Tropiq High quality, traceable and ethically sourced coffee Mon, 03 Aug 2020 11:34:36 +0000 en-US hourly 1 Tropiq 32 32 Climate change and coffee in Ethiopia Mon, 03 Aug 2020 11:18:12 +0000 The optimal areas for growing coffee in Ethiopia are mainly in the southern and south western areas of the country. These are places like Yirgacheffe, Limu and Sidamo. However, new regions like Guji and West Arsi have been gaining popularity in recent years.

Some of the major challenges facing the coffee sector are the threat of increasing temperatures, coffee genetic erosion, pest prevalence, and coffee market price fluctuations. Read on to learn more.

Benti Nenka in Guji zone of Oromia region in southern Ethiopia

Increasing temperatures

UNDP’s climate change profile for Ethiopia states there has been a temperature increase at a rate of 0.28 degree celsius per decade. Coffee is a climate sensitive perennial crop. According to the National Oceanic and Atmospheric Administration, arabica coffee’s optimal growing temperature range is 18°C–21°C (64°–70°F). It can tolerate mean annual temperatures up to roughly 24°C (73°F). 

For this reason, coffee grows in specific altitudes that offer these temperature ranges. As temperatures increase, ideal coffee growing conditions creep to higher and higher altitudes, diminishing coffee growing areas. According to the Climate Institute, coffee optimal areas worldwide will decrease by 50% by 2050

Genetic erosion

Coffee genetic erosion, or the reduction in the number of genetic varieties in existence, takes place as wild coffee species begin to disappear as the optimal area for growing them diminishes. Genetic diversity within existing wild species is essential to help breeders to boost the viability of commercial plants in the face of a changing climate, and the fewer species are lost, the better for breeding. 

Pest prevalence

Elevated CO2 can increase levels of simple sugars in leaves and lower their nitrogen content. These can increase the damage caused by many insects, who will consume more leaves in order to consume enough nitrogen. Thus, any attack will be more severe. Higher temperatures from global warming will mean that more pests will survive the winter season. Similarly elevated CO2 levels will help the overwintering of pathogens, while higher temperatures will favour thermophilic fungi. 

                  Alex examines rust on leaf as he inspects coffee plants during farms visits

Market price fluctuations

Market prices might be disrupted by climate change, as they were this year. Ethiopia’s rainy season precedes the harvest season, and it normally occurs in the months of June, July and August. Usually cherries begin ripening in October, marking the beginning of the harvest season. 

However in 2019 cherries did not ripen in October because the rainy season lasted weeks longer than usual. Cherries were not available for sale at the expected time. Frustration slowly began to build up among exporters as they were not able to buy cherries and parchment in the desired amount and at the ideal time. They were in fear of losing their customers and began to chase any available lots, resulting in higher prices for cherries. 

What is Ethiopia doing to mitigate climate change?

Forest conservation is very important in keeping the natural phenomena of coffee growing areas. Climate change is often caused by deforestation and degradation of natural vegetation. Tropical forest trees, like all green plants, take in carbon dioxide and release oxygen during photosynthesis. Plants also carry out the opposite process—known as respiration—in which they emit carbon dioxide, but generally in smaller amounts than they take in during photosynthesis. The surplus carbon is stored in the plant, helping it to grow.

When trees are cut down and burned, or allowed to rot, their stored carbon is released into the air as carbon dioxide. According to the best current estimate, deforestation is responsible for about 10 percent of all global warming emissions. 

Between 2001 and 2018, Ethiopia lost approximately 370,000 hectares of tree cover. According to a study by the Jimma University College of Agriculture and Veterinary Medicine, deforestation in Ethiopia is caused by varying factors including logging, population growth, urbanization, grazing, construction of dams and reservoirs, habitat fragmentation, slash and burn farming, wildfires, and hydroelectric projects. 

We were lucky enough to have a seedling planted just outside our office in Addis Ababa as part of a large scale national tree planting project.

The government have taken this issue very seriously and last year launched an aggressive tree planting initiative, part of a larger project called Green Legacy. Despite Covid-19 restrictions, planting has continued this year. The country plans to plant 5 billions seedlings in 2020, and aims to be climate-neutral by the year 2025, generating jobs in the process.

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Price Transparency in Ethiopia Fri, 03 Jul 2020 09:47:56 +0000 For a period of time the Ethiopian coffee value chain operated in a way that all but erased traceability. By law, all green coffee was traded through the Ethiopian Commodity Exchange (ECX). Producers and washing stations had to sell their coffee to the ECX which would classify this coffee with a cup score and location (e.g. Sidama or Yirgacheffe), and then sell it to licensed exporters through a bidding process based on its quality and regional classification. This model was created to boost efficiency and market access to smallholders. However, it made traceability and therefore price transparency near impossible. It was cumbersome to find out which lot belonged to which producer or washing station. Furthermore, producers were incapable of creating direct relationships with international buyers.  

Fortunately legislation has changed and it is now possible for producers and washing stations to export their coffees directly without the need to go through the ECX. This makes traceability in Ethiopia much easier than it used to be, but it requires diligence. Coffees must still be graded by the ECX, requiring additional transport and storage. Keeping track of the coffees, and prices paid for each lot requires a great deal of work and attention. 

What you need to know about the value chain

There are many steps involved to transform coffee cherries to green coffee, bagged and ready to export. Each of these steps is essential meaning none of these steps can be skipped. To simplify the value chain, those steps are:

  1. Cultivating and picking the coffee;
  2. De-pulping (before or after processing), processing using washed, honey, natural or special processes, and drying to transform cherry to parchment;
  3. Cupping and grading the coffee to ascertain its quality and price;
  4. Finding a buyer for the coffee;
  5. Dry milling to transform parchment to green coffee;
  6. Bagging the coffee;
  7. Paying taxes, preparing export documents, transporting the coffee to the port.

