Ethiopia, which is often referred to as the birthplace of coffee, has a rich history and cultural heritage surrounding its stimulant beverages. Coffee and tea are not just integral to daily life but also represent significant opportunities for economic development through export. Ethiopia’s beverage sectors, focuses on coffee, tea, and other drinks, and how they can contribute to the country’s economic growth.
Ethiopia is renowned for its diverse coffee varieties, particularly Arabica, which is considered the finest quality in the world. The country produces unique flavors due to its diverse climates and altitudes. Ethiopian coffee is celebrated globally, and its export potential is immense.
Further documents unveiled that coffee exports account for a substantial portion of Ethiopia’s foreign exchange earnings. In recent years, the coffee sector has contributed to approximately 30% of total export revenues. The government has recognized coffee as a priority sector, implementing policies to enhance production, processing, and marketing, thereby attracting foreign investment.
According to the Ethiopian Coffee and Tea Authority (ECTA), Ethiopia exported 46,000 tons of coffee in June 2024, representing a remarkable 108% increase compared to the previous period. This record-high volume of coffee exports generated USD 218 million in revenue, a 107% rise.
The Authority announced a landmark achievement for the country’s coffee sector, reporting record-breaking coffee exports in June, 2024.
The exceptional performance in the month under report contributed to Ethiopia’s total coffee exports reaching 298,500 tons for the 2023/24 fiscal year, resulting in USD 1.43 billion in earnings. This marks a 20% increase in export volume and a 7.5% rise in value compared to the previous fiscal year.
Ethiopia’s earnings from coffee exports reached an all-time high of 196 million USD in August, 2024 said sector regulator as the industry continues its record breaking performance in the 2024/25 fiscal year.
Recently, the Authority reported that 42, 322 tons of coffee was shipped to the global market in August, bringing in USD 196 million in revenue.
“This is the highest ever monthly earning secured from coffee export to date,” ECTA’s Director General Adugna Debela said.
The performance showed the Authority’s achievement both in its export volume and value targets for August by 165% and 143%, respectively.
Ethiopia significantly increased its coffee supply to the global market in the past couple of months. The surge comes after the country set up a new market option by “eliminating unnecessary steps” in the coffee supply chain, per ECTA.
In July, the export volume grew 78% to 40,532 tons of coffee – making it the country’s biggest shipment for that particular month.
Together with August, ECTA has overseen the shipments of 82,853 tons of beans to the international coffee market that generated USD 377 million in two-month revenue.
Compared to the same period last year, Adugna said the two-month exports’ volume rose by 32,925 tons (66%) while the revenue jumped by USD 110 million (41%).
The Coffee industry is considered the backbone of the country’s economy. Its exports in the previous financial year brought the country USD 1.43 billion in revenue.
According to local media, while Ethiopia is primarily known for coffee, its tea industry is emerging as a promising sector. With suitable climatic conditions in regions like Sidama and Oromia, Ethiopia has the potential to produce high-quality tea that can compete in international markets.
The Ethiopian Coffee and Tea Authority (ECTA) reported that more than 1,142 tons of tea was exported to the global market in the 2023/24 fiscal year, generating over two million USD in revenue.
ECTA Communication Director Sahlemariam Gebremedin told the Ethiopian Press Agency (EPA) that the tea exports for the year exceeded the previous fiscal year’s (2022/23) volume by 292 tons. However, he emphasized that while 50,000 tons of tealeaf were exported, there is still significant untapped potential in the sector.
In earlier years, Ethiopia’s renowned tea was grown on just 5,000 hectares of land, with foreign earnings never surpassing three million USD annually. To increase output, 460 million saplings were planted across 30,000 hectares during the 2023/24 fiscal year.
Despite these efforts, Sahlemariam highlighted the low participation of investors as a key obstacle to maximizing foreign currency earnings. “The government must encourage more investors to engage in the sector to fully realize the country’s potential,” he said.
The global tea market is expanding, and Ethiopian tea can capitalize on this growth. The government is working to improve the quality and quantity of tea production, supporting farmers with training and resources. By promoting Ethiopian tea on international platforms, the country can boost its export revenues significantly.
The demand for natural and health-oriented products is on the rise globally. Ethiopia’s diverse agricultural landscape allows for the production of a variety of fruit juices. By tapping into this market, the country can diversify its beverage exports and increase foreign exchange earnings.
Despite the potential, Ethiopia had been faced several challenges in the beverage export sector. The government has been making smart move to alleviate poor infrastructure, including inadequate roads and logistics systems, hampers efficient transportation of goods. Investment in infrastructure is essential to facilitate exports and improve the competitiveness of Ethiopian beverages.
Ensuring consistent quality and obtaining international certifications (such as Fair Trade and Organic) are crucial for Ethiopian beverages to succeed in global markets. The government and private sector must collaborate to enhance quality control measures and support producers in meeting international standards.
Many agree that Ethiopia must enhance its marketing strategies to promote its coffee, tea, and other beverages effectively. Participation in international trade fairs, establishing partnerships with foreign distributors, and leveraging digital marketing can help increase visibility for Ethiopian products.
Ethiopia’s rich heritage in coffee and emerging tea and beverage markets is not the moon to come project; rather it is an opportunity for economic development, according to documents and scholars in the sector. By addressing challenges in infrastructure, quality control, and market access, Ethiopia can enhance its beverage export sector. As the global demand for unique and high-quality beverages grows, Ethiopia stands poised to capitalize on this trend, driving economic growth and improving the livelihoods of its farmers and producers.
With a concerted effort from the government, private sector, and local communities, Ethiopia can transform its beverage industry into a cornerstone of economic development, showcasing its rich cultural heritage to the world while securing a bright economic future.
The Ethiopian Coffee and Tea Authority (ECTA) play crucial roles in the development of the coffee and tea sectors, which are vital to the country’s economy. Here’s an overview of its key functions and initiatives aimed at enhancing quality production, productivity, and maximizing export volumes.
According to documents, the establishing standards ECTA sets and enforces quality standards for coffee and tea production. This includes grading systems that ensure only high-quality products reach the market.
The Authority implements certification programs, such as Organic and Fair Trade certifications, which help Ethiopian products gain acceptance in international markets.
ECTA supports research initiatives to develop improved agricultural practices. This includes the introduction of disease-resistant coffee and tea varieties and sustainable farming techniques.
The authority conducts training sessions for farmers, focusing on best practices in cultivation, harvesting, and post-harvest processing to enhance productivity and quality production.
ECTA works to promote Ethiopian coffee and tea at international trade fairs and exhibitions. This helps raise awareness and increases demand for these products in global markets. By streamlining export procedures and providing necessary documentation, ECTA helps producers’ access international markets more efficiently.
ECTA encourages the formation of cooperatives among farmers. This enhances bargaining power, improves access to resources, and fosters collective marketing efforts. The authority collaborates with financial institutions to provide loans and credit facilities for farmers and processors, enabling them to invest in better equipment and technology, as it is learnt from documents.
ECTA plays a key role in developing national strategies for coffee and tea production. This includes setting long-term goals for sustainability, productivity, and export targets.
The Authority establishes regulations that govern the industry, ensuring fair practices and protecting the interests of all stakeholders, from farmers to exporters.
ECTA promotes sustainable agricultural practices that protect the environment and biodiversity, ensuring the long-term viability of coffee and tea production. The Authority supports programs that help farmers adapt to climate change, ensuring consistent production and quality.
ECTA conducts market research to identify trends and opportunities in the coffee and tea sectors. This information is vital for producers to make informed decisions.
The Authority collects and disseminates data on production volumes, export performance, and market conditions, helping stakeholders understand the dynamics of the industry.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD THURSDAY 3 OCTOBER 2024
