AfricaNews
By Sam Banda Junior in Blantyre, Malawi
Photo from the movie “Black Gold“
“Trading would be conducted in the afternoons so as to
link it up with the New York market.”
Wednesday 24 September 2008
An electronic system has been introduced to improve the sale of coffee in Ethiopia, Africa`s largest producer of the commodity. Trading would be conducted in the afternoons so as to link it up with the New York market. The new system is scheduled to commence in October 2008.
The Director of the Ethiopian Commodity Exchange (ECX), Eleni Gebremedhin said the development would link trade with the US market. According to a Reuter’s report, to participate in the electronic trade, sellers will be required to produce warehouse receipts and buyers will have to show a pre-trade deposit in the banks.
Ethiopia, the birth place of coffee, made a tremendous achievement last season when it exported 170,888 tonnes of coffee and earned US$525.2 million.
In a related development Tanzania’s coffee prices mostly eased at last week’s auction, but managed to outdo markets in New York and the amount sold dropped, traders said. The Tanzania Coffee Board (TCB) said on Monday that 32,623 60-kg bags were offered for sale, with 16,926 sold.
Great news that (ECX)The Ethiopian Commodity Exchange took steps in Electronic Trading system in general and the Coffee sector in Particular.
Ethiopia could be mentioned as one of the nations with the label of “single commodity”dominated economies,in this case coffee.The attempt for diversity in export resources by (ECX) is remarkable.
My suggestion and support for the largest share in The Markets of Japan for Ethiopian Coffee.As one of the single most vast market for coffee,Japan could enter with Ethiopia “Particular”understanding over coffee trade besides to the formal rules of international trade.The wish to trade with and the volume of order and exchange is a matter of chemistry in international relations.
Ethiopia could expect a stable yearly trade of about one billion american dollars with Japan in a healthy system of “vassalage” based on the single commodity “coffee” hand in hand with foreign assistance.