba’s relaxed and sensuous Uruguay, associated with yerba maté,
a leather-like material created from atmosphere. The company trademarked licensed the tribal name in a licensing
recognised the intangible value rubber trees in the Amazon rainforest, its brand and is continuing to expand its agreement with the distributor, Guayaki
of their products and used it registered the Treetap brand as a market in Europe and elsewhere. Sustainable Rainforest Products (GSRP).
IP tools to build successful trademark. Treetap leather is used in The license enables the Guayaki tribe
fashionable products such as purses to control ownership of its name and to
business strategies. and wallets. capture income from the commercial
use of the brand in export markets.
3

9. Business strategies considered negatively stems from
the unrealistic pressure on African
with IP can increase Companies are forging
countries to use IP enforcement, rather
than consumer legislation, to control the
income for all alliances with each other
trafficking in counterfeit goods.
Unfortunately, these two issues – the
Producers and distributors are business partners. Both will gain from in order to heighten the high price of patented drugs and the
enforcement of counterfeit laws – have
sharing marketing plans and quality improvement measures and can value of their IP assets confused many about whether IP should
also share the results of success in retail markets.
and to obtain mutually be shunned or embraced in a selective
way. As a result, the truly large IP
beneficial competitive opportunities that lie in export markets
Working with distributors the Ethiopian coffee initiative, and advantages through have mostly been unexplored.
When producers own more and earn the Ghanaian cocoa growers have
more for the distinctiveness of their shown, today’s successful producers cross-licensing. Strategies based on IP
products, they are more able to invest in have identified their intangible assets Capturing income from intangible
Kamil Idris
areas such as quality control, production as the foundation of their business values can sometimes be straightforward
World Intellectual Property
volume, traceability measures, handling models. They are using IP tools such and involve just one IP tool – licensing
Organisation (WIPO)
and other production improvements. as licensing, patents, trademarks, and a trade secret for instance. Or it can be
These factors are often very important royalty agreements to own and manage fairly complex and involve a variety of
for importers and retailers in marketing the intangible value of their products tools and related business actions.
the final product. and increase their income. Their costs of shipping their products to the The IP tool selected to accomplish
A small number of foreign importing distributors are business partners in nearest port. the goal will vary with the product. For
distributors of Ethiopian fine coffee the management of their brands. Each developing country, including some products, the retail value is greatly
initially resisted the producers’ the least developed, can create or find enhanced by branding and marketing. In
trademark and licensing plans, claiming Reaching above survival unique assets with potential for IP-based other cases, brand owners may earn the
that “the distributors should own the Business strategies with IP tools can export opportunities that can lead to best return by licensing the production
brands, and the producers should just help producers living in poverty to move increased and more secure income that and/or sale of their product.
grow the coffee.” The coffee project team beyond the bare survival level offered improves the livelihoods of low-income What IP tools have in common is
made clear to their distributors that by producing agricultural commodities. families. that they are an integral part of the
they, too, would enjoy long-term benefits It is one of today’s great tragedies that overall business strategy. They are the
when producers owned and managed the majority of producers in the world IP more than just enforcement means to owning and controlling the
their own brands. Coffee producer are pinning their hopes for a better Some people have negative perceptions income potential of the distinctiveness
income increased in 007 and will be future on boosting production through about the concept of IP. One reason – that is, the intangible value – be it
secured over the next five years. This hard work but have received less and for this reaction is the experience in uniqueness, invention, reputation,
change is increasing the incentive to less in return from commodity markets. Africa with the high price of patented design, quality, or some other important
work on production quality, reliability The recent increase in global food pharmaceuticals for the treatment of desirable asset. Business partners with
of supply and tighter identification of prices will mostly benefit industrial HIV/AIDS, in which patent enforcement shared interests in the reputation and
superior coffee, all of which benefit the agriculture in developed countries, puts them beyond the reach of people presentation of the product will aim to
distributors. rather than producers in remote, in need. develop distinctiveness and market it
As the experiences of Sunkist, Method, African agricultural areas with high Another reason that IP is sometimes attractively to retail consumers. n
4 5

10. The scale of opportunities Earning $0.bn to $7.6bn
from Physical Exports
and market access. From 996 to 006
export earnings of African non-mineral
A range of African products with merchandise grew from $4.8bn to
The potential to increase export income from applying potential were researched in this study $9.0bn– an increase of about 7% over
IP tools to the development and marketing of products to determine the factors by which 0 years, or .7% per year. If this rate
from Sub-Saharan Africa is significant. export income could be increased of growth is sustained for the next 0
through consciously developing and years, the resulting increase in the
implementing an IP business strategy $8.7bn of exports with IP potential
T he estimates presented in the table
below are in most cases drawn from
the views of technical and marketing
This work aims to stimulate producers’
thinking about using IP strategies
and to encourage project design for
related to the retail and export sale of
these products.
