AGRA

Ethiopia is Africa’s largest coffee producer and the world’s fifth-largest exporter of Arabica coffee. However, a large portion of what is produced is consumed domestically due to market imbalances that affect the product marketing structure.

The primary limitations of coffee marketing in Ethiopia are said to be weak infrastructure, poor pre-and post-harvest handlings of coffee technologies in the country, absence of adequate credit arrangements for coffee marketing, lack of market extension services, and lack of marketing linkage between market participants and long coffee marketing chain in washed and dry coffee.

Haileyesus Biwota Lealem, Operations Manager, Gashuna Coffee, an Ethiopian coffee company from the vibrant Amhara region of Ethiopia, speaking on the sidelines of the AFS Forum 2024 in Kigali, Rwanda, said the country’s coffee sector lacks market structure despite having the best quality coffee in the world.

“The issue we are facing right now is that we don’t have a market structure. We have the coffee, we have the land, we have the richness in our country, but it’s hard to penetrate the global market,” said Haileyesus Biwota Lealem.

According to a Journal article titled “Current Status of Speciality Coffee Production and Market in Ethiopia”, by Usman Mohammed and Adbela Tufa, from the Department of Plant Science, Faculty of Agriculture, Wallaga University, Shambu, Ethiopia, approximately 85 percent of coffee farmers recognised coffee price fluctuation as a major risk issue for their farms, and the impact of price volatility as a direct element in the growth of rural poverty in communities.

In addition, Mr. Haileyesus stated that young people have shunned the sector sector. “For instance, Ethiopia is Africa’s largest coffee producer and the world’s fifth largest exporter. We have the best quality coffee, but we don’t have the manpower. Young people are not involved in the coffee business, they are more into white-collar jobs and this a major problem,” he said.

Official reports indicate that the Ethiopian coffee sector faces labour shortages due to the migration of young people to urban areas in search of better opportunities. This migration results in an ageing farming population, which poses challenges for the future sustainability of coffee farming.

As a first-time attendee of the AFS Forum 2024, Mr. Haileyesus said the forum has allowed him to network with diverse stakeholders, including world leaders, investors, academia, and farmers’ organisations, among others, and this has made him gain insights into how to accelerate food systems transformation in his home country Ethiopia and Africa at large.

The AFS Forum 2024 in Kigali, Rwanda, has united agricultural professionals, policymakers, investors, and NGOs in discussing and advancing sustainable farming practices, investment strategies, and women’s leadership across Africa’s food systems.