From Economic Vulnerability to Sustainable Livelihoods: The Case of Oromia Coffee Farmers Cooperative Union in Ethiopia

Abstract

We present the case study of a fast growing agribusiness cooperative in Ethiopia, Oromia Coffee Farmers Cooperative Union (OCFCU). OCFCU was established in 1999 by 34 cooperatives and a capital of US $90,000. Nowadays, OCFCU has 240 cooperatives and a capital exceeding $12,000,000 USD. Well known in the specialty coffee market, OCFCU works with growers across Ethiopia influencing communities economically and socially. Using the GLIMPSE perspective, we investigate the raw-bean procurement, transportation, quality control, economies realized through coordination, on-going initiatives to capture value added in processing, and associated challenges in the East African context of small-holder farmers, credit and infrastructure constraints.

Keywords: Ethiopia, coffee farmers, co-operatives, specialty coffee market, exports

JEL Classification: Q01, Q13, Q17, O13