Thursday, February 22, 2024
BusinessCoffee hits new heights under new model

Coffee hits new heights under new model

Ethiopia’s coffee export fetched a staggering USD 417 million during the past four months between July and October 2021, exceeding the USD 310 million targeted by the Coffee and Tea Authority for the period, by USD 106.8 million. The earning grew by 40 percent compared to that of the same period last year.

A surplus of 16,634 tons of coffee was exported, more than the 92,174 tons of coffee the authority had planned to export for the past four months.

The extra-plan performance is attributed to ‘vertical integration’, a new supply chain designed for export coffee since last year. The new model enables international buyers to directly link with Ethiopian coffee growers and suppliers.

“vertical integration has cut out the layers of brokers and intermediaries previously involved in domestic coffee supply chain. Under the new model, there are no brokers who hold coffee and speculate. This has increased the volume of exported coffee substantially, and Coffee farmers are also benefiting from the new model, unlike previous approaches,” Shafi Oumer, Market Development and Inspection Sector Deputy Director at the Ethiopian Coffee and Tea Authority, told The Reporter.

Germany bought 26,874.10 tons of coffee during the time for USD 90.85 million. Saudi Arabia, Belgium, United States, Japan, South Korea, Italy, China, France, and Taiwan, all tail Germany.

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Ethiopia’s coffee trade with these top ten Ethiopian coffee consumers has increased by 77 percent since last year, attributed to lockdown consumption.

The Authority has finalized its preparations to provide fast and efficient services to actors of the sector and provide e-service to reduce customer irritation, Shafi said.

According to the Deputy Director-General, the service will be implemented in collaboration with the Ministry of Innovation and Technology.

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Video from Enat Bank Youtube Channel.

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