Background Information on the Ethio-Eritrean Conflict Coffee Profile Background Ethiopia is where Arabica coffee originated. Its cultivation and trade has been performed since time immemorial. Nowadays, it is estimated that nearly 400 thousand hectares of land in Ethiopia is covered by coffee. The annual coffee production of the country ranges from 200-250 thousand tons. The coffee sub-sector fulfills a number of important functions for both the producers and the economy at large.
Coffee is the dominant foreign exchange earning export commodity of Ethiopia.
Well over 60 percent of the country's foreign exchange is obtained through the export of coffee and it also contributes a substantial percentage of Ethiopia's export tax revenue. Furthermore, coffee accounts for about 10 percent of government revenue. A quarter of the population is directly or indirectly engaged in the production, processing and marketing of coffee. Though not easily quantifiable, the multiplier effects of this commodity on other sectors of the national economy such as wholesale and retail trades, banking and insurance, transport etc., are also enormous. In addition, coffee plays a significant role in Ethiopia's social and cultural life.