The additional potential for
would be to rise to about $0.bn.
However, the two approaches –
capturing intangible value through use
experts on each product and IP business specific opportunities. It is intended to increasing export income across a wider of IP techniques and increasing income
experts who have seen a range of IP tools be exploratory rather than definitive range of products from Sub-Saharan through conventional improvements –
applied in different situations. They are and there are many more opportunities Africa can be estimated by applying the need not be thought of as mutually
based on retail values gathered through than have been explored here. Producers average increased earnings of the 4 exclusive. In fact, they are often
desk research and phone interviews and might think imaginatively about how products studied. complementary as seen in the Ethiopian
provide indicative figures (rather than to enhance the distinctiveness of their Trade statistics for African non- fine coffee initiative – implementation
econometric estimates). products. mineral merchandise showed that total stimulated investment in quality control
export earnings in 006 were $9bn. and production improvements.
The table below presents estimates of export income that could Light Years IP estimates that about one-
be realised for 4 products that were researched in this study. third of these products offer potential Further Gains from IP
for increased earnings through the IP business strategies can also positively
Sub-Saharan Africa – Export Income and Potential Gains application of IP techniques. Those affect the income from Sub-Saharan
products had export earnings of $8.7bn, Africa’s export of services, currently
Products Studied Current Export Income Estimated Future Export Income
and it was from that group that the 4 about $38bn p.a. The development of
Low High
products, with earnings totalling $.bn, successful IP-based strategies for the
Kenyan tea $49,000,000 $536,000,000 $56,000,000
were selected for this study. $7.5bn craft exports sector is another
Sudanese cotton $44,000,000 $60,000,000 $90,000,000
The research on the 4 products opportunity for substantial increases
Ethiopian fine coffee $400,000,000 $,00,000,000 $,600,000,000
suggests that capturing their intangible in income, particularly valuable for
Namibian marula oil $,000 $,300,000 $,700,000
value could increase export income by low-income artisans.
Togolese black soap $50,000 $,000,000 $4,000,000
Senegalese tuna $3,00,000 $70,000,000 $00,000,000 a factor of between .3 and 3., shown It is important to remember that, in
Tanzanian blackwood $,000,000 $5,000,000 $30,000,000 on the above table. If those factors of the global economy, creativity can lead
Mozambican cashews $3,000,000 $48,000,000 $7,000,000 increase are applied to the 006 export to unexpected export income results,
Ugandan vanilla $0,000,000 $50,000,000 $90,000,000 income of $8.7bn, it would be increased with a product sometimes intended
Madagascan cocoa $6,000,000 $5,000,000 $5,000,000 to between $0.bn and $7.6bn. only for local consumption ultimately
Malian mudcloth $00,000 $400,000 $700,000 This level of change and increase in generating large scale export income.
Ethiopian leather $90,000,000 $300,000,000 $500,000,000 value is far greater than the increased For example, Mexican TV soap operas
Television animation $500,000 $40,000,000 $00,000,000 earnings that could result from were marketed in Russia and became
Creative industries $,000,000 $40,000,000 $60,000,000 applying conventional techniques to very popular, earning substantial
Totals $,08,00,000 $,567,700,000 $3,54,400,000 export development, such as improving export income, an unpredictable
Average Factor Expansion .3x 3.x quality, infrastructure, training, financial result. n
6 7

11. Developing an IP Strategy The stages of project design and evaluation
Scoping Study A feasibility study includes
Scoping Study During the scoping stage, broad consideration of capacity-building and
Around $5,000 estimates of possible income gains changes to producer organisations and
month are developed based on an initial home country supply structures from
» Establish how distinctiveness determines retail prices of similar products understanding of the final consumer the producer to the port of shipment. It
» Estimate intangible value in these similar products markets and the export-import situation also considers conventional measures
» Understand how intangible value is allocated to points on the supply chain for a particular product. to improve aspects of production,
» Estimate the retail price of the product if positioned better in the retail market It is important for stakeholders to such as quality control, traceability
» Establish the total intangible value at that price gain an in-depth understanding of how and, possibly, certification. This stage
» Estimate how much more value might be gained in export and producer prices the value of their product is determined also covers estimates of the cost of
» Determine whether to go on with more work on this product in the final markets. Is it the product’s implementing IP-based strategies as
intrinsic uniqueness, its high quality, well as more refined estimates of
design, or tradition that creates potential returns and when and how
Feasibility Study intangible value and how is it captured these might occur.
