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Saturday, December 17, 2011

Government retracts latest coffee directive


By Birhanu Fikade

December 17, 2011

The Ministry of Trade (MoT) pulled back the latest coffee directive, which ordered all coffee shipments from the country to be in loose container packaging format, after its month long tenure in the sector. Following the enactment of the directive through a letter written to the Ethiopian Coffee Exporters Association (ECEA) by the minister of state, Yacob Yala, the coffee sector appeared in a big shock and the export revenue was declared to be in a danger zone. On the other hand, international coffee importers as well have voiced their opposition to the authorities saying that the measure will be a business suicide for the sector. 

However, the ministry appeared to be insistent about the loose container shipment mechanism in the coffee export sector until late this week. Previous meeting with the minister of state were dispersed without any change to the new rule and some of the exporters continued business as usual, regardless of the ministries warning. At the beginning of the week, reports of foreign coffee buyer writings complaints through their embassies to the authorities were also made public.  

On the other hand, the ECEA meeting on Wednesday concluded by saying that the directive was completely impossible to work with and the authority should make appropriate revisions. “Unless our petition for the revision of the directive is not considered by MoT, we should proceed to next level,” was the decision of the members, according to sources.  Furthermore, options to appeal for the international coffee organization or writing a petition letter to Prime Minister Meles Zenawi were also on the table. 

However, before resorting to any of the option, Kebede Tchaine, minister of trade, called the board members of the association on Thursday afternoon and said that directive has been made null and void.