Keep Up with Addis Insight
Add us to your Google Preferred Sources to see updates first.
Addis Ababa – Ethiopia, Africa’s largest coffee producer and the birthplace of Arabica beans, earned $268 million in export revenues from coffee in July, according to the Ethiopian Coffee and Tea Authority.
Revenue Surge Amid Decline in Volume
Public Relations and Communications Director Sahlemariam Gebremedhin revealed that the country had planned to export 53,480 tons of coffee in July of the 2018 Ethiopian fiscal year, targeting revenues of $216.4 million. However, only 38,663 tons were exported. Despite this shortfall, the sharp rise in global coffee prices pushed total earnings to $268 million, representing a 53% increase in revenue compared to the same month last year.
By contrast, the volume of exports slipped by 2%, highlighting how international price trends and quality premiums are cushioning Ethiopia’s coffee sector against lower output.
Key Markets Driving Demand
Germany, Saudi Arabia, and Belgium remain Ethiopia’s largest coffee buyers. Strong demand was also recorded from China, the United States, Japan, South Korea, and the United Arab Emirates, underscoring Ethiopia’s growing diversification of coffee markets beyond its traditional European base.
A Record-Breaking Sector
The Authority noted that Ethiopia earned $2.6 billion in coffee export revenue in the 2017 fiscal year, the highest in its history. Coffee remains Ethiopia’s single most important export commodity, employing over 15 million people across farming, processing, and distribution.
$3 Billion Ambition
For the current fiscal year, the Ethiopian Coffee and Tea Authority has set an ambitious target: exporting 600,000 tons of coffee and generating more than $3 billion in revenue. Achieving this would mark another record for Ethiopia’s coffee industry and strengthen its position as one of the world’s top Arabica suppliers.
Coffee is not only Ethiopia’s leading foreign-exchange earner but also a cultural symbol, with the traditional Ethiopian coffee ceremony serving as a central feature of daily life. As global demand rises for high-quality, specialty, and organic coffees, Ethiopia is well-positioned to expand its footprint—though challenges like climate change, supply-chain inefficiencies, and competition from Latin American producers remain.
