RJOAS March 2025
by
Duressa Endalkachew Lelisa, Department of History and Heritage Management, Bule Hora University, Ethiopia
Woyessa Tesema Ta’a, Department of History, Addis Ababa University, Ethiopia
For many farmers, coffee is a source of income, job opportunity and an essential source of livelihood. Despite their efforts, coffee growers do not get enough profit from coffee sales. Coffee production is mostly managed by older producers, while younger people are less involved in it. Women are less able to acquire resources related to the coffee sector. This study aimed to investigate the financial advantages for coffee producers, gender equity, youth participation, challenges confronting the coffee sector, and the risk management approaches employed by coffee farmers. Data for this research was obtained from primary and secondary sources. The current oral sources were utilized to gather information. All of the data has been qualitatively analyzed. In spite of their significant efforts, coffee farmers do not earn sufficient income from the industry. Women have restricted access to and governance over the resources derived from the coffee sector. A growing number of young people are losing interest in the coffee business due to the perception that it is difficult, time-consuming, financially risky, and less profitable. The study concluded that coffee production and marketing must give more attention to individual coffee growers, gender inclusion, and rural youth.
Ethiopia is the historical root of coffee Arabica, an extremely important cash crop for the country. The country is the biggest coffee producer in Africa and holds the fifth position worldwide in production. Ethiopia has considerable potential for coffee production because of its rich traditional coffee culture, genetic diversity, varied agro-ecological zones and climates, distinctive coffee traits, and ecosystems that promote coffee growing. Moreover, an abundance of fertile soil, favorable climate, sufficient land space, and proper rainfall are the key factors that enhance both the output and efficiency of coffee cultivation in Ethiopia (Almaw, 2015). Despite the significant potential of coffee production, the typical yield per hectare remains relatively low. A possible reason for the low yields is that farmers do not fully utilize comprehensive productivity packages, depend on conventional farming methods, have limited access to coffee varieties, and inadequate extension services. In addition, high production costs, unsustainable farm sizes, and taxation rates are additional factors that affect coffee producers (Jima, et al., 2017 and Shamil et al., 2021).
The living circumstances of coffee growers and sellers improved in every way during a successful coffee harvest year. They witness extravagant lifestyles and improper handling of the profits generated from coffee sales. During these months, the quality and amount of their lives were markedly distinct from other months. Nevertheless, in the rainy season and poor coffee years, people faced hardships, and to cope, they borrowed from landlords and affluent traders, promising to pay back in the next season and sell coffee when it thrived, including the coffee plants themselves. As coffee moved from the producers to the consumers, it underwent multiple phases. These risk factors pose greater threats to farmers cultivating coffee (Yonas, 2002). Consequently, farmers face challenges in enhancing their coffee yield, obtaining a fair price, and meeting their families' basic needs. It led to insignificant returns for the farmers, and they also did not benefit from it. They work hard throughout the entire year but accomplish very little. They were merchants, landowners, government officials, and exporters who benefited from coffee farming.
This study took place in the primary coffee-producing districts of the Guji zone located in the southern Ethiopia. The Guji zone is located geographically between 3024'20" and 6036'01"N latitude and 360.42°58' N and 400°46' E longitude. According to figure 1, the Guji community resides in the southernmost regions, particularly within the Guji, West Guji, and Borana zones. Three ecological areas are identified within the zone: high, medium, and semiarid (Gamada, 2021). Guji coffee is mainly cultivated by small-scale farmers employing traditional farming methods, making it de facto organic and renowned for its exceptional quality. The primary districts with prospects for coffee cultivation include Adola Redi, Odo Shakiso, Uraga, Haro Walabu, Bule Hora, Abaya, Kercha, Galana, and Malka Sodda. In Guji, nearly 95% of coffee is produced by smallholders, whereas the remainder is sourced from large-scale private coffee plantations.
The study was conducted in the Guji zone and four districts are took part in the study. The zone and district administrators would be consulted first in order to discuss effective site selection. About eight kebeles were selected from four districts to serve as the representatives of these districts. Next, using purposive sampling technique 6 informants from each district, totally 48 informants were chosen from eight kebeles. In this regard, female model farmers, community leaders, experts, male model farmers, Abba Gadas, seasonal laborer, rural youth, exporter, local trader, and poor farmers are chosen for the interview.
Several sources are needed for the comprehensive technique that looks at the socioeconomic effects of the coffee industry. Primary data sources were gathered via focus groups, semi-structured discussions, and extensive interviews with important sources. Secondary data sources were gathered through the examination of both published and unpublished documents. Another secondary source of information was the National Archive Center, which provides data on coffee production, marketing, climate change, and price volatility.
