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Primary coffee processing in Ethiopia: patterns, constrains and determinants

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African Crop Science Conference Proceedings Vol. 8. pp. 1417-1421
Printed in El-Minia, Egypt
ISSN 1023-070X/2007$ 4.00
© 2007, African Crop Science Society

Primary coffee processing in Ethiopia: patterns, constraints and determinants

RICHARD MUSEBE, CHARLES AGWANDA & MITIKU MEKONEN
CABI Africa, P.O. Box 633-00621 Nairobi, Kenya, r.musebe@cabi.org

Abstract: Quality is the most important parameter in the World coffee trade. The quality of coffee is determined by
40% in the field, 40% at post harvest primary processing, and 20% at secondary processing. This underscores the
importance of primary processing in enhancing the quality and value of coffee. The purpose of this study was to
examine coffee processing methods, evaluate constraints to processing and assess socio-economic factors determining
the type of processing method used by small scale farmers. Four hundred farmers were interviewed from the main
coffee growing areas. The survey revealed that the methods of coffee processing in Ethiopia are sun-drying of unpulped
cherries and wet processing, of which sun-drying is preferred by farmers. Washed coffee accounts for 29% while
sundried accounts for 71% of all processed coffee. Education level (p<0.01), area under coffee (p=0.02), distance to the
nearest coffee washing station (p=0.01) and age of the farmer (p=0.04) significantly determine the type of processing
method used. Farmers with higher education level and large land area under coffee prefer wet processing. Relatively
less educated, old and farmers located far away from the coffee washing stations use sun-dried processing. The key
constraints to coffee processing are lack of coffee processing facilities, high costs of materials for constructing the
raised drying beds, limited technical know-how and long distance to the few processing facilities. Coffee processing can
be improved through investment by provision of financial resources to purchase the requisite equipment and training so
that the necessary technical, financial and commercial capability would be created for the sustainable management of
the coffee processing facilities.
Key words: Coffee, livelihood, quality, sun-dried, socio-economic factors, wet processing
Introduction Materials and Methods
Coffee is an important export commodity for Ethiopia, A stratified multistage random sampling procedure was
contributing 41% of the country’s total foreign exchange adopted for the selection of the growers at different levels.
earnings (IMF, 2006) and about 10% of the gross To get a representative sample of the whole of the coffee
domestic product. Over 25% of the population of growing area of Ethiopia, two regional states (Oromia and
Ethiopia, representing 15 million people, are dependent Southern) were identified in the first stage. The two
on coffee for their livelihoods (LMC, 2000). This includes regional states constitute one of the main coffee growing
8 million people directly involved in coffee cultivation areas. The second stage of sampling involved selection of
and 7 million in the processing, trading, transport, and two zones from each of the regional states. Jimma and
financial sectors (Charveriat, 2001; Oxfam, 2002). Almost Illubabor Zones from Oromia Regional State were
95% of the Ethiopian coffee is produced by about 1 selected, while in the Southern Regional State Sheka and
million small-scale farmers, with an average farm size of Bench Maji Zones were selected. In the third stage of
0.5ha, while state-owned plantations account for 4.4% sampling, one woreda (district) was selected from each of
and private investor plantations 0.6% (FDRE, 2003). The the zones. The selection of the woredas was based on
quality of Ethiopian coffee is determined by two main prevalence of coffee processing problems. The selected
factors namely the geographic origin (Nicholas, 2007) and woredas are Goma, Alle Didu, Yeki and Sheko. The final
the post harvest processing techniques. It is estimated that stage of sampling involved a random selection of 100
40% of the quality of coffee is determined in the field, coffee growers from each of the woredas for individual
40% at post harvest primary processing, and 20% at interviews. Four hundred coffee growers were
secondary/export processing and handling including interviewed from the four woredas.
storage. In order to enhance quality and market value of Data were collected using structured and pre-tested
Ethiopian coffee, improved primary processing by questionnaires specially designed for the study. Coffee
farmers at the village level is a prerequisite. An growers were personally interviewed to ensure accuracy
improvement in coffee quality, and therefore income, has and comprehension. Data was collected on a large number
a direct impact on the livelihoods of a large number of of variables, which included age of the farmer, level of
resource-poor people in the rural populations. This study education, source of labour, land under coffee cultivation,
was conducted to examine the coffee processing methods resource endowment, crops grown, years of growing
and evaluate processing costs, identify problems of coffee coffee, varieties grown, methods of coffee processing and
processing and assess the factors constraints in coffee processing. Data was collected for
the agricultural year 2004.
determining type of processing method used by the small The data collected were analysed using descriptive
scale farmers. statistics and regression analyses. Arithmetic means,
percentages and frequencies were computed and

