The coffee supply chains for ethiopia and kenya are structured around these local wet mills, which aggregate and process coffee, allowing for greater efficiency and quality control. On the other hand, global market is also shifting towards buyerdriven value chains with buyers recently embedding. Challenges and opportunities ethiopian coffee export conference 8 9 november 2012 addisababa ethiopia international coffee organization, jose d. The value chain actors will play a critical role to increases the profit plow back in the ethiopian coffee sector and then will significantly improve living standards of the poor who are at the source of the chain. Pdf determinants of coffee value addition by smallholder. This is in contrast with the fact that the volume of exported coffee has been on average growing annually by eight percent over the past five years.
In this study we focus on three main research questions. Exporters and importers are also considered as stakeholders in the value chain. In addition to improving quality on the farm, farmers and the sector at large can benefit from improvements to local processing facilities, known as wet mills. I n this paper, we look at the coffee sector in ethiopia and analyze changes and their drivers upstream in the value chain. The ethiopia coffee exchange ecx has contributed to the functioning of the value chain, with an indication that farmers are in general more satisfied at the services provided by the ecx, such as in moisture and quantity testing, transactions and assessments.
Ethiopia coffee industry value chain analysis usaid. Possible interventions and support activities in the value chain limitations specialty coffee is not well defined, and each market and sometimes even each buyer has a slightly different. Coffee production in ethiopia is inhibited by a lot. In this paper, we look at the coffee sector in ethiopia and analyze changes upstream in the value chain and the possible role that different factors have played in these changes. For every cup of coffee we drink, there is a story from crop to cup. Coffee production is ethiopias main industry, with production of 400,000 tons of coffee. The value chain actors must play a critical role to increases the profit plow back.
Analysis of sesame marketing chain in case of gimbi districts, ethiopia fikru temesgen 1 efa gobena 1 hailu megersa 2 1. Ethiopia wheat value chain highlights the below figure summarizes key findings along the different stages of the wheat value chain in ethiopia. Policy implications for improving investments in maize and wheat value chains may 30, 2018 agriculture global practice. Jul 19, 2017 ethiopia is the largest coffee producer in the subsaharan region and the fifth largest coffee producer in the world, but its proceeds have fallen by three percent annually since 201011. Structure, governance and sustainability of the value chain element 3. Evidence towards improved investments and policies essp and edri hosted its first conference on coffee in addis ababa on september 15, 2015 at the hilton hotel. Developing forest coffee value chains directly benefited 10,000 coffee producers in ethiopia. Fortyeight percent of coffee produced in ethiopia is locally consumed, reflecting the commoditys cultural importance in the country. Opportunities and obstacles in the value chain element 4. Coffee exports from ethiopia have perform ed well over the last decade. Value chain analysis was undertaken from the collected data to identify the value chain affecting factors. We study the structure and performance of ethiopias coffee export sector over the last decade.
Enveritas, ethiopia commodity exchange, nespresso, jde coffee about the global coffee platform the gcp is the leading facilitator of the coffee sectors journey towards sustainability. Value chain analysis for the coffee sector in rwanda. Ethiopia is also a coffee consuming country, with 48 percent of coffee produced in ethiopia is. Unique contribution to theory, practice and policy.
Coffee represents about 7% of total export value, and 20% of the total agricultural export value from rwanda oec, 2016. Value chain analysis of ethiopian coffee journal repository. In this paper, we look at the coffee sector in ethiopia and analyze changes and their drivers upstream in the value chain. Value chain analysis of ethiopian coffee coffea arabica. The value chain of raw coffee beans has been considered. To test the rewards for vertical integration and traceability, we analyze export price data before and after the ecx came into. In nominal usd terms, the value of coffee exports in 2014 was 1 percent higher than in 200405 fi gure 2. Khat production continues to increase at the expense of coffee production. The majority of ethiopia s coffee comes from small plantations, which make up about. Dowding, university of connecticut, stamford ct usa abstract this paper examines starbucks corporate strategy of sustainable efforts in ethiopia, particularly in the sustainable sourcing arabica coffee.
