Analyzing of Potential Market of China for Ethiopian Coffee
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Proceedings of the 7th International Conference on Innovation & Management
Analyzing of Potential Market of China for Ethiopian Coffee
Eskinder Asfaw Bantiwalu, Asfaw Yilma Demisse
School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070
(E-mail: eskinder_2001@yahoo.com, Asfity333@yahoo.com) Abstract After analyzing the opportunities and challenges of Chinese market by using secondary data, this paper finds that the population of China (1.3 billion), the increasing demand of Coffee in China
(30% per year), the fastest growing of Chinese Economy (an average rate of 10% per year since 1990) and the purchasing power of the people are the key indicators of Chinese potential market for all coffee exporter countries in general and for Ethiopia in particular. Therefore, doing a specific in-depth market research, identification of the best distribution channels, implementation of market entry strategy, distinguish how to increase market share, and establishing strong supply chain system is the best strategg drawn in this paper in order to get into the Chinese coffee market for Ethiopian Coffee exporters. Key words Ethiopian coffee production; Chinese growing coffee demand; Chinese potential market for coffee
1 Introduction
Coffee has enormous economic, social and environmental significance in Ethiopia. It represents an important part of Ethiopia’s foreign exchange earnings, tax income and gross domestic product (Gole,
T.W. et al, 2002). Coffee also directly supports the livelihoods of more than 25 percent of the population, and is at the centre of social and family life (Roussel, B. and Verdeaux, F. 2007). Despite its distinctiveness and reputation for excellence, Ethiopian coffee has been sold as a commodity like most coffees worldwide traditionally. In the past, sharp declines in the world price have thus reduced
Ethiopia’s national income and severely affected its coffee farmers that are increasingly using the
Proceedings of the 7th International Conference on Innovation & Management
Analyzing of Potential Market of China for Ethiopian Coffee
Eskinder Asfaw Bantiwalu, Asfaw Yilma Demisse
School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070
(E-mail: eskinder_2001@yahoo.com, Asfity333@yahoo.com) Abstract After analyzing the opportunities and challenges of Chinese market by using secondary data, this paper finds that the population of China (1.3 billion), the increasing demand of Coffee in China
(30% per year), the fastest growing of Chinese Economy (an average rate of 10% per year since 1990) and the purchasing power of the people are the key indicators of Chinese potential market for all coffee exporter countries in general and for Ethiopia in particular. Therefore, doing a specific in-depth market research, identification of the best distribution channels, implementation of market entry strategy, distinguish how to increase market share, and establishing strong supply chain system is the best strategg drawn in this paper in order to get into the Chinese coffee market for Ethiopian Coffee exporters. Key words Ethiopian coffee production; Chinese growing coffee demand; Chinese potential market for coffee
1 Introduction
Coffee has enormous economic, social and environmental significance in Ethiopia. It represents an important part of Ethiopia’s foreign exchange earnings, tax income and gross domestic product (Gole,
T.W. et al, 2002). Coffee also directly supports the livelihoods of more than 25 percent of the population, and is at the centre of social and family life (Roussel, B. and Verdeaux, F. 2007). Despite its distinctiveness and reputation for excellence, Ethiopian coffee has been sold as a commodity like most coffees worldwide traditionally. In the past, sharp declines in the world price have thus reduced
Ethiopia’s national income and severely affected its coffee farmers that are increasingly using the
References: INRA, CIRAD, IDDRI, IFB, France, 2007: 224–228 [6] Qiao Yi Proceedings of the Conference on International Agricultural Research for Development, Deutscher Tropentag - Bonn, 2001:9-11