A study case on coffee (Coffea arabica): Limu Coffe - IRD

Farmer 2: He produced three bags in 2001 EC (and ten in 2000 EC), one for self
consumption and two for sale. He sold that coffee at 150 birr per feresulla, which meant 600
birr per bag. He sold one bag of red cherries at 2 birr per kg to sebsabie for washed purpose,
and one bag of dried coffee at 9 birr per kg to sebsabie. He was informed on coffee prices by
farmers who already sold their coffee, then negotiated with sebsabies. But a part of his coffee
was paid before harvest: he asked credit to sebsabie before picking coffee, 200 birr, and
supplies him the corresponding quantity of coffee at daily price of transaction during
harvesting time. By this way, sebsabies catch more and more clients among farmers. As a
strategy for sale, he claims that: “It is better if we dry and sell coffee to sebsabies because
pulperies’ owners are oppressing us, exploiting us.” (Genet farmer, 28 th June 2009)
Farmer 3: He produced twenty bags in 2001 EC (thirty in 2000 EC), one for self
consumption and nineteen for sale. That coffee was sold at 4 birr per kg concerning red
cherries to Babo service cooperative and 3 birr per kg to sebsabies. Dried coffee was only
sold to sebsabies at 180 birr per feresulla (10.6 birr per kg). He was informed on coffee prices
through radio and akhrabies, and then negotiated with sebsabies while cooperative prices
were fixed. He also thinks that: “There is some exploitation from sebsabies. There is a too big
difference between what akhrabies give them to buy and how many they pay for our coffee.”
(Babo farmer, 2 nd July 2009)
Local price formation
Roughly speaking, and not as an exact rule, the richer dwellers of coffee producing
woredas purchase it in groceries whereas poorer ones buy it in local markets. People also buy
it directly to akhrabies. Prices decreased this way: grocery, market, akhrabie because of
middle men number with the respective prices: 30, 16 and 14 birr/kg of green coffee (Limu
genet, 29 th August 2009).
In local markets, as Genet one, women illegal traders sell coffee at different prices
according to its form (dried coffee within its husk, husk, husk + beans or beans), quality
and… their needs:
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