First, rather than increasing in value through initiatives to add value, coffee exports have experienced a downward trend in relative value. The majority of ethiopia s coffee comes from small plantations, which make up about 160,000 hectares or 40% of. The report defines the market in terms of traders and roasters, who procure coffee to supply to the retail distribution channel for end consumers. Possible interventions and support activities in the value chain limitations specialty coffee is not well defined, and each market and. Value addition after production would involve enhancements or additions to a product that result in higher returns to the commodity seller, who is often the smallholder farmer. Ethiopia is a major producer of oilseeds and pulses, in particular sesame seed, which is the secondlargest export commodity from ethiopia. Usaid ethiopia s value chain programming includes components to reduce transaction and information gaps through the. This report documents the findings of a quasiexperimental evaluation carried out in december 2014 that sought to assess the impact of the linking smallholder coffee producers to sustainable markets project.
Structure and performance of ethiopias coffee export sector. Note, program results covers period from january 2018 to april 2019. Market driven value chains are those for whom price is the determinant of who the actors will be and how long their transactional relationship will last e. Value chain analysis of pulses and oilseeds from ethiopia. The thesis is a study of the coffee market through the process of value addition, with importance given to small coffee producers aiming at their development. Ethiopian coffee and tea development and marketing authority, ectdma, hereafter the coffee authority. Evidence from smallholder coffee farmers in ethiopia ifpri. The study tries to look at coffees markets of supply and demand in relation to other countries and other ethiopian exports with their amount in volume measured in weight and value measured by price in usd. Sesame is a major cash crop, which is mainly produced as an export crop. However, only about 30% of ethiopias coffee export is washed and the small scale coffee farmers. Ethiopia is currently the top african coffee exporter and ranked sixth in the global market.
Despite these efforts, ethiopia is expected to face a growing supply deficit in the absence of increased domestic productivity andor changes to government policy. In 201011 ethiopia exports coffee to 53 destination countries the total volume and value of coffee export 201011 was 196,117 ton and 841. Key trends in coffee production, exports and farm returns. Review of sesame value chain in ethiopia terefe negasa abebe department of agricultural economics and extension abstract this current topic has analyzed the sesame value chain particularly the case of ethiopia. The production and consumption of coffee in ethiopia has a socioeconomic. The gcp improves the livelihoods, ecosystems and resilience of coffee farming communities and the sector as a whole by enabling producers, international. We focused particularly on the empowerment of women, who have traditionally been excluded from certain spaces within the value chain. This study examines the tef value chain in ethiopia, identifies the bottlenecks at each stage of the value chain i. The more focused market business facilitation approach is promoted amongst producer groups working with high value commodities including coffee, honey, dairy, vegetables, and fruits. The coffee authority is mandated to lead the entire coffee value chain and is considered to represent a significant development over the earlier fragmented institutional setup in the coffee sector. The european union and ethiopia have longstanding trade. Department of agribusiness and value chain management, ambo university, p. Value chains can either be market driven or relationbased depending on the form of governance they adopt farnworth 2011.
In observing the evolution of this ratio for ethiopias major exports, several issues emerge. After collection of data from interview and desk study, the analysis is done by value chain analysis. However, only about 30% of ethiopias coffee export is washed and the smallscale coffee farmers. In a value chain, coffee beans go through different process before it reaches the hands of a consumer. Observed and adjusted nominal rate of protection at farm gate level for coffee in ethiopia %, 20052012. Unique problems associated with farmers access to finance 4. Value chain map was to depict the coffee value chain in ethiopia explicitly. Coffee exports have made a vital contribution to the countrys gdp until the mid20th century. Ethiopia is the largest coffee producer in the subsaharan region and the fifth largest coffee producer in the world, but its proceeds have fallen by three percent annually since 201011. Stakeholder matrix was used to show the role of chain supporters take part in the coffee value chain. Introduction the general motive to write this current topic paper on coffee production and marketing in ethiopia is that ethiopia is the birthplace of coffee and it discovered earlier. The report does not cover the coffee beans processed in any manner, including roasted, ground, instant, or other forms of coffee. Coffee value chain actors, constraints and opportunities. The study was conducted to analyze coffee value chain in gedio zone yirgacheffe.
Nespresso aaa sustainable quality program in ethiopia and. First, we document the characteristics of the sector, the policy shifts affecting 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. Review on structureconductperformance of coffee market in. The objective of this paper is to analyze the quality and value chain of ethiopian coffee in a way to identify opportunities that maximize the benefits from the sector. Evidence from smallholder coffee farmers in ethiopia by bart minten, mekdim dereje, ermias engeda, tadesse kuma. Pdf assessment of ethiopian coffee supply and value. Annex of the commission decision on the aap 2017 for. Costa rican coffee is well known for its high quality and coffee production has historically been closely linked to its national identity.