In Ethiopia farmers most commonly cultivate and pick the cherries which they sell to a local washing station. This washing station, which may be owned privately or by a cooperative, will process and dry the coffee, transforming it from cherry to parchment. This parchment might be sold to an exporter, or directly to the Ethiopian Coffee Exchange. Both players can then sell it to an international buyer.

Cherry prices 

In the 2018/19 harvest season, farmers sold their cherries to washing stations for an average of 15 birr per kilo, which was approximately $0.53 USD based on the exchange rate of that time. During the 2019/2020 harvest, cherries were sold at an average rate of 25 birr per kilo which is around $0.80 USD based on this season’s exchange rate. 

As you can see, there was a significant increase in cherry prices this year. The reason for this is due to climate. Cherries usually ripen in October, but in October 2019 the cherries were still unripe. The rainy season lasted about six to eight weeks longer than usual, delaying the cherry ripening. Exporters began to worry there wouldn’t be enough volume available and started purchasing with desperation which created higher demand and thus higher cherry prices.

Cherry prices 2018/2019 and 2019/2020

RegionEstimated average cherry price for the season 2018/19Estimated average cherry price for the season 2019/20
Jimma15.00Data unavailable

This data is based on reports and information from our export partners in Ethiopia. We did not purchase coffees from Limu in 2020, so we have not reported any prices.

Parchment prices

After obtaining cherries from farmers, washing stations process cherries into parchment. Parchment will then be stored and eventually transported to the regional ECX office/warehouse to go through a mandatory grading procedure and receive a certificate. Once the parchment is graded, it heads to a dry mill which is usually located in Addis Ababa. 

For a period of time the ECX was the only link between farmers and washing stations on one side, and exporters and international buyers on the other. While it is possible today for an exporter to purchase parchment directly from a farmer or washing station, the most common way coffee is bought and sold is through the ECX. The ECX trades parchment via auctions and frequently publishes auction prices online. Since the ECX is the only place where trading price information is available, the value of parchment traded outside the ECX is determined based on the ECX price.

The Feresula

Prior to adopting the metric system in 1863, Ethiopia had its own measurement system and some are and are still in use. One of these measurement units is a ‘Feresula’ which is a weight measurement unit used mostly for agricultural output like grain and coffee. 

1 Feresula = 17 kg. 

ECX parchment is traded by the Feresula, so prices listed are per 17 kg.

Just like cherry prices, parchment prices have increased this year. For example, the average parchment price of Yirgacheffe for 2018/19 was about 1,277 birr per 17kg (Feresula). For the 2019/20 harvest season, Yirgacheffe parchment traded on average of about 1,780 birr per 17kg (Feresula). 

ECX Parchment prices 2018/2019 and 2019/2020

RegionEstimated average parchment price, Birr / 17kg 2018/19Estimated average parchment price, USD / 17kg 2018/19Estimated average parchment price Birr / 17kg 2019/20Estimated average parchment price, USD / 17kg 2019/20

Data reported by ECX

Green coffee prices (FOB)

Exporters source parchment in three ways; from their own washing stations, other washing stations or from the ECX. Once the parchment is graded and certified by the regional ECX office, it heads to Addis Ababa to be dry milled. Exporters may own or lease dry mills.

RegionFOB price paid to exporters by Nordic Approach 2018/2019 USD/kgFOB price paid to exporters by Nordic Approach 2019/2020 USD/kg

We did not purchase coffees from Limu in 2020.

The representative model

The other way farmers sell their cherries is through a representative.  Farmers who have an export license usually partner with a representative to sell their coffee directly to international buyers. The representative is usually a person from their community who has close ties with the producers. The representative performs an essential role. They collect samples for approval, ensure the farmer delivers the coffee to the regional ECX office to be registered and transported to the warehouse of choice in Addis, organise the milling in Addis, and help the farmers create the extensive documentation required to export coffee.

In this model, farmers do not deliver to washing stations, they process the cherries themselves, usually using the natural method. Farmers hire people to process their cherries, and they also pay for transport, storage and milling until the cherries are transformed into exportable green coffee. Representatives choose a dry mill and oversee the dry milling together with the Tropiq Ethiopia team. The representative earns a margin for his/her work in this model. This is as close as you can get to buying directly from a farmer in Ethiopia.

How we maintain transparency and quality

Each harvest we conduct farm and washing station visits and obtain information on prices and productivity, as well as the progress of harvesting and processing cherries. At the washing stations we observe and consult on processing methods, meet farmers that deliver to the stations, check the progress of social responsibility and community empowerment projects undertaken by the washing stations, and create relationships with washing stations managers and staff. This way we continue tracing the coffee in parchment as we did in cherries. 

Our team frequently visits dry mills to conduct quality control and create relationships with dry mill managers and staff. We inspect the milled green coffee and have it dry milled again if it’s not up to our standards. Furthermore, we take samples and test them in our lab to ensure consistency with the type sample we received from the washing station. Once the milling is done to our satisfaction, we oversee bagging and loading of green coffee to make sure the same cherry, parchment and green coffee is in the order loaded for shipment. In simple terms, we work to ensure that our customers get what they ordered.  For more information on dry milling and operations involved, take a look at our blog on dry milling here

The Colombian Yield Factor Wed, 13 May 2020 06:27:30 +0000
The Colombia yield factor, or factor, is integral to the pricing of Colombian coffees, however it is expressed differently to other origins. Jordi explains what it is, and why it is crucial to understanding the prices paid to Colombian coffee producers. 


