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

6) Value chain recent mutations of a political crop
6.1) Presentation of the value chain
Since the beginnings of Starbucks’ struggle in 2005 and the recent changes met by
coffee institutions in August 2008, questions arose concerning the Ethiopian state
motivations. Anyway it occurred that investors, appeared in the early 90’s, are given more
and more forest lands through the country and that all kinds of producers are now permitted to
export directly 64
, even if sebsabies (ex-licensed collectors) are now qualified as thieves and
some exporters accused of speculating, keeping stocks meanwhile the country is facing
difficult currency times, in jail. First analysis agree to asset an increased state control that
some accused of nationalization whereas others applause that initiatives a strong state took in
front of a wild world market. Anyway structures mainly remain the same:
Coffee market includes many participants as small-scale farmers picking coffee from
their gardens or owned agro-forest trees, small-scale farmers as cooperatives members,
investors valorising forest spaces through modern plantations skills used in the modern state
farms, even PLC producing coffee.
State farms and investors easily export directly through Germany, Japan, United States
or Saudi Arabia, the main buyers. In the contrary if they don’t find any export market they
will sell their production on the Ethiopian Commodity Exchange. This latter replaced ex-
auctions in Addis Abeba and Dire Dawa, and is in charge of classifying coffee at its arrival in
the capital (what used to do the Coffee Liquoring Unit under the Coffee and Tea Authority
then the Ministry of Agriculture and Rural Development). Whereas smallholders, allowed but
unable to export, sell their coffee to collectors such as akhrabies (suppliers), forbidden but
still existing sebsabies (ex-primary collectors), service cooperatives or by themselves to local
markets. Except the latter <strong>case</strong> and the small quantities sold to local consumers (bars or buna
64 “Any coffee producer shall without prejudice to Article 6(1) of this Proclamation, have the right to directly
export coffee from his own farm, only after submitting the same to the coffee quality liquoring and inspection
center for grading before and after processing for export; sell coffee by product in auction centers or the
Ethiopia Commodity Exchange only upon examination and approval of the coffee quality liquoring and
inspection center.”
From Coffee Quality Control and Marketing Proclamation No. 602/2008 of the Federal Democratic Republic of
Ethiopia (2008).
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