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Summary of Structure and performance of Ethiopia’s coffee export sector

Author

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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 that leads to structural changes in the export sector, including an elimi-nation of vertical integration for most exporters. Ethiopia’s coffee export earnings increased four-fold in real terms over this period. This increase has mostly been due to changes in international market prices. The quality of coffee improved only slightly over this time, but the quantity exported increased by 50 percent, explained by both higher domestic supplies and reduced local consumption. To further progress coffee 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. "Summary of Structure and performance of Ethiopia’s coffee export sector," ESSP research notes 29, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:essprn:29
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    Cited by:

    1. Minten, Bart & Dereje, Mekdim & Engida, Ermias & Kuma, Tadesse, 2019. "Coffee value chains on the move: Evidence in Ethiopia," Food Policy, Elsevier, vol. 83(C), pages 370-383.
    2. 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.
    3. Tadesse Kuma & Mekdim Dereje & Kalle Hirvonen & Bart Minten, 2019. "Cash Crops and Food Security: Evidence from Ethiopian Smallholder Coffee Producers," Journal of Development Studies, Taylor & Francis Journals, vol. 55(6), pages 1267-1284, June.
    4. Tröster, Bernhard, 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.
    5. Andersson, Camilla & Bezabih, Mintewab & Mannberg, Andrea, 2017. "The Ethiopian Commodity Exchange and spatial price dispersion," Food Policy, Elsevier, vol. 66(C), pages 1-11.
    6. 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

    trade; exports; coffee; Quality; Markets;

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