RICHARD MUSEBE et
al.,
compared. The analysis of the data primarily consisted of
working out the averages for different variables to find
out the difference among different woredas. Estimates
were worked out per hectare in some cases for the
purpose of making comparisons and drawing inferences.
A binary logistic regression model was used in the
analysis to establish factors that influence choice of the
coffee processing method.
Results
Two methods of coffee processing are used in Ethiopia.
These are dry processing and washed coffee processing.
Under dry processing unpulped cherries are dried whole
in the sun under natural conditions after harvesting. In the
washed method the cherries are pulped immediately after
picking followed by fermentation and washing to remove
mucilage cover. The resulting parchment is dried in the
sun. Secondary processing is conducted by the akrabis
(local buyers) who generally operate hulling mills, where
the dried cherry/ parchment is hulled and prepared before
transport to the coffee auction in Addis Ababa or Dire
Dawa. Export processing of the green coffee is handled
by the exporters in their own facilities following the
central auction. In the case of the sun-dried coffees, this
consists of sorting, either by hand, or using electronic
colour-sorters, then blending the different truck-load lots
to make up export qualities and quantities. These are
generally in multiples of 18 tons, being the normal load of
a 20 foot container. For the washed coffees, after delivery
from the coffee processing and warehouse enterprise
(CPWE) to the exporter’s mill, the parchment coffee is
first hulled, then sorted and blended for export.
From the survey results the most common method for
post-harvest primary coffee processing was sun-drying.
This was followed by washed coffee processing using
hand pulpers and coffee washing stations. The survey
further revealed that 71% of the coffee produced by
smallholder farmers undergoes sun-drying and the
remainder is washed. These results are consistent with the
national figures on the extent of use of either of the
processing methods, that is 75-80% being sun-dried and
the remainder being washed coffee. Out of the 400
farmers interviewed 47.6% indicated preference for
sundried coffee processing, while 49.0% wished to
produce washed coffee using hand pulpers. The remaining
proportion of farmers (3.4%) preferred washed coffee
processed by the central coffee washing stations. There is
therefore higher preference for wet coffee processing.
This is because coffee processed through wet processing
method produces superior coffee brew and hence attract a
higher market value. Despite the observed preference for
the wet processing method, there were few hand pulpers
and central coffee washing stations accessible to the
farmers. A very small proportion of farmers (1%)
interviewed reported that they had access to hand pulpers
in the area. The same scenario applied to the central
coffee washing stations in the area. The situation was
worsened by the fact that most of the available hand
pulpers and coffee washing stations were not functioning.
In addition, only 8% of the farmers interviewed indicated
that they knew how to use the hand pulpers. This means
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that in order to enhance the use of hand pulpers, training
to upgrade farmers’ skills on their use is a prerequisite.
The training will also be necessary for the farmers to
understand the differences in the operation modes of the
different coffee processing facilities.
The key players in primary coffee processing are
