Green coffee prices decreased by 35% since 2015. As a result, coffee farmers in Ethiopia and in other coffee producing countries earn as well 35% less. With already very low earnings, this is dramatic for them. Even small price premiums which are paid by Fairtrade programs do not solve this fundamental problem and the contries´ dependency on farming.
What helps is roasting and processing by coffee producing countries. It does not mean that coffee farmers are automatically better paid, but it creates additional better paid jobs that are independent from the fluctuation of the world coffee prices.
At Solino in Addis Ababa we have already 120 employees that got jobs at the roastery, the printing house or as technicians. This means overall approx. 60% more value for Ethiopians when compared to selling the raw green coffee. The German SPIEGEL magazine summarizes our project very well (at the end of the article).
From the proceeds of the exported coffee, the roastery in Addis Ababa invested in packaging machines and printers from Germany. This means, such developmenent has also a positive impact for German suppliers.
Our objective is to hire 1000 employees until 2023 and to increase our current volume of 100 tons in 2018 to 1000 tons. To achieve this we have invested heavily in 2018 and will continue in the years ahead. If our project succeeds, also other companies will invest in food processing in Ethiopia: Tea, honey, sesam and fish are good examples of products that can be processed at the origin.
Many thanks to all our supporters, trade partners and consumers for the last years. We wish you all a happy new year 2019.
1 thought on “Green coffee gets cheaper and what does it mean for Ethiopia.”
I have known about Solino since its start up around 2008! I therefore would like to share its stories and success that I witnessed.
For me, Solino is not just a business in the Ethiopian coffee industry. It’s rather a partner, a consultant to the Ethiopian coffee industry in general and the producers (farmers) in particular.
During its startup, Felix (the founder of Solino) made a lot of trip to Ethiopia determined to introduce the “value adding” concept to the coffee producers in Ethiopia that he strongly believed would create a win-win situation between the company he hoped to found and the firms engaged in coffee business in Ethiopia.
Back on those days, my country coffee market focus more on selling raw coffee beans. Felix went thru many forums and meeting with the coffee producers to proof that they would benefit more if they consider selling processed coffee (roasted coffee). His efforts payed off and he found few producers who agreed to try out the coffee roasting. He organized intensive training and follow-up to these producers until they become able to produce quality roasted coffee that meet international standard.
Solino coffee also helped the roaster to be able to package the products with modern printing and packaging machine.
In my recent visit last week at the roaster here in Ethiopia. I witnessed the hard work finally payed off. The trainings and capacity building the company offered has made the workers very professional !
Thank you Solino coffee for the contribution to my country coffee producers!
Happy new Year y’all 🙂 !!
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