Ethiopia's 2001 market season was a very difficult one for several major crops. The price of coffee, Ethiopia's chief export crop, dropped to the lowest level in 34 years. Cereal prices, particularly for wheat and maize, declined significantly as a result of above average production in surplus producing regions and the lack of effective (cash) demand. In this difficult environment the USAID-supported Agricultural Cooperatives in Ethiopia (ACE) program showed some encouraging results. For example:

Using credit made available under the USAID-sponsored Loan Portfolio Guarantee Program with the private Bank of Abyssinia, the Ude Primary Cooperative bought grain from its members for onward sale. In spite of difficult market conditions, Ude generated a net profit of $1,295 of which $907 was paid to its members as dividends. One member, Mr. Amare Aba Irree, received a dividend payment of $56 that he used to purchase an additional plow ox to improve his capacity to prepare fields for planting.

Mrs. Etenesh Mekonnen, a coffee farmer and a member of Ferro Coffee Cooperative in Southern Region, received $138 in dividends from the sale of her coffee through the cooperative. She used this money to replace her thatched roof with corrugated iron sheets. Another female coffee farmer received $273 in dividends. She used the money to start a small shop and to enroll her son in a driver/mechanic course.

The Erer Cooperative Union (comprised of several farmer-based cooperatives) made a net profit of $58,824 in 2001 from the sale of fertilizer and grain, of which 70% was paid to its member cooperatives in dividends. The Union paid a bonus of $625 to its General Manager, Mr. Kasshun Abera, for his excellent performance, and $2,2120 in bonuses to other permanent staff and Directors.