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Structure And Performance Of Ethiopia’S Coffee Export Sector

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  • Minten, Bart
  • Tamru, Seneshaw
  • Kuma, Tadesse
  • Nyarko, Yaw

Abstract

We study the structure and performance of the coffee export sector in Ethiopia, Africa’s most important coffee producer, over the period 2003 to 2013. We find an evolving policy environment leading to structural changes in the export sector, including an elimination of vertical integration for most exporters. Ethiopia’s coffee export earnings improved dramatically over this period, i.e. a four-fold real increase. This has mostly been due to increases in international market prices. Quality improved only slightly over time, but the quantity exported increased by 50 percent, seemingly explained by increased domestic supplies as well as reduced local consumption. To further improve export performance, investments to increase the quantities produced and to improve quality are needed, including an increase in washing, certification, and traceability, as these characteristics are shown to be associated with significant quality premiums in international markets.

Suggested Citation

  • Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Structure And Performance Of Ethiopia’S Coffee Export Sector," Working Papers 190733, American Association of Wine Economists.
  • Handle: RePEc:ags:aawewp:190733
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    File URL: http://purl.umn.edu/190733
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    References listed on IDEAS

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    1. Pradyot Ranjan Jena & Bezawit Beyene Chichaibelu & Till Stellmacher & Ulrike Grote, 2012. "The impact of coffee certification on small-scale producers’ livelihoods: a case study from the Jimma Zone, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 429-440, July.
    2. M. Laura Donnet & Dave D. Weatherspoon & John P. Hoehn, 2008. "Price determinants in top-quality e-auctioned specialty coffees," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 267-276, May.
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    Cited by:

    1. Minten, Bart & Assefa, Thomas & Hirvonen, Kalle, 2017. "Can Agricultural Traders be Trusted? Evidence from Coffee in Ethiopia," World Development, Elsevier, vol. 90(C), pages 77-88.
    2. Kuma, Tadesse & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2016. "Cash crops and food security: Evidence from Ethiopian smallholder coffee producers," ESSP working papers 95, International Food Policy Research Institute (IFPRI).
    3. Tröster, Bernhard & Staritz, Cornelia, 2015. "Global commodity chains, financial markets, and local market structures: Price risks in the coffee sector in Ethiopia," Working Papers 56, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    4. Andersson, Camilla & Bezabih, Mintewab & Mannberg, Andrea, 2017. "The Ethiopian Commodity Exchange and spatial price dispersion," Food Policy, Elsevier, vol. 66(C), pages 1-11.
    5. Assefa, Thomas Woldu & Minten, Bart, 2015. "Can agricultural traders be trusted? Evidence from urban coffee markets in Ethiopia:," ESSP working papers 72, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    coffee; Ethiopia; exports; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade; Productivity Analysis;

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