Sidama Coffee Farmers Cooperative Union SCFCU Ltd' At Glance - PowerPoint PPT Presentation

Loading...

PPT – Sidama Coffee Farmers Cooperative Union SCFCU Ltd' At Glance PowerPoint presentation | free to view - id: 536e6-NGMxY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Sidama Coffee Farmers Cooperative Union SCFCU Ltd' At Glance

Description:

November 2006, Hong Kong. By: Ashenafi Argaw. 2. Facts about Ethiopian Coffee ... Facts about Ethiopian Coffee. Coffee accounts for over 55% of export revenues ... – PowerPoint PPT presentation

Number of Views:395
Avg rating:3.0/5.0
Slides: 39
Provided by: asnake6
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Sidama Coffee Farmers Cooperative Union SCFCU Ltd' At Glance


1
SidamaCoffee Farmers Cooperative Union(SCFCU
Ltd.) At Glance
By Ashenafi Argaw
  • November 2006, Hong Kong

2
Facts about Ethiopian Coffee
  • Ethiopia home of Coffee Arabica
  • Total production 3 - 4.6 million bags per year
    on 400,000 ha
  • Four production systems
  • Forest
  • Semi-forest
  • Garden
  • Plantation

3
Forest Production System
  • It is found in south and south-western Ethiopia.
  • The center of the birth place of coffee.
  • It is self-sown and grown under the full coverage
    of natural forest trees.
  • Forest coffee accounts for about 10 per cent of
    Ethiopia's total coffee production

4
Semi-forest Coffee
  • Found in the south and south-western parts of the
    country.
  • Coffee trees are found in scattered and selected
    forests.
  • Accounts about 35 of the total production

5
Garden Production System
  • Garden coffee is grown in the vicinity of
    farmer's residences
  • Mainly found in the southern and eastern parts of
    the country.
  • It accounts about 50 of the total production.

6
Plantation Coffee
  • Grown on plantations owned by privates and
    government
  • It accounts about 5 of the total production

7
Facts about Ethiopian Coffee
  • 95 of Ethiopian coffee produced by smallholders
  • The third largest producer in Africa
  • The tenth largest producer in the world.
  • The third largest coffee drinking nation from
    coffee producing countries.
  • 15th coffee drinking nation in the world.

8
Top 20 Coffee Producing Countriesestimates in
million bags/60kg, October 2002 September 2004
9
Global Top 20 Coffee Consuming Nations in
million bags/60kg green bean equivalent
(estimates 2004)
10
Ethiopian Coffee Map
11
Facts about Ethiopian Coffee
  • Coffee accounts for over 55 of export revenues
  • Coffee contributes over 25 of GNP
  • more than 25 of the total population of the
    country depend on coffee
  • The recent slump in world coffee prices has led
    to great social and economic hardiship
  • The farm gate price of red cherry is now just 43
    its level in 1990s

12
The structure of the coffee marketing system
  • Participants involved in coffee marketing in
    Ethiopia
  • 1. Producers smallholders and plantations
  • 2. Collectors (sebsabi)
  • 3. Wholesalers (Suppliers or Akrabi)
  • 4. Private Exporters
  • - only allowed to buy coffee from the
    auction market
  • - over 180 licensed exporters
  • - 72 active exporters
  • 5. Coffee marketing cooperatives

13
The Coffee Marketing Chain
Farmer
Plantation
Dry cherry
Red cherry
Private collectors
Dry and red cherry
Coops
Private suppliers
Private suppliers
Coops
Washing/ hulling
Washing
Washing
Hulling
Auction
CLU
CLU
Private Exporters
SCFCU
Plantation owners
Export
14
Cooperatives in Ethiopia
  • Cooperative is an autonomous association of
    persons united voluntarily to meet their common
    economic, social and cultural needs and
    aspirations through a jointly owned and
    democratically controlled enterprise.
  • Coops are member oriented corporations

15
Cooperative Contd
  • Coops are based on the values of self help, self
    responsibility, democracy, equality, equity and
    solidarity.
  • Cooperatives are both social and economic
    institutions whose main goal is to bring
    empowerment and development to their members.

