The Ethiopian Coffee and Tea Authority (ECTA) is making significant strides in improving the production, quality, and export of the country’s renowned coffee, tea, and spice products. With a commitment to enhancing the entire value chain, ECTA aims to increase productivity, expand market destinations, and boost foreign exchange earnings. This comprehensive approach is reflected in the results achieved over recent years.
To ensure high-quality products reach international markets, ECTA has emphasized maintaining quality and reducing wastage. This involves meticulous processes from production to marketing, allowing Ethiopian coffee, tea, and spices to be presented in the best possible light. By enhancing product quality and adding value, the authority has successfully increased coffee production geared for foreign markets, significantly enhancing foreign exchange earnings.
In line with this mission, ECTA has prepared a 15-year strategic plan that identifies six key pillars aimed at fostering development and marketing initiatives. Authority’s Director General Adugna Debala (PhD) emphasized that, through these reforms, the coffee sector is achieving better results year after year. For instance, in the 2023/24 fiscal year, Ethiopia exported 300,000 tons of coffee, generating over 1.4 billion USD in revenue. This success is attributed to various reform efforts focused on streamlining the market chain and improving farmers’ access to suppliers and exporters.
One of the primary goals of ECTA is to shorten the market chain. By creating a favorable environment for farmers to connect with suppliers and exporters, the authority has minimized product wastage and maintained higher product quality. A new system has been established to ensure that coffee can be delivered from farmers directly to exporters within a specified timeframe. If exporters do not fulfill contracts within three months, those contracts expire, promoting efficiency and timely exports.
The results are notable: prior to these reforms, Ethiopia exported between 180,000 to 190,000 tons of coffee. Now, thanks to streamlining efforts, this figure has increased to 300,000 tons. Furthermore, the authority has successfully introduced an additional 100,000 tons of blended coffee to the international market.
Ethiopia markets two main types of coffee: commercial and specialty. Commercial coffee, while produced in larger quantities, is typically lower in quality and commands a lower price on the international market. In contrast, specialty coffee is smaller in size, higher in quality, and commands a premium price. For instance, three years ago, one ton of commercial coffee sold for around 2,800 USD per ton, while specialty coffee fetched over 5,500 USD per ton, almost double the price.
Recent strategies have focused on increasing the production of specialty coffee while reducing the reliance on commercial coffee. The director general reported that the proportion of specialty coffee has risen from 30% to 60% over three years, leading to a substantial increase in income—from 700 million USD to 1.4 billion USD.
To further enhance production and productivity, ECTA collaborates with research institutions to identify effective coffee species for different regions. This has led to the successful introduction of new coffee varieties and the removal of older, less productive plants. As a result, coffee production has escalated from 600,000 metric tons to a projected 1 million metric tons in the coming year.
Currently, Ethiopia exports coffee to five major markets: the United States, Japan, Belgium, Germany, and Saudi Arabia, with Germany accounting for approximately 20% of total exports. Recent data indicates rising interest from South Korea and China, both emerging as vital markets for Ethiopian coffee. ECTA is actively working to capitalize on these opportunities, particularly as China becomes increasingly significant in the global coffee landscape.
The proactive measures taken by the Ethiopian Coffee and Tea Authority are not only enhancing the quality and quantity of coffee produced but also significantly increasing foreign exchange earnings. With ongoing reforms and a strategic focus on specialty coffee and new market destinations, Ethiopia is well-positioned to strengthen its reputation as a premier coffee producer on the global stage. As the authority continues to implement its 15-year strategy, the potential for growth and success in the coffee sector remains promising.
To boost Ethiopian coffee exports, several key actions are expected from both government authorities and smallholder farmers: Most of all implementing and enforce policies that foster an environment conducive for coffee production and export along with simplifying export procedures to reduce bureaucracy and enhance efficiency is of greater paramount.
In addition many agree that the improvement of transportation and logistics infrastructure to facilitate timely delivery of coffee from farms to markets is the life line for the coffee sector and other beverages.
Furthermore, the enhancement of processing facilities to maintain product quality and reduce wastage is so crucial. In relation to this, paying due attention for research and development is a spring board for the coffee sector.
Thus, very essential to invest in research to identify high-yield and disease-resistant coffee varieties suited to various climates and regions and collaborate with agricultural institutions to provide training and resources for best farming practices.
Moreover, statesmen should focus to actively promote Ethiopian coffee in international markets through trade fairs and exhibitions with relentless efforts to develop marketing strategies that highlight the unique qualities of Ethiopian coffee, such as its origin and flavor profiles; encourage smallholder farmers to engage in value-added activities, such as roasting and packaging, to increase profit margins; facilitate access to financing for smallholder farmers to invest in better production techniques and technologies.
In explication the role of agronomists and botanists have irreplaceable role for beverage development with pre prioritized ideas such as implementing recommended agronomic practices to improve coffee quality and yield, such as proper fertilization, pest control, and sustainable farming techniques; participate in training programs offered by agricultural extension services or NGOs.
Finally, it is better to consider the following key practices to boost product and productivity, market opportunity for the beverage sector according to empirics. First of all, imperative would be to organize into cooperatives to increase bargaining power, reduce costs, and improve market access; engage in collective marketing efforts to attract buyers and negotiate better prices; focus on maintaining high-quality standards throughout the production process, from harvesting to processing; invest in post-harvest handling techniques to preserve coffee quality and reduce losses; diversify crops alongside coffee to mitigate risks associated with market fluctuations; use agro forestry practices to enhance biodiversity and improve soil health, benefiting coffee production.
For Ethiopia to significantly boost its coffee exports, a collaborative effort between government authorities and smallholder farmers is essential. By focusing on policy support, infrastructure development, quality improvement, and market access, both parties can enhance the competitiveness of Ethiopian coffee in the global market.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD TUESDAY 15 OCTOBER 2024
