The Keta Muduga Union is a recent (2016) breakaway from the infamous Oromia Union. The new union represents just a handful of Co-Operatives in the wider Agaro region, and is able to work very closely with leaders to improve management, processing and via KM manager Asnake Knight, they are able to agitate for direct access to final buyers and better prices to producers. Shared Source purchases directly from the Keta Muduga Union, FOB, without intermediary exporters. Our relationship with manager Asnake means we cup many separated lots from each Co-Operative and are able to select and export from particular harvest dates. The Union is making a big push to sell more of their coffee directly and not through the ECX, preferentially directly to importers as traceability and margins are much better than selling to private exporters.
100% Ethiopia - Washed Process
Altitude: 1900-2200 Masl
Cupping Notes: Blood Orange / Apricot / Peach
Duromina has 276 male and 53 female members. Members deliver their red cherries throughout the harvest season. Farms are typically 0.5-1.5ha and are a maximum distance of ten kilometers from the Co-Operative’s wet mill. Duromina has three different wet mills, new ones being added as membership increased. The wet mills sit at approximately 1950masl.
Producers are paid per kg of cherry and paid the day after delivering. The average price this season was 14bir, which is above average for the region. Cherries can be rejected at the receival point if the quality is lacking, it is codified in the bylaws of the co-operative that only ripe healthy cherries are accepted. Cherries are usually transported on mule donkey or horse, close by farmers come on foot.
After harvest when coffee has been sold, the profits go back to members in two ways: for every kilo of cherry delivered each farmer receives a bonus, averaging 2.5 Birr/kg. Then after taxed are paid and final profits calculated, profits are divided between shareholders as dividends. All farmer members can buy shared, and the Co-Operative board sets the price per share.
There are thirteen chairpersons on the board of the Co-Operative. Duromina last year paid three million birr to members as dividends. Importantly, what sets the Keta Muduga Co-Operatives apart is the amount of investment into community infrastructure.
The Duromina Co-Operative has funded a health center, high school, road construction and power infrstructre for the community in collaboration with neighbouring Co-Operatives Biftu Gudina and Hunda Oli. Each for example are contributing a block to the new high school. The Co-Operatives work together to improve livelihoods across the region of Agaro. They share experiences, information and support around quality, processing, internal structures and marketing.
We think it is important to purchase directly from the KM Union – the more vertically integrated the Union is in the value chain has a direct financial impact on the Bir/kg bonus each farmer receives, increases dividends enjoyed by member share holders who choose to invest in their co-operative, and means there is more capital to invest into non-coffee related projects that benefit the wider community.
Founded in 2010 the Duromina Co-operative with the ongoing support of Technoserve has dramatically improved not only quality and processing techniques, they have improved internal financial structures; management; transparency and traceability; grown from one to three washing stations (all Penagos machinery) and year on year increase their membership. They have reduced the amount of water used dramatically though state of the art demucilagers, and continue to invest in community infrastructure for in the wider woreda (region) of Goma.