Interview data were cross-checked with secondary and other archival sources from the National Archival Center and possibly dead files from the Guji zone in order to perform a qualitative analysis. Finally the research findings were communicated through narrative and descriptive method.
Challenges and the Economic Benefits of Coffee Farmers. Coffee exports began in Ethiopia during the 19th century. A substantial quantity of coffee was shipped abroad during the period analyzed, greatly contributing to the economies of the states, traders, and coffee growers. Despite the presence of coffee production and trade in the country, it did not result in financial benefits for the local community, and coffee growers did not profit from it. The primary challenges during this period include slow productivity growth, low farmer incomes, variable quality, inadequate price risk management, long supply chains, and restricted access to capital for farmers (Teshale, 1995). It was likely a valuable opportunity for coffee traders, government representatives, wealthy individuals, and exporters to acquire coffee and land from producers at lower prices and cultivate coffee.
Additionally, the 1920s experienced beneficial circumstances for the promotion and production of coffee. This outcome is due to the increasing coffee production and prices in the worldwide market, which has drawn more focus to various coffee-producing areas (Lewis, 1964). During the 1930s and 1940s, the general quality of coffee cultivation in the country began to decline. Within the 1930s, the war between Ethiopia and Italy disturbed coffee production and trade internally. During Italian occupation, there was greater focus on food crops rather than cash crops to ensure sustenance for their troops. Outside factors led to a continued decline in coffee production and prices by the 1940s. The lives of peasants are affected by these factors more than anticipated (Guluma, 1994). Following the expulsion of Italians, the elite seized control of fertile farmland, forcing the peasant population to struggle with barren land located far from their residences and exposed to wildlife (Crummey, 2000).
Numerous landlords and other state officials were attracted to the profits of coffee and started farming. These individuals did not put the public's interests first. Informants assert that due to their control over extensive territories, they compelled local chiefs to supply them with forced labor, and they had local peasants work on their coffee plantations. Besides being unpaid workers, they compelled them to labor on their coffee plantations. They dissuaded farmers from increasing their efforts to grow and market coffee. Manufacturing and promotion have enabled them to gather substantial wealth. Nonetheless, the majority of coffee-producing regions do not benefit from their investments (Yonas, 2002). Institutions were established to support coffee farms during the 1950s and 1960s as the coffee sector experienced significant expansion. Large areas of fertile agricultural land were planted with coffee crops. Conversely, it has led to a decrease in land set aside for food crops and an increase in food prices (Ermias, 1985).
In the early 1950s, Ethiopia established its initial cooperative groups aimed at enhancing the living standards of farmers, advancing social services, and providing all citizens with equal chances to promote the nation's economic and social development (Almaw, 2015). Even though this new coffee cultivation was brought to various coffee-producing regions, it did not enhance the living standards of the local farmers. Yet, throughout the rainy season, farmers continued to experience food and financial shortages. The primary cause of peasants' dependence on others for sustenance could be linked to conventional farming methods, like boosting coffee output, which discourage the cultivation of food plants, complicate peasants' working conditions, and reduce land available for food production (Dessalegn, 2009).
The Darg administration attempted to improve the living conditions of coffee producers. Darg launched several initiatives, such as upgrading former peasant coffee plantations, expanding social service facilities, and adopting new technologies. The aim of these actions was to enhance the living conditions of peasants. Through the Coffee Improvement Project (CIP), farmers received guidance from the government to begin cultivating garden coffee on their small parcels of land. In spite of Darg's most diligent attempts, the problems of food shortages, high taxation, limited coffee sales revenue, varying coffee prices, and production in the world market persisted (Endalkachew, 2018).
Likewise, numerous cooperative unions for coffee producers were established in 1999 to assist impoverished farmers who are disadvantaged in the global market due to their limited bargaining power (Cheru, 2016). The primary objectives of the union have been to raise farmers' earnings from coffee exports and safeguard coffee producers from the unruly actions of local merchants, to help coffee producer’s access pricing details, financing, transport, and develop various social infrastructures (Bossolasco, 2009). Nevertheless, cooperatives and unions in the study areas did not demonstrate clear economic impact for their smallholder members. Consequently, the research highlights the main elements that influence coffee cooperatives. These include financial constraints and insufficient technical support and training for their members (Yuka, 2007). The study shows that individual coffee farmers do not benefit from cooperatives and unions as much as expected.
