Coffee Industry in Ethiopia
Coffee is a “key commodity in Ethiopia" that "supports over one million households" and "accounts for over 30 percent of annual exports.”
Starbucks and Ethiopian Coffee Brands
Starbucks uses Ethiopia’s famed coffee brands—Guji, Sidamo, Yirgacheffe, and Harar, which generate high margins for Starbucks but lower profits for Ethiopian farmers. The Ethiopian government expressed concerns that this could price them out of the market.
Ethiopian Coffee Production and Export
- Ethiopian coffee exports to the EU, the US, and Japan require high-quality beans with minimal impurities, which poses a challenge for small farmers.
- Cooperative efforts like the Limmu Innara Union, consisting of 41 coops and 30,000 households, aim to improve conditions for small farmers.
Coffee Economy and Sustainability in Ethiopia
- Coffee production and related activities in Ethiopia provide income for 15 million Ethiopians, which is 20% of the population.
- Close to 3.8 million smallholder farming households cultivate coffee in Ethiopia, generating about 25% of the country’s export earnings.
Certification Premiums and Farmer Income
Certification premiums for coffee exports do not reach small farmers effectively. Despite potential income increases through certification, farmers often do not realize significant financial benefits.
Government Support and Initiatives
The government of Ethiopia is investing in research and development, improving infrastructure, and enhancing access to financial services to help farmers increase coffee production and profitability.