Current Status of Specialty Coffee Production and Market in Ethiopia: A Review

Authors

  • Usman Ali Wallaga University
  • Abdela Tufa Wallaga University

DOI:

https://doi.org/10.20372/afnr.v2i1.844

Keywords:

specialty coffee, production, marketing, bargaining power

Abstract

Despite being the world's second largest legally traded commodity after crude oil and a crucial source of income for smallholder farmers, particularly in Ethiopia, Ethiopia's specialty coffee market faces significant challenges. This review aims to provide a comprehensive assessment of the current state of specialty coffee production and marketing in Ethiopia. The review identifies both strengths and weaknesses within the existing system, specifically focusing on the specialty coffee market segment. This review analyzes data from various sources, including the Food and Agriculture Organization of the United Nations, and the Central Statistical Agency of Ethiopia, different methodologies employed for the studies, i.e., a systematic search of scholarly databases, organizational websites, reputable journals, coffee-specific publications, and others. Key findings reveal that the Ethiopian specialty coffee market structure is characterized by a high barrier to entry, differentiated products, and dominance by a few traders. Additionally, the review identifies price instability, inadequate market access, insufficient promotion and incentives, and low prices for producers as central challenges. The analysis emphasizes the need to foster a competitive landscape to empower smallholder coffee growers and grant them equitable access to the specialty coffee market. By enabling them to capture a larger share of the profit margin, the review ultimately proposes this as a key strategy to enhance their livelihoods and bolster the specialty coffee industry in Ethiopia.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Author Biographies

Usman Ali, Wallaga University

Department of Plant Sciences, Faculty of Agriculture, Wallaga University, Shambu, Ethiopia.

 

 

Abdela Tufa, Wallaga University

Department of Plant Sciences, Faculty of Agriculture, Wallaga University, Shambu, Ethiopia.

 

 

References

References

FAO (Food and Agriculture Organization). Ethiopia Country Programming Frame Work, Revised Document; Addis Ababa, Ethiopia, 2014.

Degaga, J. Review on coffee production and marketing in Ethiopia. J. Mark. Con. Res. Available online: www.iiste.org ISSN 2422-8451 An International Peer-. 2020.

Batte, E.; Wondifraw, A.; Wakiaga, J.; Kibret, H. Afr. Dev. Bank; Organization for Economic Co-operation and Development, United Nations Development Program. 2017.

ILRI (International Livestock Research Institute). Improving Productivity and Market Success of Ethiopian Farmers, 2005.

Hailu, T. Challenges and prospects of agricultural marketing in Konta special district, Southern Ethiopia. J. Mark. Con. Res. 2016, 28.

Jabbar, M. A. Agricultural market development in Ethiopia: Problems and Issues. Paper presented at a planning workshop for the project ‘Improved Productivity and market success of Ethiopian farmers’, Nairobi (Kenya): International Livestock Research, 2004..

Amha, W. Food Grain Marketing Development in Ethiopia After Reform 1990. A Case Study of Alba Seraro [The PhD Thesis]; Verlag Costar University, 1994.

Petit, N. Ethiopia’s coffee sector: A bitter or better future? J. Agrar. Change. 2007, 7, 225–263. DOI:10.1111/j.1471-0366.2007.00145.x.

Bastin, A.; Matteucci, N. Financing coffee farmers in Ethiopia: Challenges and Opportunities. 2007, 31, 251–282.

Minten, B.; Dereje, M.; Engida, E.; Kuma, T. Coffee value chains on the move: Evidence in Ethiopia. Food Policy. 2019, 83, 370–383. DOI:10.1016/j.foodpol.2017.07.012.

Carlos, E.C.; Leandro, G.; David Z. The Coffee Market in Brazil: Challenges and Policy Guidelines, 2020.

FBC (Fana Broadcasting Corporation). News Outlets; Addis Ababa, May 19, 2022, 2022.

Chemura, A.; Mudereri, B.T.; Yalew, A.W.; Gornott, C. Climate change and specialty coffee potential in Ethiopia. Sci. Rep. 2021, 11, 8097. DOI:10.1038/s41598-021-87647-4.

FAO. (Food Agriculture Organization of the United Nations: Roma, 2012).

FAOSTAT. Available online: www.fao.org/faostat/en/#data/QC/visualize; Vol. 2022, 2022.

THESCCO. The Specialty Coffee Company c/o OA, 301a Sunderland Road. South. 2022.

