Files
Abstract
Washed coffee is being sold in international markets with a premium of more than 20%.
However, only about 30% of Ethiopia’s coffee export is washed and the small-scale coffee
farmers, processors, exporters, and the country are missing out on sizable opportunity of
commanding higher rewards. Relying on unique datasets and using a double hurdle technique,
we examined factors affecting the decision and amount of selling coffee in red berries -the
primary input for washing coffee- instead of the dried type. Results show that lack of access to
wet mills, lack of enough red berry buyers, and bad quality coffee harvest reduce the likelihood
of coffee sales in red berries form and hence a subsequent lower level of washed coffee. On the
other hand, government’s action of deciding designated selling dates, membership to a
cooperative, and access to advances and loans increase the likelihood of selling coffee in red
berries form.