The coffee value chain in central america 49 illustration of principle 8. In this study we focus on three main research questions. Teff is also valued for its fine straw, which is used for animal feed as well as mixed with mud for building purposes. Ethiopia agpamde cost benefit analysis on coffee value chain, october 2012 acknowledgments. Value chain analysis from coffee farmers to exporters case of some selected districts of ilu aba bor administrative zone, oromia, ethiopia belay kinati debelo,phd candidate department of management, faculty of business and economics,mettu university, oromia, ethiopia. This is to certify that girma bayu has carried out his thesis on the topic of analysis of determinants of coffee value chain performance in ethiopia under my.
In 201011 ethiopia exports coffee to 53 destination countries the total volume and value of coffee export 201011 was 196,117 ton and 841. For example, in rwanda alone, there are approximately 400,000 coffee farmers. First, we study changes in coffee production practices over the last decade and then analyze how these production practices affect coffee productivity. Sesame seed is ethiopias main exported product after coffee. This report provides an analysis of the critical role of pulses in agricultural production as a driver. Objective of the value chain analysis the overall objectives of the contract are to undertake value chain study on meat processing industries in ethiopia. The birthplace of coffee, ethiopia is home to some of the finest coffees in the world. Strengthen export sector increase export producer linkages short medium term 12 years longterm 35 years. Analysis of sesame marketing chain in case of gimbi districts, ethiopia fikru temesgen 1 efa gobena 1 hailu megersa 2 1. Sesame seed is ethiopia s main exported product after coffee.
The rice value chain in senegal 45 illustration of principle 7. Developing sustainable food value chains guiding principles. Deregulation, evolving corporate strategies, and new consumption patterns have transformed the global coffee chain dramatically in the last two. The leap team would like to thank the many individuals who have assisted the team in undertaking this study. Value chain analysis of ethiopian coffee coffea arabica. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or. Figure 1 topics covered during the coffee conference. Liquid milk and feed value chain analysis in wolmera district. From 2000 to 2016, the total quantity exported annually increased from 31 thousand tones to about 317 thousand tones, an increase of.
Pdf important changes have happened to the upstream segment of the coffee sector in ethiopia africas biggest in the last decade. Exporters and importers are also considered as stakeholders in the value chain. Similarly, the equivalent of soluble coffee to green coffee is estimated by multiplying the net weight of h l bl ff b 26f h l. Agriculture and rural development includes bibliographical references and index. Sep 21, 2015 the complete coffee value chain was critically examined and discussed by leading experts in the field, culminating with an international perspective of the unexploited potential that exists in ethiopias coffee industry. Average consumption in selected importing countries 60kg bags average consumption1975. Analysis of market chains of forest coffee in southwest.
Jul 19, 2017 the coffee market and its value chain has been a major headache for the growers as well as exporters in the country. Ethiopia is currently the top african coffee exporter and ranked sixth in. Company value chain can be divided into two groups. Heres how the coffee supply chain works from beginning to end. Growers involved with the coffee supply chain are often small scale, operating on farms that are only 1 or 2 hectares each hectare 2. In nominal usd terms, the value of coffee exports in 2014 was 1 percent higher than in 200405. Value chain analysis of coffee the case of yirgacheffe coffee farmers. From 2000 to 2016, the total quantity exported annually increased from 31 thousand tones to about 317 thousand tones, an increase of more than tenfold. Coffee value chain in selected importing countries denis seudieu, chief economist international coffee organization. Introduction coffee is a truly global commodity and a major foreign exchange earner in many developing countries. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the united states government. A preliminary view of the sequencing of activities that could strengthen the maize value chain follows. The research aimed to identify the quality deteriorating factors at pre and postharvest level of the coffee value chain in the arsi zone of chole district.