The Ethiopia Commodity Exchange (ECX) is a public market enabling organization that was founded in 2008. The primary goals of establishing ECX were to give farmers access to market prices and to reveal the middlemen participating in the coffee distribution process. Nevertheless, farmers stated that they observed no advantages from this institution, and they continued to face numerous challenges including infrastructure, exploitation at the farm gate, marketing imperfections, systemic rigidity, and traceability (Shamil et al., 2021). As a result, the study proposes approaches that assist smallholder farmers. This includes improving cooperative unions, allowing private traders to track their transactions, refining financial and logistical operations, and creating a regulatory system to regulate illegal traders. On the other hand, the continued reliance on outdated and often ineffective coffee varieties has greatly diminished coffee output. Due to a lack of funding for research institutions, the country has overlooked research, despite its necessity for technological progress. Recent advancements have been noted in Jimma Agricultural Research Centre (JARC). These institutions have managed to create new planting materials that are high-yield and resistant to disease. However, the distribution and adoption among farmers have been limited to the research areas.
Coffee farmers and merchants enjoy enhanced living standards during prosperous harvest periods. They experienced a significantly enhanced standard of living; the food and drinks they consumed varied from previous months in both amount and quality. In numerous ways, it aided the progress of towns, leading to a notable enhancement in urban life. Nonetheless, this has led to problems like increasing prices for consumer goods, transportation, and clothing (Tibebe, 1996 and Yonas, 2002). The funds generated from coffee sales were clearly mishandled, and there was no practice of saving it. Extravagant practices, like lavish weddings, leisure in urban areas, and unnecessary expenditures, exemplified poor resource management. Farmers developed ethically when the price was appealing, embraced different cultural methods, and utilized composting, slashing, hoeing, and intercropping with legume crops. Additionally, young kids are absent from school during the peak coffee harvest season to help their families (Tibebe, 1996 and Yonas, 2002).
The Impact of the Coffee Crisis on Individual Coffee Farmers. The coffee crisis has been a significant challenge for coffee farmers, traders, and the economy of the country. The key reasons for the decline in farmers' incomes are global market oversupply and falling prices in the local market. The farmers could no longer afford to purchase clothing, cover essential medical costs, enroll their children in school, and meet other essential needs. Some were compelled to sell oxen and goats at reduced prices. Numerous individuals have left their residences in pursuit of employment in urban areas and other places. Small-scale coffee farmers sell their beans at a considerable low price compared to production costs. Alongside farming families, coffee merchants are going out of business. National economies are influencing and government income is declining, leading country to higher levels of debt. Farmers are unable to forecast their profits from each crop due to the unpredictable nature of global prices. As local prices decreased due to various internal and external factors, farmers understood they could not afford to production costs. Farmers are discouraged by low prices and often neglect their farms, resulting in reduced production. Farmers pointed to decreased demand and lower coffee profits as the main reasons for the coffee crisis in 2001/2002 (Alemayehu, 2014).
In the rainy season and during the poor coffee harvesting years, numerous coffee farmers faced challenges. As we know, summer is a time when the harvested crops from earlier are depleted and newly grown crops are not yet prepared for sale. They borrowed money from rich traders and property owners to manage their costs for the upcoming season. The rent that the peasant was obligated to pay to the landlord or merchants was prioritized over his crop yield. Farmers needed cash to cover their rent, so they had to sell their coffee early during the harvest season when the local market price was fairly low. If they fail to do so, they need to sell coffee during the blooming phase along with the coffee plants themselves. According to the local custom, if they borrowed coffee, they returned it in coffee; if they opted to repay in cash, they paid 200 for borrowing 100 birr. These lenders charge extremely high interest rates on loans that are settled with collected coffee beans (Tibebe, 1996).
Sometimes, the government also mandates that farmers pay taxes before the harvest season. Consequently, to prevent jail time, farmers harvest their produce early and are required to pay taxes (Ermias, 1985). As a result, the combination of rent and poor management left the typical peasant vulnerable to starvation during the peak of the rainy season. Likewise, during the rainy season and the lean coffee season, Guji communities provide loans to one another, utilizing social credit from coffee businesses as collateral. The community leaders caution that if the debt is not settled, coffee stalls may ultimately be in danger. Pricing fluctuations are worsened by farmers' limited access to financial resources and directly contribute to rising rural poverty and increased urban migration. Individual farmers have no control over price changes, especially the volatility of coffee prices and the unpredictability of future market pricing. Coffee farmers become poor as coffee prices decline, forcing them to uproot their coffee plants and shifted to growing khat instead of coffee. Khat is a hardy plant that endures drought, diseases, and pests, enabling three to four harvests each year and providing farmers with greater profits compared to coffee farming (Shamil et al., 2021).
