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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Akhrabies represent a homogeneous class of traders and grocers having accumulated<br />
capital to invest <strong>on</strong> processing plants and warehouses even if their means vary from <strong>on</strong>e to<br />
another. Whereas cooperatives are more heterogeneous: <strong>on</strong>ly two of thirteen possess<br />
processing plants and export <strong>coffee</strong> through the OCFCU; the eleven remaining are not so<br />
active and d<strong>on</strong>’t really influence smallholders’ activities. In this way, akhrabies c<strong>on</strong>centrate<br />
the bulk of the <strong>coffee</strong> producti<strong>on</strong> and are the main processors. For example, the <strong>Limu</strong> Inara<br />
Multi-Purpose Farmers Uni<strong>on</strong> rents its hullery from an akhrabie which plant is located in<br />
<strong>Limu</strong> Genet. Thus akhrabies are more vertically integrated in producti<strong>on</strong> process, even in<br />
central and export market linkages. This akhrabie for example exports <strong>coffee</strong> he produces in<br />
its own farm under the name: <strong>Limu</strong> Special 3 selling it to Travocca Company import agent in<br />
Addis Abeba.<br />
Who will be the main beneficiaries of a GI protecti<strong>on</strong>? Firms of investors and PLC<br />
may attempt to pursue to vertically integrate while akhrabies may c<strong>on</strong>tinue to buy <strong>coffee</strong> at<br />
the same prices through sebsabies that smallholders easily point out as exploiters.<br />
Moreover, these local actors have to c<strong>on</strong>tend with the ec<strong>on</strong>omic power of various<br />
intermediaries to reach the market that includes foreign distributors, roasters and retailers as<br />
Nestlé, Kraft Food, Carrefour, etc. In the <str<strong>on</strong>g>case</str<strong>on</strong>g> of <strong>coffee</strong>, a handful of processing companies<br />
c<strong>on</strong>trol a very large part of global trade, more problematically in the retail market which is<br />
very c<strong>on</strong>centrate. Therefore, higher demands for product standardisati<strong>on</strong> might threaten the<br />
distinctiveness of the GI.<br />
Trade restricti<strong>on</strong><br />
Will the applicati<strong>on</strong> of GI rules restrict trade? Nowadays, <strong>Limu</strong> <strong>coffee</strong> is am<strong>on</strong>g the<br />
nine Ethiopian cup profiles and is daily traded through the Ethiopia Commodity Exchange.<br />
What will happen to the <strong>coffee</strong> currently sold as <strong>Limu</strong> <strong>coffee</strong> originated in Bedelle, Loppa,<br />
Chorra, Yayu and Alididu Dedessa out of the <strong>Limu</strong> regi<strong>on</strong> we described for this <str<strong>on</strong>g>study</str<strong>on</strong>g> <str<strong>on</strong>g>case</str<strong>on</strong>g>?<br />
What will be the c<strong>on</strong>sequences for their producers which <strong>coffee</strong> is currently exported as<br />
<strong>Limu</strong>-2?<br />
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