The once-flourishing sesame export sector is facing a formidable downturn, as global market prices tumble and long-held competitive edges erode. Traditionally viewed as a premium product due to its soil-driven organic quality, sesame now struggles with shrinking profit margins, subdued export volumes, and an increasingly saturated international market.

The latest blow came with a sharp fall in the lowest global prices. Sesame from the Humera Belt, in the western part of the country bordering Sudan, recently dropped to 1,400 dollars a ton, while from Wollega, southwest of the country, it slipped to 1,350 dollars. The decline comes on top of lower export volumes and increased competition, making it harder for exporters to hold their ground. Many are reconsidering their place in a market that once offered robust returns.

For years, Ethiopia has built a reputation for high-quality sesame used for food, edible oil extraction, and confectionery. Its sesame was in demand, especially during the off-season when other major producers were out of the market. Exporters recall a time when they could count on a quality premium and a seasonal window that ensured strong sales. However, these advantages are fading as cheaper sesame from other countries enters international supply chains.

Expectations for the 2025 season were high, with many exporters anticipating a rebound in global prices after last year’s slump. Instead, the downward momentum persisted, upending earlier forecasts that they could recapture historical pricing power. Exporters blame declining global market standards, reduced domestic production, and chronic barriers in logistics and finance for their struggles to compete.

Ephrem Demissie, a seasoned figure in the import-export scene with more than a decade of experience, described a difficult shift. He recalled that last year, sesame from Ethiopia was selling on the market for around 1,700 dollars a ton.

“Several exporters anticipated similar or higher prices for this year," he told Fortune. "Instead, we saw continuous price drops.”

Ephrem attributed part of the decline to production constraints. Sesame is stillgrown mainlyn by smallholders with limited access to mechanisation, which caps output and leaves producers vulnerable to competition from larger and more efficient regional and international suppliers. Despite the market turbulence, Ephrem remains convinced of sesame’s appeal.

“Our sesame is still one of the highest-quality variants in the global market due to soil conditions and organic cultivation,” he said. "But quality alone is no longer enough. Many countries are now exporting sesame at half price. Buyers seeking cheaper alternatives have shifted toward these markets.”

Ephrem plans to export up to 100 containers of sesame this year, along with white pea beans, red kidney beans, and soybeans. He believes that Ethiopia with 510 oilseed and pulse exporters under the Ethiopian Pulses, Oilseed, &  Spices Prosessors Exporters Association (EPOSEA), can remain competitive if it increases its export volume and adds value by processing sesame into finished products. Without those changes, he warns, more exporters could turn their attention to other commodities.

Tigist Abera, an exporter with four years in the business, echoed his concerns. The price decline is hitting profit margins hard, especially for companies that bought their sesame at higher domestic prices before the global market took a turn for the worse. “Several countries are offering cheaper alternatives, making it harder for Ethiopian exporters to penetrate the market,” she said.

For Tigist’s company, sesame is now the main export, as the coffee season will not begin until January. The slowdown in sesame exports is straining finances during what would typically be a key period for revenue.

Yeshiwas Ademe, a major shareholder of Tungsten Export Plc, has worked in the sector for over 30 year, managingd several export businesses before launching his own company two years ago. He recalled when Ethiopia enjoyed a strategic edge by exporting sesame from September to December, coinciding with the off-peak season in other major producing countries. Prices tended to rise during this window, as global supply was tight. That advantage has largely disappeared.

Countries such as Nigeria, Uganda, Burkina Faso, and Sudan are now shipping sesame for 1,200 dollars a ton, luring buyers away from Ethiopia. This price gap has driven key buyers away. A decade ago, China bought nearly half of Ethiopia’s sesame. Today, Chinese imports are a fraction of that volume, with other big buyers, such as Turkey, Israel, and the UAE, also sourcing more from cheaper suppliers.

Export volumes have suffered, too. Five years ago, 359,000tns of sesame were exported, but by 2025 this volume had dropped to 210,000tns. According to Yeshiwas, domestic instability, weak infrastructure, and rising production costs caused the decline.