Limited access to credit poses another obstacle for coffee farmers. Many coffee producers are experiencing rising challenges in securing the funds necessary to meet increasing demands. Coffee farmers need to address considerable costs, including pruning, harvesting, fertilizers, processing, picking, and storage expenses. Due to restricted liquidity, numerous farmers struggle to handle their daily costs, causing them to neglect essential farm maintenance tasks. Due to a lack of funds, the quality and quantity of their coffee diminish, leading some farmers to exit the coffee industry totally. When exporters purchase coffee, they usually make an upfront payment to farmers and assure that the rest of the payment will be made at a later time. As a result of this setup, farmers face the possibility of accumulating debt since they possess limited negotiating power and often lack access to pre-financing opportunities. Coffee growers might not gain from this system, which could significantly affect both output and quality due to the timing of payments (Fekadu and Gosa, 2015).
Since coffee growers lack control over environmental variations, climate change has turned into a barrier to farmers' livelihoods. Due to its high sensitivity to variations in rainfall and adverse weather conditions, coffee production has been significantly affected. This difficulty in cultivating coffee leads to problems in the harvesting and processing stages, such as cherries splitting on the tree and losing mucilage, along with fermentation during processing. Small coffee farmers are already experiencing the effects of rising temperatures. Coffee trees could become more susceptible to diseases and pest invasions (Teketay, 1999).
As coffee traveled from producers to consumers, it went through numerous hands of the subsequent entities. The participants comprised coffee growers, cooperatives/unions, collectors, brokers, suppliers, transporters, service cooperatives, processors, exporters, and government tax authorities. At every stages, coffee prices rose. The government's tax and the expenses related to purchasing, shipping, grading, storing, and others led to minimal profits for the producers. The portion of coffee producers in export revenue was unsatisfactory and particularly declined over time (Almaw, 2015). Consequently, a lengthy marketing chain influences the benefits of coffee sales for farmers.
Restricted access to market information, physical facilities, and training resources related to coffee production and management also impacts coffee farmers. Coffee farmers find it challenging to access information regarding prices in national or international markets. Due to the restricted access to market information, farmers have mentioned that the retailer and collector determine the price for their crops. Farmers struggle to find and reach markets due to their rural settings and insufficient knowledge of market operations. Consequently, they are left with no alternative but to sell their products at a lower price since they lack other options (Shamil et al., 2021). As a result, this study identifies different risk management strategies employed by coffee producers.
Since the 1980s, initiatives have been made to enhance the position of smallholder farmers in both the growing and selling of coffee. This started with the implementation Fairtrade certification and Good Agricultural Practices. The Fair Trade certification program encourages organic farming, shades coffee production, fair wages, better working conditions and expansion of specialty coffee markets in the coffee industry (Fikadu et.al, 2020). Farming methods that are resilient to climate challenges can aid in reducing the impacts of climate change. Forest conservation and agricultural diversity are instances of climate-smart agricultural practices. Managing shade in coffee cultivation can aid in lowering temperatures and protecting crops from harsh weather conditions. The government is also supporting communities in the planting of shade trees and the reforestation of regions. As a result, climate-resilient coffee types, agroforestry practices, controlling of diseases and pests and sustainable land management represent some of the strategies that can be implemented to mitigate the impacts of climate change and environmental degradation (https://www.iisd.org/articles/coffee-yields-livelihoods).
From a technical standpoint, coffee producers employ various risk management techniques, such as utilizing resilient coffee types, reducing household costs, overseeing the farm, engaging in off-farm labor and investments, intercropping, changing the surroundings, safeguarding assets, sharecropping, obtaining loans from multiple sources, removing the higher-risk coffee plants and substituting them with safer crops (Fidele and Handan, 2024; Demisse, 2003 and Hailu, 2007). For farmers in rural areas, agricultural extension services serve as an essential resource for knowledge and the transfer of technology. Unlike in the past, most coffee farmers in the study area currently have almost perfect knowledge of cultivation and marketing (Fidele and Handan, 2024). Intercropping is a traditional farming method employed to enhance diversity and increase crop production per unit area of land. Smallholder coffee farmers can enhance their food resources with vegetables, fruit trees, and grains. The practice of intercropping coffee with other crops has not adversely impacted development. Various crops possess different abilities to endure drought and disease. It lessens the risk of crop failures, price drops, climate change, and food scarcity (Hailu, 2007).
