Experts in the sector have repeatedly said that Africa, despite being the birthplace of coffee and a major producer, is not reaping the full benefits of the sector. While coffee is considered the backbone of the economy for countries like Ethiopia, which has a large coffee farming community, it is said that its benefits are limited compared to Brazil and other countries in the world.
The reasons for this are problems that range from farm to market, and mainly due to lack of coordination among countries, which makes them unable to compete in the global market.
As the 64th Inter-African Coffee Organization High-Level Policy Forum held recently in Addis Ababa stated; cooperation and coordination among countries play a crucial role in the continent’s ability to compete in the global coffee market. In particular, governments should work together to ensure that coffee is exported in a value-added manner, not just in raw form.
Minister of Agriculture, Girma Amente (PhD), announced at the forum that Ethiopia not only wants to be a coffee producer but also a world market leader by increasing productivity and product quality. To this end, it is working to ensure coffee productivity that can withstand global challenges. In addition, it is playing its part to make African coffee production competitive and resilient sector from field to market.
Dr. Girma said that Ethiopia has planted billions of coffee seedlings in the past five years in line with the direction and plan it has set to maintain coffee productivity and build a climate-resilient economy. He also mentioned that it has been able to increase its export earnings by producing coffee in both quality and quantity.
Stating the plans to earn more than two billion Dollars from coffee exports in the 2024/25 budget year, the Minister indicated that they are working hard on quality product, market access and benefits. He said that they will work with countries to find sustainable solutions to the problems the African coffee sector faced and explained that it is crucial to carry out the necessary work starting from policy implementation along the coffee value chain from the field to the international market.
He expressed his interest to work together to make African coffee competitive in the global market and remain resilient to challenges. To help achieve this, it is necessary to enhance benefits and expand market access throughout the chain from producers to coffee exporters.
According to the Minister, a concerted effort is needed to increase African coffee exports by producing sustainable and quality coffee. In particular, it is necessary to expand international market opportunities by adding value to coffee production. Value addition is needed to create more opportunities for African coffee in the international market. Ethiopia will continue to strengthen its efforts to improve the productivity, quality and market access of African coffee.
He noted that climate change, price volatility and the failure to strengthen regulatory frameworks in African coffee have prevented the continent from reaping the benefits it deserves from the sector. Ethiopia will work with African countries to find sustainable solutions to this focusing on new research, investments and strategic policy interventions.
The Secretary-General of the Inter-African Coffee Organization, Solomon Sabiti, said that the organization is a member of 25 African coffee-producing countries; the policy forum, which was attended by high-ranking African officials, mainly discussed issues and opportunities that could help solve the challenges coffee production encountered. Discussions were held on how to transform the African coffee industry, especially how to support the private sector.
“In addition to increasing income by adding value to African coffee, it will also help create job opportunities for many unemployed Africans,” the Secretary-General said, noting that countries should focus on increasing productivity. At the same time, he noted that everyone should make their best efforts to solve the problems of price fluctuations and financial shortages in the continent’s coffee market.
“Although this is the 64th time such a conference has been held, the organization is currently working on a strategy to increase the use of coffee in the African Union more than ever,” the Secretary-General said; adding that this is seen as a major achievement. Adding value to African coffee should be given great attention. This would lay the foundation for the growth of African coffee income and lead to a revival of coffee.
He recalled that senior officials of the European Development Fund were present at the forum; this would provide support for the continental effort to add value to African coffee and present it on the world market.
According to him, the organization is working to strengthen the free trade system between countries, in addition to making African coffee a global commodity. Most of the coffee produced in Africa is exported to Europe, and the organization is working to increase the productivity of quality coffee and expand market access.
He noted that, like Ethiopia, other countries on the continent should promote the culture of domestic coffee consumption. Everyone should play their role so that the continent can benefit from the sector by strengthening the value chain. The continent’s top leaders and officials should support this and show their commitment in concrete terms.
“Ethiopia is a lucky country in this regard, because if the world market slows down, the coffee it produces will not lose its domestic market. Therefore, other African countries should learn from Ethiopia’s experience and develop a culture of coffee consumption within their countries,” he said.
The Director General of the Ethiopian Coffee and Tea Authority, Adugna Debela (PhD), said that Ethiopia has been recording significant growth in coffee exports over the past five years. This has earned more than one billion Dollars in revenue, an unprecedented level in its history. He stressed the need for coordinated and transparent actions to increase Africa’s coffee exports by ensuring sustainable and quality production.
Investment in the African coffee industry is necessary to maximize the benefits of the sector. African countries should work together for this. Forums involving such leaders will create the capacity of coffee-producing countries to address the challenges encounter the sector and seize the opportunities that exist.
The Director General also said that Ethiopia is committed to strengthening sustainable coffee supply chains and forest management, which will increase export potential and trade opportunities. African coffee industry requires public and private sector collaboration to achieve the desired growth.
Dr. Adugna pointed out that the organization that all 25 coffee-producing countries in Africa have come together to solve their problems on a continental level. Above all, working together plays a crucial role in the current continental effort to be competitive in the global market. Only 12% of the coffee produced in Africa is sold to the world market, while in terms of its utilization, it is at the level of 13% of the world.
This indicates that Africa can feed itself with coffee, but the continent is under a lot of pressure and is not benefiting as much as it should. He cited as an example of this, “When new laws are introduced and international coffee prices fall, Africa is not benefiting as a continent.” working together will enable the countries to solve their common problems, and it is crucial to strengthen mutual trade, especially by taking advantage of the opportunities created by the African Free Trade Area.
He recalled that Ethiopia has been carrying out many tasks in this regard while being the leading country of the Union; in particular, it has made great efforts to have coffee approved as an African Union Agenda 2063, helping to discuss and find solutions to problems encountered at various forums.
On the other hand, Dr. Adugna pointed out that Ethiopia uses 50% of the coffee it produces domestically; “Other African countries, however, produce coffee but do not use it; for example, countries like Kenya, Rwanda, and Uganda export 99% of their production; therefore, when the world coffee price drops, they are at a loss.” a lot of work is being done to expand the opportunities for these countries to use coffee domestically, and he indicated that changes are being seen as a result. Ethiopia is also working to use this opportunity to supply the coffee it produces to various African countries.
According to him, in addition to the member countries of the organization, efforts have been exerted to make coffee-consuming countries members of the organization; this will create a favorable environment for strengthening trade and providing coffee at better prices. It will also reduce the possibility of falling under pressure from other countries. On the other hand, the macroeconomic reform is contributing significantly to the coffee export performance of Ethiopia.
He pointed out that the domestic coffee market has been stabilized by resolving the situation that caused the price of coffee to fluctuate domestically. This will give the country an opportunity to increase the foreign exchange it earns from the sector and produce quality coffee.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD FRIDAY 6 DECEMBER 2024
