Ethiopia, a country situated in the Horn of Africa, is widely regarded as the cradle of coffee, with a legacy that has been intricately woven into its economy and culture. The country’s coffee industry has witnessed a remarkable journey, from its origins in the ancient forests of Kaffa to the bustling markets of Addis Ababa, where it is traded and enjoyed by people from around the world.
Ethiopia’s rich coffee heritage stretches back centuries, with the legendary tale of Kaldi, a goat herder who first discovered coffee’s energising properties. The country’s coffee industry contributes approximately 30% to Ethiopia’s export earnings and provides a livelihood for over 15 million people. Ethiopia is the largest coffee producer in Africa and the seventh largest globally.
According to a statement by the Ethiopian Coffee and Tea Authority (ECTA), the East African country exported an annual output of around 7.3 million 60-kilogramme bags. In the 2023/2024 fiscal year, Ethiopia’s coffee exports reached a new high, with a total of approximately 298,000 metric tonnes shipped, generating over $1.43 billion in revenue.
The primary destinations for Ethiopian coffee include Germany, Saudi Arabia, Japan, and the United States. In June 2024, exports exceeded targets by 8%, with a total of 46,000 tonnes shipped, creating a record $218 million in income.
The government of Ethiopia plays a vital role in supporting the coffee industry through a range of policies and programs. The Coffee and Tea Development and Marketing Authority is a key initiative driving efforts to enhance production, improve quality, and boost exports. To achieve these goals, the government has also launched initiatives like the Ethiopian Coffee Development Strategy 2020-2025, which aims to address sectoral challenges and promote sustainable growth in the industry.
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Coffee from different regions of the country has varieties of flavours, influenced by the unique terroir of each area. Sidama, Yirgacheffe, Harrar, and Limu are some of the primary regions, each producing coffee with distinct characteristics. Sidama is marked by bright acidity and floral notes, while Yirgacheffe is famous for its fruity and floral flavours with a hint of wine. Harrar offers bold, full-bodied coffee with fruity and mocha undertones, whereas Limu is characterised by its balanced acidity and spicy, wine-like flavours.
The global coffee market is witnessing a growing demand for specialty and single-origin coffees, with Ethiopian coffee uniquely positioned to capitalise on this trend. As consumers become increasingly aware of the origins and ethical implications of their purchases, there is a rising preference for Fair Trade and organic-certified products. This shift, combined with Ethiopia’s rich coffee heritage and cultural significance, presents a promising opportunity for the country’s coffee exports.
The future of Ethiopia’s coffee industry appears bright, with significant potential for growth and development. To maintain its competitive edge, Ethiopia must prioritise quality, sustainability, and innovation. This will include investing in climate-resistant coffee varieties and sustainable farming practices to mitigate the impact of climate change. Embracing technological advancements, such as mobile platforms for real-time market information and weather updates, empower farmers with the tools they need to navigate the industry effectively. As well as governmental and international efforts to improve infrastructure and market access that will enhance the efficiency and profitability of the coffee supply chain.