individual farmers especially for sun-dried coffee
processing and, to a small extent, pulped coffee. Farmer
groups, cooperatives, non-governmental organizations and
the government are involved at a higher level, for example
ownership of coffee washing stations or provision of hand
pulpers. The existing pulpers are owned mainly by private
individuals and a few cooperatives. On the other hand the
existing coffee washing stations are owned mainly by the
cooperatives and a few private individuals. Some washing
stations are owned by state farms. In the farmers’ view the
pulpers and coffee washing stations should continue being
owned by private individuals and cooperatives. This
would encourage efficient management and easy access
by many growers. The average distance to the nearest
pulpers was 2.0 km although the preferred distance to the
nearest pulper or coffee washing station is 1 km. The
reason for the selected distance was to reduce the
transport costs, guarantee immediate processing of the
coffee, allow access by all interested coffee growers,
ensure efficient management and group security/ care for
the processing equipment especially at night. In spite of
the need to improve access by the growers the location of
the processing facility should be such that it is close to a
water source and accessible by road.
About 50% of the farmers reported willingness to
contribute to the maintenance of hand pulpers or coffee
washing stations if such equipment was availed. Those not
willing to contribute to maintenance cited lack of money
as the main reason for their unwillingness to contribute.
The main forms of contribution in order of importance
were to contribute towards maintenance, wages of the
workers and payments for processing fees. The high
proportion of farmers not willing to pay for maintenance
of processing facilities indicates that there may be need to
educate the farmers about the differences in quality of
coffee produced by the two processing methods coupled
with provision of services such as ruralbased credit.
Farmers dry their coffee using different approaches.
About 48.0% spread their coffee on the ground, 49.5%
dry on raised drying beds and 2.5% dry on cemented
floors. The preferred method for coffee drying is on raised
drying beds as reported by 67.3% of the farmers.
However, most of the coffee is dried on the ground due to
the farmers’ inability to construct drying beds. Methods
for ensuring farmer accessibility to raised drying beds
need to be sought. This may involve initial supply of
materials/equipment for drying coffee; such as black net
shed, jute strip and plastic sheets. Indeed 81% of the
farmers indicated that they were interested in owning
raised drying beds. The farmer perceptions about the
current coffee processing practices were that although
washed coffee processing produced high quality coffee,
the method was expensive. Sun-dried coffee processing
on the other hand was easy to manage and it required
fewer resources. Raised drying beds were good for coffee
drying but farmers reported that they did not have the
materials for construction of the beds and this reduced the
use of raised drying beds.
In order to assess the existing coffee processing
practices, the processing costs per unit of clean coffee
were computed from various cooperatives. The coffee
processing costs in Ethiopian Birr (ETB) per kg of clean
coffee were computed from Oromia cooperative Bureau,
which had compiled the same from the cooperatives in the
area (Table 1). The sun-drying method has the lowest
costs but produces coffee of inferior quality compared
with the other the processing methods.

