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Interventions and the roles of different stakeholders. Farmers now produce and market
coffee berries to SCFCU, which provides many production services along the value chain. Such
services include: processing, developing producer/buyer linkages, warehouse services, quality
promotion, training and education, and provision of credit and savings services to members.
Specific SCFU arrangements encompass:
• Provision of advice at all levels along the coffee value chain
• Primary cooperatives to arrange inputs for members, although this is minimal as Sidama
coffee is organically produced without the need for purchased inputs
• Savings and credit services for members, although individual members can also obtain
credit from other financial organisations, such as the Cooperative Bank of Oromia, the
Commercial Bank of Ethiopia and Awash International Bank
• Direct involvement in processing. Coffee berries are handpicked and sorted, then sold to
primary societies for wet processing. Pulping and natural fermentation are undertaken at
primary society pulperies, after which the fermented coffee is washed, soaked and dried.
Dried ‘parchments’ are then stored in warehouses, before delivery to a central dehulling
facility, which completes the processes, packages and labels the produce for export.
SCFCU has its own vehicles but occasionally hires private transporters whenever there
is need. The Cooperative now operates over 90 pulperies, a hullery, and 133 warehouses
with a capacity of some 5,000 tonnes.
The Ethiopian Commodity Exchange (ECX, 2011) provides a marketplace that compliments the
role of SCFCU. This provides a forum where buyers and sellers come together to trade and be
assured of quality, delivery and payment. It deals in six commodities including coffee, sesame,
haricot beans, teff, wheat and maize. Any Sidama export coffee that is not marketed by SCFCU
can be auctioned through ECX.
The Ethiopian Coffee Growers, Producers and Exporters Association (ECGPEA) is a members’
association involved mainly in advocacy. This becomes necessary when farmers need to engage
Government or other stakeholders on policy concerns along the value chain.
The Government, at Jimmah Agricultural Research Centre, provides coffee research that
includes: the collection and classification of indigenous landraces, variety development,
improving management (especially pest and disease control) and providing technical support
to coffee producers. Haramaya University, in its academic programmes, complements general
research and development efforts in the coffee sub-sector.
Achievements. There are now over 87,000 individual SCFCU members producing over 35,000
tonnes of Sidama coffee from 70,000 hectares. SCFCU includes 45 primary producer societies
each of which typically has some 2000 coffee producers (SCFU, 2011). Two of SCFCU’s primary
societies have been certified for organic Sidama coffee production and SCFCU has become a
registered member of the Specialty Coffee Association of America. SCFCU’s vertical integration
from production to export of coffee beans is ensuring a quality product at fair prices, with the
exploitative role of private traders being minimised. At the same time ECX complements the
marketing functions of SCFCU. By selling directly to the customers SCFU ensures that the value
paid to the producer has increased substantially
The case studies: Eastern Africa 23