Coffee Export Revenue on a Downward Trajectory

May 20 , 2023

Export earnings from coffee have declined by close to 32pc from last year, with exporters unable to keep up with the loss and looking to turn a corner. According to the statement from Sofia Kassa (PhD), state minister of Agriculture, the export revenues garnered are less than one billion dollars this year, from where they stood at 1.4 billion dollars last year. Sofia attributed the decline to exporters hoarding the commodities for fear of loss in the international market. According to the State Minister, the disparity of price of the local market and the international market has caused the barrier. Adugna Debela (PhD), the Director General of the Ethiopian Coffee & Tea Authority concurs, attributing the deterioration of the market chain. Exporters attributed the decline of exports to domestic price increases, ever-changing regulations set by the Authority, and added taxes on coffee brought in from the Oromia Regional State. They were irresolute about the new stipulation made by the Ministry. "I would rather distribute the products domestically rather than suffer a loss from the international market," said one exporter. Economists observe the necessity of productivity to sustain coffee export. They recommended that regulatory bodies should work on bringing suppliers and exporters closer by getting rid of intermediaries.