IMPROVING THE SUSTAINABILITY AND INCLUSIVENESS
OF THE ETHIOPIAN COFFEE VALUE CHAIN
TROUGH PRIVATE AND PUBLIC PARTNERSHIP

Ethiopia is the largest producer of coffee
in Sub-Saharan Africa
green coffee represented
More than 35 per centof total exportedearnings

In Ethiopia, about

20 million people
live from coffee
production andprocessing

Ethiopia can take advantageof growing international anddomestic demand.
50% of coffee production isdomesticallyconsumed

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CHALLENGES AMONG WHICH:••••••••

Insufficient processors capacity and unsustainable agronomic practices.
Value Chain inefficiency: poor processing, poor infrastructure and hightransport costs.
Limited skilled workforce unable to meet local private sector requirements.
Poor coordination among the stakeholders.
No presence of a single responsible Institution.
Limited vertical integration of the coffee value chain.
Smallholder farmers own 0,5 hectares. Poor cooperative management
capacity.
Improvement in international recognition of the Ethiopian coffee needed.

Affecting coffee production and coffee quality. This result in farmers lower incomeand less incentive to produce more and to invest in their farms, for producing
high-quality coffee, moving to khat and other crops instead.

THE PROJECT: LUNCHED AT EXPO 2015
PROJECT OBJECTIVE: To increase the income of smallholder farmers deriving from sustainableproduction, processing and marketing of the Ethiopian coffee.

THE PROJECT AREAS
ALETA WONDO (SNNP Regional State)

DELO MENA (Oromia Regional State)

Coffee production

Garden coffee, hand picked

Wild coffee, hand picked

Type of coffee

Mainly washed coffee

Mainly natural coffee

Altitude (AMSL)

From 1800 m to 2000 m

From 1300m to 1600m

Fertilizer

Organic fertilizer only

No fertilizer allowed

Harvesting season

October – January

September – December

Target Union

Sidama Coffee Farmers Cooperative
Union

Burka Yadot Farmers Cooperative
Union

Target Cooperatives

9 primary cooperatives
19700 smallholder farmers

12 primary cooperatives
2100 smallholder farmers

THREE LEVELS OF INTERVENTIONAT COFFEE GROWING AREAS LEVELAT VALUE CHAIN LEVELAT INSTITUTIONAL LEVEL• Capacity building (International study tour to the main coffee exporting andimporting countries)• Recruitment of national and international experts to develop business plan andcomprehensive communication strategy for the Ethiopian coffee and TeaAuthority (ECTA)• Creation of national branding and marketing strategy for the Ethiopian coffee• Establishment of Coffee Training Center (CTC) in Addis Ababa within thepremises of ECTA in partnership with illy café and based on the model ofUniverita del café. The CTC will enable Ethiopian coffee stakeholders to improvetheir knowledge and skills (e.g cupping, roasting and packaging, brewing,marketing, etc)

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MASTER
Every year, the Ernesto Illy Foundation offers a full scholarship for a youngEthiopian to attend the Master in Coffee Economics and Science in theUniversity of Coffee (Trieste, Italy)

Since the beginning of the partnership with UNIDO,Ernesto Illy Foundation fully sponsored

8 students

that have attended the Master and are successfully working in Ethiopia for improving
the Ethiopian Coffee sector.

Ethiopian coffee value chain analysis
conducted and recommendations
provided to the GoE
e.g. the establishmentof the EthiopianCoffee Authority

In Aleta Wondo
About 18,000
farmers
Receivedtraining

252 demo-plots
380,000 coffee seedling
3 Input Provision Centres
240,439 shade trees
9 wet mills
renovatedPilot water recirculation
system: reduce water
consumption by 50%
Organic fertilizer production:
pulp separator allows wet mills
workers to easily collect coffee
pulp to produce
organic fertilizer

In Delo Mena
More than 2411 farmers
received Agronomy
best practicetraining

12 Input provision centres
10 Coffee Drying Centres
1230 Drying beds
12 coffee temporarystorages
5 motorbikes

After three year of intervention
at agronomic level farmers
were able to gain a price about
30% higher
because of the
improved quality(Delo Mena)Thank you for your attention!

2020