The Colombian value chain

As you probably know, most Colombian farmers sell their coffee in parchment — i.e. wet-processed and dried, but not yet dry-milled. Generally speaking there are four types of parchment buyers: private parchment traders, coops, the FNC (the local coffee growers’ federation), and finally some dry mills. Private parchment traders also commonly work with coops, the FNC and dry mills, where they re-sell their coffee in larger lots.

What is the Colombian “factor”?

The factor essentially means how many kilograms of parchment does one need for an export-quality 70kg bag of green coffee. The Colombian factor is an indicator used to quantify the coffee milling yield, and price coffees accordingly. 

Factor 90, Factor 94

The standard factor is usually set at “factor 90”, although it’s common to have a secondary “factor 94” indicator as well. We say set, because 90 or 94 are arbitrary numbers used as the industry standard. This means that in many parchment purchase points, particularly in coops, it is common to have two prices for parchment: “factor 90”, and “factor 94”.

Factor 90 means that one needs 90kg of parchment in order to produce 70kg bag of green coffee. Factor 94 means one needs 94kg of parchment for a 70kg bag of green coffee. 

This helps coffee producers get an idea of what price they’ll receive for their parchment. Parchment coffees that have higher factors require higher quantities of parchment for the same amount of green beans, thus commanding lower prices in the market. Parchment coffees that have lower factors require lower quantities of parchment for the same amount of green beans, thus commanding higher prices in the market. 

Important: This is in contrast to yields expressed in terms of a percentage, where parchment with higher percentage yields will fetch higher prices because they contain more green coffee and vice-versa.

How does this impact my business? 

As a roaster, the factor will be relevant to you in order to understand how much green coffee is available if the lot is quoted in parchment. Also, understanding the factor will clarify the process of comparing farm gate prices for your greens.

Does the factor refer to quality?

This number varies depending on the coffee and preparation, and is commonly referred to as “coffee quality” in the local commercial coffee industry. This interpretation of “quality” is fundamentally different from “cup quality”, as it only describes the yield. It is mostly used in the commercial market or by some coffee producers.

Common misunderstandings

To most Colombian coffee producers, the factor is the only objective information they’ll know about their coffees, in addition to quantity produced. They’re usually not aware of their cupping scores. You might however encounter some farmers mistaking the factor for cupping score. This is partially because the values are occasionally similar or even the same. For example a coffee that scores 87 on the SCA scale could in fact have a yield factor 87 or 88 (but also 92). Thus, it’s not uncommon to find coffee producers that claim they have a great coffee that scores 89 points when in fact what they mean is that their coffee has a yield factor of 89.

How to determine the factor

Parchment buyers will examine the parchment coffee to reveal the factor by conducting a process called “physical analysis”. 

The process consists of registering the weight difference between the regular parchment and the same parchment after physical analysis.

  • The process starts with a sample of usually 300 gr of parchment.
  • The parchment is then milled and weighted again to record the “merma” or the loss.
  • Then the just milled green coffee undergoes screen-sizing to discard the low screen-size coffee.
  • Finally, the “fiel de compra” (buyer at the purchase point) examines the green coffee and discards physically defective beans.

Once the process above is finalised, the resulting green coffee beans are weighed and the factor is calculated as per below.

In the calculation above, parchment means sample parchment, and green means green exportable coffee, as per the physical analysis.

The key thing to remember about the Colombian factor is that it tells you how much parchment you need for a 70kg green coffee bag.

So, for a “factor 90” the calculation looks as follows:

Colombian factor vs percentage yield

The Colombian factor is very confusing to some people because in many coffee growing countries (also for some Colombian areas and exporters) parchment yield is expressed as a percentage and not a factor.

Well, the factor and the yield percentage are actually the same concept, but in the inverse form and standardized per 70kg green coffee bag. And one can be calculated from the other. Let’s look at the percentage yield, which calculated as follows:

The yield reflects what is the percentage of green coffee in a certain parchment.

So, in this sense, the well-known “factor 90” Colombian coffee equates a yield of 77.8%.

Alternatively, the also common 75% yield percentage can be expressed in Colombian factor terms as follows:

So, the 75% return means a Colombian factor equivalent of 93.334.

Convert factor to yield & yield to factor

This table shows the relationship between Colombian factor and yield.

How does the factor determine purchase price?

Parchment buyers are ultimately buying and paying for the value in terms of green coffee.

In this sense, parchment becomes more valuable when it has lower yield factor (or higher yield percentage).

In the market, more valuable factor is paid accordingly and less valuable parchment is discounted.

Why do commercial parchment buyers welcome high factor coffees?

Commercial parchment buyers are keen to buy high-factor coffees because the price they pay will be adjusted to reflect the lower yield.

The general mechanics is that the parchment is valued at the price of the green beans it yields. This means that when commercial parchment buyers buy higher factor parchments, they don’t pay for the higher quantity of off-grades (the pasilla), but they can sell it to the local market buyers.

The Colombian “carga”

The local Colombian unit of measurement for parchment is the carga (Spanish for load). This unit historically refers to the amount of coffee that a mule or donkey was able to transport safely. Nowadays, a carga means 125kg.

Additionally, note that a carga can be divided into 10 “arrobas”, usually written as “@”.

In summary

Now you know that the Colombian factor is an indicator of the yield of a coffee in terms of how much parchment does one need to get a bag of green exportable coffee.