Another approach to risk management is encouraging a culture of saving and using resources efficiently. Farmers would sometimes collect their assets from coffee sales during favorable periods. When their income decreases significantly, a family might decide to use resources to cover expenses for food, medical bills, or school supplies (Hailu, 2007). Smallholder farmers often encounter financial challenges due to low coffee prices that fail to meet their production expenses. In order to boost competitiveness in the global market and enhance both production and quality microfinance and credit assistance, market diversification, as well as fair trade helps to tackle economic limitations and improve market access (https://tracextech.com/challenges-in-the-ethiopian-coffee-sector/).
Furthermore, credit aids in alleviating the impact of crop failures, the death of oxen, destruction of assets due to fire, and loss of income from reduced production. It may also serve to foster social connections, obtain resources, and buy food and other necessities (Hailu, 2007). Consequently, one way for low-income farmers to gain access to resources in their community is through collaboration among households. In various research fields, agricultural mutual assistance groups are often employed as strategies for sharing risks in these situations. Cooperatives are thought to assist coffee producers by providing access to resources such as capital, inputs, and transport services that smaller growers are unable to secure independently (Neeraj et. al, 2020). Finally, enhancing coffee marketing, developing superior coffee strains, improving social and labor conditions, boosting extension services to elevate farmers' skills, and upgrading institutional and infrastructure resources are the key solutions suggested to improve productivity and living standards for coffee farmers (https://tracextech.com/challenges-in-the-ethiopian-coffee-sector/).
The Role of Coffee as an Agent of Inter Ethnic Interaction. For a prolonged time, Guji Oromo has maintained regular contact with neighboring communities like Arsi, Sidama, Gedeo, Burji, Konso, Suro, Wolaita, Koyra, Gamo, and Gari. The majority of exchanges between Guji’s neighboring communities occurred primarily in places such as markets where people of different ethnicities come together to trade goods and share information. Compared to other nearby ethnic groups, the Guji has much stronger connections with Gedeo. The Gedeo community mainly relied on agriculture for their financial sustenance. The Guji communities engage in agro-pastoralism, supplying various crops and livestock products until recently (Tadesse, 2009 and Asebe, 2007).
As previously stated, the 1960s and early 1970s saw a rise in coffee demand, attracting migrant workers, government officials, and local coffee growers into the sector. The Guji zone became one of the main coffee-producing areas in southern Ethiopia, encouraging many people to move from their homelands to this zone for different reasons. Labor intensity was extremely high due to coffee being a crop that requires a lot of labor. In contrast to peasant farming, private and state plantations demand a greater average labor input, and there is generally a labor shortage in state, private, and peasant farms during the coffee harvest and processing periods (Ermias, 1985).
As noted, the primary risks impacting coffee production are the lack of labor during the coffee harvesting and processing period. The primary tasks carried out in coffee farms include weeding, hoeing, fertilizing, pruning, mulching, planting, and minimizing shade. Labor expenses are the primary element in assessing production costs. The daily wages for seasonal and hired workers per individual fluctuate from year to year and from place to place. They received payment either in cash or in products for the coffee they harvested. For example, workers receive one kilogram of coffee for every ten kilograms they gather (Ermias, 1985). In the study areas, farmers frequently utilize different labor forces for growing coffee. For instance, they utilized pool labor, referred to as Daboo, as well as hired labor, seasonal labor, and family labor. When coffee was cultivated and collected, neighboring villages supplied workers (Tarekegn, 1985).
During this period, laborers came to the area and participated in growing and selling coffee. The main driving forces include population growth, lack of job opportunities, poverty, hunger, land scarcity, and others. This group has been attracted to coffee farms because of the rapid expansion of coffee. A significant number of them came to the area as seasonal workers on privately-owned farms and those operated by local farmers. These coffee expansions cover a large area of farmland, resulting in land loss from coffee farms and it leads to land fragmentation. Yonas states that these migrants can be divided into two categories: long-distance and short-distance migrants. The long-distance migrants arrived from the northern and central regions of Ethiopia during various periods. For example, they originated from Wollo and Showa during the 1930s. In the 1950s and 1960s, additional people arrived in the region because of the rising coffee prices and the improvements in various infrastructures, including transportation, communication, and road and rail networks (Yonas, 2002). Migrants from nearby regions such as Arsi, Sidama, Gedeo, Burji, Konso, Suro, Wolaita, Koyra, Gamo, and Gari are considered short-distance migrants. Young single men relocated to the areas to reside temporarily in order to earn money for marriage, education, and various other reasons (Fekadu, 2018).
