Oromia Coffee Farmers Cooperative Union
Purpose
The objectives of Oromia Coffee Farmers' Cooperative Union (OCFU) are:
- to empower Ethiopian coffee farmers to negotiate higher prices in their local market
- to improve farmers' incomes by exporting their coffee directly, at higher prices
- to provide member farmers and clients with reliable service
- to improve the social condition of farmer,by assisting them to access social services such as better schooling opportunities, better health services and clean water supply
- to improve the quality and productivity of Ethiopian coffee.
Producers
OCFCU is a smallholder coffee-grower-owned co-operative union which was established on June 1, 1999 by 34 co-operatives with 22,503 farmers. Currently in 2010, there are 197 member co-operatives which include 194,586 farmers.
Benefits
Seventy percent of the Union's profits from sales and export of coffee are distributed back to the co-operatives. The co-operatives then distribute 70% of the net profit as dividends back to the member farmers; 30% for capacity building, investment in fixed assets, social services and into reserves.
Community development programmes accomplished using fair trade social premiums include (as at 2010):
- the construction of 19 new schools (and construction of additional classrooms at another 31 schools)
- the construction of six medical clinics in rural areas (and assistance with provision of medical equipment to a further six clinics)
- the installation of 45 wells to supply clean water to communities
- bridge construction and the installation of an electricity supply to benefit farmer communities
- construction of five flour mills at primary co-operatives
By 2010, the amount of money paid out in fair trade social premiums to primary co-operative in a trading year had risen to 8.9 million birr (NZ$675,000)
OCFCU helps to support greater self reliance of members by providing them with unsecured loans, with savings facilities, and financial management advice.
Members at all levels of the union and the lower-level co-operatives receive training that will help them to carry out their work better; managers, accountants, washing station managers, farmers etc.
Women within co-operatives are provided loans to help them to establish alternative sources of income, eg. purchase of sheep or chickens (for meat), vegetables to sell at market.
Scholarships are offered to selected children of members to enable them to continue their studies, with a priority on supporting female students.
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