Also, remember that the Colombian factor is the same concept as the yield percentage, but expressed in the standard of the 70kg green coffee bag.

Finally, note that in Colombia it’s very common to adjust the price of the carga of coffee depending on the “factor”, so that lower factors command higher prices and vice-versa.

Some useful terms when buying coffee in Colombia

Arroba or “@”: 12.5kg, that is, one tenth of a “carga”

Carga: Weight unit, 125kg, mostly used in expressing the weight of parchment.

Factor or Yield Factor: Colombian way of expressing the yield of parchment coffee. “Factor 90” means a 70 kg coffee bag requires 90 kg of parchment.

Fiel de Compra: Parchment buyer who conducts physical analysis and is usually the manager of a purchase point.

Merma: Merma means loss and refers to the loss of weight when dry-milling the coffee for “physical analysis”

Physical analysis: Process of determining analysing parchment to determine the factor.

Yield: The percentage of green exportable coffee in parchment.

Yield percentage: Refers to the yield of green coffee over parchment coffee expressed in a percentage.

Ethiopian politics and its impact on the coffee sector Mon, 04 May 2020 06:58:37 +0000

Ethiopia’s Prime Minister was the winner of the Nobel Peace Prize in 2019, however Ethiopian politics are not entirely peaceful. The national election was originally scheduled for this August, but due to COVID-19 it has been postponed and the country is in a state of emergency.

Tensions and conflicts in the country frequently interrupt the coffee supply chain. How these new delays and restrictions will impact the coffee industry is just one of the many unknowns we’re all living with right now. 

While we wait to see what the world looks like on the other side of the pandemic (however long that takes), you can prepare for future harvests with this primer on Ethiopian politics.

History of Ethiopian politics

One of the earliest kingdoms Ethiopia’s history was the D’mt in the 10th century B.C followed by the Aksumite civilization in the 1st century B.C., then the Solomonic dynasty which dominated Ethiopia until the last emperor, Haile Selassie, was dethroned by a military coup in 1974. That led to a communist government which was later overthrown by guerilla fighters who established the country’s first democratic government, the Ethiopian People’s Revolutionary Democratic Front (EPRDF).

Ethnicity in Ethiopian politics﻿

Ethiopia’s political landscape is strongly influenced by ethnicity.  The current borders of Ethiopia evolved through centuries of wars, conquests and population movements. Menelik II was the emperor who defeated the Italian attempt to colonise the country, making Ethiopia the only African nation that has remained independent throughout history. He is known for completing the unification of modern Ethiopia by offering options of peaceful and forceful submissions. Several Oromo Kingdoms and other Kingdoms in the South, like the Wolayita and Kaffa, were defeated after bloody battles. That is how different ethnicities form Ethiopia in different regions. 

There are over 85 ethnic groups in Ethiopia, but only three have had a strong influence in the country’s politics. These are the Oromo, Amhara and the Tigre. The Oromo is the largest in terms of area of land and population. The Amhara have been the most active in the history of the country’s politics. The Tigre people, from the Tigray region, have also held power in the past, but their most powerful reign came during the rule of the EPRDF. Although the party claims to be a federal democracy, it was considered by many to be a minority rule made by the TPLF (Tigray People Liberation Front), its power fueled by a dominant control of the economy and the country’s wealth. 

Feeling marginalised, despite their dominant numbers, the Oromo people created a movement called the Oromo Protest. Fueled by opposition parties and activists exiled in the U.S, the protests became ever more organised and overwhelming for the government to manage. This encouraged other regions to create similar movements, finally confining the TPLF’s power to the Tigray region in the northern tip. 

Guji, one of the coffee growing areas in Oromia regional state

Modern Ethiopian politics

Dr. Abiy Ahmed came to power in March 2018 after the resignation of Prime Minister, Hailemariam Desalegn, considered by many to be the puppet of more powerful members of the EPRDF. In his very first speech Dr. Abiy Ahmed spoke of unity and equality. He made promises of political and economic reforms. He also promised to restore peace with Eritrea. 

In the last two years he has delivered on many of these promises. These include releasing political prisoners, inviting formerly exiled opposition groups back to the country, arresting corrupt officials, economic reforms, greater gender diversity in the cabinet, and forging peace with neighbouring Eritrea, for which he won the Nobel Peace Prize. 

However Abiy’s regime has been beset by issues including assassination of government officials, illegal movement of firearms, displacement of ethnic groups and a surge in crime. Many claim his tolerance has made him soft and that people are abusing their new found freedom. A suspected assassination attempt by government forces of Jawaar Mohammed enraged the prominent activists followers. Many claim the TPLF is behind most attacks intended to undermine the new government. The PM is now in conflict with some exiled militias that returned when he opened the country’s doors. These events have diminished the PM’s once huge support with the people of Ethiopia. 

How does this affect the coffee industry?

Internal conflicts can lead to road closures which cut the supply of parchment to Addis. Moderate instability might cause price fluctuations and make shipment near impossible. Bigger conflicts can cause property damage like destruction of dry mills or even farms. Ethiopia is always, to a degree, an unknown. That’s why we put a team on the ground. We’ll be keeping a close eye on events and politics, and will plan our next harvest carefully depending on when the election is eventually scheduled. Stay tuned. 

Dry milling, quality depends on it Fri, 03 Apr 2020 07:18:25 +0000

How exciting is dry milling? Not very. 
How important is dry milling? Crucial.

Dry milling is one of the final steps in the value chain at origin, and is essential for creating and maintaining the quality of Ethiopia’s best coffees. After passing through ECX grading, parchment arrives in Addis Ababa. Dry mills take in parchment, store it and schedule it for processing. At a glance, a dry mill is where the removal of parchment from coffee beans takes place, but look closer and you will discover the dry mill does much more than just this. 


