Coffee Round Up

Ethiopia: Coffee on commodity exchange

Coffee exports earned Ethiopia US$525 last year, about one-third of its total revenue from exports. Now, in attempts to see more of that money channeled to farmers and to help boost bean quality, coffee is being traded on the Ethiopian Commodity Exchange (ECE).

In theory, the move, which enjoys government support, will replaces the middleman-oriented informal trade arrangements that existed up to now, and farmers should now benefit economically through having direct access to current market prices.

ECE has already established a warehouse network for coffee beans, and the government is pinning its hopes on the new electronic exchange system's ability to help thwart malpractices such as falsely upgrading bean origins to attract a higher price.

Although the largest growers and co-operatives will be able to continue to sell directly to the global coffee firms, everyone else will have to use the electronic exchange.

Kenya: Coffee exports to grow

Favorable climatic conditions and better agronomy are expected to contribute to increased coffee output?for the 2008/09 coffee crop, with estimates indicating production of 60,000 tons, up from 42,000 tons last year, according to the Coffee Board of Kenya.

Exports are also expected to rise, with Kenya Coffee Traders Association (KCTA) statistics indicating 57,800 tons of coffee will be exported in 2008/09, 38% more than the 42,000 tons exported last year.

Meanwhile, the Coffee Board of Kenya has initiated a rebranding exercise with a view to expanding its market share.

The project, which has financial support from the EU, will help a wider international recognition of Kenyan coffee's unique qualities and increased demand for, and income from, all classes and grades of coffee from all Kenyan coffee-growing regions. This is expected to increase its demand, and as a result improve prices across the board for all classes and grades from the country.