Coffee strategies is led by andrew hetzel, specialty coffee market, value chain and trade promotion expert. A supply chain represents the intricate string of processes that it takes to bring a product to the consumer. Value chain map was to depict the coffee value chain in ethiopia explicitly. A useful methodology for understanding how markets operate, for a particular good, is value chain analysis. In order to identify the ethiopian coffee supply competitive advantage, coffee value chain analysis were carried out as products pass through all activities of the. Starbucks as an example of the value chain model supply. Liquid milk and feed value chain analysis in wolmera. Analysis of teff value chain in bacho and dawo districts. Dowding, university of connecticut, stamford ct usa abstract this paper examines starbucks corporate strategy of sustainable efforts in ethiopia, particularly in the sustainable sourcing arabica coffee. After collection of data from interview and desk study, the analysis is done by value chain analysis. The government of ethiopia goe recently announced a plan to restructure the coffee development sector by designating a specialized institution that can provide technical support to the coffee value chain. Crop production is a major contributor to gross domestic product accounting for approximately 28% from the sub sectors of agriculture. A comparative analysis of the coffee value chain igc.
Results of value chain analysis for liquid milk and feed in the study area the main actors in the dairy industry are the milkdairy producers, collectors cooperatives, unions, private traders and factory collection units and dairy processors. In a value chain, coffee beans go through different process before it reaches the hands of a consumer. Pdf value chain analysis of the pre and postharvest. According to csa 2016, from 201415 to 201516, total production of coffee has increased from 3. A firm may create a cost advantage either by reducing the cost of individual value chain activities or by recognizing the value chain. Constraints and opportunities in the coffee supply chain. Value chain analysis for the coffee sector in rwanda cbi. Farm productivity and value chain analysis of coffee. An analysis of the global value chain for indonesian co. The tea value chain in kenya 41 illustration of principle 6. A value chain is a set of value adding activities through which a product passes from the initial production or design stage to final delivery to the consumer and can be local, national, regional or international in scope kanji et al. Analysis of coffee quality along the coffee value chain in. Ethiopia coffee industry value chain analysis usaid compete 2010 profiling the actors, their interactions, costs, constraints and opportunities. The market conduct analysis revealed that price setting mechanism is largely determined by the benevolence of buyers and the existing market force in the producers and exporters market respectively.
The information for this study was obtained through the support of many stakeholders at all levels. Analysis the coffee value chain in ethiopia to identify the. Policy implications for improving investments in maize and wheat value chains may 30, 2018 agriculture global practice gfa public disclosure authorized public disclosure authorized public disclosure authorized public disclosure authorized. Concepts, applications, and extensions of value chain. The margin analysis indicated that exporters take the largest profit margin 50.
While quantities exported from ethiopia increased over the last decade, from 161,061 tons in 200405 to 189,669 tons in 2014. The coffee industry has changed significantly over the last 10 years. Review value chain analysis potato in ethiopia worku. Analysis of teff value chain in bacho and dawo districts of.
Challenges and opportunities ethiopian coffee export conference 8 9 november 2012 addisababa ethiopia international coffee organization, jose d. Hetzel and his team advise governments, exporter groups and private coffee industry stakeholders to sustainably increase the value of coffee production and trade. Second, in contrast with common practice in value chain analysis, relying for its data gathering often on qualitative and nonrepresentative methods webber and labaste 2009. Coffee value chain analysis and consulting from the experts. Analysis of sesame marketing chain in case of gimbi. Once a value chain is defined, cost analysis can be performed by assigning costs to the value chain activities. Analysis of coffee supply, production, utilization and marketing issues and challenges in ethiopia. Both qualitative and quantitative analysis tools like, pestec, swot, matrix, chain map, tables and problem tree were used to identify the possible constraints retarding the performance of the coffee value chain in the country. Policy analysis and economic research team july, 2008addis ababa. Overview of recommendations and activity sequencing. Coffee exports from ethiopia have performed well over the last decade. Value chain analysis for coffee in karnataka, india. Quality and value chain analyses of ethiopian coffee. Most of that increase has been due to a significant rise in international prices of coffee.
The value chain starts from the farmer and goes up to the level of the roaster. Quality and value chain analysis of ethiopian coffee. In this paper, we look at the coffee sector in ethiopia and analyze changes and their drivers upstream in the value chain. The value chain actors will play a critical role to increases the profit plow back in the ethiopian coffee sector and then will significantly improve living standards of the poor who are at the. Aug 18, 2017 we will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e. Value chain analysis of coffee the case of yirgacheffe coffee. Value chain analysis of ethiopian coffee coffea arabica journal. For every cup of coffee we drink, there is a story from crop to cup. First the ethiopian coffee sector is overviewed and then analyzed qualitatively and quantitatively starting from the crop up to the cup based on data collected from secondary sources.
