Ethiopia

Ethiopia

Ethiopia is Africa’s biggest producer and has significant R&R need, and potential to increase SHF yields and total national output

Download Data Sheet

PDF File 183Kb

R&R Need

~80% of total land is in need of R&R

SHF land in R&R need

‘000 hectares

121,000 ha No need
440,000 ha R&R need

Need is primarily driven by old trees (50-70 years in some places) and suboptimal current practices. Climate change is looking to have minimal impact on Ethiopia.

Current SHF yield & potential uplift

Tons per hectare

0.50
1.07
Current yield
Target yield

Uplift potential

+114%

Significant uplift potential given low current SHF yields

Potential increase in supply

~20-80%

Total national supply could increase ~20-80% if R&R and GAP is implemented on all SHF land in need of R&R2


Notes:
(1) Average yield is calculated as the total SHF production divided by the total SHF land. The potential yield improvement is estimated by GCP and Technoserve, Economic Viability of Coffee Farming, 2017.
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 114%, and the range reflects a 25-100% R&R success rate Sources: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; Government ofEthiopia, Global Transformation Plan II, 2015; The world Bank, Credit constraints and farm productivity: Micro-level evidence from smallholder farmers in Ethiopia, 2017, Ethiopian Agricultural Transformation Agency, Annual Report, 2016; Dalberg interviews

Other Viability Considerations

  • Farmer share of the export price is around 60% which is lower than other countries. There is potential to increase supply chain efficiency.
  • Production costs equal ~ USD 190 / ha, compared to ~ USD 500 / ha in Kenya.
  • Khat production (plant chewed by humans for its stimulating effects) is competing with coffee production in many traditional coffee growing areas.
  • Khat is more drought, disease, and pest resilient than coffee, and can often generate higher income than coffee.

Farmer Segmentation

Most SHFs are at the bottom of the pyramid

  1. Large & medium farmers
  2. Commercial farmers in tight value chains
  3. Commercial farmers in loose value chains
  4. Disconnected farmers

National production is dominated by SHFs

The majority of SHFs are either in loose value chains or weakly connected value chains, with unstable links to market. SHF organizations are generally mismanaged and lack capacity.

# SHFs

‘000

2,500

10% - 12.5% of global SHFs1

# SHF land

‘000 hectares

550

(~98% of national land) – average farm size ~0.5-2 hectares

# SHF production

‘000 hectares

380

(~90% of national production)

Assessment of SHF orgs

Nascent coop sector that gradually improves – ~10%of SHFs are linked to coops

Links to market

A majority of SHFs have loose and weak links tomarket


Notes:
(1) Assuming a global SHF population of 20 million – estimates for Ethiopian SHFs vary widely;
(2) This would bring Ethiopian production at the level of the Brazilian production. This objective is unlikely to be met in such a short timeframe, but itgives positive signals to the coffee sector. Sources: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; Government of Ethiopia, Global Transformation Plan II, 2015; The world Bank, Credit constraints and farm productivity: Micro-level evidence from smallholder farmers in Ethiopia, 2017, Ethiopian Agricultural Transformation Agency, Annual Report, 2016; Dalberg interviews

Enabling Environment for R&R

  • Coffee share of GDP: 1.1% (2011)
  • Sector institutionalization is improving (re-establishment ofthe Coffee and Tea Marketing Authority in 2016,implementation of the Coffee & Tea Research Institute).
  • Several encouraging reforms under implementation,including the Growth and Transformation Plan II toincrease coffee productivity and double coffee productionby 20202, and the reform of the Ethiopian CoffeeExchange to boost exports of specialty coffee.
  • Coffee research stations provide certified seeds, but not at commercial volumes, and distribution is limited to areas nearby.
  • Privately produced seeds are not controlled and registered and producers complain about high mortality rates of seed.
  • SHFs are highly credit constrained. Roughly 70% of SHFs complain about their inability to access credit, and 14% complain about the high cost of credit
  • Few SHFs receive TA. Cooperatives usually do not have the financial capacity to finance TA, and public extension services are limited.
  • Adoption of GAP is extremely low. The Coffee Initiative found a baseline adoption of GAP at 6%, compared to 34% in Kenya and 40% in Rwanda.

Examples of R&R programs

Past R&R programs have focused on increasing adoption of GAP and building SHF org. capacity

TechnoServe - The Coffee Initiative
2008-2017

Technoserve trained (via Farmer Field Schools) roughly 80,000 Ethiopian SHFs on GAP and rehabilitation practices

Learn more and get involved

There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.