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Coffee: The Leading Export Sector

In: The Economy of Ethiopia

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  • Keith Griffin

    (University of California)

Abstract

Much of the argument in Chapter 3 was concerned with accelerating accumulation and growth in the non-export agricultural sector. In this chapter we shall focus on the problems of coffee, Ethiopia’s most important export crop. In addition to earning more than half the country’s foreign exchange, coffee is estimated to contribute to the income of 25 per cent of Ethiopia’s population, either directly through production or indirectly by employment generated by its processing, transporting and marketing. The value of the coffee sector’s output accounts for approximately six per cent of the GDP at current prices, and taxes on coffee are the largest single source of government revenue, amounting in 1978 to 250 million birr or 30 per cent of central government receipts. Finally, coffee is also an important consumer good. It is drunk by almost all Ethiopians and domestic demand accounts for about half of total output.

Suggested Citation

  • Keith Griffin, 1992. "Coffee: The Leading Export Sector," Palgrave Macmillan Books, in: Keith Griffin (ed.), The Economy of Ethiopia, chapter 4, pages 78-91, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-12722-1_4
    DOI: 10.1007/978-1-349-12722-1_4
    as

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