Hulling is the first step in dry milling. The parchment is removed, along with impurities like stones, wood, broken beans. Additionally the huller polishes the beans to remove most of the silver skin. Once impurities are separated, the entire mix goes into a pneumatic green coffee separator where these impurities are blown off by a fan. 

A huller


After impurities are removed, the next step is sorting beans in the required sizes. The size grading machine has multiple levels, each one with a tray that has holes of a certain size. The top tray has the largest holes. The trays vibrate, bouncing the beans around, and any beans smaller than the holes in the top tray (size 19) will fall to the tray below, and so on. Generally in Ethiopia, anything from size 14 and up is considered specialty grade. In the shipping instructions we give to the miller, we specify size 15 and up. 


The next step is to sort the coffee by density. This machine has a single tray set on an angle both horizontally and vertically. The tray vibrates, sending the beans towards the vertical bottom, with the lighter beans remaining at the horizontal top and heavier beans moving towards the horizontal bottom. Metal plates at the base of the tray divide the coffee beans so they can be poured into different bags or buckets.

Colour sorting

Another variance among coffee beans is colour. Beans that are defective often have a different colour, so they are removed by a colour sorter.

Hand sorting

After all these sorting processes, there is still room for imperfections. After all, machines are not as reliable as humans. Thus, colour sorting is followed by hand sorting, a manual process where people remove any beans that don’t match the size, shape and colour requirements of the buyer.


Now we have pure coffee beans, they must be bagged according to the green coffee buyer’s instructions. Gran Pro lined 60kg jute bags are the norm for speciality coffee. Packaging is complete, now the products must be shipped to the desired destination. Dry mills perform the physical filling of containers and prepare necessary documentation and procedures needed for completing a successful export.

         Coffee bagged and arranged for shipment

Quality control

To ensure the coffee is of the standard requested by the buyer, the final output gets cupped and scored. This is done by taking samples randomly from different bags so the sample is representative of the entire lot, and not just a single bag. This coffee is the pre-shipment sample (PSS) and we don’t ship a coffee until we or our customers have approved this sample.

The milling business

Dry mills in Ethiopia are usually owned by private exporters and cooperatives, but there are government-owned mills leased to exporters and cooperatives that do not possess their own dry mill. The dry mills are usually located on the outskirts of Addis Ababa and are legally required to operate on land large enough for trucks and containers to load, unload and easily move around. The warehouses that can accomodate dry mill operations must also encompass a big area. 

A dry mill compound outside of Addis

Dry mills are operated by a mix of permanent and temporary employees. The permanent employees include the dry milling operations manager, the inventory manager, loading and unloading coordinators, technical personnel, security personnel and janitors. The temporary employees are usually casual labourers who work only during the season. They unload parchment coming from regional ECX warehouses, they move bags from one area of the warehouse to the other, and they load processed coffee beans to containers. Temporary employees receive payment based on the amount of bags they load, unload or move. Our suppliers pay twice the amount of the usual rate. The temporary employees are usually a group of friends that live in the area around the dry mill and they are paid based on the number of bags they move as a group. The permanent employees live in different areas of Addis or even may be on the outskirts. Either way, most of our suppliers provide pick up and drop off for the permanent employees because public transportation rarely services these outlying areas of Addis Ababa.

Employees loading on truck


Since coffee is a seasonal crop, dry mills do not operate throughout the year. Usually their final coffees, that late harvest naturals, will be milled by the end of August. Once the processing season is over, the dry mills conduct very thorough maintenance. “We can not risk things going sideways during the processing season,” explained one operations manager. These professionals are a crucial part of this value chain and the quality of the coffee often rests on their experience and knowledge. Regardless of how good the harvest was, how beautifully the washing stations processed the coffee, or how great the initial cups tasted, if parchment is not properly milled, there is no speciality coffee to export.

Why we need a team on the ground

Tropiq has been operating in Ethiopia for the past five years and dry milling is one of the main reasons why we have a team on the ground.

There are so many ways things can go wrong at dry mills. Pre-shipment samples might not be consistent with type samples when cupped, processed coffee beans might not end up being the right size, shape, color, weight. In addition to that, loading is an even bigger process that needs sharp attention. Containers might not be of standard, stuffing of containers might not be done well enough to protect the coffee from damage en route, bags might be mixed and end up in other containers. Usually, there is a government appointed inspector, but they can be more a hurdle than a help. Sisay, Tropiq’s lab assistant, is always wary of corruption. “I am quite disliked by loading workers,” she said, because she displays zero flexibility when making sure containers are up to the right standard and stuffing is done properly. 

Sisay’s stubborn behaviour on quality control has been noticed by staff at various dry mills. “You should take it easy a little bit,” one driver said to her, suggesting her extreme stance is taking things too far. Sisay’s response was “this work is serious, and customer satisfaction is everything”.

Sisay taking PSS  from random bags for best representation of lot

Effect of COVID-19 on shipping from Ethiopia Tue, 17 Mar 2020 08:47:31 +0000

The outbreak of COVID-19 has impacted international shipping, which is a crucial element of the coffee trade. While no one can yet predict the full impact this virus will have, there are several things we know right now. 

Ethiopia containment measures

The first case of COVID-19 was confirmed in Ethiopia on March 13, and in response the government closed schools, canceled sporting events and suspended meetings for two weeks. Our suppliers and export partners report that shipping continues as usual for now. 

