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Ethiopia's coffee exports decline by 50%


By The Africa Report

June 4, 2012

Ethiopia's coffee export fell by almost half, way short of the government's projection for this year.

The government had projected $1.1 billion dollar revenue from coffee beans, but with only a month to go before the end of the fiscal year, the country has only managed to earn about $505.6 million from coffee exports.

Coffee exporters have complained that the budget was complicated and affected their trade. They have also complained about the quality of the coffee.

"Coffee was exported by mass without taking into consideration its quality and geographical aspects. This affects our coffee exports in the budget year.

"This is a serious problem that needs urgent action by the concerned bodies," a coffee exporters' body said.

The Ethiopian Ministry of Trade is expected to call for an emergency meeting with the coffee exporters soon to thrash out issues affecting the sector.

"There is a disconnect between coffee prices on the international market and what our government officials think.

"Coffee export procedures need to be given due attention and deliberation," a coffee exporter told The Africa Report on condition of anonymity.

Ethiopia revolutionised trade in coffee and other grains, through the Ethiopian Commodity Exchange, a few years ago.

The change saw the emergence of a number of disagreements between coffee exporters and ECX on how to export coffee to the international market.

Ethiopia exports Arabica beans, a popular coffee worldwide.
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