Ethiopia is not only the home of the world’s most popular Arabica coffee, but also the country that introduced coffee to the world. Coffee is the backbone of the country’s economy and is a major source of foreign exchange earnings. Recently, Prime Minister Abiy Ahmed (PhD) said that the country has 5.47 million hectares of land suitable for coffee, a favorable environment, sufficient manpower, and the most popular coffee varieties in the world with their unique nutritional content and taste. He also stated that Ethiopia will raise its status by supplying coffee to the world market in quantity and quality.
The Prime Minister said; “In the past six years, our coffee production has increased by 100,000 tons annually by inter-connecting coffee with green legacy. Our country earned 1.43 billion US Dollar in coffee export trade in the last fiscal year.”
According to data from the Ethiopian Coffee and Tea Authority, the authority is undertaking several activities to increase its foreign exchange earnings by exporting high-quality and high-volume coffee to the foreign market in the 2024/25 fiscal year. It is planned to export more than 400,000 tons of coffee to the foreign market in the current fiscal year and earn two billion Dollar. In the first quarter of the fiscal year alone, 115,000 tons of coffee was exported, earning 520 million Dollars. It was pointed out that the foreign exchange earned in these three months is an indication that the two billion Dollar revenue target for the fiscal year can be achieved.
The authority stated that it is focusing on increasing coffee production and productivity and providing quality coffee to the market in order to achieve the plan set for the fiscal year. It was also noted that the extensive work of promoting the brand that will increase the demand for Ethiopian coffee in the international market has enabled Ethiopian coffee to become competitive and preferred in the world market.
Ethiopia’s foreign coffee market destination countries are Germany, Japan, Saudi Arabia, Belgium and the United States. Recently, the authority’s information indicates that China, South Korea and Jordan have become countries that buy Ethiopian coffee extensively.
The country is producing coffee and making it accessible to the world market, mostly by coffee cultivating farmers. Recently, however, many investors have been involved in the development.
One of these is MIDROC Investment Group. The Group is engaged in various investment sectors in the country, including agro-processing, coffee, and fruit and vegetable development. It owns several coffee farms, and is known for cultivating coffee from planting to exporting. The company’s information also indicates that it has been carrying out various activities to increase coffee production and productivity.
The agreement signed recently with the internationally renowned Newman Café Group is a part of this effort to increase coffee productivity. The agreement is significant because it focuses on technical support and market access. Newman Café Group is a German-based organization with 60 organizations and is known in the coffee market in 30 countries.
According to the CEO of MIDROC Investment Group, Jamal Ahmed, the agreement will create a great opportunity for MIDROC Investment Group. He stated that the agreement has been awaited for a long time; especially, the agreement with the international institution Newman Café Group, which is doing major work in the coffee sector, is crucial to increasing Ethiopian coffee productivity.
The agreement will allow the company for increasing coffee productivity and gaining more experience. Newman Café Group aims to bring about a change in the coffee market by sharing its experience in the coffee market with MIDROC Investment Group and providing technical support, he said.
According to the CEO, the agreement was made with Newman Café Group, an organization that loves Ethiopia from the heart. Not only does it have an office in Ethiopia, but it also has a Coffee Foundation (which supports farmers’ associations), and the organization owns a large coffee plantation in Brazil, which produces 25 quintals of coffee per hectare.
Newman Coffee Group is one of the leading coffee companies in Africa. It is also providing technical assistance to African countries in increasing coffee production and productivity. This has made African coffee production very knowledgeable about the science.
According to information, the Company has extensive coffee plantations in Uganda and Kenya in Africa, and outside Africa in Vietnam and supplies to the foreign market. Its market reach is also wide and has large companies in more than 30 countries in the United States, Europe, and Southern Asia. It also has market connections with countries with large companies around the world. It also focuses on famous stock markets globally.
One of the main things that makes this company different and connects it to MIDROC is the existence of a family company, just like the owner of MIDROC, Sheikh Mohammed Hussein Ali Al-Amoudi. “The agreement strengthens the family ties; we have been trying for a long time to have them cover what we lack, after we have agreed with each other and confirmed that our goals are common,” the CEO said. He stated that MIDROC Investment Group manages 45 companies. Among these is coffee, one of the sectors under agro-processing, which, however, has many challenges that have been tiresome to overtake.
He pointed out that it requires a special effort to provide coffee at a better price in a sustainable manner, and since this work cannot be done on its own, it is necessary to look for a strong partner. For this, MIDROC has signed an agreement with Newman Café Group to increase coffee productivity. He also mentioned that this organization knows Africa and Ethiopia well, and he is confident that this will help achieve the desired goal.
The CEO also noted that the main issue related to coffee is the price issue. Although selling coffee is not difficult, it is important to pay attention to how and at what price it is sold.
He noted that the income generated by exporting coffee to the foreign market has increased significantly in the past three years, but MIDROC Investment Group has not grown at that level. Therefore, MIDROC is expected to work on increasing coffee productivity, and that although many technologies have been tried to do this, it has not been possible to achieve the desired results. The agreement with Newman Cafe Group, which provides technical support and focuses on market access, is significant.
MIDROC will share this experience with research institutions and associations in the future, “It will be useful to put our own fingerprint on Ethiopian coffee production,” the CEO said.
The CEO further stated that MIDROC Investment Group will focus on increasing coffee production, quality and accessibility. Newman Cafe Group is a company with 60 organizations under its umbrella and is known in the coffee market in 30 countries, so the agreement will help promote Ethiopian coffee beyond MIDROC. The agreement also focuses on mutual benefits, which will allow the sector to grow in a short time.
Newman Cafe Group CEO, David Newman, for his part, expressed his happiness with the agreement and confirmed that they will work with MIDROC in promoting Ethiopian coffee and creating a favorable market.
According to him; Ethiopia is the owner of a unique coffee flavor. His company is also well known in Ethiopia. Using its experience in coffee, it will work better with MIDROC. It will work to increase coffee production and productivity by providing scientific technical support. It will strive to increase MIDROC’s coffee production capacity to a better level. Their organization also uses its long-standing experience to further promote Ethiopian coffee in the global market.
The Director General of the Ethiopian Coffee and Tea Authority, Adugna Debela (PhD), said that the signing of an agreement between MIDROC Investment Group and the international Newman Café Group to increase coffee productivity has many benefits and opens a new chapter in increasing coffee productivity.
According to him, Ethiopia is a country with a favorable environment for coffee cultivation. However, Ethiopian coffee productivity is at a lower level compared to other countries. In order to increase global accessibility, coffee production and productivity should be increased.
The Director General further said that the agreement will promote coffee to the international market through technical support, which will increase production and productivity. The benefits farmers and consumers gain from the sector are high; and the work to ensure that the country receives the benefits it deserves from the coffee sector will continue to be intensified.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD WEDNESDAY 27 NOVEMBER 2024
