(4 minutes read)
· The Oromia region in Ethiopia is on a drive to expand coffee plantations and replacement of old trees. It is also establishing four khat trading centers to modernize the stimulant leaf business
· . According to the World Bank (WB) report almost 80 percent of Ethiopia’s 1 million hectares of coffee trees are underproductive
· The trees are not trimmed often enough, which affects the fruit bearing capacity of the trees
Oromia region in Ethiopia is on a drive to expand coffee plantations and replacement of old trees. It is also establishing four khat trading centers to modernize the stimulant leaf business. According to the World Bank (WB) report almost 80 percent of Ethiopia’s 1 million hectares of coffee trees are underproductive. The trees are not trimmed often enough, which affects the fruit bearing capacity of the trees. The WB has given thumbs up to the quality of coffee grown in Ethiopia.
A major chunk-almost 95% of production from the country’s diverse coffee varieties -is organic, traditionally cultivated without the use of pesticides and fertilizers. The coffee also has good demand across the world. However, the World Bank says that Ethiopia’s coffee productivity is lagging behind other leading coffee-producing countries, such as Brazil, Colombia, Indonesia and Vietnam? Lack of pruning is said to be the major reason for low productivity.
The regional administration has given attention to bean production and productivity. The low productivity poses a problem for the more than 2 million smallholder farmers dependent on coffee production for their livelihoods. The region has improved the marketing system for coffee by creating alternative trading for Ethiopian Commodity Exchange by issuing an export license for the farmer enabling him direct export. This also contributed to reduce the illegal trade. The new trading plays a key role. It has shown positive results. For instance, the price of red cherries that was 12 birr per kg in the past has now reached 30 birr because of the new scheme. It is also engaged in rejuvenating and replacing the aged and unproductive coffee trees by new seedlings. In 2019, some 800 million new coffee seedlings were planted, 900 million last year and in this rainy season farmers will plant 1.1 billion coffee trees in the region.
The hard currency generation from the bean was US$ 700 million that surpassed USD 800 million, “for this year that will end on July 7, the generation from the sector is expected to reach over a US$ one billion as per the current trend.”
To improve the khat market; trading centers are developing at Awoday, Bedessa, Addis Ababa and the other will be in Dire Dawa to which the construction work will commence soon. The trading facilities will have standard storage area, packaging centre and other facilities on the aim to keep the export quality.
