In ethiopia, coffee production and marketing was controlled by the government through ministry of coffee and tea development prior to 1992. Ethiopia itself accounts for around 3% of the global coffee market. Panos varangis is a lead economist in the agricultural and rural development department of the world bank, dealing with issues related to commodities and commodity risk management. In the 2000s, with the rise of asia as a major coffee producer, the market price of coffee fell. Coffee quality inspection and certification center all coffee, whether it is sold through ecx or direct export must pass through this organization for quality inspection and control.
The report includes detailed analyses of coffee market in ethiopia, information on. We study the structure and performance of ethiopias coffee export sector over the last decade. This was the impetus behind the ethiopian coffee quality improvement project which involved setting up seven qualitychecking laboratories in rural areas to address the needs of smallholder farmers in ethiopia. Structure and performance of ethiopias coffee export sector. Today, over 12 million people in ethiopia are involved in the cultivation and picking of coffee, and coffee remains a central part of ethiopian culture. To identify coffee marketing outlets exists and used by smallholder farmers of the study areas to investigate factors that affects smallholder farmers choice of coffee market outlets. Although the coffee is typically unfiltered, some hostesses may filter it through a finemesh sieve to remove the grounds. In the countryside, coffee may be served with salt instead of sugar. Coffee exports share of total exports % 30 27 33 34 source.
The study result showed that 5 variables were found to be significantly affecting market supply of coffee at households level. Ethiopian coffee production is predominantly characterized by traditional farm management system, limited use of fertilizers and pesticides coupled with a manual coffee cultivation system and drying method. Ethiopia coffee production is ethiopia s main industry, and last year they produced 400,000 tons of coffee making ethiopia the worlds 5th largest producer note 2. Coffee production in ethiopia is practiced using four different systems of cultivation. Ethiopia coffee market growth trends forecasts 2020. Plantation coffee is grown on large commercial farms, private as well as state farms. The payment system of coffee cooperatives and unions is as follows. The general motive to write this current topic paper on coffee production and marketing in ethiopia is that ethiopia is the birth place of coffee and it discovered. Small private coffee plantations contribute about 90% of the countrys coffee, while large stateowned plantations account for the rest.
Analysis of sesame marketing chain in case of gimbi districts, ethiopia fikru temesgen 1 efa gobena 1 hailu megersa 2 1. Share of coffee market outlets among smallholder farmers in. Ethiopian coffee growers, producers and exporters association. Ethiopia s population of approximately 84 million makes it one of the largest markets in africa. General facts of ethiopian coffee birth place of arabica coffee trees, coffee arabica. Ethiopia coffee market growth,trends and forecasts 2020 2025 ethiopia coffee market is segmented into by product type wholebean, ground coffee, instant coffee and by distribution channel ontrade cafes and foodservice and offtrade. The aim of the study was to show determinants of coffee farmers preference of coffee market outlet in south west ethiopia jimma zone. More than 1,000 years ago, coffee was a goatherd in ethiopia southwestern highlands, david beatty discovered the ethiopian province where they first blossom kaffa gave its name to coffee. Ethiopia is the largest coffee producer in africa and the fifthlargest producer in the world. Growth and production of coffee encyclopedia of life.
Ethiopian coffee and tea development and marketing authority. In spite of these limitations, ethiopias coffee production in marketing year my 2014 has. Fortyeight percent of coffee produced in ethiopia is locally consumed, reflecting the commoditys cultural importance in the country. Usaidethiopia welcome from ethiopia the land of origin and birthplace of coffee. During the 201718 marketing year alone ethiopia registered a record almost 917 million u. Analysis of price incentives for coffee in ethiopia. The study was conducted in four zones sidama, gedeo, gamo goffa and wolayta of south nation nationalities and peoples region snnpr with the.
Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the. Ethiopia itself accounts for around 3% of the global coffee. Performance of coffee marketing cooperatives and members. It is thought that coffee was discovered in ethiopia as long ago as the ninth century. Coffee production and marketing in ethiopia alemayehu asfaw amamo jimma university college of agriculture and veterinary medicine abstract the general motive to write this current topic paper on coffee production and marketing in ethiopia is that ethiopia is the birth place of coffee and it discovered earlier in the world. Ethiopia coffee annual coffee annual report usda foreign. The general motive to write this current topic paper on coffee production and marketing in ethiopia is that ethiopia is the birth place of coffee and it discovered earlier in the world. Prior to that time, all coffee had to be sold through the national exchange, a requirement that resulted in mixing high and. Factors influencing coffee production by small scale. Ethiopia is considered to be the birthplace of the coffee plant and of coffee culture. Assessment of market linkages for smallholder farmers of. International journal of community and cooperative studies.
