BY LAKACHEW ATINAFU
Coffee is a popular beverage and an important cash crop in the world. Empirics show that the product is the second most valuable commodity next to fuel.
Coffee contributes to the country’s foreign currency earnings and employing huge number of population, about 15 million. Ethiopia as widely known the birth place of Coffee Arabica demonstrated by variety and quality of coffee bean, the plant is grown in both high land and low land areas.
Having taken advantage of such blessing, over the preceding year the sector has registered astonishing success in terms of exported volume and foreign currency earnings.
The mild stimulant beverage has been contributing a greater share to the export earnings and especially at a time when the country is experiencing shortage of foreign exchange more than ever.
Coffee is the country’s pride which has been the backbone of the country’s economy for centuries, continues to be competitive in the world market. Recently, the government has given due attention to the coffee sector and it is boosting day by day and is supporting the country’s economy in a meaningful way.
The fact that the Ethiopian coffee, which is called “Economic Pole Coffee…”, is more in demand and competitive in the world market than before, and the country has become a beneficiary of the sector and the small holders in the sector have been able to be successful.
Dr. Adugna Debela, Director General of Ethiopian Coffee and Tea Authority told EPA that Ethiopia in order to make the economic and social benefits from coffee production sustainably, it is necessary to do a lot of work in supporting the coffee farmers.
He mentioned that Ethiopian coffee was sold at a staggering price in the world market within ten months of the fiscal year more than one billion Dollars. He also said that the authority has done comprehensive works for the better achievement.
The official thanked those who were directly or indirectly engaged in the coffee sector so that the price of coffee could show a high appreciation in the foreign market.
Ethiopia, more than ever before, has achieved an unprecedented and historic victory in the coffee sector. It is because it was able to bring about fundamental changes and reforms that lead the score on board.
Thus, in the first month of 2021/22, the authority moved with a plan to carry out various activities that would make the sector effective. In particular, problems related to coffee development and marketing shortcomings have been identified and action has been taken.
The authority was able to do the business with determination and in a situation that has not been seen before in the coffee market.
Among the agricultural products that Ethiopia exports to the foreign market, coffee is mentioned first. Therefore, in just ten months, the country was able to cover 30 percent of its total foreign currency earning.
In order to achieve the registered result the authority took various measures and among others help full to boost the sector and resolved problems identified in the transaction chain.
It has traveled a long way by creating enabling environment to farmers and suppliers easily able to purchase their products through direct links. By setting up a system that enables suppliers to deliver directly to exporters and exporters to follow the trail and provide products that can be accessible to the world market as the result, the products can be sold at a better price in the world market.
Officials of the authority say that it is the result of the commitment of every stakeholder involved in the coffee sector. In particular, it was possible to check and correct the old procedures in the marketing systems that were a hindrance to the export, and monitor smuggling and illegal trade with online system.
Actions have been taken against investors and vehicles that load coffee and go off the road, so that the amount of smuggling can be reduced and coffee can enter the world market directly. In addition, through cooperating with other stakeholders it was possible to building trust which has played significant role in the recorded results.
Planning and execution capacity of the fiscal year has been able to break records in terms of volume and income since Ethiopia started exporting coffee.
Since Ethiopia began to supply coffee to the world market, it has been able to set an unprecedented record in volume and income. In the 2022 fiscal year, Ethiopia exported 300,000 tons of coffee to various countries around the world, earning one point four billion US dollars. The authority planned to export 299,340.13 tons of coffee and exported 299,314.32 tons.
Compared to the same period of the previous fiscal year, it recorded an increase of 51,002.66 (20.54%) and an increase of 488.14 million dollars (53.82%) in revenue.
In the twelve months of fiscal year 2014, when looking at destination countries, Germany accounted for 63,499.74 tons (21%) of the coffee and 250.88 million US dollars (18%) of the revenue, while the United States accounted for 28,834.33 tons (10%) of the revenue and 177.17 million US dollars (177.17 million US dollars). 13%) share, and Saudi Arabia ranked 1st to 3rd in terms of revenue with a volume of 44,676.00 tons (15%) and a revenue of 176.52 million US dollars (13%). The rest in order of income in 2022 are 4th Belgium, 5th Japan, 6th South Korea, 7th China, 8th Italy, 9th United Arab Emirates and 10th Taiwan.
To achieve the export goal, the authority has facilitated an immediate response for coffee exporters and suppliers demand regarding securing loan from banks.
By organizing and analyzing current global and national market data, it was possible to collect, analyze and distribute coffee contract information. As the result it was possible to upgrade the quality of information and modernizing the management of coffee marketing. The authority has also worked to support the system of coffee that is sent from inspection stations every day, as planned to establish a coffee information database and information exchange system.
The transaction has been made easier by providing online customer service in 13 service areas. For the third time in the country, the quality of special flavored coffee was tested. The competition was successfully conducted under the coordination of the authority office. Adugna also said that his institute was able to achieve high results because it removed the problems and various bottlenecks in the sector, especially in the marketing system. He recalled that the authority pursue different procedures. In the past in the coffee market system, there were many actors who did not add any value which intern negatively affects the sector. Currently their role is diminished.
Therefore, by shortening value chain, traders are able to purchase directly from farmers and supply to the consumers directly.
Therefore, this year, 52 thousand tons of coffee which is more than the amount of coffee sent to the foreign market. By raising their quality standards, Ethiopian coffee has been sold to the world market at a better price. He also mentioned that there are different situations where new technologies are needed, especially that coffee suppliers and exporters should be welcomed online, and a system of operations has been established that allows them to conduct transactions in a transparent manner. By using existing and new technologies, they completed their preparations to achieve better results in the future by cleaning up the problem that was seen as a gap last year. In the next year, the authority aspired to sell three hundred and twenty thousand tons of coffee to the foreign market and earn one point five billion US dollars.
Finally, the Director General said the institute will not dwell on the achieved result rather it will continue to strengthen its efforts to achieve better results.
THE ETHIOPIAN HERALD WEDNESDAY 20 JULY 2022