Home ifpri in external sources coffee value chains on the move. Coffee generates 70 percent of ethiopias foreign exchange earnings and provides livelihoods for 15 million ethiopian smallholder farmers. Both qualitative and quantitative analysis tools like, pestec, swot, matrix, chain map, tables and problem tree were used to identify the possible constraints retarding the performance of the coffee value chain in the country. Value chain analysis of pulses and oilseeds from ethiopia oilseeds pulses. Background coffee is the most important agricultural commodity in ethiopia both. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j. The coffee sector is an important one in which to study this issue for a number of reasons. Quality and value chain analyses of ethiopian coffee. Analysis of sesame marketing chain in case of gimbi. Value chain analysis of certified coffee in sidama zone. Through the feed the future ethiopia value chain activity, usaid helps smallholders adapt their products to meet domestic and international demand, including increasing the volume of specialty and traceable coffee marketed. Pockets of the blue mountain and french mission however still exists in. The total coffee production for rwanda ranges between 15,000 mt and 22,000 mt and has been relatively stable, but is slightly on the decline ico, 2017. Value chain analysis of ethiopian coffee coffea arabica teshale fekadu duguma 1,2 1 department of agriculture production chain management, van hall larestien university of applied sciences, the netherlands.
Coffee growing in ethiopia 6 coffee consumption in ethiopia 6 coffee farming systems 6 coffee producing regions and areas 8 overview of ethiopias coffee growing climate 10 africa and ethiopias climate has changed and will continue to change observed changes predicted future change 16 coffee growing in ethiopia has been negatively 20. The predominant commercial cultivars are the sl28, sl34, k7 and ruiru ll. Analysis of price incentives for coffee in ethiopia. Chain mapping is used to show the value chain of coffee in the. Pdf important changes have happened to the upstream segment of the coffee sector. Pdf the objective of this paper is to analyze the quality and value chain of ethiopian coffee in a way to identify opportunities that maximize the. Analysis of coffee quality along the coffee value chain in jimma zone, ethiopia article pdf available in african journal of agricultural research 29. Agency for international development raise plus iqc task order edhi04050000400 january 2007 a project implemented by development alternatives, inc. Objectives and organizational structure of ocfcu 6. Coffee production in ethiopia is practiced using four different systems of cultivation.
The value chain actors must play a critical role to increases the profit plow back in the ethiopian coffee sector and then will significantly improve living standards of the poor who are at the source of the chain. The coffee sector is an important sector in which to. A long value chain characterizes sesame value chain in ethiopia. Since then, coffee production in costa rica has suffered different. Value chain analysis of coffee the case of yirgacheffe coffee. Addressing national investment agendas ona continental scale september 16 sector study conducted by agrilogic and valued chain by assignment of. Ethiopia coffee industry value chain analysis usaid compete 2010 profiling the actors, their interactions, costs, constraints and opportunities. Value chain analysis for coffee in karnataka, india. Analysis of determinants of coffee value chain performance in. The government of ethiopia goe recently announced a plan to restructure the coffee development sector by designating a specialized institution that can provide technical support to the coffee value chain.
Evaluation of the technoserve east africa coffee initiative. Constraints and opportunities in the coffee supply chain. Annex of the commission decision on the aap 2017 for ethiopia. The value chain starts from the farmer and goes up to the level of the roaster. A rapid assessment of the speciality coffee value chain in indonesia anne ottaway michigan state university for the u. Coffee is produced in most parts of the oromia and snnp regions and with a lesser magnitude but significant expansion potential in the amhara region. The program appointed contributions from different aspects of the supply chain, and presented uptodate research on this highly important sector in. This study was undertaken with the aim of analysing determinants of. This report shows how ethiopia can chart a practical path of initiatives to. The birthplace of coffee, ethiopia is home to some of the finest coffees in the world. Climate change adaptation and addressing deforestation along. Analysis of sesame marketing chain in case of gimbi districts. However, realizing the potential of the pulses value chain cannot be done in isolation. Fifth, a major issue in the ethiopian coffee value chain is a lack of traceability in the value chain.
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