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Scaling up Higher Quality Coffee In East Africa: Experience from Ethiopia <ul><li>Esayas Kebede (Mr.) </li></ul><ul><li>MOARD (Ethiopia) </li></ul><ul><li>5th African Coffee Scientific Conference Kigali(Rwanda ) </li></ul><ul><li>12 th Feb. 2009 </li></ul>

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INTRODUCTION <ul><li>The agriculture-based Ethiopian economy is highly dependent on C offee </li></ul><ul><li>Over 25% people earn livelihood from the sector </li></ul><ul><li>At present contributes about 40% of the foreign exchange earning </li></ul>Year Total Agri. Export (USD) Coffee Export Quantity (ton) USD 2004/05 0.704billion 159845 335 million 2005/06 0.886billion 153155 366 million 2006/07 1.023 billion 176390 424million 2007/08 1.308 billion 170781 525 million

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<ul><li>Coffee grows in four production systems. </li></ul><ul><ul><ul><li>8% forest coffee </li></ul></ul></ul><ul><ul><ul><li>36% Semi- forest coffee </li></ul></ul></ul><ul><ul><ul><li>50% Garden coffee – increasing </li></ul></ul></ul><ul><ul><ul><li>6 % Modern coffee plantation – increasing </li></ul></ul></ul><ul><li>Total coverage of coffee estimated around 800,000 hectare </li></ul><ul><ul><ul><li>Smallholder - 600,000 ha </li></ul></ul></ul><ul><ul><ul><li>Commercial Coffee </li></ul></ul></ul><ul><ul><ul><ul><li>public - 20,000 ha. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Private – 31,000ha </li></ul></ul></ul></ul><ul><ul><ul><li>Forest coffee - 5 0000ha </li></ul></ul></ul><ul><li>Productivity is 4.5 to 6 Qt/ha </li></ul>

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The coffee industry performance and perspective <ul><li>Globally number one in Arabica coffee diversity </li></ul><ul><ul><li>Home for diverse Arabica coffee types/flavors </li></ul></ul><ul><ul><li>Can satisfy the demands of diverse customers </li></ul></ul><ul><ul><li>Largest producer and exporter in Africa. </li></ul></ul><ul><ul><li>Both production and area under coffee increasing. </li></ul></ul><ul><ul><ul><li>Volume and quality of export increasing, </li></ul></ul></ul><ul><ul><ul><li>Nine coffee types being exported. </li></ul></ul></ul><ul><ul><li>At present 170,000 ton exported </li></ul></ul><ul><ul><li>Of the total export </li></ul></ul><ul><ul><ul><ul><li>30-35% washed and the rest is sun-dried </li></ul></ul></ul></ul><ul><ul><li>Domestic consumption is about 50% of the total production. </li></ul></ul>

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<ul><li>Increasing production and productivity. </li></ul><ul><ul><li>Improve Coffee extension system, and packages </li></ul></ul><ul><li>Improving quality. </li></ul><ul><ul><li>Increasing wet-processed coffee </li></ul></ul><ul><ul><li>Establishing state of art residue analytical laboratory </li></ul></ul><ul><ul><li>Change all the old jute with the new jute </li></ul></ul><ul><ul><li>Promotion/Provision of storage facilities </li></ul></ul><ul><li>Market Improvement </li></ul><ul><ul><li>Developing modern Commodity exchange – improving efficiency, transparency and integrity. </li></ul></ul>

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<ul><li>From 2004 – 2007. </li></ul><ul><li>The major objective were: </li></ul><ul><ul><li>Improving coffee Quality </li></ul></ul><ul><ul><li>Introducing semi-washed (pulped) coffee processing </li></ul></ul><ul><ul><li>Improving farmers income </li></ul></ul><ul><ul><li>increasing foreign exchange earnings </li></ul></ul><ul><li>The components were:- </li></ul><ul><li>Semi washed processing using simple hand pulper </li></ul><ul><li>Improving sundering coffee quality </li></ul><ul><li>Promotion and Dissemination. </li></ul><ul><li>Project coordination </li></ul>

