A study case on coffee (Coffea arabica): Limu Coffe - IRD
A study case on coffee (Coffea arabica): Limu Coffe - IRD
A study case on coffee (Coffea arabica): Limu Coffe - IRD
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6.3) A current and coming decentralisati<strong>on</strong> of instituti<strong>on</strong>s<br />
In Jima and other z<strong>on</strong>al towns, the Ethiopia Commodity Exchange Authority is<br />
building laboratories and warehouses. In Jima, facilities are yet c<strong>on</strong>structed; it is going to be<br />
functi<strong>on</strong>al in November/December 2009. Roasting machine is yet installed in the new cupping<br />
laboratory. In this way, <strong>coffee</strong> coming from Jima surroundings will be stored in Jima ECX<br />
warehouse, then graded by the Jima ECX laboratory. This will c<strong>on</strong>cern <strong>coffee</strong> produced in<br />
Jima, Ilubabor and Kaffa (B<strong>on</strong>ga) z<strong>on</strong>es. Then Ethiopia Commodity Exchange Authority will<br />
maybe build warehouses and laboratories in B<strong>on</strong>ga and Bedelle (Ilubabor z<strong>on</strong>e).<br />
<strong>Limu</strong> <strong>coffee</strong> will be c<strong>on</strong>sequently graded in Jima ECX arrival <strong>coffee</strong> CLU, and<br />
stocked in Jima ECX warehouse, and w<strong>on</strong>’t be in Addis Abeba anymore. Only export <strong>coffee</strong><br />
will keep <strong>on</strong> going to the capital to get processed (Bülher machine), stored in ECX export<br />
warehouse then export graded and certified by the MoARD export CLU.<br />
This decentralisati<strong>on</strong> is a proof that Ethiopian government didn’t realize the recent<br />
<strong>coffee</strong> value chain changes to maintain its c<strong>on</strong>trol <strong>on</strong> regi<strong>on</strong>s, as it could have been claimed.<br />
In fact regi<strong>on</strong>s are given more c<strong>on</strong>trol than before because, up to now, all <strong>coffee</strong> had to pass<br />
through Addis Abeba and its aucti<strong>on</strong> centre (except Harar <strong>coffee</strong> passing by Dire Dawa<br />
aucti<strong>on</strong> centre). Now, domestic c<strong>on</strong>sumpti<strong>on</strong> <strong>coffee</strong> is going to stay in the producing regi<strong>on</strong>s.<br />
6.4) Prices<br />
6.3.1) Price formati<strong>on</strong> of Ethiopian <strong>coffee</strong>s<br />
<strong>Coffe</strong>e prices are fixed in c<strong>on</strong>suming countries commodity exchanges: Arabica <strong>coffee</strong><br />
exchange places are United States (New York) and Germany; Robusta <strong>coffee</strong> exchange places<br />
are New York and Paris. The Internati<strong>on</strong>al <strong>Coffe</strong>e Organizati<strong>on</strong> classifies <strong>coffee</strong> into four<br />
categories which share of each market place is as follows:<br />
- Colombian Mild Arabicas: 45% New York – 55% Germany;<br />
- Other Mild Arabicas: New York – 60% Germany;<br />
- Brazilian Natural Arabicas: 23% New York – 77% Germany;<br />
- Robustas: 18% New York – 82% France.<br />
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