ETHIOPIAN DEVELOPMENT
RESEARCH INSTITUTE
Harvest and off-farm practices by
farmers:
Overview and changes
1
Mekdim Dereje
IFPRI ESSP
Ethiopia’s coffee value chain: Evidence towards improved investments and policies
Addis Ababa Hilton
September 15, 2015
Addis Ababa
1. Changes in production practices
• Changes in management practices: Some
improvements over time
% of farmers At the time of the survey Ten years earlier
Stumping of trees 3 1
Compost use (% trees) 9 2
Tilling (% of farmers) 77 72
Number of weedings 2.07 1.93
1. Changes in production practices
• Modern input use: very low; however, increasing
improved seedling adoption
At the time of the
survey
Ten years earlier
Improved seedlings (% of area) 30 23
Chemical fertilizer use (% of farmers) 2 1
Herbicide use (% of farmers) 1 1
Pesticide use (% of farmers) 0.5 2
1. Changes in production practices
• Despite adoption of improved practices, we see few
changes in yields (and strong declines in Nekemte
and Harar)
Yields in whole dried
cherries per hectare
At the time of the survey Ten years earlier
Sidama 8.2 7.2
Yirgacheffe 6.9 6.6
Jimma 10.7 10.5
Nekemte 5.7 11.1
Harar 6.9 11.9
1. Changes in production practices
• Less than expected impact on yields: Might be due to
issues with diseases and climate change
At the time of
the survey
Ten years
earlier
For every good year,…
- One bad year (% farmers)
- Two bad years (% farmers)
- Other frequency (% farmers)
- No difference between years (% of farmers)
39
39
17
5
43
39
7
11
Diseases are a problem:
- Big problem (% of farmers)
- Small problem (% of farmers)
- No problem (% of farmers)
35
45
20
26
49
25
2. Changes harvest and post-harvest practices
• Improvements in harvest and drying methods
At the time of
the survey
Ten years
earlier
Harvest practices
Share of green cherries in coffee harvest (%)
Stripping of cherries (% of farmers):
- All
- Partly
- Selective harvest only
4
4
12
84
12
34
40
26
Post-harvest practices
Type of drying (% of farmers):
- Traditional bed
- On a mat or plastic on ground
- On bare ground
- Other
78
17
2
3
26
8
62
4
2. Changes harvest and post-harvest practices
• Improvements in harvest and drying methods,
leading to better quality coffee (share of grade 4
(better quality) coffee increased over time: 24% in
2006/07 – 31% in 2012/13)
3. Changes in marketing
• Uneven implementation of policy of primary market
centers: large differences by regions and coffee type
At the time of
the survey
Primary marketing centers as place of sale of
sales red cherries (%):
- Sidama
- Yirgacheffe
- Jimma
- Nekemte
- Harar
80
78
14
0
0
Primary marketing centers as place of sale of
sales (%):
- Red cherries
- Dry cherries
56
21
3. Changes in marketing
• Large changes in market outlets and role of regular
markets; however, village trader still important
At the time of
the survey
Ten years
earlier
Place of sales of red cherries (%):
- Primary marketing center
- Regular market
- Village trader
- Site of mill
- Other
56
8
20
14
2
3
26
31
39
1
Place of sales of dried cherries (%):
- Primary marketing center
- Regular market
- Village trader
- Site of mill
- Other
21
44
26
4
4
2
70
19
4
5
3. Changes in marketing
• Improvements in markets overall: farmers trust
weighing traders more; have to walk less far; and
have option of red berries sales
At the time of
the survey
Ten years
earlier
Average distance walked (in minutes) to sell:
- Red cherries
- Dried cherries
27
60
42
84
Farmer trust the weighing of the trader (%) 55 43
3. Changes in marketing
• Farmers have improved choice for trade and have
more options to sell to cooperatives as well
At the time of
the survey
Ten years
earlier
Farmer has the choice between traders (%):
- A lot
- A little
- No choice
69
26
5
27
50
23
Famer has the option to sell to cooperatives (%):
- For those that sell red cherries
- For those that sell dried cherries
61
16
57
7
Share of cooperatives in total sales 11 7
3. Changes in marketing
• Price information has improved; however, few
farmers have access to ECX information; price
information does not lead to quality premiums
At the time of
the survey
Ten years
earlier
Price information
- Farmer has access to price information from
radio (%)
- Farmer has access to price information from
auction/ECX (%)
67
20
47
11
“Better quality coffee gets a premium”:
- A lot (% of farmers)
- A little (% of farmers)
- No premium (% of farmers)
4
7
89
2
5
93
4. Changes in processing
• Washed coffee leads to higher export prices;
increasing investments in wet mills over time
Number of wet mills in Sidama zone
0
50
100
150
200
250
300
350
1972
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
cooperative Private
PLC
4. Changes in processing
• Households have more options to sell to wet mills
Share of households with option to sell to wet mills
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
%ofhouseholds
Yirgacheffe Jimma Nekempt Sidama
4. Changes in processing
• Possibility to sell to wet mills and actual sales
• No increase in the share of washed coffee in total
exports: share has stayed around one-third
At the time of
the survey
Ten years
earlier
Farmers has the option to sell red cherries to
wet mill
43 28
Share of coffee sold as red cherries 19 13

Harvest and off-farm practices by farmers: Overview and changes

  • 1.
