According to a research supported by IKEA Foundation on Ethiopia’s potential for circular agribusiness, it is stated that only 0.2% of the coffee bean is used to make a cup of coffee, and the remaining 99.8% goes to waste. Ethiopia, the largest coffee producer in Africa, can commercialize this. It presents a significant opportunity for farmers and coffee processors to diversify their income stream through Circular farming and agribusiness. 

Resources each country possesses are finite, and with a growing population, the scarcity of resources looms over every nation; this is where circular agribusiness plays a part.

Circular Agribusiness, a sub-division of circular economy, which is an economic system of closed cycles in which raw materials, components, and products lose their value as little as possible. This prevents waste in agriculture, be it food loss or wasting by-products generated in food processing, which are major agricultural impediments.
Reports demonstrate a contrast that food loss ensues either in the retail sphere or during consumption in industrialized countries, whereas in developing countries, it occurs before it reaches retail stores, post-harvest, and processing. With the vast size of Ethiopia’s crop and livestock sectors, substantial streams of losses and byproducts are created; Post-harvest losses are the highest in fresh food segments, especially horticulture crops. The focal reasons for these losses are;

  • Poor post-harvest handling,
  • Lack of market access, and
  • Lack of adequate storage and transportation facilities.

Nonetheless, Ethiopia as an African Development Bank (AfDB) member has contributed to developing a green growth investment program that supports the adoption of circular practices encompassing coffee byproducts as one of its promising sectors, along with Brewery and malt factory byproducts, Edible oil production byproducts, and processing of livestock products.

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