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Sustainable farming has been a staple of
Ethiopian coffee farming for generations, and most coffee is grown under shade and is bird-friendly. In 2014, OCFCU partnered with a roasting house in the Netherlands with the aim to eliminate the reliance on wood for household use and produce carbon-neutral coffee from farm to cup. According to the plan, farmers are incentivised to participate in the scheme with bonus payments of USD$ 25 and cooking stoves are being distributed to families so that they will stop using wood for their cooking needs. The reduction of carbon dioxide with the new stoves compared to cooking over an open fire is up to 70%, and it is estimated that the project will generate over 30,000 carbon credits. The Fair trade premium from the carbon credits goes toward projects which will make communities better equipped to deal with the effects of climate volatility.
338:
include top management and the representative chairperson from each cooperative. This is where the definition and evaluation of Union strategies take place. Policies and strategies approved at the annual general meetings are subsequently given to the
Cooperative’s Boards for execution; and then, the board delegates to management to undertake day-to-day activities. Cooperative management is answerable to their respective board of directors and the cooperative members, the vast majority of which are indigenous small landholders located in the Oromia region.
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the world production and prices of coffee directly and significantly affect
Ethiopian coffee prices, and thus, farmers' profits. Moreover, when coffee prices are low, many farmers suffer from inadequate income, and thus, hunger. Previously, in the lean period preceding harvest (June to September), farmers would borrow at high interest rates from private lenders to subsist and improve their farming practices and harvests. However, in 2005, the Union implemented its own financial services through the
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and implemented. The OCFCU was established on 1 June 1999 by thirty-four cooperatives representing approximately twenty-two thousand members with US$ 90,000 in capital. Soon, Oromia became the capital of coffee for the nation, holding more than 65% of the lands designated for coffee growth. The Union started by training farmers, agricultural staff, cooperative promoters, and government officials in cooperative principles for eight months. Initial
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286:. In July 2018, OCFCU invested the equivalent of more than USD$ 1.5 million to build its first coffee roasting and packaging complex at Gelan Town in Oromia Regional State. The plant was completed and started production in February 2020 with the aim to roast, grind, and package the coffee for local use.
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to clear the land to plant a new crop to recover any losses. Previously, agronomic development was stimulated by investment in local tree plantations in conjunction with the
European Union. This partnership ended in the 1980s, and there has been insufficient investment in agronomic development since.
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by offering different coffee varieties. Furthermore, cooperatives improve poverty in developing countries and allow the possibility for income generation from employment opportunities. In accordance with their objective of improving farmers’ incomes, the Union disburses seventy percent of profits to
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as a trainee in cooperative initiatives. He returned to post-socialist
Ethiopia with informative DVDs on Japanese cooperatives and cooperative principles. These DVDs were shown to the Oromia agricultural bureau management, and Meskela's idea for a market-oriented democratic organisation was accepted
783:
Another concern for OCFCU farmers is the aging of coffee trees. The coffee tree can take up to five years to mature, and thus, intensive labor is needed to bring the tree to maturation and reap profits from proper tree development. Furthermore, when the crop is no longer profitable, it is difficult
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A systemic risk faced by farmers is coffee price volatility. Coffee is the most accessible source of income for poor smallholder
Ethiopian farmers. However, coffee prices, being a commodity, are inherently more volatile than industrial products. Since Ethiopian farmers are price takers, changes in
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The Union has five key managers: General
Manager, Deputy General Manager, Commercial Department Head, Financial Department Head, and Export Sales Head, as well as a general assembly consisting of one representative chairperson from each of the 405 cooperatives. The annual general assembly meetings
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As well as economic development, the Union has brought significant social benefits to members and local stakeholders; these include improved infrastructure and services through building roads, storage facilities, bridges, clinics, and schools in the local communities. OCFCU also offers access to
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Since the coffee market is saturated with more sellers (farmers) than buyers, buyers hold considerable power in trade and price determination. Consequently, cooperatives have been considered as organisations playing significant socioeconomic roles by reducing transaction costs and increasing the
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Guided by the principles of the
International Cooperative Alliance, the primary mission of the Union is to reduce transaction costs through the facilitation of direct sales of coffee. The direct sale/export of coffee sees the by-passing of auctions and elimination of intermediaries sales through
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become more prevalent and temperatures rise and patterns of rainfall become more volatile, it becomes significantly more difficult to grow coffee successfully. The size of land held by farming families is heterogeneous and some communities are more vulnerable than others to climate volatility.
277:
amounted to seventy-two metric tonnes and sales of US$ 130,000. As of 2020, the OCFCU had 405 cooperatives representing over four hundred thousand members with capital exceeding US$ 20 million. Furthermore, exports had grown to seven thousand metric tonnes with sales exceeding $ 40 million.