Boaventura, P.S.M.; Abdalla, C.C.; Araújo, C.L.; Arakelian, J.S. Value co-creation in the specialty coffee value chain: The third-wave coffee movement. Rev. adm empres. 2018, 58, 254–266. DOI:10.1590/s0034-759020180306.

Lannigan, J. Making a space for taste: Context and discourse in the specialty coffee scene. Int. J. Inf. Manag. 2020, 51. DOI:10.1016/j.ijinfomgt.2019.07.013.

Hirons, M.; Mehrabi, Z.; Gonfa, T.A.; Morel, A.; Gole, T.W.; McDermott, C.; Boyd, E.; Robinson, E.; Sheleme, D.; Malhi, Y.; et al. Pursuing climate resilient coffee in Ethiopia: A critical review. Geoforum. 2018, 91, 108–116. DOI:10.1016/j.geoforum.2018.02.032.

Murken L. Climate Risk Analysis for Identifying and Weighing Adaptation Strategies in Ethiopia’s Agricultural Sector, 2020.

Central Statistical Agency (CSA). Agricultural Sample Survey 2018/19; Vol. 37, 2019.

Ridley, F. The past and Future Climatic Suitability of Arabica Coffee (Coffea arabica L.) in East Africa; Durham University, 2011.

Mengistie, G.A. In Extending the Protection of Geographical Indications: Case Studies of Agricultural Products of Africa, Blakeney, M., Coulet, T., Mengistie, G., Mahop, M.T., Eds.; Routledge, 2011; Vol. 15; p. 150.

Putri, S.P.; Irifune, T.; Yusianto, Fukusaki E. GC/MS based metabolite profiling of Indonesian specialty Coffee from different species and geographical origin. Metabolomics. 2019. reviewed Journal Vol.67, 2020, 15, 126. DOI:10.1007/s11306-019-1591-5.

International Trade Centre. The Coffee Exporter’s Guide (World Trade Organization and the United Nations, 2011), 2011.

Taye, K.; Ashanafi, A.; Alemseged, Y.; Teshome, K.; Wondiyfrew, T. The contribution of coffee research for coffee. Seed devel-opment in Ethiopia. J. Agric. Res. Dev. 2011, 1, 009–016.

Armstrong, and Kotler, (2015). Marketing: An Introduction, 12thEdition. Pearson Education,Vol.86, 2019. DOI:10.7176/FSQM; USA.

William, G. T.; Harry, M. K. Agricultural Product Prices; Cornell University Press: Ithaca and London, 2014; p. 5thEdition.

Bruce, L.; Gardner, and Rausser, 2001. Hand Book of Agricultural Economics: Marketing, Distribution and Consumers, Volume 1B;, 2001.

Robert, S. P.; Trinidad. Industrial organization and market analysis. In Prices, Products, and People: Analyzing Agricultural Markets in Developing Countries, Scott, G.J., Ed.; Lynner Reinner Publishers: Boulder, London, 1995; pp. 217–238.

Kohls, and Uhl 1985. Marketing of Agricultural Products, 5th edition; MacMillian Publishing Company: NY, USA.

Minten, M.; Ermias, T. Structure and Performance of Ethiopia’s Coffee Export Sector. Working Paper 66; Addis Ababa, Ethiopia, 2014.

Gregory, J. S. Prices, Products and People: Analyzing Agricultural Markets in Developing Countries; Lynne Reinner Publishers: Boulder, London, 1995. 498p.

Cramer, G. L; Jensen, W. Agricultural Economics and Agribusiness, 2nd edition; McGraw-Hill Book Company: USA, 1982. 222p.

Kebede, T. Coffee quality and productivity as basic factors for sustainability in Ethiopia. 21st Afr. Coffee Sustainability Forum UN Conference Center at Addis Ababa (UNCC-AA), Addis Ababa, Ethiopia. Addis Ababa, Ethiopia, 2012.36. CSA (Central Statistical Agency). Reports on Area and Production of Crops (Private Peasant Holdings, Meher Season); Addis Ababa, Ethiopia, 2018.

Michael, G. F. Ethiopia Coffee Annual Report. GAIN Report number ET1710, gain report assessment of commodity and trade by USDA; USA, 2018.

USAID. Ethiopian Coffee Industry Value Chain Analysis Profiling the Actors, Their Interactions Costs Constraints and Opportunities. Chemonics International Profile, 2010.

