Of Ethiopia’s coffee exports, less than 20% currently meet the standards to receive the value- added prices of specialty coffee. Ethiopia has the land (500,000 hectares), labor (12 million people), and varieties to increase the export of quality coffees to more than 75%. Reaching this level of specialty coffee exports would bring an increase of earning greater than $250 million dollars annually to Ethiopia’s coffee farmers.
Under the coffee value chain strategy, AGP-AMDe’s work is contributing to 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), whereby improvement in quality is rendered a key competitive positioning. Specifically, the program is working to increase the value of commercial coffee while promoting specialty coffees; introduce traceability for mainstream Ethiopian coffees; increase efficiency of ECX platform; and promote new developments in coffee export markets.
During the course of the last year, AGP-AMDe continued to strengthen the foundation for quality and to align the Ethiopian coffee sector with international best practice to capture increased value for the product.
The project activities contributed to a significant increase in the value of exports that already surpassed the target for the year. The project continued to advance in sales for a total of USD $10,679,823. This increase is mainly due to the strengthening of local organizations and exporters and marketing support through the Ethiopian Fine Coffees initiative. As a result of the program’s assistance, Ethiopian coffee suppliers are able to use the common language of specialty coffee to distinguish and differentiate their product in conversation with discerning buyers, and attain higher prices as a result.