The story was first broken by Sprudge last week in the article “An End to Lot Separation In Ethiopia?”
The directive is difficult to comprehend in more ways than one. First, the letter uses “bulk container” and “loose container” interchangeably and without distinction. Technically, these terms represent two distinct means of cargo shipment and the directive could have serious implications depending on which term is intended to go into effect. “Bulk container” often refers to the movement of coffee in bulk, using normal dry containers fitted with a liner, whereas shipping coffee in a “loose container” (also known as, Loose Container Load or LCL) implies to the practice where coffee is transported to the dock where the shipping line stuffs the container with coffee (and other commodities where there is room for additional weight).
Secondly, the directive indicates the possibility of granting a special permit when approved by the Ministry of Trade, but does not disclose the requirements and procedures for requesting or granting exceptions to the coffees that can be exempted from the rule. It seems that exporters or buyers will need to visit someone at the Ministry of Trade before deciding to buy a given coffee stock as it may or may not qualify for exemption.
Finally, judging from the reactions of international trade partners to the directive, the policy change was not discussed with or publicized enough to reach most of the small and medium-sized coffee roasters in North America and Europe.
These types of vague directives are not only confusing to the market, but also open opportunities for corruption behind closed doors. Unfortunately, such practices are becoming the hallmarks of government offices in Ethiopia.
This time around, let’s hope the government will hear the voices of Specialty coffee buyers across the world and introduce the semblance of transparency to the way business done in that country.
