ADDIS ABABA– The Ethiopian Coffee and Tea Authority (ECTA) has revealed its strategic plan to expand the country’s coffee market into new territories, particularly China and South Korea, while continuing to build on its already established markets in the U.S., Germany, Belgium, Japan, and Saudi Arabia.
This move comes as Ethiopia aims to secure 1.8 billion USD by exporting 326,000 tons of coffee during this fiscal year.
ECTA Director General Adugna Debela (PhD) stated in an interview with the Ethiopian Press Agency (EPA) that the country had already generated 1.43 billion USD from the export of 300,000 tons of coffee in the last fiscal year. During the first two months of this fiscal year alone, Ethiopia exported 83,000 tons of coffee, earning 380 million USD, which is an increase of 30,000 tons and 110 million USD compared to the same period last year.
Ethiopia’s expanding focus on China and South Korea reflects the country’s ambition to diversify its coffee markets beyond its traditional partners. Adugna noted that efforts are underway to boost coffee production and ensure quality and traceability through regulatory and development measures. The Authority is also promoting value-added approaches to increase revenue.
The expansion into specialty coffee production is another key focus area for Ethiopia. Specialty coffee, which can sell for 5,500 USD per ton, provides significantly higher returns compared to commercial coffee, which fetches around 2,800 USD per ton. This shift towards higher-value products is expected to generate more foreign currency for the country.
Moreover, Ethiopia’s coffee production practices are aligned with the United Nations’ deforestation-free criteria, giving it a competitive edge in international markets. The UN market alone accounts for 30% to 35% of Ethiopia’s coffee exports, offering a significant opportunity as other coffee-producing nations face scrutiny over deforestation.
The authority’s ongoing efforts, including the pruning of coffee trees across 500,000 hectares, have significantly boosted productivity, enhancing Ethiopia’s position as a leading coffee producer.
As Ethiopia continues to expand its coffee market, it remains committed to maintaining quality and sustainable production practices, positioning itself for growth in both traditional and emerging markets, the director general remarked.
Ethiopia is known as the birthplace of coffee, and the coffee sector is not only a vital part of the country’s economy but also a cornerstone of its cultural heritage.
BY MESERET BEHAILU
THE ETHIOPIAN HERALD SATURDAY 5 OCTOBER 2024
