Over View ofETHIOPIANCOFFEESECTOR
April 25,2023
Addis AbabaOutline
1. Introduction
1.1

Ethiopian’spositionincoffeeproduction
2. Ethiopian Coffee Sector Reform
3. Coffee Value chain
4. Ethiopian Coffee Export performance
5. Speciality coffee export trend
6. Opportunities & Challenges in Ethiopia’s
coffee industry
7. Way forward

JAPAN

Asia’s Biggest Coffee Market

1.1 Ethiopian’s position in Global coffee Productionv

Over 70 countries by almost 25 million
farmers worldwide produce coffee in761,5002022/23

1,062,034

significant amountsv

17% of the Global Coffee producers’
are Ethiopian Coffee Producers’ share

652,200

2021/22

Viet Nam,Brazil,Indonesia,Uganda
And India

931,728

in number.
v

5th coffee producer next to Brazil,
Vietnam, Colombia & Indonesia.

2020/2160%Brazil,

Colombia
Ethiopia,
Honduras
And Peru

40%

584,790856,592

Production (ton)Accounts up to 4.46 percent ofworldwide production.
v

Largest & 1st producer in Africa, >2019/20

Land cover (hectar)

482,561
758,52343.15 % of continent (ICO, 2020).
2018/192017/18

494,574
764,863449,230
725,961

RobustaArabica

…cont’dUniqueness of
Ethiopian Coffee

Known forits highquality
OrganicOrigin

Different
Varieties &theirCharacteristics

Production systemmrofeR)neoeiftfno
C rven teainpio cyi
h litoE.
p(22. Coffee Reform & its Benefits
vNew proclamation
vDirect export (small scalefarmers)
vValue added coffee transaction(contract farming)vOut grower scheme
vDirect export (coffee supplier)vVertical integration
vEnsure traceability (washing &hulling station)It’s Main objectives• marketing
efficiency &insure thebenefits of coffee
actors,• Competitivenessin world coffee
market3. The current structure of Ethiopian coffee value chain
Production

Small ScaleFarmers

CommercialGrowers

Primary
Market & its
processing
Stage

Marketing
Channels

Export +Grading &sorting

Buying &Roasting

ECX

Private orCooperatives
Washing/hulling Stations
or PrimaryMarketVerticalIntegration

Exporters

Out-growers
Direct Export

Coops/Unions

Contract
Farming
Coops/Union
SuppliersExport

CommercialFarms

International
Buyers &Roasters

4. Ethiopian Coffee Export performancev It startsincreasingfrom 2017(after thecoffeereform)v 35-40% of
the coffee iswashedCoffeev Sidama.Nek
emte &Jimma
coffee types
were the top
3 having ashare 7075%
exported

1,424,584

882,474

838,152

762,977

722,043

198,501

2015/16

225,668

2016/17

238,466

2018/19

volume (Ton)

Source:ECTA,2022

270,835

230,764

2017/18

907,036854,2132019/20

value (ooo) $UD

248,3122020/21302,7622021/22

4.1 Ethiopian Coffee Destination Countries (2021/22)
v 60 countries importing
Taiwan3%share in Value
2
Ethiopian Coffee
3
Italy3v By Value Germany%share in Volume,USA, Saud Arabia,United Arab…
Japan, Belgium, South
34
Kora, China, United
China
Arab emirates, Italy &45
Taiwan respectively
Total Volume export= 302,762
7South Korea
were the top ten
6Destinations. A share of
84% of the total
Belgium
Total Value=1.42 bil $ US89
9 11Japan
v Japan now 4 place forcoffee destination in12
SaudiArabia
152021/2022 whare 6place in 2020/21.
13
United States
918 21
Germanythth

4.2 Ethiopia’s Position in the Global Coffee Market (2017-2021)
20172018

2019

2020

2021

35.030.5
30.0

25.0

21.0
20.0

15.0

9.8

10.0

5.8

5.2

5.0

4.7

4.0

3.7

3.2

Guateru
Pemalapiahio
Etdia
Innesi ados

In

urand

Hu

Ugand

aabilom
Co

am
Vetin

azil

Br

vThe top three(Brazil,Vietnam &Colombia)
together > 60%
share of world
CoffeevEthiopia has the8th position incoffee supply to
Global market .
vIt has a share of
3 to 3.7 %

40.0

2.9

5. Speciality coffee export trend
Q-1 (%)

Linear ( Q-1 (%) )
37.26

34.20

0/21

30.67

9/20

8/19

30.35

7/18

6/17

30.96

33.68

1/22

all Speciality Coffee (%)

6. Opportunities in Ethiopia’s coffee industryv Government’s commitment and favarouble policy environment.
v Diverse agro-ecology and distinct characters of coffee quality,
v Efficient and effective domestic marketing system.
v Well established brand-positive image of the country as Origin of coffee
v Especial intervention by the government (e.g. COE)v Demand & willingness of international NGO & Others organizations in Supporting
especially in coffee productions.
v Investment opportunity.

Ethiopian Cup Of Excellence
perPer per kg

pound kg($U (EthYear ($US)

S)

2020

185

407 13,838

2021

150330 14,533

2022

400884 47,236birr)

8.Some Challenges of the Ethiopian Coffee
MarketvGlobal Coffee price fluctuation & unpredictable
naturevLow Value addition of Coffee.
vWorld economic crisis 1/3 of the world economy
to be in recession(IMF,2023)

9. Ways forward• Keeps the quality of Coffee to besustainable§ Traceability and transparency along
the value chain• Due attentions for Value added Coffee(Ethiopian Roasted coffee export <1%• Enhanced international promotion (Emerging and on niche market) .
• Others interventions (COE)