Causes of coffee desolation in southeastern Ethiopia

Causes of coffee desolation in southeastern Ethiopia

Coffee is Ethiopia's most important export cash crop and the main source of Ethiopia's foreign exchange earnings. Ethiopia's coffee exports account for about 3% of the world market, making it the eighth largest coffee exporter in the world. Coffee exports increased steadily from 58000 tons in 1990 to 110000 tons in 1995-1996 and remained at this level in the following years. The export volume exceeded 110000 tons from 2001 to 2002 and reached 127000 tons from 2002 to 2003. As the price of coffee on the international market has been declining for a decade, Ethiopia's foreign exchange earnings have been seriously affected. Before the sharp drop in coffee prices, coffee exports accounted for more than half of Ethiopia's foreign exchange earnings, but now they account for only about 35 per cent. But according to the International Coffee Organization, coffee prices rebounded in 2002, rising from 41 cents per pound in September 2001 to 52 cents per pound in 2002 and 59.7 cents per pound in 2003. The average price in March 2004 was 60.8 cents per pound, an increase of 50% over September 2001. This is excellent news for Ethiopia.

In Ethiopia, the grading and quality control system of coffee is divided into three levels: producer, regional and national. All coffee is inspected by local inspection agencies before leaving the country of origin, and then re-tested at the coffee inspection and grading centers in Addis and Diredawa to determine its quality grade. Coffee is graded before auction and sale and is important for all groups involved in production, acquisition, export and consumption. Before export, coffee must also be sent to a national quality control agency for inspection to confirm that the origin and color meet the export standards to ensure the reputation of Ethiopian coffee.

Getachew Mengistie, director of Ethiopia's Bureau of intellectual property, bluntly pointed out that farmers sell raw beans for $1.45 a pound, while Starbucks sells for $26 a pound in the United States, 18 times the price difference between the two places. The reason is that Ethiopia does not know how to use intellectual property rights to create value for farmers. As long as it has the name of Ethiopian boutique beans, it can be marketed in the United States at three times the price of ordinary commercial beans. You know, investing in baking, packaging and marketing equipment through downstream channels in the United States alone cannot create such a huge added value, because most of the value comes from the coffee producing area (if Starbucks is not branded as "Sidamo", you can't sell it at such a high price. He stressed: "Ethiopia is the birthplace of coffee. Of course, the famous producing areas have huge marketing value, but they are ignored by farmers. As a result, excess profits are finally earned by countries that know how to use the prestige of the place of origin to create value." it took no effort to earn it.