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In conjunction with their mission and objectives, the OCFCU realized the importance of the export market and started building a direct connection between small landholders growing coffee and international coffee markets. As of 2014, export destinations include
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vendors such as coffee collectors, suppliers, and exporters; thereby, deriving greater profit which is given back to farmers through dividends. This has the subsequent aim of trying to solve the problem of delay in payment from the exporters.
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of
Ethiopia. The aforementioned region is characterized by its unique native vegetation and tropical climate conducive to coffee bean growth. OCFCU is a democratic, member-owned business operating under the principles of the
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certified coffees. The 405 cooperatives within OCFCU operate under the Fair trade principles. In 2002, the first cooperative was certified Fair trade, and as of 2020, forty-eight cooperatives are Fair trade certified.
264:, thereby stunting the growth of the coffee trade in the region. Importantly, farmers had little autonomy over sales and exports and therefore were impoverished. In the 1990s, the OCFCU’s first General Manager,
526:, coffee quality control training, education, flour mills, and community clinics, among others for members. The following table from the OCFCU website outlays the Union's economic and social endeavors:
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The Union has received several awards and has been recognized as a preeminent
Arabica coffee bean producer. In 2000, OCFCU samples were rated as among the best in the world by roasting houses at the
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The OCFCU states their vision for the Union is that they "aspire to see cooperative societies who strongly emerge as the engine of development in rural and urban settings to achieve transformation."
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conference. At the 2012 Coffee of the Year Competition, OCFCU coffee was ranked first out of 250 different coffees. Furthermore, the OCFCU has numerous certifications including Fair trade, organic,
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1402:
Mojo, Dagne; Fischer, Christian; Degefa, Terefe (2017). "The determinants and economic impacts of membership in coffee farmer cooperatives: recent evidence from rural Ethiopia".
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484:. As of 2014, $ 3 million in dividends had been paid to farmers. Through their successes, the Union is now able to employ two thousand seasonal and permanent employees.
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232:, and the Union plays a central role in the Ethiopian coffee marketing chain. The members of OCFCU grow, process, and supply organic Arabica coffee for export.
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450:, and more. As of 2014, the Union was Ethiopia’s largest exporter of organic coffee and the second largest in Fair trade coffee exports in the world.
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Worako, T.K.; Jordaan, H.; van Schalkwyk, H.D. (September 2011). "Investigating Volatility in Coffee Prices Along the Ethiopian Coffee Value Chain".
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regime imposed collective ownership, and farmers were required to channel all sales through local traders and auction centers in Addis Ababa and
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GETNET, Kindie; ANULLO, Tsegaye (2012-04-24). "Agricultural Cooperatives and Rural Livelihoods: Evidence from Ethiopia".
942:"From Economic Vulnerability to Sustainable Livelihoods: The Case of Oromia Coffee Farmers Cooperative Union in Ethiopia"
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50:
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797:. The organisation provides pre-harvest financing and loan advances to 70% of members to ensure crop development.
1638:
Bastin, Anne; Matteucci, Nicola (2007). "Financing Coffee Farmers in Ethiopia: Challenges and Opportunities".
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369:: Natural coffee. Medium to light acidity, full-body, and strong mocha flavor with blueberry notes.
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Though the Oromia region was the area where coffee was first discovered, the previous socialist
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399:: Natural and washed coffee. Bright acidity, medium body marked jasmine and lemon flavors.
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375:: Natural coffee. A well-balanced cup, medium acidity, and body with distinct winy flavor.
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381:: Washed coffee. A well-balanced cup, medium acidity, and body with distinct winy flavor.
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between coffee growers and the export market, significantly increasing the share of the
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393:: Natural and washed coffee. Bright acidity, medium body with spicy and citrus flavors.
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387:: Natural and washed coffee. Good acidity, medium body with a wild fruity finish.
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bargaining power of suppliers. The Union has been able to reduce the number of
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Uncommon grounds : the history of coffee and how it transformed our world
1381:"Coffee Shops and Cash Crops: Gritty Origins of the World's Favorite Beverage"
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Previously, the Union would facilitate the exchange between farmers and local
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Coffee price volatility in Ethiopa : effects of market reform programmes
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The OCFCU distributes six organic Arabica coffee beans. Oromia offers
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Coffee crops are significantly affected by climate volatility. As
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Improving the quality of services to member farmers and clients.
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1355:"Yirgacheffee Coffee – Oromia Coffee Farmers Cooperative Union"
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Improving farmers’ incomes by exporting their coffee directly.
18:
1513:"Life Improvement – Oromia Coffee Farmers Cooperative Union"
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Improving the quality and productivity of Ethiopian coffee.
1275:"Nekemte Coffee – Oromia Coffee Farmers Cooperative Union"
1255:"Nekemte Coffee – Oromia Coffee Farmers Cooperative Union"
325:
Improving the sustainability of the local coffee industry.
