recent achievements in ethiopian coffee development and lessons from major arabica producers
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Presentation to the Third Annual Ethiopian Coffee Conference. Nov. 6 - 7, 2014 in Addis Ababa, EthiopiaIntroduction:• Considered as one of the high priority crops in Rural Development Policy and Strategies of the Government• Received inadequate attention in building consensus for realizing its full potential in line with the established priority directions• Establishment of CTS Unit at MoA with a mandate to reinforce coffee extension• Evaluation of challenges and opportunities of the sector• Produced in collaboration with stakeholders differen study docsLessons Learned from Brazil, Columbia, and Guatemala: Coffee industry actors are its sole owners and can make a difference if united Strong associations are crucial for sustained coffee sector development Sharing and proper use of experiences of successful coffee growing countries Adoption and scaling up of appropriate coffee growing and processing, and marketing technologies is key for competitiveness Government’s role is expected to diminish through timeConclusion: As important actors in the coffee sector, public and private sector should build a strong partnership to reflect same position and collaborate in promoting the coffee sector There is a need to align efforts to build the required capacity in both sides Industry associations/federations with a primary focus on the small producers should be in placeTRANSCRIPT
Recent Achievements in Ethiopian Coffee
Development and Lessons from Major Arabica
Producers
Third Annual Ethiopian Coffee Conference Nov. 6 - 7Addis Ababa
1. Introduction
2. Production & Productivity Achieved
in the GTP Period
3. Lessons from Major Arabica Coffee
Producing LA Countries
4. Conclusion
Outline
• Considered as one of the high priority crops in Rural Development Policy and Strategies of the Government
• Received inadequate attention in building consensus for realizing its full potential in line with the established priority directions
• Establishment of CTS Unit at MoA with a mandate
to reinforce coffee extension
• Evaluation of challenges and opportunities of the
sector
• Produced in collaboration with stakeholders
differen study docs
Introduction
Prodution & Productivity
620.00
640.00
660.00
680.00
700.00
720.00
740.00
760.00
0
100
200
300
400
500
600
2009/10 2010/11 2011/12 2012/13 2013/14
Area (000ha)
Prodn (000 tone)
Productivity (k/ha)
GTP Performance (2010/11- 2013/14)
Hecta
res
Coffee Plantation
What has been done?
Building consensus on the necessity of strong
government support to revitalize the coffee
industry
Initiated a medium to long term strategy that
would critically analyze the major causes of
underachievement and come up with appropriate
recommendations
Formulation and implementation of Coffee
development strategy
CTS unit upgraded to directorate and
recruitment of additional manpower underway
Built consensus with major coffee producing
regions to pay due attention to the sector
What has …?
Creation of stakeholders platform/forum for
constructive dialog and alignment
Coffee productivity and quality enhancement detail
activities prepared and its implementation started
Massive hands-on capacity building trainings
conducted
Experts team from pertinent institutions assigned to
ensure strict adherence to Proclamation # 602/2008
and Council of Minister’s Regulation # 161/2009
Experiences
of Major Arabica Coffee Producing
Latin American Countries
Coffee Production In Brazil
• Coffee introduced to the country in 1727
• Entered into export by1820
• World largest producer and exporter since
1840 (7.8 billion USD in 2011),
• Grown on about 2.4 million ha mainly in Minas
Gerais, Espirito Santos, Sao Paulo, Rio de
Janeiro, Paraná, and Bahia
• 75 % Arabica & 25% Robusta
• Major economic and social progress registered
with earnings from coffee export
• High involvement of the government in
supporting & developing coffee production until
1990s (abolishment of IBC).
