Addis Ababa, November 10, 2007 (Addis Ababa) - At a time when more consumers are targeting specialty coffee, Ethiopia is poised to reap the rewards of a product that commands 10 per pound in the United States, The Christian Science Monitor reported.Ethiopia recently shook up the industry with a new tactic: trade marking its specialty coffees.
Quoting Oxfam America, the report added that overcoming resistance to the idea from distributors – notably Starbucks – the country is hoping to empower its coffee industry to earn an estimated 88 USD million more per year.
The move could inspire producers of other commodities throughout Africa to harness branding and capture more value from the goods they sell to consumers in rich countries.
"It's quite innovative for a branding initiative to come out of the developing world," says Seth Petchers, the director of Oxfam America's coffee program. "It's about getting [farmers] to realize the value of what they have.
"It's a big deal," adds Petchers, noting that producers from other developing countries are already asking: “‘If Ethiopia can do it, why can't we?' "
Obtaining trademarks for coffee grown in Harar, Yirgacheffe, and Sidamo allows Ethiopia – the birthplace of coffee – to decide which distributors it will grant licenses to sell those specialty coffees, and under what terms.
More control over distribution will boost Ethiopia's economy, which relies on coffee for more than 40 percent of its export earnings, according to Layton and others who specialize in intellectual property rights.
"I'm very certain that five to 10 years down the line, specialty coffee farmers will make much more than they make now," says Getachew Mengistie, the head of the Ethiopian Intellectual Property Office, the governmental group that spearheaded the trade marking initiative.
"They could make 75 percent to 100 percent more."
Ethiopian Intellectual Property Office is organizing a move to educate farmers, small traders, and exporters of Ethiopia's specialty coffees about the licensing deals with international distributors so that they understand the potential to earn more and have a greater incentive to increase production and quality.
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