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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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chief executive Eleni Guebre Madhin said that <strong>coffee</strong> earning will be $300 milli<strong>on</strong> this year<br />

and estimati<strong>on</strong>s announce that <strong>coffee</strong> exports will fall by 30-40% in 2009/2010. Reas<strong>on</strong>s<br />

officially announced are the global ec<strong>on</strong>omic slowdown (Starbucks closing of 600 stores<br />

around the world has implicati<strong>on</strong>s for demand of premium <strong>coffee</strong> that Ethiopia exports, she<br />

said) and bad weather. Moreover, in summer 2008, Japan complained and insisted <strong>on</strong> testing<br />

Ethiopian <strong>coffee</strong> beans <strong>on</strong> arrival after it found <strong>coffee</strong> bags c<strong>on</strong>taminated with pesticides.<br />

Japan bought 20% of Ethiopia’s beans. Then Ethiopia halted export for a while 79<br />

(Reuters,<br />

22 nd may 2009).<br />

Ethiopian <strong>Coffe</strong>e Exporters Associati<strong>on</strong> (ECEA)<br />

This private organizati<strong>on</strong> is promoting exports as <strong>on</strong>e of the main c<strong>on</strong>tacts with the<br />

world market. It provides <strong>coffee</strong> trade informati<strong>on</strong>, lobbies <strong>on</strong> policies, and supplies technical<br />

support to its members (Petit, 2007).<br />

<strong>Coffe</strong>e roaster<br />

<strong>Coffe</strong>e roaster means a pers<strong>on</strong> who, up<strong>on</strong> being licensed by the appropriate<br />

government organ purchases <strong>coffee</strong> from the Ethiopian Commodity Exchange, or a domestic<br />

c<strong>on</strong>sumpti<strong>on</strong> <strong>coffee</strong> wholesaler, roasts or roasts and grinds <strong>coffee</strong> for export or sale in the<br />

domestic market. 80<br />

Market<br />

6.1.2) The August 2008 value chain changes’ principal loser: the Specialty<br />

Specialty <strong>coffee</strong> has become a generic label covering a range of different <strong>coffee</strong>s,<br />

which either command a premium price over other <strong>coffee</strong>s or are perceived by c<strong>on</strong>sumers as<br />

being different from the widely available mainstream brands of <strong>coffee</strong>. The term gourmet is<br />

also used. Even if the term specialty or gourmet is now applied to so many <strong>coffee</strong>s that it has<br />

lost all relevance, they suggest some degree of exclusivity and appear through niche markets.<br />

A niche combines a set of c<strong>on</strong>diti<strong>on</strong>s that enable a single product to thrive within the greater<br />

79<br />

Refer 6.2.2) The <strong>Limu</strong> Inara Multi-purpose Cooperative Uni<strong>on</strong>, an initiatives’ leader?<br />

80<br />

<strong>Coffe</strong>e Quality C<strong>on</strong>trol and Marketing Proclamati<strong>on</strong> No. 602/2008 of the Federal Democratic Republic of<br />

Ethiopia (2008).<br />

86

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