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<ul><li>Capacity building: </li></ul><ul><ul><li>Materials and Equipment </li></ul></ul><ul><ul><ul><li>Drying materials, and hand pulper with accessories </li></ul></ul></ul><ul><ul><li>Awareness raising and training of farmers, Extension staff at different levels, and local officials </li></ul></ul><ul><li>Significantly improved coffee quality </li></ul><ul><li>Increased the dry cherry to green bean result </li></ul><ul><li>Fetched premium prices for the producers </li></ul><ul><li>Project farmers developed saving culture and investment </li></ul><ul><li>Incentive mechanisms motivated project farmers and neighboring farmers to further improve quality - copy farmers created </li></ul><ul><li>Influenced/convinced the government and other agencies to support/ sustain the initiative </li></ul><ul><li>Improved linkage among stakeholders, </li></ul><ul><li>Brought attitudinal and practice change among traders – started paying different prices </li></ul><ul><li>Changed the images of coffees of the districts </li></ul>

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Region Zone Grades ( % ) Grade 1 Grade 2 Grade 3 Grade 4 Local use Total SNNP B/maji - 0.2 6.4 28.9 64.5 36,715.5 Sheka 0.04 1.3 9.06 26.6 63.02 3241.9 Oromiya Djimma 0.09 3.6 57.9 27 11.5 110,697.3 Ilubabor 0.03 9.2 73.6 13.6 3.5 76,113.4

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Year Washed (Ton) Sun dried (Ton) Total (Ton) Remark 2005/06 101 60 160 2006/07 120 115 235 2007/08 100 230 330 Total 321 405 726

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Year Grade% 1 and 2 3 4 5 2005/06 40 60 - - 2006/07 33.8 46,2 20 - 2007/08 84 16 - -

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<ul><li>Low productivity </li></ul><ul><ul><li>More than 70% of coffee tree are old age </li></ul></ul><ul><ul><li>Lack of appropriate agronomic practices such as pruning techniques and equipment </li></ul></ul><ul><ul><li>Lack of appropriate credit institutions </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>Lack of differential payment for coffees of different quality at farm-gate </li></ul></ul><ul><ul><li>auction center was far from farmers </li></ul></ul><ul><ul><li>Farmers lack access to modern storage facility </li></ul></ul><ul><ul><li>Farmers are unable to supply their coffee directly to auction </li></ul></ul><ul><ul><li>Self interest of the co-funding agency </li></ul></ul><ul><ul><li>Lack of strong farmers’ organizations (some QC project area) </li></ul></ul>

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<ul><li>The government have realized the benefits and appreciated the QC pilot project (Coordination, supervision and funding agency) </li></ul><ul><li>The Scaling up (2 nd phase) project proposal has been developed by MoARD and CABI Africa </li></ul><ul><li>The project was supported and signed by the gov’t officials </li></ul><ul><ul><li>Ministry of Agriculture and Rural Development </li></ul></ul><ul><ul><li>Ministry of Finance and Economic Development </li></ul></ul><ul><li>Has been submitted for funding to ICO and CFC </li></ul><ul><li>Comments were given by ICO and CFC – the comments have been incorporated and sent to ICO and CFC through CABI Africa </li></ul><ul><li>The 2 nd phase will cover 20 districts </li></ul><ul><li>Will build on lessons learned during the pilot phase </li></ul>

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<ul><li>We request all concerned partners (and funders) to facilitate early start of up-scaling of QC project – the government is waiting for the start of the project with interest </li></ul><ul><li>The project components shall have a credit scheme </li></ul><ul><li>The project shall pay attention to supporting establishment of strong farmers organizations, </li></ul><ul><li>Marketing component of the project should also be further strengthened – using innovative approaches </li></ul>

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THANK YOU VERY MUCH !