The key informants indicated that these seasonal laborers initially came to these areas as seasonal workers to labor on coffee plantations. Subsequently, as a few went back to their homeland, others began to settle permanently in these areas. Once they arrived in Guji and the nearby areas as laborers, they purchased land from the native farmers. They marry into the local community, and a significant number of them integrate with the sociocultural life of the residents (Tadesse, 1995). It is thought that coffee production and marketing enhanced linguistic and cultural variety, which fostered harmonious relationships and satisfied living among the local community. Seasonal employees receive varying pay each year and at different locations for each individual daily. Payment for coffee was made using either cash or harvested coffee. For instance, from each 10kg gathered, workers obtain one kilogram of coffee. Daboo is a method of exchanging labor among households for shared advantage during the busiest periods of the coffee harvest season. In a peak farming season, it's a method of helping one another during critical moments like sickness, the incarceration of the family leader, and labor shortages. They took turns every day on each member’s farm during planting, weeding, and harvesting (Tarekegn, 1985).
Another organization is available for the community's financial health to support individuals who have endured hardships both socially and economically. Consequently, Guji assisted individuals impacted by warfare and natural calamities. This establishment is known as Ameessuu/Hirbuu. Consequently, this statement signifies assistance for individuals requiring help. This was mainly a replenishment activity. Moreover, "Buusaa-Gonofaa," a conventional support and resupply method to manage shocks, is a commonly used coping mechanism among Borena and Guji pastoral communities (Tesema, 2016 and Jebessa and Zelalem, 2014).
Gender Equality in Coffee Sector. The key global challenges we face today include addressing gender inequality, promoting women's empowerment, and combating discrimination against them. Women are often seen as lesser than men in various social, cultural, and political domains. Narrowing the gender gap in society will undoubtedly result in improved conditions for women in every sector. Thus, achieving gender equality characterized by providing everyone equal opportunities, rights, and responsibilities irrespective of gender can also be viewed as an essential initial step toward empowering women (Jeylan, 2004 and Kuwee, 1997). Recent studies show that women possess 20 to 30 percent of coffee plantations in Africa and make up approximately 70 percent of the workforce engaged in the coffee industry. Despite women investing significant effort in coffee production, their portion of income from coffee sales remains relatively lower. The main reason for this difference is that women primarily engage in farming, sorting, and washing, whereas men are responsible for coffee sales (ICO, 2018 and ICO, 2015).
Despite women significantly contributing to the marketing, production, and livelihoods within the coffee industry, their participation does not consistently lead to increased income or enhanced decision-making abilities. In many situations, their contributions to the productivity and profitability of coffee value chains remain ignored. Additionally, women often remain limited in access to the advantages provided by the resources linked to the coffee industry. Males hold the authority to manage and distribute funds within the coffee industry (Bizualem, 2018 and UNIDO, 2009). Regarding important domestic matters like coffee sales and market opportunities, women are sidelined. Men have greater access to and control over various resources, including farm equipment, bank accounts, cash, trade income, benefits from the coffee sector, cooperative memberships, political and community leadership roles, extension services, technology adoption, participation in education, and credit (Bizualem, 2018 and ICO, 2018).
A recent study shows that there are no gender-inclusive practices within the coffee value chain. If female farmers had equal access to resources such as human capital and production inputs, they could produce more efficiently and achieve greater profits. Empowering women, enhancing adaptability, and increasing production as tactics to protect against financial crises resulting from climate change and unstable coffee markets. It is advised to implement value chain strategies that are gender-inclusive, ensuring gender equality and promoting women's empowerment without worsening conditions. One approach to accomplish this is to examine the differences between men and women concerning income, jobs, and empowerment by dividing the impacts according to gender (UNIDO, 2009).
Although laws acknowledged that both men and women could equally possess land, numerous studies indicated that men exercised greater control over the land. Women continually have limited access to resources like land, credit, education, and information when compared to men. This often leads to varying levels of productivity and other economic results. The enduring sustainability of rural livelihoods and coffee production relies on enhancing women's ability to withstand economic shocks. Supporting women involved in the coffee industry as employees, family workers, and farm operators directly promotes gender equality and the objective of sustainable development. Consequently, supporting women's empowerment in the coffee sector fosters gender equality and diminishes gender disparities (Bizualem, 2018).
