Introduction

Ethiopia is birthplace of Arabica coffee, world's tenth largest producer of coffee, and Africa's
third producer, with Total production: 180,000–276,000 tons per year on 400,000 ha by using for
production systems forest, semi-forest, garden, and plantation. Coffee account for over 35% of
export earnings contributes over 25% of GNP. (ACDI/VOCA 2007).

In amhara region coffee product is not considered as a cash crop product and the farmers are not
growing as dominant product because of this the amhara Farmers producers cooperative coffee
union was established in 2008 E.C to improve the pro-poor producer of coffee in the region and
to add the vital roles in the national economy like other regional states.

Objectives
The objectives of the Study were

To know the actors involved in the coffee supply chain in Amhara Farmers Coffee
producers cooperative union.
To identify major constraints and opportunities existing at each level of value chain in the
Amhara Farmers Coffee producers cooperative union.

Mapping and description of Amhara Farmers Coffee producers’ cooperative

union
This section presents and discuses the coffee value chain map. The value chain map is a visual
representation of the connection of all stages and actors in coffee. Mapping the coffee production
provides an understanding of the process and deferent channels through which coffee movies
from producers until it reaches the finale consumers. The value chain analysis highlights the
importance of each channel marketing linking from individual members to cooperatives. From
the information gathered through interview of the union manager, the coffee value chain has six
core stages, actors, activities, input/service supply, challenges and possible solution.
 Core presses in coffee value chain

Input supply Production Collection Processing Marketing Consumption

Figure: 1 map of core process in coffee value chain

Actors in coffee value chain

Input Individual Primary Union ECX Exporter

supplier members cooperatives

Figure: 2 map of actors in coffee value chain

Core activities of coffee value chain

Input supplier Individual Primary Union ECX Exporter

members cooperatives

Seedling Production Drying Processing Storing Selling to

foreign
Fertilizer Collection Storing Market finding Standardizi consumer
Drying ng and
Chemicals Supplying grading
Supplying

Figure: 3 map of core activities in coffee value chain

 Supplying of input/service in coffee value chain

Coffee Technical and Procurement Warehousing

planting financial support
Individual members
Government office
Primary
NGOS cooperatives
Cooperative Union
employees
Figure: 4 map of Supplying of input/service in coffee value chain

Challenge in the coffee value chain

The major challenge of coffee value chain in Amhara Farmers Coffee producers’ cooperative
union are:-

Absent of piece of land to build outlet,

Absence of mechanization processes,
Low understanding of members about the union,
Lack of credit accesses,
Lack of knowledge and information about coffee and
Lack of providing coffee within time and quality by the members.

Possible Solutions in the coffee value chain

The possible solution of coffee value chain in Amhara Farmers Coffee producers’ cooperative
union are:-

Find enough capital to the union from financial institution

The government must support the union by providing piece of land
Union build warehouse and planting the machine
Providing training to the members by governments and non governmental institutions
like feed the future and human foundation allied with the union,
 The government support with allowing credit,

Recommendation

Coffee is the main cash crop product in Ethiopia, it is not widely used in the country especially
amhara region. So regional government and other institutions must emphasize and solve the
challenges to increase the coffee product and selling to exporters to improve the livelihood of
pro-poor farmers.