$0-50,000 and by whom? This determination is the
3 months basis for selecting business strategies Full Project Design and Costing
» Study the negotiating power of exporters and importers that might be used to capture additional In the experience of Light Years IP,
» Establish several possible IP strategies to increase export and producer prices income, and will lead to the choice of the about months are needed for full
» Estimate costs and potential benefits of these strategies most effective IP tools. project design at a cost of around
» Evaluate strategies and select the best one $00,000. Following full design,
» Develop a clear description of the steps to implement the chosen strategy Feasibility Study/ implementation budgets may be in the
» Evaluate constraints and how to overcome them Initial Project Design region of $3–5 million. Fully developed
» Determine whether to go on with more work on this product Having considered possible strategies cost and income estimates can serve to
during the scoping stage, more detailed demonstrate the potential and to gain
study will enable them to be ranked by support for investment funding.
Full Project Design criteria, including likelihood of success
$50-00,000 and the goals of an investment. The Learn More, Take Action
months next step is to design the organisational Attend workshops on ‘Using IP
» Design project management able to change the product’s position in export markets structure needed to implement a chosen Strategies’ that will include training and
» Identify the benefits to distributors and discuss the strategy with key ones strategy. For example, the Ethiopian assistance with your specific products.
» Design the linkages from improved export prices to reach producers Fine Coffee Stakeholder Committee
» Identify all skill areas needed, including those resident in the retail markets was created for the purpose of taking Contact:
» Examine likely responses by participants in the supply chain action in their foreign markets, such Light Years IP
» Develop detailed task timeline and logical framework as licensing of distributors and brand Phone: + (0) 547-755
» Evaluate production related issues to enhance project management. In contrast, a UK joint Fax: + (0) 558-4385
» Develop a detailed budget and funding proposals, discuss with funders venture company was created for Email: info@lightyearsip.net
chocolate sales in the Divine case. www.lightyearsip.net
8 9

12. Product Briefs
Fourteen briefs on the products listed in The fourteen product briefs that follow are intended to give a succinct profi le of the
product and its current importance as a provider of export earnings for the producing
the table are set out in the following sections. country. Each brief suggests the type of business strategies that relate to the position
Background information on each product, value of each product in foreign markets. Possible strategies vary considerably – there is
not likely to be a ‘one-size-fits-all’ strategy that would be appropriate for all products.
chain information obtained under this study, This is true even where products seem quite similar. For example, Ethiopia’s position
and reference material is available online at in exporting fi ne coffee is quite different than Tanzania’s; an IP strategy for Tanzania
would likely take a different form, use different IP tools and require different
www.lightyearsip.net/scopingstudy institutional arrangements.
0

13. Kenyan Tea
Kenya produces some of the best flavour tea in the world, with a flavour
index second only to Darjeeling. The altitude, climate and volcanic soil
of the Kenyan Highlands give its tea a distinct, rich, robust flavour.
S ince it was fi rst introduced to Kenya
in 903, tea has flourished in the
east African country, becoming Africa’s
effective marketing partnerships.
The existing popularity and high
reputation of Kenyan tea in both blends
named region tea from all sources was
$0.95 per kilo. Experts believe that there
is potential to shift 0-0% of Kenyan tea
Kenyan tea is highly respected
largest tea producer. Globally, Kenya is and single origin teas is a testimony to exports to be sold as a named region at
the fourth largest producer of black tea this. Kenyan tea has a benchmark role and used in blends by some of retail. If the 3% ratio of export prices
after India, China and Sri Lanka, and it’s in many established blends with fi xed the most famous names in the to retail prices is sustained, export
second only to Sri Lanka as the world’s flavour profi les. income gained from shifting only 0%
tea world. Tea connoisseurs
leading tea exporter. Within the past 0 years, Kenyan of Kenyan tea exports to named region
Tea farming represents a significant tea has also begun to be recognised note that, due to its unique end product positioning would represent
livelihood for more than 35,000 Kenyan as specialty tea, and sold as single flavour and complexity, an additional $5m p.a. If 0% of exports
tea farmers and smallholders. Small- origin tea. One example is Milima tea are shifted, the additional export income
Kenyan tea could be in its own
scale farmers grow over 60% of the – sometimes called ‘golden Milima’. would around $50m p.a.
tea to be sold at market, with privately Milima is a fi ne, high quality estate category; such as Rooibos, Combined with the above strategy,
owned large-scale farms supplying tea produced in the Kericho region. Ceylon, and Darjeeling. experts also believe that % of these
the remaining 40%. These small-scale Milima has a wonderful astringency in Kenyan named teas could be moved
tea farmers own their land and have the mouth and plenty of body but with a to single origin or estate premium tea
tea licenses permitting them to grow pleasing smoothness and elegance to it. higher than premium teas. positioning. Since single origin or estate
and pluck the green leaf, and deliver Milima can generate retail prices even These two opportunities suggest a premium teas show an average retail
it to buying stations run by the Kenya dual IP strategy – one for increasing price equivalent of $67.85 per kilo, if
Tea Development Authority (KTDA). the amount sold as named origin or just % of Kenyan export tea is shifted
Key points
KTDA acts as managing agent to the named region tea, i.e. ‘Kenyan’, and one to the higher market position, this could
smallholder tea sector and is technically » Tea farming represents an important for increasing the amount sold more generate a further gain of around
owned by all of Kenya’s small-scale tea livelihood for more than 35,000 explicitly as single origin or estate tea, $9m p.a.
farmers. KTDA’s remit is to support Kenyan growers and smallholders such as Milima. To achieve these two goals, an IP-based
smallholders. Nevertheless, KTDA » Kenyan tea is being sold by retailers In 008, the benchmark retail price approach would include structuring the
has not been able to optimise earnings at prices higher than other specialty in the UK for standard blends (i.e. tea marketing and managing the brands,
in line with the rising retail value of teas, yet Kenya’s export earnings packaged without distinctive elements) enhancing the reputation in both retail
specialty teas despite the growth in remain relatively low by comparison was the equivalent of $3.98 per kilo. and wholesale markets. The total gains
direct sales contracting for premium » Currently, the specialty tea sector Kenya sold around 80,000 tonnes of tea of both strategies would be in the range
teas outside the national auction system. is worth $.bn worldwide, and is through auction in 007 at an average $44m p.a. to $69m p.a. An additional
The advances in premium teas primed to become a major portion export auction price of $.75 per kilo. strategy of improving the returns from
and single origin teas offer new of the projected $0bn annual tea This equates to about 3% of the retail Kenyan tea that is essential to blends,
opportunities to all whose teas fit in industry in 00 price of standard tea. such as English Breakfast, would add
quality terms, and to those able to forge In contrast, the average retail price of further gains. n
3

14. Sudanese Barakat Cotton
Sudan’s very fine yet little known variety of extra-long staple cotton,
Barakat, is superior in its strength, fineness and softness, suitable for
the weaving of luxurious cotton fabrics.
B arakat ranks among the world’s
highest quality cottons, approaching
that of Pima cotton, which is largely
Barakat cotton, primarily to Pakistan,
Bangladesh and India.
In 006, farmers received $0.64
Sudanese Barakat does not have the
brand recognition among consumers
for quality enjoyed by Egyptian and
exported from the United States. Sudan’s per kilo for Barakat seed cotton (the Pima cotton. Yet Barakat cotton could
Barakat cotton is 00% handpicked, handpicked material before ginning Knowledge of cotton easily be used in the highest value
which maintains fibre length, and gently separates the fibre from the seeds). Once segments, depending upon the spinning
planting in Sudan goes
ginned on roller gins. The strength of ginned, about 35% of raw cotton lint is and weaving processes. Barakat’s
this extra-long staple (ELS) cotton allows separated out of the seed cotton. Barakat back to the 8th century. value would increase if consumer
the spinning of finer, longer yarns, lint is exported at an average price of name recognition and association with
The major extra-long staple
yielding a lighter, more supple and $.80 per kilo depending on the grade. high quality were established and
durable fabric with thread counts three A wholesaler may pay around $33 for a variety is superior both in strengthened. This represents an IP
to four times higher than commodity kilo (equivalent) of pima cotton shirting opportunity for Barakat cotton.
fineness and strength.
cotton. Superfine fabrics are only fabric. At retail, this same fabric will sell An IP-based strategy could aim to
possible with the thinnest, smoothest, for about $66 per kilo equivalent. Sudan Cotton Company establish Barakat as closely similar
longest cotton fibres such as those spun The finest extra-long staple cotton to Pima and Egyptian cotton, in
from Barakat, Egyptian or Pima. fabrics are used in apparel, particularly collaboration with importers so that
Cotton provides an important shirting fabric, and bed and table linens. both parties will gain by increasing
livelihood for an estimated 00,000 The value of ELS finished products in quality manufactured and tailored demand and price at wholesale and retail
growers and their families, in addition the premium retail market increases two products increases ten times, and can levels. It might also aim to secure for
to employing seasonal labour during to three times over commodity cotton be as high as twenty times, the Sudan a share of the intangible value
harvest time. The majority of Sudan’s products. At the very high end of the commodity price. in products made from and specifying
ELS cotton is grown in the Gezira retail market, the value of these superior Much of the value of a cotton product the Barakat content under such product
irrigation scheme. While the scheme is is added in the final stages of production promotions.
