Figure 1 topics covered during the coffee conference. Coffee fosters harmony and promotes sustainable development. First, we document the characteristics of the sector, the policy shifts affecting the. Pdf determinants of coffee value addition by smallholder. Stakeholder matrix was used to show the role of chain supporters take part in the coffee value chain. Fortyeight percent of coffee produced in ethiopia is locally consumed, reflecting the commoditys cultural importance in the country. Khat production continues to increase at the expense of coffee production. In this paper, we look at the coffee sector in ethiopia and analyze changes and their drivers upstream in the value chain. Structure and performance of ethiopias coffee export sector. 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. 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. Implications for action research and development vii acknowledgements we deeply acknowledge the financial support provided to the ilri lives project by the canadian department of foreign affairs, trade and development for this study. 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. For every cup of coffee we drink, there is a story from crop to cup.
The study area the pastoral rangeland of borana is located in the southern part of ethiopia in oromia regional state. Et 1402 abu tefera and teddy tefera coauthors quintin gray coffee annual report coffee annual ethiopia. We will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e. The coffee sector is an important sector in which to study this issue for a number of r easons. The majority of ethiopia s coffee comes from small plantations, which make up about. Developing forest coffee value chains directly benefited 10,000 coffee producers in ethiopia. Pockets of the blue mountain and french mission however still exists in. The specific objective is to increase the coffee export revenue. Analysis of coffee quality along the coffee value chain in jimma zone, ethiopia kassaye tolessa agricultural and nutrition research laboratories directorate, ethiopian institute of agricultural research, p. Pdf assessment of ethiopian coffee supply and value. Sep 16, 2015 structure, pricing and margins in ethiopias coffee value chain 1. 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. In particular, applying a value chain framework to development projects is provided in another aciar publication, a guide to valuechain analysis and development for overseas.
Determinants of coffee value addition by smallholder farmers in jimma zone, ethiopia bizualem assefa gashaw1, degye goshu habteyesus2, zekarias shumeta nedjo3 1. Review on structureconductperformance of coffee market in. Coffee exports from ethiopia have perform ed well over the last decade. Value chain map was to depict the coffee value chain in ethiopia explicitly. Observed and adjusted nominal rate of protection at farm gate level for coffee in ethiopia %, 20052012. Constraints and opportunities in the coffee supply chain.
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. Aug 18, 2017 we will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e. Value chain analysis for the coffee sector in rwanda. From growing the cherries through grading, roasting, and brewing, this module provides an overview of the coffee value chain. Potato value chain analysis and development in ethiopia case of tigray and snnp regions reported by bezabih emana and mengistu nigussie financial support by usaid october 2011 international potato center cip ethiopia, co ilri, p. The coffee industry has changed significantly over the last 10 years. The case of coffee in the ethiopian commodity exchange, recently published in the american journal of agricultural economics, looks specifically at internationaldomestic price relationships across the coffee value chain. Planet, a research platform which aims at creating a coffee value chain index via data collection and analysis. After collection of data from interview and desk study, the analysis is done by value chain analysis. A1036052009 a thesis submitted in the partial fulfilment of the award of the degree of master of science in agribusiness in the school of. Analysis of price incentives for coffee in ethiopia. Coffee is an economically strategic commodity for many equatorial ldcs. 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.
Coffee production is ethiopias main industry, with production of. The major coffee growing countries across the world is shown in figure 1. Coffee exports have made a vital contribution to the countrys gdp until the mid20th century. Ethiopia is currently the top african coffee exporter and ranked sixth in the global market. The predominant commercial cultivars are the sl28, sl34, k7 and ruiru ll.
For example, in rwanda alone, there are approximately 400,000 coffee farmers. Value chain analysis for the coffee sector in rwanda cbi. Coffee skills program specialty coffee association. Value chain analysis for coffee in karnataka, india. Sesame is a major cash crop, which is mainly produced as an export crop. Coffee production and marketing in ethiopia by alexander. A value chain and sustainability initiatives analysis.
Usaids value chain systems training, and a number of projects in collaboration with professors ray collins and andrew fearne, and associate professor laurie bonney. 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. Coffee is an important cash crop in ethiopia, accounting for 35 percent. Ethiopian development research institute structure, pricing and margins in ethiopias coffee value chain seneshaw tamru, ermias engida, mehari hiluf, mekdim dereje and bart minten ifpri essp ethiopias coffee value chain. 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, we document the characteristics of the sector, the policy shifts affecting the sector, and the important structural. We focused particularly on the empowerment of women, who have traditionally been excluded from certain spaces within the value chain. Constraints identified along the dairy value chain in kenya, by gender 31 table 4. Evaluation of the technoserve east africa coffee initiative. Guiding questions to assess the value chain potential to advance womens empowerment 15 table 2. Social criteria to be considered in value chain selection 17 table 3.