The Women's Empowerment in Agriculture Index (WEAI) offers a detailed evaluation of five aspects: management of time, community leadership, income control, and decision-making related to agricultural production. The main reasons for disempowerment include insufficient control over resources, limited access to credit, and restricted decision-making related to resources from the coffee industry. Due to inequality in empowerment in various areas, women's financial gains in the coffee industry are frequently less than those of their male peers (FAO, 2011 and ICO, 2018). Gender-responsive agricultural extensions and farmer schools can aid in eliminating the barriers that hinder women from understanding new technologies and farming methods. By means of efficient extension programs, issues like time, distance, culture, and education affecting female farmers are tackled. For instance, some female farmers choose to engage with female extension agents, and the increasing use of mobile phones provides new opportunities for women to obtain information. For many farmers, agricultural extensions serve as the most dependable source of information about new technologies and improved farming techniques (ICO, 2018).
Farmers need both formal and informal financing to mitigate income instability, as coffee production carries significant risks due to climate fluctuations and price volatility. A larger percentage of male household heads possessed personal savings accounts compared to female household heads. Women frequently encounter more challenges in securing formal credit because of their smaller landholdings, reduced educational attainment, and insufficient financial literacy. Typically, they also possess insufficient collaterals. Conventional barriers hindering women from opening bank accounts need to be eliminated to bridge the gender gap in accessing financial services (ICO, 2018). It is essential to enhance financial literacy via specialized training initiatives, and local organizations like women's groups should be supported in their establishment.
The Coffee Industry and the Youth. Since the 1960s, young people have been migrating from rural areas to cities in search of better-paying jobs, a more contemporary lifestyle, and greater career opportunities. Push factors are primarily associated with rural poverty and the lack of opportunities for improving living conditions in rural communities (Sosina and Stein, 2014 and ICC, 2016). As a result, the main objective of this study was to investigate the importance of youth as agents of change in coffee industry and what measures are needed to boost young people's involvement in coffee production.
Ethiopia's agricultural sector is presently facing numerous difficulties, especially within the coffee industry. The declining number of young workers leading to an older farming population is a pressing issue. The proportion of young workers in the agricultural labor force declined over the past century, whereas the count of older farmers rose. This tendency might create difficulties for the coffee sector. The educational level of the coffee farmers is another obstacle for the coffee industry. Transferring knowledge and technology effectively is difficult due to the fact that a large percentage of farmers and laborers have only finished elementary school. These conditions have obstructed the implementation of contemporary farming technologies (ICO, 2021).
The study suggests that the issue of elderly farmers influences the coffee industry more significantly than it does other agricultural sectors. Young people serve as catalysts for change, are increasingly educated, and possess the capability to transform agriculture and revitalize rural areas. For instance, younger people are more likely to embrace innovative agricultural methods and technological advancements to boost production in the coffee industry. As a result, the coffee industry is concerned that the lack of new young growers could negatively affect the supply of premium coffee beans (ICO, 2021). Youth possess significant potential in coffee farming, which must be acknowledged and supported for them to succeed as farmers who improve both their local communities and the overall coffee sector. By embracing innovation, encouraging community participation, supporting gender equality, and advocating sustainable practices, they are creating positive change and establishing a solid and prosperous coffee industry (ICC, 2016).
Young individuals possess the potential to become both coffee farmers and leaders in their rural areas in the future. Young individuals have many chances to engage in coffee production. The available strategies include providing funding to younger individuals to establish their coffee businesses, offering professional training to boost employee satisfaction and foster a passion for coffee, and creating apprenticeships focused on coffee cultivation. Strategies and techniques for engaging youth need to be developed to ensure that young individuals participate in coffee cultivation and the promotion of coffee (Dewi et.al, 2021).
Furthermore, the perception that agriculture is labor-demanding, time-consuming, and financially risky results in minimal profits for farmers, prolonged marketing chains, and constant effort throughout the year are factors contributes to the diminishing interest of the younger generation in the coffee industry. However, this could impede the expansion of the coffee sector if young people exhibit a lack of interest in coffee farming and are unmotivated to reside in rural areas. The lack of young adults' participation in the coffee industry could negatively impact the sector. In the era of information, coffee farming methods should adopt innovative technologies that utilize advanced devices readily available to younger customers (ICO, 2021). Although young individuals face challenges related to land access and funding. The problem is that, even when they have access to land, which is often restricted and divided, they cannot utilize modern agricultural methods. The absence of governmental backing for innovation, education, and market opportunities renders the coffee industry unattractive to youth. The agro-business industry offers various career opportunities, yet young people often view it as a labor-intensive domain. They also lack positive role models in the field who attain success and promote various career options, including those of their family members (Christina et al., 2018).