government managed, tenant farmers when a brand name, designer label, or Currently, Pima cotton enjoys a
Key points
decide which areas and varieties to plant. prestigious trademark is applied. Many 40% premium over Barakat. Experts
In recent years, more than half of Sudan’s » There are approximately 00,000 popular brands, such as American suggest that Barakat may reduce the
cotton exports have been Barakat, which farmers who depend on cotton for their Apparel, will emphasize the raw material gap between Pima’s premium to 8%,
requires a longer growing season but livelihoods plus seasonal labourers at used, such as ‘made with 00% American which could result in a $9-5m increase
earns more at export. As shareholders harvest time Pima Cotton.’ This adds value to the end in export value alone based on last
in the Sudanese Cotton Company, » Barakat is handpicked and grown in product as consumers equate high quality season’s volume. By combining this with
the farmers are the producers and, east central Sudan under irrigation with Pima. While brand recognition is capturing more from the supply chain
technically, the exporters as well. During » Cotton maintains a major role in important, designers also emphasize the and positioning Barakat cotton in new
the 006/007 season, Sudan exported Sudan’s economy raw material used to further validate the markets, total export income could be
approximately $44 million worth of quality of their product. raised to $60-90m p.a. n
4 5

15. Ethiopian Fine Coffee
Ethiopia is the birthplace of coffee, growing some of the finest Arabica
beans in the world, as well as boasting the widest genetic base for
Arabica coffee.
I t is believed that a young goat herder
named Kaldi discovered the bean
in the Ethiopian highlands after he
receiving as low as 6% of the final retail
price for its fine coffees. Farmers were
receiving about $.00 per kilo, with the
incomes doubled over 006.
The initiative is a ground-breaking
partnership between Ethiopia and coffee
noticed his goats kicking wildly from exporting sector receiving about $.00 If the coffee is perfect, then distributors, roasters and retailers. The
eating the red cherries. For centuries, per kilo. Wholesalers receive about initiative is unique in that Ethiopia
really you have an intensity, and
coffee quality has been closely tied $6.00-.00 per kilo, with the final retail intervened in the foreign markets to
with Ethiopian culture, with coffee price about $0-8.00 per kilo. In one a balance, and a complexity of achieve its goals, but also offered benefits
ceremonies being a daily practice promotion in the United States in 005, aroma that is wonderful. You to the distributors of its distinctive
amongst Ethiopians. An estimated the retail price for Sidamo reached an product. The distributors gain by
have chocolate, you have flowers,
fifteen million people are involved in astounding $57.0 per kilogram. The contributing their views and energy to
the coffee industry in Ethiopia. Of this, retail prices reflect the value of the you have fruits, you have honey, joint promotions and by jointly securing
roughly six million participate in the hard-earned reputation and willingness you have toast, you have all access to an increased supply of the
production and trade of the most famous of consumers to pay premium prices for unique coffees.
kinds of complex aromas.
and distinctive fine coffees – Sidamo, distinctive, high quality coffee. Ethiopia now has over 80 licensees
Yirgacheffe, and Harar/Harrar, brands In 004, with assistance from Light Dr Ernesto Illy in 8 countries with a target of 50-00,
that are Ethiopia’s own Intellectual Years IP, the Ethiopian Intellectual Illy Cafe at which point higher prices can be
Property. Property Office began the initiative in permanently secured. An umbrella
In recent years, the demand in the conjunction with the Ethiopian Fine brand has been developed which covers
United States for gourmet and fine coffee Coffee Stakeholder Committee, which is made up of unions of coffee farmer the three fine coffees and creates market
has grown at an annual rate of over cooperatives, private coffee exporters, awareness of Ethiopia’s unique capability
0%, and new markets have opened in and other bodies responsible for the to deliver more fine coffees to market,
Key points
India and China. Coffee connoisseurs development of the coffee sector. The due to having by far the largest range and
know that some of the finest coffee in » Ethiopia is the birth place of coffee, three famous brands were secured with types of unexposed fine coffees.
the world originates in Ethiopia; the providing some of the world’s finest trademark registrations in around 30 With this strategy in place and the
country has a strong reputation for these Arabica beans countries and distributors were required constant development going into the
heritage coffees. Yet for years Ethiopian » An estimated 5 million Ethiopians to obtain licenses to sell them. In this initiative, it is projected that, in the long
fine coffee was earning about the same depend on the coffee industry for their way, Ethiopia took a degree of control in term, all of Ethiopia’s export of coffees
export price as non-distinct commodity livelihood the foreign distribution of its fine coffees will be sold as branded fine coffees. It
Arabica, which is subject to substantial » Ethiopia serves as a model of how through licensing its distributors. The is estimated that producers could raise
price fluctuations. The Ethiopian producing countries can take control first year of licensing saw improved and secure their income at around the
farmers of fine coffee were not gaining of distribution in foreign markets negotiating positions, resulting in short $6-8.00 per kilogram level. Total coffee
the benefits of their superior product. in order to receive higher and more term increases in export prices. The export income of $400 million before the
Prior to the trademarking and secure export income Oromia Union of Coffee Cooperatives initiative would then be raised to around
licensing initiative, Ethiopia was reported that in 007 Yirgacheffe farmer $.-.6bn p.a. n
6 7

16. Namibian Marula Oil
For centuries, indigenous women in the rural areas of Namibia have
cracked the nut of the marula fruit to extract the kernels from which
marula oil is made, an oil with highly regarded healing properties.