International shipping backlog

The country with the highest stake in international shipping is China. As the original epicentre of the COVID-19 virus, the impact was felt early. It is estimated that shipping volumes in Chinese ports dropped between 20% – 40% between the last week of January until mid February. This is due to two reasons. Firstly, other countries barred ships from China in their ports, and secondly, Chinese ports were operating below full capacity due to staff shortages, travel restrictions and quarantine measures.

Containers that didn’t ship due to the virus outbreak have created a backlog for future shipments. When shipping resumes at full capacity, this backlog will likely lead to a container shortage which will delay future shipments and possibly increase shipping prices. No one can say exactly when this will happen, but as of March 17 the situation in China is slowly returning to normal. Quarantine is ending for people who live outside the Hubei province, so we expect Chinese ports will soon return to full capacity. However the epicentre of the outbreak has moved to Europe, which may impact container arrivals if ports close or reduce capacity.

At this point, it is hard to predict when life and business will return to normal, but for now we are shipping containers from Ethiopia, and we are working to get all our coffees on the water as soon as possible. 

We will keep you updated of any changes.

Industry-shaking development in Ethiopian coffee sector Mon, 16 Mar 2020 14:51:18 +0000

The Ethiopian government has issued a directive to set minimum prices of coffee. This has resulted in a significant surge in coffee prices and rattled the industry. Coffee prices in the same period last year ranged from $2.40 to $4.00 USD/lb. This year prices start at $3.70 and go up to as high as $5.00 USD/lb.

Economic challenges in Ethiopia

Ethiopia has one of the fastest growing economies in the world. However, this rapidly surging economy faces some serious challenges, one of which is extreme shortage of foreign currency. Ethiopia suffers from a trade deficit of about $14 billion, and the Ethiopian Birr (ETB) is not a convertible currency. This means that all imports and payment of foreign debt must be made in U.S dollars. The desperate demand for foreign currency has ignited a habit of under invoicing among Ethiopian export companies. Export companies sell their products at a loss in order to earn foreign currency and use that to import a different product they can sell at much greater margins. The majority of Ethiopia’s export products are agricultural, so this practice by exporters trying to raise USD distorts market price of agricultural products. This mainly affects farmers who are mostly leading a subsistence level of life. So this is an overwhelming challenge in the Ethiopian economy.

Wave of economic reforms

Ethiopia recently elected a new prime minister who is committed to reform. Several months ago the Prime Minister’s Office released the “Home Grown Economic Reform Plan”. This plan attempts to address the challenges faced by the Ethiopian economy, including the issue of the trade deficit. As of October 29, 2019, the Ministry of Trade and Industry has a regulatory directive to set minimum prices in exportable products. These minimum prices have already been implemented in different agricultural products like oil seeds, cereals, and pulses. However the directive was only recently applied to coffee. 

 From the Prime Minister’s Office

Coffee export reforms

As of February 28, 2020, the Coffee and Tea Authority, coordinating with the National Bank of Ethiopia, will dictate a minimum export price for coffee which will be set daily, depending on a global weighted average prices given to different grades of coffee from different regions. The directive is called the “Export Coffee Contract Administration”. 

According to the directive, exporters must report the volume and quality (grade) of all deals, within 24 hours of confirming negotiations. Once the contract is concluded, the exporter must deposit the value of the merchandise in the National Bank. The merchandise is then expected to ship out within ninety days. 

Failure to comply with the directive is a punishable offense. First time offenders receive a written warning. For the second offense the company is banned from any coffee related business activities for one year. Punishment for the third offense is a complete ban on conducting business along with criminal charges for the owners. 

How does the new directive affect farmers? 

This directive is not intended to put more money in their pockets. In fact, the directive may make the coffee business less attractive for exporters, which means there will be lower demand for coffee. Farmers might be forced to lower their prices as a result. Alternatively, if buyers are understanding and exporters can continue to sell coffee at the new, higher prices, then the situation for farmers won’t change. For this harvest, most exporters had purchased cherries from farmers before the directive came into effect, so we won’t see the full impact until next harvest season.

Farmer Dawit Anale does not stand to benefit from the economic reforms

How does it affect you? 

There are various ways this might impact your Ethiopia buying this year. Firstly, expect prices to be higher than previous years. Secondly, be aware your contracts will be rejected if the agreed upon price is even $0.01 USD less than the minimum price set for the day (we speak from experience). That means  there is little room to plan or conduct due diligence between negotiations and closing contracts.

The minimum price is set daily so it is hard to predict what it will look like in the future. We advise booking coffees as soon as possible to avoid any surprises. 

Will this reform be effective?

Will these reforms on export trade actually bring positive outcomes? The minimum price was already implemented on other products in the first quarter of the 2019/2020 fiscal year, and in this period export trade has increased by about $95 million in comparison to the same period of the previous year. It is not clear whether this increase is directly related to the new directive, or whether it will result in a similar increase in coffee sales.

New ethiopian coffee profiles part 2 Tue, 03 Mar 2020 15:04:24 +0000

Hambela is the new Yirgacheffe! So says Satta in part 1 of this blog series, about how Ethiopian coffee profiles are changing. Read it here.

In this post we look at what actually impacts the flavour profile of the cup. In the case of most Ethiopian coffees, it comes down to nature’s circumstances and phenomena, including the micro-climate, altitude, surrounding vegetation, and the soil composition. Of course, human intervention is a big part of the cup too. Read on to discover more.