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The Oromia Coffee Farmers’ Cooperative Union (OCFCU) is a
1315:"Sidamo Coffee – Oromia Coffee Farmers Cooperative Union"
1295:"Sidamo Coffee – Oromia Coffee Farmers Cooperative Union"
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beans. These coffee beans come from six areas of Oromia:
1215:"Jimma Coffee – Oromia Coffee Farmers Cooperative Union"
1195:"Harar Coffee – Oromia Coffee Farmers Cooperative Union"
1050:"Ethiopia: Farmers Union Plants Coffee Complex in Gelan"
1379:
Wright, Jessica; Zeltmann, Steve; Griffin, Ken (2017).
1335:"Yirgacheffe – Oromia Coffee Farmers Cooperative Union"
1235:"Limu Coffee – Oromia Coffee Farmers Cooperative Union"
517:
Ethiopian women traditionally roasting raw coffee beans
42:
1175:"Contact Us – Oromia Coffee Farmers Cooperative Union"
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1681:
Oromia Coffee Farmers Cooperative Union official page
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Oromia Coffee Farmers Cooperative Union official site
1489:"Oromia Coffee Farmers' Cooperative Union (Ethiopia)"
1155:"Objective – Oromia Coffee Farmers Cooperative Union"
1024:"About US – Oromia Coffee Farmers Cooperative Union"
53:, and by adding encyclopedic content written from a
1124:"Mission – Oromia Coffee Farmers Cooperative Union"
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1099:"Vision – Oromia Coffee Farmers Cooperative Union"
846:"OCFCU – Oromia Coffee Farmers Cooperative Union"
309:Furthermore, the Union has six focus objectives:
467:chain. The Union has subsequently increased the
16:Cooperative union of small farmers in Ethiopia
1075:"Visiting Ethiopia, the birthplace of coffee"
169:Yirgacheffe Coffee Farmers' Cooperative Union
8:
1746:Agricultural organisations based in Ethiopia
1687:Oromia Coffee Farmers Cooperative Union page
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322:Improving the social conditions of farmers.
1532:Pendergrast, Mark, author. (9 July 2019).
1447:Annals of Public and Cooperative Economics
1391:(1): 102–112 – via ProQuest Central.
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1577:CS1 maint: multiple names: authors list (
940:Meskela, Tadesse; Teshome, Yalem (2014).
73:Learn how and when to remove this message
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494:Speciality Coffee Association of America
454:Transaction cost reduction and dividends
328:Regulate and stabilize the local market.
172:Sidama Coffee Farmers' Cooperative Union
92:Oromia Coffee Farmers' Cooperative Union
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480:cooperatives and their members through
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204:https://www.oromiacoffeeunion.org/
181:International Cooperative Alliance
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1756:Organizations established in 1999
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1459:10.1111/j.1467-8292.2012.00460.x
538:Number of Projects Accomplished
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1771:1999 establishments in Ethiopia
290:Vision, mission, and objectives
1416:10.1016/j.jrurstud.2016.12.010
1:
1048:Samuel, Gelila (2019-12-31).
815:Coffee production in Ethiopia
242:Coffee production in Ethiopia
1609:10.1080/03031853.2011.617865
1073:Holden, Matt (2015-03-10).
771:Agronomy and sustainability
629:Occupied Medical Equipment
524:banking and credit services
250:Ethiopian regions and zones
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795:Cooperative Bank of Oromia
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1741:Agricultural cooperatives
997:. University of Paisley.
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488:Awards and certifications
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1404:Journal of Rural Studies
725:Coffee Processing Mills
541:Number of Beneficiaries
1640:Savings and Development
1493:Fairtrade International
993:Gemech, Firdu. (2005).
949:SSRN Electronic Journal
582:Library and Laboratory
475:by becoming large, and
282:who would purchase raw
236:History and development
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471:of farmers and reaped
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350:Oromia coffee ceremony
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298:Ethiopian coffee zones
268:, spent two months in
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766:Issues and challenges
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109:Addis Ababa, Ethiopia
55:neutral point of view
1766:Coffee organizations
957:10.2139/ssrn.2400132
711:Office Construction
604:Teachers’ Residence
333:Management structure
664:Spring Development
640:Clinic Maintenance
502:Rainforest Alliance
191:Rainforest Alliance
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47:promotional content
1776:Coffee in Ethiopia
1570:has generic name (
777:diseases and pests
661:Water Development
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477:economies of scope
473:economies of scale
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49:and inappropriate
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739:Flour mills
650:Dry Latrine
618:Health Post
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284:coffee beans
255:
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163:Affiliations
146:Dejene Hirpa
106:Headquarters
69:
63:January 2022
60:
45:by removing
41:Please help
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440:Scandinavia
436:Netherlands
397:Yirgacheffe
213:smallholder
101:1 June 1999
1730:Categories
1552:1132203670
1518:2020-04-14
1498:2020-04-14
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1200:2020-04-14
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1560:cite book
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1410:: 84–94.
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482:dividends
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262:Dire Dawa
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801:See also
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114:Location
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424:Germany
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385:Nekemte
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1656:JSTOR
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