Vertical Integration Offers Lifeline for Ethiopian Coffee


Vertical Integration Offers Lifeline for Ethiopian Coffee

Challenges of successfully implementing vertical integration strategies prompted lively discussions from stakeholders in the coffee supply chain while championing the approach for boosting coffee exports and enriching the lives of coffee farmers. A staggering 90pc of Ethiopia's 1.3 billion dollars coffee export revenues in 2023 originated from such arrangements, with the remainder facilitated through the Ethiopian Commodity Exchange (ECX). A recent meeting at the Elily Hotel, near Guinea Conakry St., brought stakeholders together to dissect the challenges and opportunities with Adugna Debela (PhD), head of the Ethiopian Coffee & Tea Authority, asserting that vertical integration has led to a significant increase in coffee cultivation area, jumping from 756,000hct to roughly 1.1 million hectares in four years. However, the rosy picture painted by Adugna is not without its critics. Coffee supplier Nigussie Gemeda contests the claim of improved livelihoods for farmers, highlighting the persistent presence of intermediaries and brokers who continue to siphon off substantial profits. Prominent exporters like Israel Degega, CEO of the Kerchanse Group, echo concerns about inadequate financing within the system, acknowledging the potential misuse of preferential loan programs by some exporters. Adugna acknowledged contract defaults, exaggerated offers, and delayed payments as lingering challenges that prevent vertical integration from reaching its full potential.


Radar

Coffee Exports Bring in $1.5B in Third Quarter

Ethiopia has earned 1.5 billion dollars from coffee exports over the nine months of the fiscal year. The country had set a target to earn a little over a billion dollars by exporting 201,959tns of coffee during the same period. According to Adugna Debella (PhD), director general of the Ethiopian Coffee & Tea Authority, the export strategy continues to focus on major international markets, with the top 10 destinations, including Saudi Arabia, Germany, and the United States (SU), accounting...


Radar

Central Bank Holds Fourth Exchange Auction

The National Bank of Ethiopia(NBE) sold one dollar for 131.4961 birr in its recent auction. It was reported that 26 banks participated in this auction, which took place last week on Thursday. In a statement issued by the National Bank  following the auction, it was indicated that 70 million dollars was offered for the event. Subsequently, it was reported that 96 pc of the foreign exchange needs of the participating banks were met. In the previous auction, held 15 days ago, the bank had of...


Radar

City Registers 64,075 Births in Fiscal Year

The city has exceeded its birth registration target for the first nine months of the fiscal year, registering 64,075 children—71.15pc more than the set goal of 58,342. This success, with a registration coverage rate of 109.63pc, is largely attributed to the efficiency of the one-centre birth registration service system, which has been rolled out across health centres and courts. The total number of vital events registered, including births, adoptions, marriages, divorces, and deaths, reache...