Business
Ethiopia’s specialty coffee sector blossoms
To achieve this, problems and inefficiencies in the processing and traceability need to be addressed. The example of the Duromina cooperative, formed in south, west Ethiopia by about 100 of the country’s estimated one million smallholder coffee farmers – shows what a focus on quality could do for the industry at large.
Ansha Yassin, marketing manager at TechnoServe, explains that before the non-governmental organisation started working with Duromina in 2010, coffee from the area was fetching some of the lowest prices in country. By improving agronomic practices, harvesting only the ripe, red coffee cherries and installing a wet mill, Duromina was able to sell its 71 ton harvest of green coffee in 2012 for an average of $3.86 per pound: 65 percent above the average international price.
Traceability
One of the additional advantages Duromina has over other Ethiopian coffee is its traceability. The ability to pinpoint a healthy, responsible and sustainable supply chain is highly prized in the specialty sector. The Ethiopia Commodity Exchange (ECX), launched in 2008, transformed the way in which most Ethiopia coffee is traded. However, this has been to the detriment of the specialty sector.
For the ECX, all coffee from Jimma is interchangeable, making it impossible to identify unique varieties. By selling through the Oromia Coffee Farmers Co-operative Union, Duromina sells directly to roasters. Under the ECX system, the farmer loses out; many of them are now switching to growing the stimulant khat because it generates larger incomes. “You’ve go to give farmers an incentive,” says Michael Mamo, managing director of Addis Exporter, a long-established green coffee trader.
He then added, “If I’m working really hard and preparing a top-end coffee, then I should get rewarded for that.” Mamo is confident that change will come: “The ECX is working towards a direct specialty trade, and the government is definitely trying to address it because coffee is very important to the economy of Ethiopia.”
Source: The Africa Report
