Ethiopian farmers to directly trade coffee

Image courtesy of FreeDigitalPhotos.net and Graeme Weatherston

The Ethiopian Commodity Exchange said in a statement that 27 North American, European and Japanese buyers had so far registered for the monthly auction, labelled Direct Specialty Trade (DST).

"Because these farmers lack the means and knowledge to directly access the international market, they are not likely to gain from the value potential of their coffee," it said.

"Therefore, this has denied them the opportunity to transform their livelihoods and sustainably grow out of poverty."

Ethiopia produces three types of specialty coffees considered among the best in the world.

Under trading rules, participating farmers will receive 85% of the final export price, more than double the amount they previously received when selling on the regular exchange or through brokers.

"The (new) trade closes the real gap between farmers seeking to benefit from the international market and buyers interested in tracing these coffees to their origin," said Eleni Gabre-Madhin, the exchange's executive officer.

Ethiopia, the world's sixth biggest coffee producer, launched the exchange in 2007, a year after it won a lengthy trademark dispute with Starbucks.

The Horn of Africa nation exported over 170,000 tonnes in 2009.

Source: AFP