Ethiopian Coffee Strategy.pdf

Executive Summary

Ethiopia aims to capitalize on growth in the global coffee sector, driven by demand from developing countries and specialty coffee markets. The country has ideal climatic conditions, world-class varietal diversity, and low on-farm production costs, giving it a comparative advantage over other coffee-producing countries.

Key Challenges

Low yields and export volumes
Low export prices
Inefficiencies across the value chain

Objectives

Maximize Ethiopia's coffee export revenues
Increase value chain incomes, especially for smallholder farmers

Projected Outcomes

Annual export revenue: $780 million to $3.6 billion (conservative) or $4.6 billion (high price scenario)
Annual farmer incomes: $468 million to $2.7 billion (conservative) or $3.5 billion (high price scenario)
Employment creation: at least 2.7 million people across the coffee value chain

Six Key Pillars

1. Research: Invest in cutting-edge research to leverage Ethiopia's coffee genetic wealth and create climate-resilient, disease-resistant, high-producing, and high-quality varieties.
2. Production and Extension: Improve productivity and agronomy through coffee-focused training and extension, and address low adoption of good agricultural practices.
3. Processing: Improve quality and management practices by encouraging exporters and international market actors to provide financial and advisory services.
4. Value Addition: Create value-addition training programs and encourage international stakeholders to provide advisory services to increase value-added exports.
5. Marketing: Invest in branding, promotion, and marketing, and refine policies and streamline administrative procedures to improve the ease of doing business.
6. Strengthening the Coffee Sector: Build effective institutional linkages, collect accurate sector data, and set up a coffee fund to invest in a range of activities.

Implementation

The success of the strategy requires continuous and coordinated efforts from all relevant private and public stakeholders, as well as support from key financial and technical partners, donors, and investors.