2024/05/01 by Ali, Usman, Tufa, Abdela
#bargaining power #marketing #production #specialty coffee
paper · doi:10.20372/afnr.v2i1.844
Despite being the world's second largest legally traded commodity after crude oil and a crucial source of income for smallholder farmers, particularly in Ethiopia, Ethiopia's specialty coffee market faces significant challenges. This review aims to provide a comprehensive assessment of the current state of specialty coffee production and marketing in Ethiopia. The review identifies both strengths and weaknesses within the existing system, specifically focusing on the specialty coffee market segment. This review analyzes data from various sources, including the Food and Agriculture Organization of the United Nations, and the Central Statistical Agency of Ethiopia, different methodologies employed for the studies, i.e., a systematic search of scholarly databases, organizational websites, reputable journals, coffee-specific publications, and others. Key findings reveal that the Ethiopian specialty coffee market structure is characterized by a high barrier to entry, differentiated products, and dominance by a few traders. Additionally, the review identifies price instability, inadequate market access, insufficient promotion and incentives, and low prices for producers as central challenges. The analysis emphasizes the need to foster a competitive landscape to empower smallholder coffee growers and grant them equitable access to the specialty coffee market. By enabling them to capture a larger share of the profit margin, the review ultimately proposes this as a key strategy to enhance their livelihoods and bolster the specialty coffee industry in Ethiopia.