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Sustainability in the Ethiopian Coffee Supply Chain

Ivarsdottir, Birta Ros; Myklestu, Kristina Arveschoug
Master thesis
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URI
https://hdl.handle.net/11250/2687594
Date
2020
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  • Master of Science [963]
Abstract
Coffee is one of the most important commodities in the world, and Ethiopia is

among the largest producers and exporters of coffee. A large share of Ethiopia’s

population is either directly or indirectly dependant on the coffee industry. There is

a recognition that companies are responsible for the social, environmental and

economic consequences of the operations of their supply chain. A minor change in

the coffee industry will have potential social, environmental and economic

consequences for Ethiopia and its population. This highlights the importance of

considering long-term sustainability of the Ethiopian coffee supply chain. Our aim

is to discuss how the Ethiopian coffee supply chain can become more sustainable.

To answer our research question, we conducted an exploratory case study. Our

primary data was collected through semi-structured interviews, informal

conversations, observations, field notes and visual data throughout a field trip to

Ethiopia. We combined our primary data with secondary sources. We assured

quality of our data and followed ethical guidelines.

Based on our findings we have mapped a general Ethiopian coffee supply chain,

consisting of the following steps: production, harvesting, primary processing,

Ethiopian Commodity Exchange, Control and Liquoring Unit, secondary

processing, domestic consumption, export and end-consumer. Further, we

identified the main challenges and opportunities in terms of sustainability along the

coffee supply chain. The main challenges and opportunities include smallholder

farmer restrictions, coffee quality, waste management, and aspects related to the

coffee price. Our findings reveal that the main improvement potential lies within

cooperatives and unions, certification schemes, the Ethiopian Commodity

Exchange, secondary processing and waste management.

In conclusion, we see that sustainability implications play an important role in the

overall sustainability of the Ethiopian coffee supply chain. Our contribution to the

field is a map of a general Ethiopian coffee supply chain, and an overview of some

of the main sustainability challenges and opportunities along the chain. In addition,

our research has detected areas in which the coffee supply chain can become more

sustainable.
Description
Masteroppgave(MSc) in Master of Science in Business, Logistics, operations and supply chain management - Handelshøyskolen BI, 2020
Publisher
Handelshøyskolen BI

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