16
Cooperatives contd
  • Coops play vital role in all areas of social and
    economic development
  • Coops are vital in increasing agricultural
    production and productivity
  • - Ethiopia more than 60 coffee
    produced by members

17
Cooperatives contd
  • Agricultural marketing through providing market
    information and enhancing the bargaining power
    of the farmers.
  • Creation of job opportunities in the rural areas
  • - Ethiopian coops created more than
    30,000 jobs

18
SCFCU Ltd BACKGROUND
  • Founded in July 2001
  • Comprised of 45 primary coops residing in
    SNNPR/Sidama Zone
  • Benefits more than 86,000 smallholders
  • Specialty coffee production Sidamo
  • Cultivated area under coffee 72 hectares
  • Average annual production 35 tones

19
Background Contd
  • Production system garden
  • Infrastructure
  • Coffee pulperies 92
  • Coffee hulleries 2
  • Warehouse 133
  • Vehicles 59
  • Members coops have been in a coffee business for
    more than 28 years

20
(No Transcript)
21
SCFCU - Why is it Established
  • To increase farmers' share of FOB price
  • To take advantage of economies of scale
  • To stabilize local market
  • To open international markets
  • To stay at competitive edge of coffee market
  • To protect coops/farmers from illegal actors of
    domestic market
  • To maximize the efficiency of member coops
  • To promote and reward quality coffee production

22
Major Duties
  • Assist in developing producer/buyer linkages
  • Directly export members coffee
  • Provision of warehouse service
  • Promotion of high quality coffee production and
    processing
  • Training and education
  • Provision of saving and credit services

23
What has been Achieved
  • Increased farmers share of FOB price
  • Coffee export share of cooperatives increased. 0
    before 2001 to 4.5 in 2005
  • Washed coffee export share increased from 0
    before 2001 to 18 in 2005
  • Enabled primary coops to stay at coffee marketing
  • Increased technical and management efficiency of
    member coops

24
What has been Achieved (contd)
  • Contributed towards improving the quality of
    Ethiopian coffee
  • Contributed towards promoting Ethiopian coffee in
    Europe, US and Asia
  • Increased bargaining power of producers
  • Contributed towards improving socio-economic
    condition of farming community

25
Coffee sales by Market Segments (2005/06)
26
(No Transcript)
27
(No Transcript)
28
Sidamo Coffee Export Share of SCFCU
29
Dividend Payment by the Union in Years
30
Certification
  • Organic Certification 24 Primary Coop. Certified
    by BCS OKO-GARANTIE GMBH, GERMANY
  • Fair Trade 18 coops inscribed in FLO, Germany
  • UTZ Kapeh 7 coops are certified by UTZ Kapeh
    foundation, The Netherlands
  • Café Practice 13 coops by Starbucks Coffee
    Company, USA

31
Farm Gate Export Price of Sidamo Coffee for
Fair Trade Non Fair Trade Farmer
32
The situation of non-fair trade Farmer
  • The price slump in the world coffee market in
    1998 had a drastic effect on the lives of many
    farmers.
  • Farmers forced to sell assets such as cattle
  • Farmers are forced to cut down essential
    expenses, including food
  • Farmer are uprooting coffee and shifting to
    other crop
  • Kids are dying with some curable diseases like
    malaria.

33
Quote from Non-Fair Trade Farmer
  • I depend on coffee for all clothing, food, to
    pay taxes and medical expenses. Our lives depend
    on coffee . . . Ten year ago I was producing
    seven sacks of red cherry, and this was enough to
    buy clothes, medicines and services. But now,
    even if I sell four times as much, it is
    impossible to cover all my expenses. . . Three of
    the children cant go to school now because I
    cant afford the uniform . . . We have stopped
    buying teff and edible oil. We are eating just
    mainly corn.

34
Impact of Fair Trade
  • Better flow of cash income from coffee
  • Sustainable coffee farming
  • Sustainable Production of good quality of coffee
  • Better bargaining power
  • Access to credit
  • Long term trade relationship

35
Impact of fair-trade
  • better school enrolment ratio
  • Better employment opportunities
  • Protected environment
  • Better health condition
  • Better housing
  • Improved infrastructure
  • Better life condition

36
Ethiopian Coffee Ceremony
  • Its Unique and have an important role in
    Ethiopian hospitality
  • The host washes the coffee beans
  • Roast them grinds them with a pestle mortar
  • The brewed coffee is served in tiny china cups
    with lot of sugar or salt
  • Traditionally, the guest must accept at least
    three cups the 3rd in particular considered to
    bestow a blessing
  • It would be done at least three times a day

37
  • Trade is the most powerful tool that links the
    lives of people on our planet, affecting
    economies either positively or negatively. The
    massive slump in the coffee price brought a sharp
    increase in poverty and hunger. But now, bit by
    bit, Fair trade has made a tangible differences
    in many farmers lives. Children has gained
    access to medical care and education where before
    these services were nonexistent. Much needed
    infrastructure has been built, and progress
    against poverty has been achieved. An increased
    market share for Fair Trade would have a
    measurable impact on the peace and stability of
    our country.

38
END
About PowerShow.com