    ETHIOPIAN DEVELOPMENT RESEARCH INSTITUTE Harvestand off-farm practices by farmers: Overview and changes 1 Mekdim Dereje IFPRI ESSP Ethiopia’s coffee value chain: Evidence towards improved investments and policies Addis Ababa Hilton September 15, 2015 Addis Ababa
  • 2.
    1. Changes inproduction practices • Changes in management practices: Some improvements over time % of farmers At the time of the survey Ten years earlier Stumping of trees 3 1 Compost use (% trees) 9 2 Tilling (% of farmers) 77 72 Number of weedings 2.07 1.93
  • 3.
    1. Changes inproduction practices • Modern input use: very low; however, increasing improved seedling adoption At the time of the survey Ten years earlier Improved seedlings (% of area) 30 23 Chemical fertilizer use (% of farmers) 2 1 Herbicide use (% of farmers) 1 1 Pesticide use (% of farmers) 0.5 2
  • 4.
    1. Changes inproduction practices • Despite adoption of improved practices, we see few changes in yields (and strong declines in Nekemte and Harar) Yields in whole dried cherries per hectare At the time of the survey Ten years earlier Sidama 8.2 7.2 Yirgacheffe 6.9 6.6 Jimma 10.7 10.5 Nekemte 5.7 11.1 Harar 6.9 11.9
  • 5.
    1. Changes inproduction practices • Less than expected impact on yields: Might be due to issues with diseases and climate change At the time of the survey Ten years earlier For every good year,… - One bad year (% farmers) - Two bad years (% farmers) - Other frequency (% farmers) - No difference between years (% of farmers) 39 39 17 5 43 39 7 11 Diseases are a problem: - Big problem (% of farmers) - Small problem (% of farmers) - No problem (% of farmers) 35 45 20 26 49 25
  • 6.
    2. Changes harvestand post-harvest practices • Improvements in harvest and drying methods At the time of the survey Ten years earlier Harvest practices Share of green cherries in coffee harvest (%) Stripping of cherries (% of farmers): - All - Partly - Selective harvest only 4 4 12 84 12 34 40 26 Post-harvest practices Type of drying (% of farmers): - Traditional bed - On a mat or plastic on ground - On bare ground - Other 78 17 2 3 26 8 62 4
  • 7.
    2. Changes harvestand post-harvest practices • Improvements in harvest and drying methods, leading to better quality coffee (share of grade 4 (better quality) coffee increased over time: 24% in 2006/07 – 31% in 2012/13)
  • 8.
    3. Changes inmarketing • Uneven implementation of policy of primary market centers: large differences by regions and coffee type At the time of the survey Primary marketing centers as place of sale of sales red cherries (%): - Sidama - Yirgacheffe - Jimma - Nekemte - Harar 80 78 14 0 0 Primary marketing centers as place of sale of sales (%): - Red cherries - Dry cherries 56 21
  • 9.
    3. Changes inmarketing • Large changes in market outlets and role of regular markets; however, village trader still important At the time of the survey Ten years earlier Place of sales of red cherries (%): - Primary marketing center - Regular market - Village trader - Site of mill - Other 56 8 20 14 2 3 26 31 39 1 Place of sales of dried cherries (%): - Primary marketing center - Regular market - Village trader - Site of mill - Other 21 44 26 4 4 2 70 19 4 5
  • 10.
    3. Changes inmarketing • Improvements in markets overall: farmers trust weighing traders more; have to walk less far; and have option of red berries sales At the time of the survey Ten years earlier Average distance walked (in minutes) to sell: - Red cherries - Dried cherries 27 60 42 84 Farmer trust the weighing of the trader (%) 55 43
  • 11.
    3. Changes inmarketing • Farmers have improved choice for trade and have more options to sell to cooperatives as well At the time of the survey Ten years earlier Farmer has the choice between traders (%): - A lot - A little - No choice 69 26 5 27 50 23 Famer has the option to sell to cooperatives (%): - For those that sell red cherries - For those that sell dried cherries 61 16 57 7 Share of cooperatives in total sales 11 7
  • 12.
    3. Changes inmarketing • Price information has improved; however, few farmers have access to ECX information; price information does not lead to quality premiums At the time of the survey Ten years earlier Price information - Farmer has access to price information from radio (%) - Farmer has access to price information from auction/ECX (%) 67 20 47 11 “Better quality coffee gets a premium”: - A lot (% of farmers) - A little (% of farmers) - No premium (% of farmers) 4 7 89 2 5 93
  • 13.
    4. Changes inprocessing • Washed coffee leads to higher export prices; increasing investments in wet mills over time Number of wet mills in Sidama zone 0 50 100 150 200 250 300 350 1972 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 cooperative Private PLC
  • 15.
    4. Changes inprocessing • Households have more options to sell to wet mills Share of households with option to sell to wet mills 0 10 20 30 40 50 60 70 80 90 100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 %ofhouseholds Yirgacheffe Jimma Nekempt Sidama
  • 16.
    4. Changes inprocessing • Possibility to sell to wet mills and actual sales • No increase in the share of washed coffee in total exports: share has stayed around one-third At the time of the survey Ten years earlier Farmers has the option to sell red cherries to wet mill 43 28 Share of coffee sold as red cherries 19 13