T he marula tree is found throughout
Southern Africa. Marula oil is rich
in antioxidants and oleic acid, essential
the specific natural product used in their
personal care lines. This differentiates
their products from the thousands of
oil, marula oil producers could generate
more than the current income levels
of $,000 if business strategies with
components for the preservation of others that simply advertise as using IP were in place to popularise the
healthy skin. These characteristics, ‘all-natural ingredients.’ This kind of
Consumers are looking for ingredient, expand its usage, and ensure
as well as the exceptional chemical promotion appeals to consumers seeking products that are natural, have that Southern African producers, using
stability, make marula oil ideal for out new products with unique stories traditional techniques, were the only
a story behind them, and have
producing cosmetics. Additionally, behind them. The Body Shop has clearly recognised suppliers with no synthetic
marula and other African plant extracts capitalised on the distinct social and healing properties – positioning simulations being acceptable. This
and oils have qualities that make them cultural aspect of marula, as well as it Africa in an ideal situation to type of IP strategy could triple export
ideal ingredients for fortified foods, being a natural product. earnings. Further earnings might also
so-called “cosmeceuticals”, and other The natural ingredients contribute to
share its cultural knowledge follow with the expansion of its use in
health care products. the intangible value of these products. of traditional beauty regimens premium branded products.
One of the two buyers/processors in The retail price for a small unit of Strategies could be applied to a
using local plants.
Namibia is a cooperative that represents shimmering eye shadow from The Body number of distinctive products in this
about 4,500 women producers. Shop that contains marula oil sells for sector, producing export income gains
Companies are marketing natural four times more than the eye shadow for producers in several parts of Africa.
ingredients in their products more than sold in chain supermarkets. Marula oil distinct massage oils. Premium massage The export income gains could total
ever before. A Namibian cooperative is also used as a massage oil, with prices oils earn a higher retail price due to the many millions from a range of African
supplies The Body Shop, one of the in line with other premium massage natural essential oils in them. natural products.
most well-known all-natural cosmetics oils, and sells for much more than non- Currently, producers are receiving As the popularity of marula and
companies, with Namibian marula oil, $.35 per kilogram for marula oil. The other natural ingredients begins to
which the company uses in almost all exporting sector collects $3.45 per rise, small companies based in Africa
Key points
of its make-up. The Body Shop attests kilogram for the same oil, which has a have expressed their need to assert
that marula is “an amazing natural » Over 4,500 Namibian women extract wholesale price of $3.5 per kilogram. intellectual property protection. Due to
moisturiser” and advertises marula’s marula oil in order to earn an income The average equivalent retail price for the informality of the trade, retailers are
long history within Namibian culture » The demand for natural and exotic pure marula oil is $6.50 per kilogram. often able to reap the benefits of using
and production by a women’s co- products is continuing to rise in While marula producers are well the name ‘marula’ in their products,
operative. The profiled use of unique raw developed markets organised and have even patented a while the producers are virtually
ingredients by the retailer raises the » More than ever, retailers are by-product of marula, Marulene, there forgotten. A business strategy that
retail value of products such as lipsticks, advertising natural ingredients in is still potential for marula producers may focus around certification and
foundations, blush and eye shadow. their products: an intangible value that to consolidate and refine the positioning distribution aspects could be employed
The Body Shop is one of the few commands higher retail prices of their product in retail. As there is to protect African producers from future
companies that have started to identify clearly a niche market for this unique misuse of their products. n
8 9

17. Togolese Black Soap
This uniquely natural soap has been handmade by women in West
African communities for centuries, with the recipe being passed
down from generation to generation.
B lack soap, also known as ose
dudo, anago, and alato soap, is
a traditional treasure of Togo. It is
The demand for natural personal care
items is continuing to rise in developed
markets. Companies that base their
by an IP-based strategy to capture part
of the intangible value that is earned by
higher priced soaps. Experts believe that
produced from a unique mixture of plant product line on being all-natural, such as Black soap is distinctive from black soap has the potential to become as
wastes such as cocoa pods, plantain Tom’s of Maine, Burt’s Bees, and Lush, other all-natural soaps: plant well known as shea butter, illustrating
leaves and bark, shea plant by-products, have seen tremendous growth in recent the need to manage this unique product
waste is being recycled into a
and/or palm kernel shafts, as well as years. Lush commands premium prices in the interest of low-income producers.