First the ethiopian coffee sector is overviewed and then analyzed qualitatively and quantitatively starting from the crop up to the cup based on data collected from secondary sources. 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. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j. Value chain analysis of ethiopian coffee journal repository. Analysis of market chains of forest coffee in southwest ethiopia. Structure, governance and sustainability of the value chain. Farm productivity and value chain analysis of coffee. Chain mapping is used to show the value chain of coffee in the. Analysis of village poultry value chain in ethiop ia. Key trends in coffee production, exports and farm returns. The value chain starts from the farmer and goes up to the level of the roaster.
Production and processing activities employ nearly 26 million workers across all coffee exporting countries, combined icc, 2010. A long value chain characterizes sesame value chain in ethiopia. Learn about coffees journey from its origins in ethiopia to the major commodity it is today. 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 ethiopias coffee industry. Structure, governance and sustainability of the value chain element 3. 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 value addition in this level is totally related processing activities. Value chain study on meat processing industry in ethiopia.
The report does not cover the coffee beans processed in any manner, including roasted, ground, instant, or other forms of coffee. Challenges and opportunities ethiopian coffee export conference 8 9 november 2012 addisababa ethiopia international coffee organization, jose d. Overview of coffee value chain in rwanda and ethiopia. Structure, pricing and margins in ethiopias coffee value chain. 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. Analysis of gbcs in the dairy value chain in oromia, ethiopia 35 table 5. The value chain of raw coffee beans has been considered. Costa rican coffee is well known for its high quality and coffee production has historically been closely linked to its national identity. A new value chain channel has been established for specialty coffee exports from ethiopia dempsey, 2006.
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. Available at orgapidocuments2264814downloadfinal%20project%20document. Market access activities and set up of consistent relations with coffee foreign buyers in order to attract them and establish a fidelity partnership for the coffee value chain vertical integration. 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. Possible interventions and support activities in the value chain limitations specialty coffee is not well defined, and each market and. Value chain analysis of ethiopian coffee coffea arabica. Ethiopian coffee value chain through private and public. Coffee roasters or manufacturers are the key or focal player in the coffee supply. To document important elements and modalities of market strategies for developing the sheep value chain. We study the structure and performance of ethiopias coffee export sector over the last decade. Since then, coffee production in costa rica has suffered different. Ethiopia coffee industry value chain analysis usaid compete 2010 profiling the actors, their interactions, costs, constraints and opportunities. We are grateful to all the farmers who spent their precious.
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. Coffee value chain actors, constraints and opportunities. The largest competitor in east africa is ethiopia, which does quite large volumes of. In this study we focus on three main research questions.
Department of agribusiness and value chain management, wolkite university, ethiopia. Evidence from smallholder coffee farmers in ethiopia. A comparative analysis of the coffee value chain igc. A summary of some of the key players found in the value chain is presented in figure 9. Analysis of goat value chains in yabello district, borana. The study was based on data generated from 123 coffee producers, 18 collectors, were employed in the process of examining and describing farm household characteristics, coffee value chains actors, their marketing margin and role of marketing intermediaries and t characteristics. Coffee production in ethiopia is practiced using four different systems of cultivation. This study examines the tef value chain in ethiopia, identifies the bottlenecks at each stage of the value chain i. Marketing mix and strategy for ethiopias coffee marketing. The majority of ethiopia s coffee comes from small plantations, which make up about 160,000 hectares or 40% of. Opportunities and obstacles in the value chain element 4. The coffee sector is an important one in which to study this issue for a number of reasons. Evidence from smallholder coffee farmers in ethiopia ifpri. The birthplace of coffee, ethiopia is home to some of the finest coffees in the world.
Furthermore, coffee is ethiopias most important the past to deal with this issue and this study therefore. Analysis of village poultry value chain in ethiopia. The green unroasted coffee bean travels through many steps in the supply chain also known as the value chain from harvest to final customer. Policy implications for improving investments in maize and wheat value chains may 30, 2018 agriculture global practice. In 201011 ethiopia exports coffee to 53 destination countries the total volume and value of coffee export 201011 was 196,117 ton and 841.
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. In a value chain, coffee beans go through different process before it reaches the hands of a consumer. 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. 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.
One important output of the project will be the establishment of an organized coffee forum that allows the participation of all the actors involved in the coffee value chain. This work is original in its nature and it is suitable for submission in partial fulfillment of. Coffee generates 70 percent of ethiopias foreign exchange earnings and provides livelihoods for 15 million ethiopian smallholder farmers. In nominal usd terms, the value of coffee exports in 2014 was 1 percent higher than in 200405 fi gure 2. Evidence towards improved investments and policies addis ababa hilton september 15, 2015 addis ababa 1. 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. This study was undertaken with the aim of analysing determinants of.
Analysis of coffee quality along the coffee value chain in. Coffee production in ethiopia is inhibited by a lot. Unique contribution to theory, practice and policy. Ethiopia coffee industry value chain analysis usaid. The case of sheka zone, southwest ethiopia benyam tadesse1 fayera bakala2 1 mizantepi university, college of agriculture and natural resources, department of agricultural economics 2mizantepi university, college of agriculture and natural resources, department of natural resource. This will help to reach the general objective of raising the income of smallholder farmers. Value chain analysis was undertaken from the collected data to identify the value chain affecting factors. Quality and value chain analyses of ethiopian coffee.