It is widely acknowledged that formal education is essential for obtaining professional positions in prestigious white-collar occupations. Consequently, young people seeking formal education are discovering job opportunities beyond agriculture to be more attractive. This is further exacerbated by a sense of inferiority relative to farming and an unawareness of the various careers that exist in agribusiness. Furthermore, even with the plentiful opportunities in agriculture, young individuals are increasingly disinterested in taking up farming professions. Because they are typically more educated than their parents and have greater access to media and information technologies, young people's ambitions do not match agricultural careers. Instead, they focus on modern city living (Christina et al., 2018 and ICC, 2016).
It is crucial to enhance the attractiveness of the coffee sector as a income source to motivate young people to engage in agriculture overall and specifically in the coffee sector. Emerging farmers must leverage their earned income as a means to invest in their own future and the future of their children (ICO, 2021). As a result, there are various approaches to attract young people to rural areas and boost their engagement in the coffee sector. These goals can be accomplished through the application of risk management strategies for coffee marketing and production, investing in infrastructure, providing employee training, increasing access to funding, and educating workers (ICC, 2016 and Dewi et al, 2021).
Finally, enhancing coffee production and maintaining its quality sustainably is crucial to attract young people interested in the industry. Enhancing the communication and transportation infrastructure in rural areas will provide youth with better access to markets and information. To improve market efficiency, institutions that are typically lacking in rural areas should be reinforced. The importance of agriculture must be emphasized in formal education to improve basic education in rural communities. To improve the adoption of superior agricultural practices and deliver efficient extension services, it is crucial for farmers to obtain additional training. Moreover, improving financial literacy in young people is crucial as they face ongoing financial difficulties. It's essential to equip farmers with the resources needed to address upfront expenses and approaches to reduce pricing uncertainties. In the end, enhancing land access for youth should be encouraged through fostering agricultural succession and establishing efficient rental markets.
The Guji zone possesses significant potential for coffee cultivation due to its genetic variation, diverse agro-ecological environments, distinctive coffee characteristics, rich fertile land, appealing climate, and adequate rainfall that supports coffee agriculture. However, the average yield per hectare remains quite low. A likely reason for the poor yields is due to lack complete productivity packages; lack of credit for coffee growers, conventional farming methods, absence of quality coffee varieties, and limited extension services. Coffee producers work diligently throughout the year, yet their efforts and livelihoods face challenges from climate change, price volatility, extensive market chains, numerous intermediaries, and restricted access to market information. During good coffee harvesting times, coffee growers enjoy a lavish lifestyle while poorly managing the incomes obtained from coffee sales. Nonetheless, throughout the rainy season and poor coffee year, they encountered difficulties. They obtained loans from wealthy merchants and landlords to pay for the upcoming season.
As a result, the mix of rent and poor resource management placed the average peasant at risk of starvation during the height of the rainy season. It probably has been good opportunity for local traders, landlords, and coffee exporters.
During coffee harvesting and processing seasons many people to move from their homelands to this zone. They adapt into the local social and cultural life, and they get married into the community. As a result, there are many different ethnic groups among the present inhabitants of the study area. Compared to men, women authority over resources related to the coffee business is limited. They make less money from selling coffee. Their involvement in coffee industry does not, however, always translate into improved decision-making skills. To guarantee gender equality and encourage women's empowerment, it was proposed to include gender inclusion in the coffee value chain. In the end, younger people show less interest in coffee production than older farmers. This waning interest is partly due to the belief that a job in the coffee sector is challenging, unattractive, time-consuming, less gratifying, and financially unstable.
According to the results of this study, multiple suggestions can be proposed to improve the living standards of coffee farmers, promote gender equality, and engage rural youth in the coffee industry. The key strategies to address the coffee crisis involve intercropping coffee with various crops, and changing the environment. Unions, cooperatives, and extension agents need to tackle financial obstacles, provide market insights, encourage saving practices, minimize unnecessary costs, offer technical assistance, and guarantee sufficient training for their members. It is crucial to adopt agroforestry and preserve forests, plant shade trees, and employ climate-resilient agricultural practices. Agricultural cooperatives and support organizations are an essential method for sharing risks. To address labor shortages, improving social and labor conditions and the working environment is very important. Women involvement in the coffee industry promotes gender equality and enhance women's empowerment within the coffee sector. To make the coffee industry more attractive to youth, it is crucial to boost financial literacy, improve market efficiency, advance transport infrastructure, and provide better access to market information. Finally, to increase coffee production and quality, it is essential to provide credit assistance, adopt fair trade certification, promote organic farming, support shade coffee growing, enhance working conditions for coffee producers, and facilitate better market access.
We extend our gratitude to our informants, who provided their experiential knowledge during our data collection for this study.
Ethical statement for this research was obtained from the relevant ethics committee at Addis Ababa University.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-03/article_05.pdf