The value chain actors will play a critical role to increases the profit plow back in the ethiopian coffee sector and then will significantly improve living standards of the poor who are at the source of the chain. Value chain study on meat processing industry in ethiopia. Value chain analysis for the coffee sector in rwanda. This study focused on the analysis of marketing chain of coffee production. The report defines the market in terms of traders and roasters, who procure coffee to supply to the retail distribution channel for end consumers. Pdf value chain analysis of coffee in jimma zone of oromia. Pdf a study entitled value chain analysis of coffee was undertaken in jimma zone, ethiopia with the aim of identifying the value chain actors. Pulses value chain potential in ethiopia constraints and opportunities for enhancing exports. Its links are comprised of many different positions in the coffee production process. Value chain analysis was undertaken from the collected data to identify the value chain affecting factors. Wolaita sodo university, college of agriculture, p.
That is, through the analysis of value added within the chain, one can determine who benefits from participation in the chain and which actors could benefit from increased support or organization. The general objective of the study is to assess factors affecting farm productivity and value chain analysis of coffee in nejo district and explore the better way through which. Value chain analysis was undertaken from the collected data to identify the value. Value chain analysis is an analytical framework that is used to analyse relationships between various parts of operations and the manner in which each part adds value to contribute to the level of revenues. Khat production continues to increase at the expense of coffee production.
The objective of this paper is to analyze the quality and value chain of ethiopian coffee in a way to identify opportunities that maximize the benefits from the sector. Determination of gross added value contd conversion factors are us ed to calculate the equivalent of roasted coffee to green coffee by multiplying the net weight of the roasted coffee by 1. Stakeholder matrix was used to show the role of chain supporters take part in the coffee value chain. The thesis is a study of the coffee market through the process of value addition, with importance given to small coffee producers aiming at their development. The most widespread distinction used in the teff value chain in ethiopia. Denis seudieu, chief economist international coffee council london, march 2011 table 1. While quantities exported from ethiopia increased over the last decade, from. Analysis of sesame marketing chain in case of gimbi districts. Starbucks value chain analysis 2014 john dudovskiy. Analysis of coffee quality along the coffee value chain in jimma zone, ethiopia kassaye tolessa agricultural and nutrition research laboratories directorate, ethiopian institute of agricultural research, p. Department of agribusiness and value chain management, ambo university, p. Coffee generates 70 percent of ethiopias foreign exchange earnings and provides livelihoods for 15 million ethiopian smallholder farmers.
The vegetables value chain in the philippines 38 illustration of principle 5. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j. The national export council, which was formed to undertake consultations with stakeholders over means to increase the volume of ethiopian exports, identified the major bottleneck of the coffee market and pointed out major. Liquid milk and feed value chain analysis in wolmera district, ethiopia. Review of gender and value chain analysis, development and evaluation toolkits. Review value chain analysis potato in ethiopia more than 80% of the ethiopian population earns their livelihood from crop cultivation and livestock rearing activities. Standards and sustainability in the coffee sector a global value chain approach 1 1.
The major coffee growing countries across the world is shown in figure 1. A new value chain channel has been established for specialty coffee exports from ethiopia dempsey, 2006. The costs obtained from the accounting report may need to be modified in order to allocate them. Analysis of market chains of forest coffee in southwest ethiopia. Different research strategies were employed to answer the research questions, which include. Coffee value chain analysis and consulting from the. Ethiopia coffee industry value chain analysis usaid. The objective of this value chain analysis study is to conduct an indepth. Ethiopian coffee growers, producers and exporters association. Finally, value chain analysis can play a key role in identifying the distribution of benefits of actors in the chain.933 777 800 1378 1128 1135 1306 167 728 1001 1168 707 1366 1107 985 1180 1218 1613 1297 1153 327 525 635 1437 368 143 960 776 854 97 1320 777