Snacks of roasted barley, peanuts, popcorn or coffee cherries may accompany the coffee. The report includes detailed analyses of coffee market in ethiopia, information on major producers, distributing companies, and buyers. First, we document the characteristics of the sector, the policy shifts affecting the sector, and the important structural changes that have occurred in ethiopias coffee export market during the study period. Ethiopia is where coffea arabica, the coffee plant, originates. Coffee is vital to the cultural and socioeconomic life of ethiopia. Figure 1 topics covered during the coffee conference. Coffee production in ethiopia is a longstanding tradition which dates back to dozens of centuries. According to the data from the ethiopian coffee and tea development and marketing authority, 225,493 tonnes were exported in the 20162017 fiscal year, up from 198,621 tonnes the previous period. Coffeeethiopias main agricultural cropaccounts for over a quarter of all export earnings and provides income for about 15 million people, most of them small. Figure 2value of coffee exports from ethiopia and yearonyear growth. Quality is a determining factor in the price of coffee beans. Analysis of ethiopian coffee mix marketing strategy. To evaluate the performance of coffee marketing cooperatives in the study area, financial ratios was computed based on annual audit reports of the cooperatives.
The coffee industry has changed significantly over the last 10 years. Observed and adjusted nominal rate of protection at farm gate level for coffee in ethiopia. The ethiopian economy is highly dependent on coffee as it contributes more than 25% of the. As the only functioning commodity exchange in the least developed countries ldcs, the ethiopia commodity exchange ecx is viewed as wildly successful in modernizing the that countrys economy, linking smallholder farmers to markets, and enhancing food security. In 200809, ethiopia was the fifth largest coffee producer. Even though the government deals with coffee marketing, farmers faced a lot of. Initiatives, usaids postharvest handling and storage phhs project set out to integrate farmers into commercial marketing channels as a way of driving investment in postharvest technology and process improvements for staple crops, particularly maize, beans, and. Pdf coffee production and marketing in ethiopia semantic. Ethiopia ranks 111th out of 183 countries in the world banks ease of doing business report 2012. A proclamation to provide for coffee marketing and quality control whereas it has become necessary to establish a sustainable and traceable coffee marketing and quality control system which enables supply of quality, voluminous and competitive unfrosted and value added coffee to the global market. Assessment of market linkages for smallholder farmers of coffee producers in gihmbi zone, ethiopia gebeyehu jalu negassa marketing management, mekelle university, lecturermekelle, ethiopia. The huge bulk of the crop was controlled by the ethiopian coffee marketing corporation ecmc. Crosssectional data was collected from 156 randomly selected.
May 29, 2018 the international coffee organization held a coffee sustainability workshop on 21 may 2018 at the first milano coffee festival, a new event in italy focusing on coffee in all its forms. See also the article regulations of commercial registration and business licensing in ethiopia. Winners and losers in the restructuring of the global coffee marketing chain cdr working paper 01. Business report 2020 provides a complete overview of current market state issued in a comprehensive and easily accessed format. Ethiopia coffee production is ethiopias main industry, and last year they produced 400,000 tons of coffee making ethiopia the worlds 5th largest producer note 2.
Ethiopian coffee and tea development and marketing authority coffee quality inspection and certification center all coffee, whether it is sold through ecx or direct export must pass through this organization for quality inspection and control. Ethiopian coffee culture legend, history and customs. Coffee took market lions share contributing 40% in trade volume and 60 % in trade value. International journal of community and cooperative studies vol. Post calculations based on ethiopia revenue custom authority data. According to 12 report, the export sector in ethiopia has. Provides important income for casual labor, for many additional poor rural people. In ethiopia, about 25 % of the total populations of the country are dependent on production, processing, distribution and export of. Dec 03, 2017 2 any person engaged in coffee transaction outside transaction centers established by the ministry or by an appropriate regional body or the ethiopia commodity exchange shall, in addition to confiscation of his coffee, unless punishable with a greater penalty as per any other relevant law, be penalized by a fine of birr 20,000 and an. Constraints and opportunities in the coffee supply chain. Abstract as countries develop, their labor force shifts from agriculture to industry and services rendering, and in this process.