Soil health

The richer the soil, the more nutrients will be made available to the coffee tree, the better the cherries will mature and generally that will result in a more complex cup. Hambela coffees are a good example of such a profile, as it is a relatively new coffee growing region so soils are virgin. Healthy, uncultivated soils are usually porous and “lively”, meaning full of movement from worms and other mico-organisms. The more commercially cultivated the soil, the less porous, nutrient rich and structured it will be, and the harder it is to cultivate higher yielding trees that bear complex cherries. Keeping a soil healthy requires planting leguminous herbs and nitrogen emitting trees to create an environment where micro organisms survive. It is possible to revive commercial soil using these practices, but it takes many years before it returns to its original state.

Altitude and temperatures

Altitude is usually correlated to cooler temperatures. The colder the temperature, the slower the maturation of cherry and the drying of harvested coffee, which equals more acidity and complexity in the cup. Chelbesa coffees are a great example of this. Chelbesa is located in a valley close to Worka town at 2300 masl. During the day the temperature rises to 30 degrees and decreases to as low as 8 degrees some nights. We believe that these temperature fluctuations affect drying in a positive way which increases acidity and lifespan of the greens. The downside for areas at these altitudes is that they are generally more likely to be cloudy and rainy, especially with recent climate changes, which can negatively affect quality. Chelbesa has so far been spared these issues. 

At 2300 masl, Chelbesa is a region that benefits from cooler night time temperatures which increase complexity in the cup

Shade and leguminous vegetation is another way to cool a farm. Not only are they important for soil health, they also protect the cherries from heat and sun. Indigenous trees such as Wanta, Corch, Birbira and Shola are common on coffee farms, and crucial for maintaining a farm’s biodiversity.

A 6 year old farm just south of Bishan Fugu where indigenous trees provide shade and biodiversity on the farm, and protect the coffee trees from the hot sun.

Human intervention 

Many human interventions can impact the cup profile, including methods of processing coffee from pre-harvest to dry milling such as: 

  • Pre harvest practices
  • Harvesting; ripeness of cherries
  • Fermentation; anaerobic, dry
  • Drying; thickness of layer on drying beds

Pre harvest usually includes pruning the trees to increase yields and quality of cherry. The fewer branches the tree has to send nutrients to, the more it will focus on developing cherries, enabling them to fully ripen. Pruning is usually practiced where agronomists actively educate farmers.

Harvesting practices are different in all the micro regions. Some farmers are used to washing stations buying any quality available from the farmers. Others, like in Worka Chelbesa area, the farmers wait until their whole tree is full of ripe cherries and then harvest. This last practice is great for consistency and quality.

In Worka Chelbesa, farmers wait until all cherries have ripened before they begin picking. This leads to more consistent and higher quality coffees.

Fermentation is said to be the creator of flavour in coffee. It depends on a lot of factors. Water quality can accelerate the development of specific bacterias that might be positive or negative. The cement in the fermentation tanks holds bacteria and can affect the fermentation volatility. Outside temperature can affect the rate of fermentation and prolong or shorten the time. Generally, cold weather and longer fermentations of 48-72 hours create more complexity in the cup. Finally BRIX (sugar level) and pH (4.0) can be monitored to find the optimal fermentation time, though this is not normally practiced in Ethiopia.

Drying might be the most crucial part of processing coffee. Too fast and the coffee could age quickly. Too slow and the coffee might develop moldy or phenolic defects. Not enough and the coffee might never show it’s true flavors. Optimal drying for washed coffees is 12-15 days and for naturals 15-20 days. We look for moisture content of 10.5% and a water activity of 0.55.

Ethiopia Selections

The Ethiopia 2020 season is in full swing. Check out our coffee categories and current partners, or contact me directly to discuss your Ethiopia needs. 

New Ethiopian coffee profiles part 1 Tue, 25 Feb 2020 08:41:11 +0000 It has been three years since the supply chain in Ethiopia was opened and traceability restored. The ECX system of categorising coffees by regional cup profiles still dominates, but we have long felt this system was not up to the task of capturing the broad and complex flavour potential of Ethiopia. Latelly we’re witnessing known regions producing some very uncharacteristic coffees, and lesser known coffee growing regions are emerging with profiles previously not found in the country. Ethiopia is only scratching the surface of its flavour potential.

Forget what you know and let us guide you through the new landscape of Ethiopian coffee profiles.

The old method of categorisation

Before the regulatory changes three years ago, the ECX categorised coffees by regions. Each region would have its own profile: Yirgacheffe was intensely jasmine and bergamot driven, Guji was stone fruit driven, Sidamo had high acidity and occasional herbal notes, while Limu would be stone fruit, orange citrus and chamomile driven. This old ECX system shunted coffees into limiting categories that were unhelpful for buyers and roasters alike.

The Nordic Approach system

Nordic Approach, our sister company, developed this flavour wheel in 2016, deep in the era of ECX control and when Ethiopian coffees were almost impossible to trace. Rather than rely on the ECX regional profiles mentioned above, which we found to be limiting and sometimes misleading, our Head of Buying and Procurement, Joanne Berry, created this guide to Ethiopian profiles. Ethiopias offered by Nordic Approach have these titles in the lot names to help customers know what profile to expect.

This system gives a good indication of the flavour potential of this extremely diverse origin, but lately we’re seeing even more varied profiles emerging.

New and previously obscure regions

With the privatisation of the coffee sector, coffees that were previously categorised in a broader region can now be traced to specific municipalities (micro-regions), and new coffee growing regions are emerging. 

Uraga is a great example. This micro-region has seen huge investments and development the past three years. Occasionally floral and citric, Uraga is mostly recognisable by its papaya, melon and mango profile with high acidity and intensity. 

