Review on Coffee Production and Marketing in Ethiopia

Jima Degaga

doi:10.7176/jmcr/67-02

Abstract

Coffee, Ethiopia’s largest export crop is the backbone of the Ethiopian economy. However, Ethiopia has not yet fully exploited its position as the producer of some of the best coffees in the world. Hence, a little information has been gathered on different aspects of the coffee with the objectives of reviewing coffee production and marketing in Ethiopia, and marketing actors and margin distribution of coffee in Ethiopia. Data from FAOSTAT, CSA and different published materials on coffee were used. According to the review, lack of competitiveness, lack of infrastructure, in adequate access to services, low value addition, in adequate technology transfer and research, competition of khat and rainfall variability are among major constraints of coffee production in Ethiopia. Price volatility, Poor accesses to market, little market promotion and incentive mechanism, and low price were reported to be the major problem of coffee marketing in Ethiopia. Licensing of more traders and inspecting their activities, enhancing infrastructural and institutional facilities and improving of coffee production technologies through development, and extension of improved coffee varieties and other related agronomic practices were among the major recommendations forwarded from the review. Keywords : Coffee, Ethiopia, Production, Marketing DOI: 10.7176/JMCR/67-02 Publication date: April 30 th 2020

Highlights

1.1 Background of the Review Agricultural sector has been the priority of Ethiopia since the early 1990s, when the Agricultural DevelopmentLed Industrialization (ADLI) and related policy frameworks were adopted (FAO, 2014)
Marketing Margin: It is the difference between the price received by farmers and that paid by consumers
Little market promotion and incentive mechanism, and low price shares and benefit are another coffee marketing problem in Ethiopia (Jose, 2012; Tesfu, 2012)

Summary

Introduction

1.1 Background of the Review Agricultural sector has been the priority of Ethiopia since the early 1990s, when the Agricultural DevelopmentLed Industrialization (ADLI) and related policy frameworks were adopted (FAO, 2014). Despite its declining contribution to GDP over five years, agriculture remains the leading sector in terms of contribution to the country’s overall economy It is the major source of food for domestic consumption, of raw materials for the domestic manufacturing industries and of primary commodities for export (Edward et al, 2017). The Government of Ethiopia has recently embarked upon exploring new knowledge from outside the country in order to accelerate its market-oriented agricultural development These areas of new knowledge include technologies, biotechnological tools and products, institutional innovations and arrangements for extension, output marketing, input supply and rural finance (ILRI, 2005). It has developed long term and strategic framework to improve the quality of farm product and traded commodities, reduce marketing costs and increase competition in the marketing sector (Tesfaye, 2016)

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Conclusion