Coffee responds positively to trading reform

0
174
ecx

Since reforms to the coffee sector were introduced on the first day of the 2017/18 budget year, the bean has amassed close to a half a billion birr within one month at the Ethiopian Commodity Exchange (ECX) floor.
The coffee marketing and development that has slowed down has grabbed the attention of the government, who has undertaken massive reforms in addition the reformation of the authority that was dissolved a decade and half ago.
The statement that the Commodity Exchange sent to Capital indicated that within the first month of the budget year, which is considered the slowest season since it is the farming rainy season, the 467 million birr bean was traded under the modern trading platform.
ECX and relevant government offices like Ethiopian Commodity Exchange and Ethiopian Coffee and Tea Marketing and Development Authority have disclosed that the new coffee reforms have been introduced from day one of the budget year that commenced on July 8.
Some of the reforms are identity preserved trading, which was held on code, trading without the exchange and link with investor and out grower. Most of the reforms have reinstated the trading and export scheme that were suspended since ECX commenced operation in 2008.
The statement that Capital obtained indicated that in the first months of the budget year coffee trading has dominated the activity at ECX.
From the three products including sesame and white pea beans that were traded in the month the share coffee of exports is 68.4 and 69.2 percent in terms of volume and value respectively.
Local and specialty coffee followed the commodity coffee trading respectively.
During the month 7,841 tons of unwashed export coffee had been transacted worth 467 million birr.
The trading of specialty coffee, which is one of the major victims when the modern trading system embarked, has registered an improvement with the new reform. According to the statement of ECX, 1,761 tons of specialty coffee worth 131 million birr were traded within a month.
Generally coffee has taken the 71 percent of the trading value on the floor.
Coffee prices have increased by 1.39 percent compared with June 2017.
For the month 13,927 tons of coffee have been traded, while 112,660 tons of sesame and 1,850 tons of white pea beans worth 1.1 billion birr have been traded within a month.
The price of sesame seeds has also registered significant increment for the month compared with the preceding month.
There has been a 13 percent increase in the price this month.