Uraga is a new region with great profiles

Hambela Wamena is the new Yirgacheffe. It is a relatively new area for coffee with new trees, very fertile soil and slow maturation. Here we’re finding the notes we’ve been missing in Yirgacheffe coffees in recent years, like bergamot, black tea and jasmine.

Nensebo is located near the national park of Bale Mountain, and though it has existed for quite some time, we are seeing very interesting new profiles with notes of blackcurrant, blueberries and candied plums with a touch of violet. This profile is similar to an SL28 from Kenya.

Climate Change

Climate change has also had its impact on what we used to know as the classic profiles of Ethiopia. In recent years the rains have been longer and some regional profiles have started to cross over. You can now find stone fruit driven coffees in Yirgacheffe. You can find intensely floral coffees in Guji. You can find orange and chamomile driven coffees in Sidamo. There’s no real template and truth to what regional profiles should or should not be anymore.

New processing methods

The third reason the ECX categorisation no longer fit Ethiopia’s coffee profiles is that producers have started to introduce alternative processing methods such as anaerobic, dry fermentation, winey fermentation, honey and more. As a result, new and interesting but also misleading flavours appear on the cupping table, such as tropical fruit stew, peach yoghurt, papaya kombucha. Those are the positive attributes. Olive and fish are common if the coffee was poorly fermented.

The Antioquian specialty revolution Tue, 28 Jan 2020 08:59:53 +0000

The classic Antioquia profile is changing. The heavy-bodied chocolatey coffees the region was famous for are making way for new fruity and bright profiles as savvy producers seek the specialty market. The relatively large size of the farms in this department mean farmers can produce high quality coffee on scale, which appeals to bigger volume roasters seeking quality coffees at a more accessible price point.

Antioquia – A Brief Overview

Antioquia is a mountainous department in north-western Colombia covering very diverse climatic areas and geographically ranging from the Andes region to the Caribbean sea. Medellin is the department’s capital and the second most populated city in Colombia with ~2.5 million inhabitants. The city also serves as the entry point to the region.

While also an industrial center, agriculture is a major sector in Antioquia, contributing to about 15% of the total Colombian agricultural output. With an infamous 1990s decade, Medellin and Antioquia have left the past behind and are ready for a new challenge: specialty coffee.

Coffee Production in Antioquia

Antioquia has historically been the powerhouse of Colombian coffee production, accounting for  roughly 14.5% of the total coffee production with roughly 90,000 coffee producers in the 94 coffee-producing municipalities.

Antioquia produces about 70% of the total yearly crop in the last trimester of the year (September to December) with a mitaca or fly crop during the first half of the year. Antioquia had the largest planted coffee area in Colombia until 2012, when it was surpassed by the now well-known Huila department. Currently, the top three coffee producing departments are Huila, Antioquia, and Tolima.

In the chart below, spanning almost two decades, one can see how Huila (blue) almost doubled their production. Tolima (grey) also increased production and solidified, but Antioquia (red) barely maintained and has, in the last five years, decreased production area in favor of cacao and avocado, among others.

Source: Federacion Nacional de Cafeteros de Colombia﻿

Coffee Cooperatives in Antioquia

Antioquia is home to four of the largest coffee cooperatives in Colombia: delosAndes, Cooperativa de Caficultores de Salgar, Cooperativa de Caficultores de Antioquia, and Coopeoccidente.

Specialty coffee is a somewhat confusing to many cooperatives, and private buyers. Quality was generally only assessed in “physical” terms plus lack of defects.In any case, with tens of thousands of coffee producers who deal exclusively with cooperatives, the specialty market buyers in Antioquia need to better understand and work alongside cooperatives.

First Steps Of Specialty Coffee In Antioquia

Historically, specialty coffee in Antioquia was limited to what many coops were selling as “certified’ – in other words, “sticker coffee”. As the specialty coffee market was developing, some medium-size producers started doing things differently to bypass the commodity market and try to capture higher returns and more recognition for their work.

In an effort to promote and foster Antioquian coffee quality, the local administration introduced a yearly specialty coffee competition called “The Best Coffee Cup of Antioquia”. This competition has been an effective tool to convince some of the most open-minded producers about the merits of specialty coffee.

The Antioquian Coffee Revolution

In the last five years, some Antioquian medium-sized producers have seriously started to improve the quality of their coffees through hard work in the farm and wet mill. Specialty coffee is now being produced as a result of good agricultural practices and careful post-harvest processing, and less of a lucky strike.

What’s unique to Antioquian coffee is that because of the relatively large size of the farms, specialty coffee can be produced in higher volumes. This appeals to specialty coffee roasters that look for quality coffee in larger volumes and more accessible price points.

Producers have also experimented with different preparations including naturals, honeys, and special preps. Altogether, the Antioquian coffee profile is becoming more versatile and now can supply a much wider range of coffee buyers.

The Future For Antioquian Coffee

The future of Antioquian specialty coffee looks very bright. The potential for specialty-grade is there, and the first signs are clearly visible: specialty coffee roasters like the profiles. After all, specialty coffee might even be the only sustainable long-term alternative for Antioquian coffee, a highly coffee-dependent area with decreasing production, high costs, and low availability of labor.

Mountainous terrain requires very hard work on the farm and it limits the scope for mechanisation. Current picking wages make coffee unsustainable for many and every year it gets harder to find pickers. Quantity is not a sustainable approach for most Antioquian (and Colombian) coffee producers.

Specialty coffee is an attractive alternative for Antioquian farmers. Investments are generally necessary to produce quality, but in Antioquia, most of the infrastructure is there already. It’s a matter of vision, conviction, and attitude. We are hopeful.