Table 1: Coffee processing costs (ETB)

Cost per kg of clean coffee
Processing method
(ETB)
Sun drying
Labour, salaries, and other operation costs 0.25
Others (Transport, stationery, income tax, municipality) 1.00
Hand pulpers
Labour, salaries and other operation costs 2.00
Maintenance and repairs 0.27
Other costs (income tax, local drying materials, etc.) 0.31
Large coffee washing stations (LCWS)
Labour, salaries and other operation costs 2.32
Fuel 0.26
Maintenance and repairs 0.32
Other costs (income tax, local drying materials, etc.) 0.26
A number of constraints are associated with coffee
processing in Ethiopia. Among these are lack of drying (Table 2). Farmers also reported that the coffee prices
beds, shortage of hand pulpers and central coffee were lower than what they expected. In addition coffee
washing stations and high costs of drying materials prices were not based on quality of coffee produced.

Table 2: Percentage of farmers reporting constraints according

to processing method
Description of constraint Sun-dried Wet (washed)
processing processing
Lack of adequate drying beds 8.5 34.0
Shortage of hand pulpers 0.0 22.0
Shortage of central washing stations 0.0 9.0
Lack of technical know-how 3.5 3.0
Low prices of processed coffee 1.0 1.5
Poor drying due to heavy rainfall 4.0 2.5
Long distance to the washing stations 0.0 13.0
High costs & lack of materials for drying beds 83.0 15.0
Whereas the farmers are aware of drying coffee on that the capable farmers are able to purchase. More hand
raised drying beds they were constrained by the high costs pulpers need to be provided on communal basis, meaning
of materials such as wire mesh, jute, plastic sheets and that a few farmers can pool resources to purchase hand
tidernet used for constructing the raised drying beds. Lack pulpers. In the short run some facilitation through the
of technical know-how for coffee processing and lack of government is required for the purchase of hand pulpers
funds to undertake processing are other constraints faced and construction of the coffee washing stations. To this
by the small scale coffee farmers in Ethiopia. Due to the end formation of viable interest groups is necessary. It is
shortage of processing facilities farmers interested in imperative that some training on proper harvesting,
washed coffee are forced to walk long distance to the pruning and coffee processing is provided to the farmers.
coffee washing station. In order to improve coffee Farmers require encouragement to use ladders for
processing in Ethiopia farmers should be empowered to harvesting the tall coffee trees and selective picking of red
construct more drying beds. cherries for wet processing. This should be accompanied
The government should provide loans to the coffee by proper husbandry practices so that in the long run
growers so that they are able to purchase the coffee farmers have proper size coffee trees for ease of
processing inputs such as wire mesh, covering materials, harvesting.
plastic sheets, storage bags and hand pulpers. It may also
be necessary for the government and non-governmental
organizations to pool resources and provide credit for this
endeavour in the short run. In the long run and for
purposes of sustainability farmers would have to purchase
materials and construct the drying beds. Materials for
construction of drying beds should be made available so

1419
 The choice of processing method to use depends on a
number of factors. Among these are area under coffee,
how long a farmer has been growing coffee, education
level of the farmer, access to water, distance to nearest
coffee washing station and age of the farmer. In order to
determine the factors that significantly affect choice of the
processing method a binary logistic regression model was
used. The dependent variable, processing method, is a
opportunities for marketing other food crops from these
areas (Petty et al., 2003). The livelihoods of small scale
farmers in these areas are determined by the income from
coffee sales. The income received from coffee depends on
the quality of coffee, derived especially from post harvest
primary processing. The key primary processing method
used is sun-drying although it produces coffee of inferior
quality compared to wet processing. ICO (2006) also

RICHARD MUSEBE et al.,

and 1 representing washed coffee processing method. educated farmers prefer sun-dried coffee processing. Education
levels, area under coffee, distance to the Farmers with large land area under coffee prefer the nearest coffee washing
station and age of the farmer washed coffee processing method. Farmers who are significantly determine the type of
processing method to located far away from the coffee washing stations prefer be used (Table 3). There is no significant
relationship to use the sun-dried processing method. This means that between distance to the nearest water source and
choice in order to increase washed coffee processing more coffee of the processing method. Similarly, there is no
washing facilities should be made available. This in significant relationship between length of time a farmer essence
underscores the need for improving farmer access has been growing coffee and choice of the method of to the coffee
washing facilities. Old farmers are more processing. likely to use the sun-dried coffee processing method.
Farmers with higher education level prefer washed coffee
processing method while the relatively less