Hernandez, M; Lemma, S; Rashid, S. 2015. Ethiopian Commodity Exchange and the Coffee Market: Are Local Prices More Integrated to Global Markets? 2015 Conference, August 9-14, 2015, Milan, Italy 211732, International Association of Agricultural Economists.

Gebreselassie, S.; Ludi, E. Agricultural Commercialization in Coffee Growing Areas of Ethiopia, 2008.

USDA (United States Department of Agriculture). World Coffee Markets and Trade Report. Accessed Date: Oct. 13, 2018, 2018.

USDA (United States Department of Agriculture). Coffee: World markets and trade. Ethiopia: World’s Third Largest Arabica Coffee Producer. June report. USDA Foreign Agricultural Services/ USDA Global Market Analysis. Available online: https://apps.fas.usda.gov/psdonline/circulars/coffee.pdf, 2021.

Boansi, D; Crentsil, C. Competitiveness and Determinants of Coffee Exports, producer price and production for Ethiopia; Corvinus University of Budapest: Hungary; University of Reading: UK, 2013.

Moat, J.; Williams, J.; Baena, S.; Wilkinson, T.; Demissew, S.; Challa, Z. K.; Gole, T. W.; and Davis. A. P. Coffee Farming and Cli-mateChange in Ethiopia: Impacts, Forecasts, Resilience and Opportunities. The Strategic Climate Institutions Programme (SCIP); Royal Botanic Gardens, Kew: UK, 2017; p. 37.

Asfaw, A. Coffee production and marketing in Ethiopia. Eur. J. Bus. Manag. 2014, 6.

Getachew, D. Coffee Market Performance Analysis: A Case of Eastern Ethiopia, 2011.

Abiy, T. Assessments of Coffee Marketing Chain and Its Export Performance in Ethiopian GDP [Thesis] submitted to St. Mary's University School of graduate studies.(UNDP) United Nations Development Programme (2012). Proposal for coffee platform in Ethiopia; Addis Ababa, Ethiopia, 2016.

Kelifa, A. Review on structure-conduct-performance of coffee market in Ethiopia. Food Sci. Qual. Manag. Available online: www.iiste.org. 2019.

Shumeta, Z.; Urgessa K.; Kebebew, Z. Analysis of market chains of forest coffee in Southwest Ethiopia. Acad. J. Plant Sci. 2012, 5, 28–39.

Belete. Market chain analysis of coffee in dale district of Southern Ethiopia [An MSc Thesis], Haramaya, Ethiopia Presented to the School of Graduate Studies of Haramaya University, 2014.

Dessalegn, G.; Solomon, K. Evaluating coffee market structure and conduct in Bench Maji Zone, south West Ethiopia. J. Agric. Econ Extension Rural Dev.’t. 2014, 2, 156–163.

Engide, G.. Analysis of Coffee Market Chain: The Case of Gewata District, Kaffa Zone, Southwest Ethiopia [MSc Thesis] at Haramaya University; Ethiopia, 2017.

Bizualem, A. G. Exploration of structure-conduct-performance of coffee market system in Ethiopia. The case of Jimma Zone. Mark. Con. Res. 2018, 44, 18–28.

Pelupessy, W. The world behind the world coffee market. Etud. Rurales. 2007, (180), 187–212. DOI:10.4000/etudesrurales.8564.

Jose, D. Ethiopian coffee: Challenges and opportunities. Ethiop. coffee export Conference, Addis Ababa, Ethiopia, 2012.

Aglionby, J. Reporter, Addis Ababa. Available online: https://www.ft.com/content/020bc846-393a-11e7-821a-6027b8a20f23. 2017.

Ethiopia coffee market, report, Covid-19; Growth: Ethiopia Coffee Market, Trends; Impact Publications, 2022, and Forecasts (2022-2027). Research and Markets. Copy Right@2002-2022 Research and Markets. All Rights Reserved; Ethiopian Coffee and Tea Authority (ECTA), 2022 [Press release].

CGTN. News Outlets; Addis Ababa, 2022. China global television network. The international division of state media outlet china central television

Ethiopian coffee market (2022). Growth trends and covid 19 impact and forcast (2022-2027). All right reserved@mordor intel-legence.

Downloads

Published

30.04.2024

How to Cite

Ali, U., & Tufa, A. (2024). Current Status of Specialty Coffee Production and Market in Ethiopia: A Review. Journal of Agriculture, Food and Natural Resources, 2(1), 79–91. https://doi.org/10.20372/afnr.v2i1.844
Received 2023-10-25
Accepted 2024-03-28
Published 2024-04-30

Plaudit