News Release – Monday 11th April 2005
Ethiopia to launch web coffee auction
Ethiopia is to begin auctioning nine of its best quality coffee brands online to help boost sales and reach a wider market. In the first move of its kind in the country, the Agriculture Ministry will start the internet auctions in May 2005.
"This is the first time we have ever tried something like this," Abraham Begashawe, manager at the Coffee and Tea Quality Control Centre with the Ministry of Agriculture and Rural Development, "we are hoping the auction will attract a wider audience and also increase sales overall."
Ethiopia produces around 200,000 metric tonnes of coffee a year. The Ministry expects to sell around 30,000 kg in the auction, appealing mainly to small, specialised roasting companies in the United States, Japan and Europe.
Ten different types of coffee have been selected for the auction after more than 190 varieties – originating from places such as Yirga Cheffe, Sidamo, Nekemte and Illubabor – were tested by 13 judges from Ethiopia, the US, Japan, New Zealand, the Netherlands and France. The finest coffee beans, according to Abraham, were selected because they were organic and possessing superb, aroma and flavour.
According to the government, coffee contributes 60% of Ethiopia's foreign earnings but in recent years however, the price has slumped, hitting export earnings, which dropped from 70 to 35% in five years. Ethiopia's finance ministry estimates the collapse in coffee prices has cost the country some US $830 million in lost export earnings over that same period.
Abraham said that although prices were beginning to creep up again, they expected to receive a high price of around $4 per kilo in the auction.
Half of the coffee drunk in Japan is from Ethiopia while most is exported to Germany - some 30,000 tonnes, with Britain importing around a thousand kilos a year.
ENDS