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

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

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6.1.1) Functi<strong>on</strong> and role of each actor of the value chain<br />

Ministry of Agriculture and Rural Development (MoARD)<br />

Established in January 2004 by proclamati<strong>on</strong> No. 380/2004 and now resp<strong>on</strong>sible for<br />

the full agricultural value chain, it took over the functi<strong>on</strong>s of the ex-<strong>Coffe</strong>e and Tea Authority<br />

in March 2004. It supervises the sector with resp<strong>on</strong>sibilities for <strong>coffee</strong> research, marketing,<br />

quality c<strong>on</strong>trol, handles policy matters and provides technical services such as extensi<strong>on</strong> and<br />

training to <strong>coffee</strong> growers. At regi<strong>on</strong>al (Oromiya and SNNP regi<strong>on</strong>s), z<strong>on</strong>al (ZARDO: Z<strong>on</strong>e<br />

Agriculture and Rural Development Office in Jima for example) and woreda (WARDO:<br />

Woreda Agriculture and Rural Development Office in <strong>Limu</strong> Genet for example) levels, it is<br />

resp<strong>on</strong>sible for implementing extensi<strong>on</strong> services (Petit, 2007). C<strong>on</strong>cerning <strong>coffee</strong> growers, its<br />

influence especially appears through state nurseries providing them selected seedlings in an<br />

extensi<strong>on</strong> framework, Farmers Training Centres and Dem<strong>on</strong>strati<strong>on</strong> Sites for training even if<br />

the latter tend to disappear.<br />

Ethiopia Commodity Exchange Authority<br />

The new instituti<strong>on</strong> got proclaimed in its Ethiopia Commodity Exchange Proclamati<strong>on</strong><br />

No. 550/2007 (4 th September 2007), then began trading operati<strong>on</strong>s in April 2008 and adds<br />

<strong>coffee</strong> am<strong>on</strong>g its commodities in December 2008. This accompanied the new <strong>Coffe</strong>e Quality<br />

C<strong>on</strong>trol and Marketing Proclamati<strong>on</strong> No. 602/2008 (25 th August 2008). It is working as a<br />

classic exchange place through members acting for users. Members buy seats that allow them<br />

to trade; <strong>on</strong>ly they can trade <strong>on</strong> the exchange. That means n<strong>on</strong> members must use their<br />

services. Members are exporters, buyers, producers, etc. As told me members, the exchange<br />

purpose is to ensure quality, delivery and payment by guaranteeing the product grade,<br />

quantity; operating a system of daily clearing and settling of c<strong>on</strong>tracts where buyers and<br />

sellers coordinate <strong>on</strong> the basis of standardized c<strong>on</strong>tracts; disseminating market informati<strong>on</strong> in<br />

real time to market actors; and offering c<strong>on</strong>tracts for future delivery providing sellers and<br />

buyers a way to hedge against price risk. But n<strong>on</strong>e of the members could answer about what<br />

happened to the specialty market, proposing to meet the respective superiors. Indeed quality<br />

has been improved through traceability and allows to guarantee that a Sidamo 2 is a Sidamo 2,<br />

77

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