Ethiopia’s coffee industry has reached a remarkable milestone, generating $1 billion in revenue during the first ten months of the 2023/24 fiscal year. This surge in earnings can be attributed to a substantial increase in global coffee exports, with Ethiopia shipping 209,000 tons of coffee during this period.
Adugna Debela, General Director of the Ethiopian Coffee and Tea Authority, credits this success to streamlined market options that have eliminated unnecessary steps in the supply chain. Despite these achievements, meeting the ambitious target of $1.7 billion in annual earnings may prove challenging.
With challenges like climate change and market volatility affecting coffee production, Ethiopian farmers are exploring more resilient crop options like khat. To stabilize the market, the Ethiopian government has implemented policies such as setting minimum export prices to protect farmers and maintain competitiveness.
As the third-largest global producer of Arabica coffee, Ethiopia’s renowned coffee quality drives high demand in the international specialty coffee market. Major importers include Germany, Saudi Arabia, Japan, the United States, and Belgium.
This success not only boosts Ethiopia’s economy but also enriches its cultural heritage, serving as a source of national pride. Continued efforts to address climate challenges and improve market conditions are vital for sustaining this growth trajectory in the coffee sector.