vegetable oils such as palm oil or coconut for their natural soap, retailing for more product that has magnificent Most black soap producers are only
oil. Most conventional soap is made than four times that of other natural skin healing qualities. The receiving about $0.44 per kilogram for
from oils and chemicals, but black soap soaps. While much of this value is due their soap. Exporters are receiving
secrets of beautiful skin are
is produced from oils and agro-wastes, to brand recognition, Lush also stresses approximately $.5 per kilogram. Black
resulting in a very unique creation. The the hand-made, natural, exotic elements being shared from Togo, a soap wholesalers are receiving about
all-natural soap is touted as having an of its products. Other all-natural country that has perfected $7.00 per kilogram while the retail
extremely soothing effect on dry and soaps typically retail for double that of price is around $34.00 per kilogram. It is
black soap production
irritated skin as well as clearing acne conventional soaps. Black soap fits the important to note that the trade is still
and red areas. Due to the purity and profi le of these products that are earning throughout generations. very informal. It is estimated that Togo
simplicity of ingredients, it is said to be higher retail prices. is currently exporting about $50,000
one of the healthiest soaps for the skin. As black soap has not strongly worth of black soap.
Togolese black soap has a very high penetrated the market, the retail chains that carry black soap labels, though Given the market situation, with the
percentage of unrefi ned shea butter have not been developed, with most black not all are produced in Africa. As the proper IP strategies which might involve
and unrefi ned palm oil. The other soap being sold by small internet-based popularity of the product continues to distribution and certification changes,
ingredients (local recipes vary slightly retailers. There have been a few brands rise, some retailers are using the label experts estimate that black soap
by region) are also distinctive: plant African black soap. Importantly, some producers could capture an additional
waste is being recycled into a product black soap is being made with black dye, 00-400% premium on the price per kilo
Black soap facts
Key points
that has magnificent skin healing containing none of the key qualities of they are currently receiving, and could
qualities and is also environmentally » There are an estimated 00,000-00,000 true black soap. However, true black build a market yielding export income
sensitive. Although this soap does not small-scale producers of black soap in soap is from West Africa – it is the raw of $-4m p.a.
yet have a world reputation, natural Togo ingredients, as well as the traditional Togo is one of four West African
soaps already have a reputation for » Black soap is one of the healthiest hand crafting of the soap, that make the countries that is exporting black soap
being gentler on the skin, and evoke soaps for personal care usage soap authentic. Both genuine black soap, as an artisan product. An IP based
feelings of comfort, safety, nature, » Experts believe that black soap could as well as imitation, can be found in a business strategy might be built for
and nourishment. These aspects are become as popular as shea butter in the few natural food markets, though they Togo or a combination of different
becoming increasingly important to mainstream market are not widely available. country stakeholders, possibly
consumer choice in skin care products. Black soap producers could be assisted involving cooperatives. n
30 3

18. Senegalese Artisanal Tuna
Fishing in Senegal is not only a means to earn an income; it has
been deeply embedded in Senegalese culture for centuries.
F ishing in small pirogues (flat-
bottomed boats) with nets is the
traditional way of life and main source
albacore and skipjack species. There is
an opportunity for Senegal to gain more
income from traditional fishing and
of income for 600,000 Senegalese improve the livelihoods of thousands
Capitalising on the environmental and cultural
fisherfolk. Fishing generates an of fishermen. aspects of traditional fishing methods, reflected
estimated 70% of the Senegal The average retail price of gourmet
government’s annual revenues. The yellow fin tuna is more than 3 times in a gourmet canned tuna brand, could return a
small-scale fishing sector provides what conventional canned tuna sells for.
60% of fishing exports and is one of This higher price rests on a number of
higher and more secure income for thousands of
the country’s main sources of foreign factors, including the eco-friendliness, Senegalese fishermen.
exchange earnings. Dakar, the capital the quality of the tuna, the method of
city, is an important Atlantic tuna catch, and packaging. Increasingly,
port. There is one cannery operating in consumers are concerned with these
Senegal, SNCDS, exporting the majority issues. These distinctive attributes kilo. Wholesale prices of gourmet tuna gains continuing to increase over
of its production to Europe. appeal to established niche and gourmet in importing countries may reach $0.00 time as the brand becomes stronger.
Fishing is not only a means to earn markets in Europe, where consumers per kilo and retail is at the equivalent of Complementary to the IP strategies
a living, it is deeply embedded within are willing to pay more for their tuna. $40.00 per kilo. are actions that improve aspects of
Senegalese culture. Many coastal Currently, fisherfolk receive less Senegal has the opportunity to physical production. The Senegalese
villages have long been centred around than $.00 per kilo of tuna. Exporters/ develop a product that is distinct in inter-professional artisan fishing-sector
fishing, with traditional fishing canners are receiving around $4.9 per the final retail market helping the organization, CONIPAS, is taking action
techniques being passed down from fishing industry to earn more income. to strengthen the small-scale fishing
generation to generation. However, the An IP strategy could see Senegal sector by improving facilities including
Key points
livelihoods of thousands of fishermen realising its potential for positioning quays, preservation and processing
have been threatened in recent years » 600,000 people are reliant on fishing tuna exports fully in the premium plants to foreign hygiene and quality
as Senegal struggles to compete with as a means of income in Senegal and gourmet bracket. Senegal’s long standards.
