Ethiopia Coffee Production Rises
Ethiopia’s coffee production is expected to see a slight increase of 1% in the upcoming marketing year starting in October 2023, according to the U.S. Agriculture Department’s recent report on Ethiopia’s coffee industry. The report states that production is projected to reach 8.35 million 60-kilogram bags, up from the current year’s 8.27 million bags.
The current year has witnessed a favorable climate, leading to higher volumes and improved quality of coffee. Moreover, the motivation of farmers driven by higher prices and the maturation of new plantations established in recent years have contributed to the positive outlook for coffee production in Ethiopia.
However, the report suggests that exports for the current marketing year are anticipated to decline slightly to 4.82 million bags, compared to 4.83 million bags in the previous year. This decrease is mainly attributed to better local market prices relative to international prices.
For the following year, exports are forecasted to rebound to 4.83 million bags. Ethiopia, known as Africa’s largest coffee producer and the fifth-largest exporter of arabica coffee worldwide, surprisingly consumes almost half of its coffee output—a significant proportion for a major coffee-producing nation.
The USDA highlights the efforts of the Ethiopia Coffee Exchange in streamlining the coffee value chain. This initiative enables coffee farmers with at least two hectares of land, coffee unions, commercial farmers, and coffee processors to directly export their coffee to the international market, eliminating the need for intermediaries.
