Impact of Ethiopian Commodity Trading Exchange ECX on Coffee Export quality | Coffee bean value chain

The coffee atmosphere in Ethiopia is very strong. His unique geographical environment and climatic conditions make the coffee taste wonderful. Rich, the depth, width and breadth of the flavor are among the best.

As the oldest coffee drinker, how did Ethiopia grow into a huge coffee empire? This is closely related to the Ethiopian Commodity Exchange. After the establishment of the Ethiopia Mercantile Exchange in 2008, information such as more traditional regions, emerging production areas and local warehousing distribution centers has rearranged the classification of contract trading and production areas: small production areas contained in contract sites, designated areas and coffee century production areas must be linked. The Ethiopian Commodity Exchange also provides information on the processing and storage of boutique coffee. So how does he work? Let's let the editor give you a brief introduction!

The Operation Mode of Ethiopia Commodity Exchange and the whole Coffee value chain

The operating system of the Ethiopian Commodity Exchange: farmers, cooperatives and businessmen bring Shell beans to the → sub-station of the exchange to mark the initial quality and weight of the → return to the exchange; the buyer must first have a guaranteed account in the exchange → to see the supply list to subbid.

The operation process of the overall trading value chain of the exchange and large cooperatives, private farms and boutique direct trade (DST) system: all exported coffee must go through the regional exchange office to confirm its quality and weight before it can be shipped to the capital and the next transaction, and must be sent to the coffee cup quality testing and appraisal center (CLU) for final quality appraisal or sampling inspection before bagging and export. The new announcement in 2017 reopens the direct sale of boutique batches and marks the information that can identify the source of production. Italian buyers consult the information of the washing station at the source after buying raw beans, but it is still difficult to solve the problem of opaque information encountered by international buyers in the search for beans.

Fortunately, there has been a major change in this rule since 2017. The Ethiopian Prime Minister's office worked hard to adjust policy and cater to the trend, and the announcement No. 1051 issued by the Exchange in 2017 excited the global boutique coffee circle. A small amount of boutique coffee that can be traced back to the source can be traded again, but it must be noted before placing an order that although coffee can be purchased directly, after the batch is ready and samples are retained, if the contract is not fulfilled within three days, the batch still needs to be traded through the Ethiopian Commodity Exchange.

Frankly, there is nothing wrong with the trading model of the Ethiopian Mercantile Exchange. His method of intimidating the brokers who buy fruit in the producing area has become ineffective. Coffee exports account for 25% of Ethiopia's foreign exchange earnings, and the reform measures proposed by the government have long been beneficial to the industrial environment, and after fine-tuning, it will help bean hunters of various countries to look for good goods.

The basic information such as the variety and origin of coffee beans can be clearly seen from the ECX contract below.

Buyers in the exchange platform can only see the logo of the trading area, can not achieve anitry preeved (referred to as IP), for boutique coffee buyers IP is a necessary information, international buyers usually pay a higher price to identify the source of high-quality coffee. Now that coffee exporters finally have the opportunity to sell IP coffee to foreign buyers, the new system is worth applauding for achieving a win-win situation for both buyers and farmers.