Page last updated at 10:23 GMT, Tuesday, 2 December 2008

Ethiopia starts coffee exchange

Coffee beans
Ethiopia is Africa's largest coffee producer

Ethiopia, Africa's largest coffee producer, has started trading the crop on a national commodity exchange.

In a move aimed at both increasing quality and the amount farmers get paid for their beans, coffee is being traded on the Ethiopian Commodity Exchange.

Replacing the previous, more informal, system of sales through middlemen, farmers will now be able to get direct access to current market prices.

The exchange has set up a network of warehouses to collect the beans.

Dominant crop

The Ethiopian government, which is backing the move, hopes it will prevent fraud, such as traders passing off beans from a lesser growing area as being those from a higher quality region.

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.

Set up earlier this year, the exchange already trades in maize, wheat, sesame seeds and haricot beans.

Ethiopia is the birthplace of coffee cultivation and the crop continues to account for more than a third of its export earnings.

It earned $525m (354m) from coffee exports in the 2007-08 financial year.

However, Ethiopia still remains one of the world's poorest nations, and is ranked 170 out of 177 on the United Nation's Human Development Index.

Print Sponsor


SEE ALSO
Tracking the true cost of coffee
10 May 07 |  Business
Starbucks in Ethiopia coffee vow
21 Jun 07 |  Business
Timeline: Ethiopia
03 Jun 08 |  Country profiles
Country profile: Ethiopia
03 Jun 08 |  Country profiles

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific