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The merits of vertical Integration

24 July 2021

The merits of vertical Integration

Several green coffee exporters have prioritized supplies through vertical integration contracts accounting for over half of coffee shipped during the year. In the last 6 months alone, close to 6,000 linkages have been created between farmers, collectors, and buyers through vertical integration, shipping 133,000MT of coffee overseas. Even though the initiative has been under implementation since 2017, the practice took off over the past year, necessitating the move to draft a directive to monitor and evaluate the export, according to Hayru Nuru, director for market information and supervision of the Authority.

Ethiopia assures increased supplies


The ECTA plans to increase its export volume by more than 32,000 MT for 2021/22 FY to earn $ 1.04 billion by exporting 280,000 MT of coffee to the global market with an additional 31,689 MT from the previous FY. Recalling that various plans have been considered to improve the supply of coffee in the country, Mr.Shafi said work is underway to change the way coffee is supplied in the past.ECTA emphasized cooperative unions and other local stakeholders should also play an active role in the value addition of green coffee beans.

WCR releases highlights of 2020 report


The world was tested in unprecedented ways in 2020, and coffee agriculture was no exception. The global pandemic proved beyond a doubt that diversity confers resilience, whether we are talking about individual coffee farms, roaster supply chains, entire global economies, or coffee genetic diversity. Coffee businesses need to build resilience to thrive in the 21st century, which will require innovation and creativity across the value stream, from small family farms to global retail giants.217 coffee companies—representing one-fifth of the global coffee market share--continued their support for collaborative science and innovation to secure a sustainable future for coffee.

 

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