Table 3: Results of binary logistic regression

Variable Coefficient B Standard Error Wald Sig. Exp(B)
Age of farmer (years) -0.059* 0.029 4.096 0.043 0.942
Education level of farmer 1.104** 0.344 10.299 0.001 3.015
Distance to the nearest water source (km) -0.785 0.459 2.921 0.087 0.456
Area under coffee (ha.) 0.269* 0.118 5.177 0.023 1.308
Length of time growing coffee (years) 0.038 0.028 1.870 0.171 1.039
Distance to the nearest coffee washing station (Km) -0.302* 0.125 5.811 0.016 0.739
Constant -0.821 1.333 0.379 0.538 0.440
binary variable with 0 representing sun-dried reports that most of the coffee in Ethiopia is processed by
processing Notes:* - significant at the 5% level sun-drying. However consumers prefer washed coffee
** - significant at the 1% level (Ethiopia, 2006), meaning that the most common
processing method does not produce the preferred quality
The survey identified distance to the processing of coffee. Farmers also prefer wet processing because it
facility, area under coffee, quantity of coffee produced, sells at significant premiums over sun-dried coffee
education levels of the farmers and resource ownership as (Nicholas, 2007), but continue using the sun-drying
the main factors which influence the use of the processing method due to a number reasons indicted earlier. Thus, a
method by the farmers. Farmers that were close to number of competitive advantages may still be seized if
processing stations had a higher tendency to use them quality and consistency are guaranteed.
compared to those far away. Farmers that produce a lot of Given that the agreement of consumer and produce
coffee tend to have access to washed coffee facilities preferences, it is important to empower farmers to
possibly because they generate more returns that cushion produce washed coffee. The approach in this regard would
the transport costs. More educated farmers used washed be initially to encourage group ownership of processing
coffee processing, meaning that education had some facilities and provision of credit facilities for the purchase
influence on preference for washed coffee processing of processing facilities. This is because the major reason
facilities. Farmers’ level of awareness also determines for the limited use of wet processing is shortage of the
their accessibility to the coffee processing facilities. This processing facilities. Facilitation to own the processing
means that creating awareness through education or facilities should be accompanied by provision of training
advertising of the processing facilities may help improve on selective harvesting of red cherries and processing
the farmers’ decision making regarding choice and access methods. There is therefore need for investment by the
to the processing facilities. government, non-governmental organizations and any
other interested parties in the purchase of processing
Discussion equipment and training in order to create the necessary
technical, financial, commercial and marketing capability
Coffee production is a vital business and wealth creation for the sustainable management and use of the coffee
opportunity that contributes to poverty reduction in the processing facilities. Other than direct investment, the
main coffee producing areas. There is high level
dependence on coffee production and lack of

1420
government should encourage cooperatives and traders to
invest in machinery to raise the output of washed coffee.
Farmers were willing to contribute to the maintenance
of a coffee processing facility such as a hand pulper or
large coffee washing station if they would be made
available, which is a positive attitude towards group
ownership. This calls for a clear way of determining the
processing costs and costs of maintenance. Once the costs
are established, initially there would be joint ownership of
the processing facilities coupled with a strict savings
regime aimed at the purchase of hand pulpers for the
group and eventually for the individual farmers.
Coffee in Ethiopia is produced under different
production systems and all the coffee from some
production systems especially forest coffee may not be
amenable to wet processing. This means that some coffees
will continue being processed using sun-drying. In this
case improved sun-drying is advocated. This is where
coffee is dried on raised drying beds and in approved
quantities to ensure efficient drying as opposed to drying
on the ground.
Farmers recognize the importance of the quality of
coffee but there is no price differentiation based on
quality. The buyers do not use containers with different
prices for purchasing coffee on the basis of quality. This
has tended to discourage producers from serious
involvement in quality improvement endeavours. Efforts
have to be made to differentiate coffee processed on the
basis of quality to enable farmers producing high quality
coffee to earn a premium. This could be through
promotion. It is expected that the premium so obtained
would encourage the farmers to get involved more in
production of coffee of high quality. Farmers need to be
encouraged to evaluate coffee before selling. This calls for
clear linkage with the coffee liquoring unit for sampling
and quality evaluation, and to encourage farmers to store
coffee up to the point where they know the value before
selling. Building group processing, quality control and
marketing critical mass to produce warrantable lots is
therefore a prerequisite.
Acknowledgements
The study was undertaken as part of the project titled
“Improving coffee quality in East and Central Africa
1421
through enhanced processing practices (Ethiopia and
Rwanda)”, which was financed by the Common Fund for
Commodities, with co-financing by Illycafé and
counterpart contribution from the Government of
Ethiopia. The project was implemented in Ethiopia with
CABI Africa as the project executing agency.
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