Ethiopia is a unique coffee origin, boasting biological and cultural diversity in coffee. As the birthplace of Arabica coffee, Ethiopia is also home to large quantities of coffee in both of the world’s major production styles: sundried natural, and full washed. Ethiopia’s coffee grows in distinct geographic areas and microclimates. With hundreds of indigenous coffee cultivar, farmers grow their own unique varieties, a majority of which are not grown anywhere else in the world.
Ethiopia has distinct geographic areas and microclimates with Nekemte, Limmu, Sidama, Jimma, Harar and Yirgacheffe as key coffee producing zones in the Oromia and SNNP regions. During the 2012/2013 period, coffee exports amounted to 200,000 tons. With 500,000 hectares of land available for coffee cultivation, Ethiopia is well situated to increase the quantity of high quality export coffees by more than 70%.
AGP Coffee Activities
AGP-AMDe‘s strategy for the coffee value chain is to contribute towards the overall goal of a 50% increase in Ethiopian coffee exports that will receive value added premium of over 200% by 2020 as per the government’s Growth and Transformation Plan (GTP). AGP-AMDe’s activities in the coffee producing AGP woredas includes:
Enhancing productivity of farmers by enabling local and international market linkages and generating jobs through nursery activities. AGP-AMDe has also helped facilitate incremental sales of USD 1.2 million in the Jimma and Illubabor zones through its market linkage expansion activities.
Technology transfer support to farmers encouraging adoption of new disease resistant, high yielder and good quality seedling in replacement of old unproductive coffee fields. AGP-AMDe also provides support to ECX regional centers for the establishment of electronic traceability systems to increase issues of reliability, quality certification and to align with international standards. The traceability system will allow the majority of the commodity coffee traded through ECX to be traceable and thereby address the needs of specialty market requirements.
Enabling access to finance by providing FCUs with assistance in developing bankable business plans and facilitating the loan process, including application and negotiation support. Loan utilization advisory services are also provided by AGP-AMDe on approved loans, enabling FCUs to maintain their bankability. USD 30 million has been facilitated to date with USD 12 million approved.
Technical Training Support through provision of coffee quality improvement, coffee processing systems, ECX grading system and primary marketing training. Additionally, SMFM training is provided regularly and has been cascaded to 8,981 smallholder farmers and government officials/experts in the 2nd quarter of year 2013/2014. SMFM trainings are expected to contribute to the production of higher value specialty coffees.