large-scale international industrial » Senegal lands some of the finest fish traditions and artisanal fishing methods The Senegalese fishing sector may
fishing fleets. species in the world, including the offer an important underpinning for also be able to increase export income
Canned skipjack tuna is widely sold, gourmet yellow fin tuna a branding strategy that can appeal from existing exports by building
yet there remains a large demand for » Consumers are increasingly concerned to consumers by emphasising the negotiating strength in the supply
more distinctive types of tuna; those about the production methods of the traditional fishing practice which has chain through IP business techniques
with an emphasis on gourmet flavours, products they buy: environmental a much lower impact on fish populations. and applying these techniques to new
sustainability, or origin. Yellow fin and social aspects are becoming more A gourmet branding strategy could help products. These two strategies combined
tuna, which is classified as gourmet, important the country raise its export income from could result in total income gains in the
demands a higher retail price than the canned yellow fin tuna by 50%, with order of $40-70m p.a. n
3 33

19. Tanzanian Blackwood
The tree of music, Blackwood, also called ‘mpingo’ and ‘grenadilla’, is
an exceptional wood found in southern Tanzania, growing sparsely in
dry open forests or in the savannah grasslands.
B lackwood is a member of the
Rosewood tree family and grows
to full maturity in 70-00 years. Due to
Retailers always note if a clarinet is
made from the exceptional grenadilla
wood, as the wood is a key selling point
stressing the integral role of blackwoods
in the production of fine woodwind
instruments. IP business tools could
various factors, much of the woodlands for clarinettists. Skilled techniques be used to build a new identity, or co-
The high quality reputation
in the rest of Africa have been depleted. are involved in manufacturing an branding element alongside existing
Communities in Southern Tanzania instrument, yet the wood is the essential that blackwood has in the brands, for all instruments made with
have been active in gathering the wood raw material and a valuable component music industry is a major blackwoods.
or felling the blackwood trees on behalf of the finished product. As blackwoods are a natural
determinant in the final retail
of the sawmills that process them. Blackwood trees are community resource subject to sustainable supply
Demand for African blackwood is due resources. Currently Tanzanian price of woodwind instruments constraints, Tanzania could, within
to its unique qualities for woodwind communities cutting and gathering the compared with instruments this strategy, restrict the supply of
instruments, primarily clarinets and wood are receiving $0.05 equivalent for blackwood to those prepared to engage
made from other woods.
oboes. African blackwood is core to the every clarinet produced, with an average in marketing work to develop a clearer
definition of high quality woodwind retail price of around $5,000. The association in the minds of both
instruments and a proportion of the Tanzanian export sector earns about users (musicians) and music lovers
retail price is specifically attributable to $30 per clarinet while the wholesalers/ In addition to grenadilla wood, (audiences) of quality instruments with
the type and quality of the wood. manufacturers are receiving around clarinets can be made from rosewood, Tanzania’s unique resources.
In addition to its use for instrument $,500. It is important to note that the hard rubber, or plastic. Plastic Concerns have been voiced
production, African blackwood is sought cost of crafting the clarinet is about 5- clarinets are often sold to beginners at regarding the physical sustainability
after by craftspeople in both Tanzania 40% of the final retail cost and the craft a considerably lower price range than of the blackwood tree. In full project
and abroad. The waste produced from is highly skilled. wooden clarinets, ranging from $00 to design of initiatives to capture these
the manufacturing of instruments is $500. Rosewood and blackwood clarinets opportunities, many production,
significant – around 75% – as only the can retail from $,000 to as much as, environmental and institutional issues
Key points
flawless heartwood is used for clarinets. exceptionally, $,000. The average price would need to be integrated. Long term
This scrap wood is valuable raw material » There are more than 4,500 people in of a grenadilla clarinet is about $5,000 resource management can be enhanced
for the Makonde people of Tanzania, various villages where blackwood is for medium to high quality. if connected to increased income to
whose wood carvings are some of the found A comprehensive business strategy blackwood cutters and gatherers.
best in east Africa. Traditionally crafted » For a clarinet that is produced and with IP elements could directly help Experts believe that Tanzania could
for ceremonial purposes, these carvings retails for an average of $5,000, communities where the grenadilla wood capture an additional $0-5m annually
are now an important export product. communities are receiving only $0.05 originates to capture a greater share of the estimated $00m total retail value
Outside of Africa, specialist craftspeople » Without blackwood, woodwind of the end price. Blackwood cutters, of the clarinet market and in partnership
use African blackwood for turnery, inlay instruments would not be considered gatherers, artisans and processors with users and audiences might be able
work, and small constructed items such high quality could develop a direct relationship to build an additional blackwood artisan
as jewellery boxes. with instrument makers and retailers, business worth $00-300m. n
34 35