What's this all about?
Despite the high prices paid by consumers for specialty coffees at retail, most Ethiopian coffee farmers receive so little that it is a struggle for them to cover costs and most find it very difficult to make any investment in their coffee production. In fact, the share of the retail price consumers pay that reaches the farmers is so low, that they struggle economically, and in despair are actually abandoning some of the world’s finest coffees to grow narcotic plants, which pay more.
This is not good for fine coffee distributors worldwide, nor for the long term future of the Ethiopian coffee sector. Also, the farmers themselves would much rather expand and sustain their centuries old production of one of the finest coffees in the world and will do so, if prices can be stabilized and increased.
Why does this happen? Farmers and even Ethiopian exporters and cooperatives are often unaware of what happens to their coffees after the shipments cross the Ethiopian border. They have no knowledge of the retail market value and the growing number of overseas coffee lovers who have a passion for their coffees. A new film, produced by inspired film producers Nick and Marc Francis, called Black Gold, describes this predicament in incredible and vivid detail and will soon be available on DVD (see 'In the Media' to find more).
With this challenge in mind, in 2004 Ethiopia started to seek a way to overcome this disconnect between the booming specialty or gourmet coffee market and the farmers who grow the beans. The Ethiopian Coffee Trademarking and Licensing Initiative was born. The initiative provides an innovative and concrete way to overcome the traditional and deep disconnect between what coffee farmers receive for a sack of their beans and what retailers are then able to charge for that excellent, distinctive coffee when they offer it to a coffee lover far, far away. A new Ethiopian group has formed to run this initiative, The Ethiopian Fine Coffee Stakeholder Committee, which is made up of cooperatives, private exporters and the Ethiopian Intellectual Property Office as well as other Government bodies with direct responsibility for the development of the coffee sector in Ethiopia. This group has come together to commence a what is now seen by many, as a new era in the history of coffee in Ethiopia; as Ethiopia is the birthplace of all coffees, this is indeed a long, rich history.
With trademarks secured now in 28 countries, Ethiopia is building a network of licensed distributors across the world. That is, Ethiopia is inviting coffee companies, large and small, who cherish Ethiopia’s fine coffees, to sign a licensing agreement and to collaborate directly with Ethiopia on a long-term plan to ensure that the finest Ethiopian coffees are traded to everyone’s benefit. This initiative aims to increase the prosperity and hope for all actors through the trading chain, from bean to cup, from the small scale coffee farmer through to the discerning coffee-lover.
The Ethiopian Fine Coffee Stakeholder Committee and the EIPO believes that if buyers and sellers work hard and create a long-term vision together, with the support of many international partners and consumer groups, that our network as a whole – producers, importers and retailers – can grow and prosper together and consumers can enjoy the taste of Ethiopia’s finest with a glad heart.
Next: Specialty Market Growth, Ethiopia’s Coffee Challenge >>