Ethiopia is the cradle land of coffee Arabica. An indigenous coffee referred as the “black gold” by many Ethiopians has been serving as the backbone of nation’s economy for several decades now. Its coffee yields makes the nation the world’s fifth largest coffee producer. As to the Central Statistical Agency, coffee covers the highest export trade accounted for 34 percent of the total export sector. However, it has not been garnering sufficient foreign currency due to many factors. Lack of feasible coffee policy was among the challenges hampering the sector from further fructifying.
Having realized this, the government has designed coffee policy modification that aims to enhance coffee export, produce and productivity. As a result, a significant development was witnessed on foreign currency generation since the revised policy came into force.
The reformed policy has improved export trade and empowered farmers engaged in the sector, Deputy Director of Coffee and Tea Authority, Shafi Oumar, says.
‘‘Coffee is top on our important resources catalogue. The reform guideline would ensure quality, yield and production. It will also guarantee the advantage of producers, retailers and exporters. Beyond this, it has a crucial role in catering to the local consumption,’’ he explains.
The authority had planned to maintain 94 million USD last month but it gained 104 million USD, as to Shafi.
The deputy director insists that the new reformed policy entitles producers the chance to generate sufficient income through directly exporting their yields.
Among 600 registered farmers, 60 of them have already started exporting their coffee and this move has downsized the influence of agents and contrabandists, he explains.
‘’The new system would help our country to be competitive. It as well strengthens its bargaining power in the global market through enhancing quality. Consequently, this would boost the income that would be generated from coffee export as well,’’ he elucidates. Adding: ‘’expanding supply and export opportunities, creating market linkages and other reforms were included in the guideline. Accordingly, fruitful results have been gained so far in quality and foreign currency earnings.’’
Qellem Wolega Zone is one of the top coffee growing areas in Ethiopia. According to the Zone’s Agriculture and Natural Resources Office, more than121 tons of coffee was harvested in this fiscal year and this has significant increment compared to the previous fiscal year.
Though the reformed policy has played pivotal role in increasing produce and productivity, the nation should exert maximum efforts in establishing coffee processing industries so as to emerge compete in the international market, Yonatan Kesete, Economics Lecturer at Mekelle University said.
‘’Ethiopian coffee is known for its flavor and taste. It has high market demand. However due to its traditional way of export system, the country hasn’t been gaining income to the level it deserves,’’ he points out. Adding: ‘’exporting raw coffee wouldn’t be that much beneficial in the red hot global market. Therefore, we need to add value to our products. To realize this ambition, agro-processing industries should be built in those coffee growing areas of the country. This would create jobs for the local people as well’’
Distributing specialized coffee grains to producers would have huge significance in improving the quality, production and productivity. Hence, the government has been striving towards specializing coffee varieties to modernize the sector.
‘‘Feasible research activities should commence to improve the quality and volume of coffee export. This would enable the nation to compete in the global market. Furthermore, streamlining the activities of coffee growers, retailers and exporters should be strengthened,’’ he emphasizes.
The Ethiopian Herald Sunday Edition 24/2020
BY TSEGAY HAGOS