Coffee, the backbone of ethiopia s economy, is the most important export. The typical marketing channel of the coffee cooperatives and unions is very simple fig. According to article 431 of the commercial registration and business licensing proclamation no. Janssens encyclopedia of life support systems eolss species are now considered as a single complex. Coffee sustains the livelihood for 15 million people in ethiopia. May 29, 2019 coffee exports share of total exports % 30 27 33 34 source. While, price of coffee in the local market is usually higher than export prices and it has seasonal and auction. Pdf the contribution of coffee research for coffee seed. Value chain analysis of ethiopian coffee coffea arabica. These were, education level of household heads, land covered by coffee, experience in coffee production and marketing, cost of coffee production and credit use.
The contribution of coffee research for coffee seed development in ethiopia article pdf available january 2011 with 3,043 reads how we measure reads. I am elated to share with you usaid ethiopias inaugural edition of the partners guide which promotes ethiopia and its vibrant economy in hopes of attracting and fostering business and investment opportunities. First, we document the characteristics of the sector, the policy shifts affecting the sector, and the important structural changes that have occurred in ethiopia s coffee export market during the study period. In some regions of ethiopia, butter or honey may be added to the brew. In the month of march 2020,ethiopia commodity exchange traded 29,784 tons of coffee, 25,691 tons of sesame, 7,338 tons of white pea bean, 4,014 tons of green mung beans and 8,122 tons of soya bean for etb 3.
During that period coffee was sold by producers at permanent prices with fixed times. Ethiopian coffee and tea development and marketing. Performance of coffee marketing cooperatives and members satisfaction in dale district. Nevertheless, practically all present cultivars are descendants of early coffee introductions from ethiopia to arabia. Ethiopian coffee research institute based in jimma to be disease resistant, high yielding, and high quality. Coffee exports account for a third of ethiopia s total export income. Pdf factors affecting farmers coffee market outlet.
Coffee value chain actors, constraints and opportunities. Coffee s role as an agent of social cohesion and fraternity, maybe hard to envision in the current western understanding of the coffee shop, a far cry from its origins in ethiopia. Department of agribusiness and value chain management, ambo university, p. The russet cup will provide a quiet and relaxing environment to enjoy gourmet roasted coffee and smoothies and an opportunity to visit with friends, catch up on ones email, or read a chapter of a book. Bonga ethiopian coffee and tea development and marketing authority. Coffee production constraints and opportunities at major growing districts of southern ethiopia tesfaye tadesse1, bizuayehu tesfaye2 and girma abera2 abstract. Coffee production constraints and opportunities at major. The majority of ethiopia s coffee comes from small plantations, which make up about. It is growing trend in ethiopia and it uses highly intensified agronomy practice. In spite of these limitations, ethiopia s coffee production in marketing year my 2014 has. Marketing mix and strategy for ethiopias coffee marketing. Success stories, such as the claim that the ecx has effectively linked 2.
Review on structureconductperformance of coffee market in. Marketing challenges, ethiopian vegetable and fruit export, export challenges, ethiopia, export marketing challenges 1. Analysis of sesame marketing chain in case of gimbi districts. To meet the objective of the study, descriptive types of. Ethiopia coffee market is projected to grow at a cagr of 5. Ethiopia is the worlds fifth largest producer of coffee. Situated in the horn of africa, ethiopia is bordered by eritrea to the north, sudan to the west, kenya to the south, somalia to the east and djibouti to the northeast. Ethiopian coffee cooperatives sustainable development. In fact, in ethiopia the quality of a batch of coffee.
Ahmed and belachew hurissa livestock marketing authority the federal democratic republic of ethiopia. The complete coffee value chain was critically examined and discussed by leading experts in the field, culminating with an international perspective of the unexploited potential that exists in ethiopia s coffee industry. Ethiopia page 35 marketing channels, or the effectiveness of climate change adaptation measures newly. Introduction in the vegetables and fruit export marketing, authors have identified major challenges in the global arena. In the month of march 2020, ethiopia commodity exchange traded 29,784 tons of coffee, 25,691 tons of sesame, 7,338 tons of white pea bean, 4,014 tons of green mung beans and 8,122 tons of soya bean for etb 3. The increasing shift from cultivation of local landraces to improved varieties in combination with deforestation incl.