Coffee Growing Regions
Coffee Institutions
Government maintains control of coffee
production activities from growing up to
marketing of the final product
CDBC: Deliberative Council of Coffee Policy established
in 1996 with a responsibility of approving policies and
strategies for the sector
FUNCAFE: Coffee Economy Defense Fund (1985)
responsible for financing policies for the sectors various
production chain
Brazilian Consortium for Coffee Research and
Development
Composition of CDPC:
• Three members from MICT which holds the presidency
• One representative each from ministries of Agriculture,
Livestock & Supply, Treasury, External Relations, and
Budget, and
• Various associations with national dimensions (National
Coffee Council, National Confederation of Agriculture,
Coffee Industry Association, Federation of Coffee
Exporters, Soluble Coffee Industry Association)
With all members having equal voting rights
Institutions…
Institutions…
Major Mandates of CDPC
• Approving overall coffee strategy for production &
marketing
• Authorizing the implementation of research programs and
projects
• Approving annual budget for FUNCAFE
• Regulating activities of maintaining balance b/n export and
domestic consumption,
• Approve coffee stock and warehouse mgmt policies
• Establish technical & financial cooperation with public and
private bodies in the sector
• Approve coffee agri-business plans & institutional
marketing programs for export and domestic market
• Proposing to the National Monitory Council the amount of
contribution quota and approving the financial agent to
carry out the operations as provided for by the law
Brazil…
Brazil…
Brazil…
Brazil Coffee Productivity B
ags/h
a
Production Year
Source: ATO/Sao Paulo
Colombia
Production
• Introduced in 1732
• One of the main drivers of social & economic
development by 1830s
• Produced by 553 thousand households in 20
Departments & 588 municipalities on 0.9
million ha (95% smallholders)
• Source of livelihood for 4 million Colombians
• # 1 generator of income and welfare in rural
areas
• 16% of the agricultural GDP
• High quality and consistent supply,
• 25% sustainability certified or verified
Coffee Growing Areas
Cultivated Areas
588 Coffee-Growing
Production Systems
Traditional 30% Shade grown 37% Modern Open 33%
FNC Structure
Source: www.federaciondecafetros.org
Founding Members of FNC
Source: www.federaciondecafetros.org
Through its 15 Departmental and 364 Municipal Coffee Grower Committees:
• Purchase Guarantee: Buying coffee at 540 points of purchase close to its members & 36 coops based on quality & processing stage Quality control & warehousing for product
differentiation and support to guarantee the reputation of Colombian coffee and the generation of premiums for the coffee producers. &
Scientific research through Cenicafé on generation and dissemination of appropriate, competitive sustainable and problem solving technology and knowledge to increase productivity, competitiveness
Services to the Members
Services… Coffee extension focused on consolidating a
productive and competitive coffee growing
(quality, best practices and implementation of
business management programs…)
Capacity building on appropriate coffee
production, processing and marketing at its
special training center
Collection, compilation, and availing coffee
statistical data
Value addition to and promotion of Colombian
coffee (freeze-drying plant and a chain of Juan
Valdez Specialty coffee shops)
Establish constructive relations with government,
NGOs, International coffee associations &
roasters
• Promotion and positioning: Includes the
implementation of brand and marketing strategies
to create a higher demand and added value for the
producers, as well as actions to defend the origin
and positioning of
Colombian coffee as the best in the world.
• Investment in the social fabric: Permanent
programs and investments for the development of
the producers and the rural communities in the
coffee zones.
• Connectivity: Generate digital access and content
aimed at the producers.
Services…
FNC Logo
One of the world's largest agricultural non-
governmental organizations leading Colombian
Coffee Industry to a great success by integrating
economic, social, scientific, and marketing
programs
Member Organizations Cenicafe’ (1938)
National Coffee Fund (Fondo NaciÓnal del Café :1940)
Marine fleet (Flota Mercante Grancolombiana :1947)
Coffee bank (Bancafe’)
Coffee quality centers and warehouse (Almacafe’ )
Juan Valdez Promotion (1959) & Valdez® logo (1982)
Special Coffee Training Center (Manuel Mejia Foundation:1960)
Procafe’cole
Coffee Statistics፡ SICA
Foreign offices and shops
• Developed 12,000 aqueducts
• Built 19,000 class rooms
• 15,000 km new roads
• 500 hospitals and health centers
• Various bridges, residential houses, School
bathrooms, rural electrification
Infrastructures built (until 2012)
Visionary, capable, and skilled leaders
Stable leadership
Strong and reliable financial resource
Political independence
Focus on smallholder coffee growers’
interests
Building strong consensus among members in
protecting national interests
Secret of its Success
Guatemala
• Second largest coffee producer in Central America
• Grown on 270,000 ha by Ninety thousand growers
• Important figure in the Guatemalan Coffee Industry is ANACAFE as policy adviser to the government on coffee issues
…
What makes Unique?
• Strong Government Support
• 100 million USD trust fund authorized by the government for financial assistance to coffee farmers during crises
• Low interest loan for smallholder coffee farmers to apply for international certifications
• Extension service provided by ANACAFE, Government, and NGOs
Important Lessons
Coffee industry actors are its sole
owners and can make a difference if united
Strong associations are crucial for sustained
coffee sector development
Sharing and proper use of experiences of
successful coffee growing countries
Adoption and scaling up of appropriate coffee
growing and processing, and marketing
technologies is key for competitiveness
Government’s role is expected to diminish
through time
Conclusion
As important actors in the coffee sector, public
and private sector should build a strong
partnership to reflect same position and
collaborate in promoting the coffee sector
There is a need to align efforts to build the
required capacity in both sides
Industry associations/federations with a
primary focus on the small producers should
be in place
Thank You