Ethiopia

Ethiopia inches close to breaking coffee export record with $1.2bn earning in 11 months

By |

However, the future of Ethiopian coffee exports faces uncertainty due to the European Union's upcoming Deforestation-Free Regulation (EUDR), a protectionist measure.

Ethiopia's coffee exports for the financial year ending July this year could surpass the all-time high revenue obtained two years ago.

Data by the Ethiopian Coffee and Tea Authority shows exports from the country to international markets reached $1.2 billion in the 11 months to June, stemming from the export of 252,446 tonnes.

In the record period, the 2021-2022 fiscal year, the country earned $1.4 billion by exporting 300,000 tonnes of coffee.

"With the current record, Ethiopia has a high chance of surpassing the all-time high revenue from coffee exports, said Adugna Debela, the director general of the authority.

Adugna's hope stems from the May 2024 performance, where 43,481 metric tonnes of coffee were exported. The record was five per cent more than the target amount.

In terms of revenue, the country earned $209.5 million during the month, exceeding the planned figure by seven per cent.

However, the future of Ethiopian coffee exports faces uncertainty due to the European Union Deforestation-Free Regulation (EUDR), a protectionist measure said to be under the guise of environmental sustainability.

Its regulatory requirements represent the latest effort by the EU to exert normative influence on environmental sustainability, and their effects extend beyond EU member states as their enforcement will affect third-party countries exporting commodities to the European Union.

The upcoming EUDR stipulates that commodities cannot be grown on land deforested after 2020, so companies are required to conduct due diligence and submit reports to a relevant competent authority.

The report must include the quantity, supplier, country of production, and exact geolocation coordinates of the plots of land where the commodities were sourced.

Concerns have, however, been raised regarding the requirements, with some arguing they will favour the big players at the expense of smaller producers.

"Larger companies have the financial resources and technical capacity to provide traceability reports and comply with sustainability requirements. Smaller producers may be cut off from the supply chain if they cannot meet these requirements," some critics noted.

Notably, the EU is a crucial market for Ethiopian coffee, accounting for roughly 30 per cent of annual sales.

The new regulation, set to take effect on December 30, 2024, will impose stricter requirements on Ethiopian exporters, potentially impacting this significant revenue stream.

Ethiopia exports coffee to 50 to 60 countries, and authorities are working to expand the market. Efforts include organising coffee fairs in various countries to promote Ethiopian coffee.

Reader comments

Recent Stories

Mandera Senator Roba warns the government against downplaying Gen Z protests

Mandera Senator Roba warns the government against downplaying Gen Z protests

Monday, June 24, 2024
Three Somali fishermen found in Maldives after missing for 3 months

Three Somali fishermen found in Maldives after missing for 3 months

Monday, June 24, 2024
CJ Koome implements comprehensive security overhaul as courts reopen

CJ Koome implements comprehensive security overhaul as courts reopen

Monday, June 24, 2024
Kenya secures Sh59.7bn Global Fund grants to combat HIV, TB and Malaria

Kenya secures Sh59.7bn Global Fund grants to combat HIV, TB and Malaria

Monday, June 24, 2024
AU to form presidential committee led by Museveni, for Sudanese talks

AU to form presidential committee led by Museveni, for Sudanese talks

Monday, June 24, 2024
Coastal residents condemn local MPs while protesting against Finance Bill

Coastal residents condemn local MPs while protesting against Finance Bill

Monday, June 24, 2024
Over 160 Kwale residents benefit from free cataract screening, surgery

Over 160 Kwale residents benefit from free cataract screening, surgery

Monday, June 24, 2024
Heavy rainfall claims lives and causes widespread damage in Mogadishu

Heavy rainfall claims lives and causes widespread damage in Mogadishu

Monday, June 24, 2024
Mombasa County officials face fraud charges over Sh1.6bn garbage scandal

Mombasa County officials face fraud charges over Sh1.6bn garbage scandal

Monday, June 24, 2024
EXPLAINER: Know your rights! What to do when police arrest you

EXPLAINER: Know your rights! What to do when police arrest you

Monday, June 24, 2024
Schools break for mid-term ahead of fresh round of anti-Finance Bill protests

Schools break for mid-term ahead of fresh round of anti-Finance Bill protests

Monday, June 24, 2024
Ruto, Kenya Kwanza leaders change tune, call for dialogue with Gen Z over protests

Ruto, Kenya Kwanza leaders change tune, call for dialogue with Gen Z over protests

Monday, June 24, 2024
We should all speak against injustices in Kenya - Houghton Irungu

We should all speak against injustices in Kenya - Houghton Irungu

Monday, June 24, 2024
State urges Kenyans to pick 87,000 uncollected passports

State urges Kenyans to pick 87,000 uncollected passports

Monday, June 24, 2024
Finance Bill takes centre stage as thousands of Northern Kenya residents engage on Twitter space

Finance Bill takes centre stage as thousands of Northern Kenya residents engage on Twitter space

Monday, June 24, 2024
Journalist’s memoir reveals story of Somalia’s resilience

Journalist’s memoir reveals story of Somalia’s resilience

Monday, June 24, 2024
Explainer: What is cervical cancer and how can it be prevented?

Explainer: What is cervical cancer and how can it be prevented?

Monday, June 24, 2024
Osman Korar: Kiambu's first Muslim CEC with thirst for serving the youth

Osman Korar: Kiambu's first Muslim CEC with thirst for serving the youth

Sunday, June 23, 2024
Kwale records decline in teen pregnancy, SGBV amid school and community interventions

Kwale records decline in teen pregnancy, SGBV amid school and community interventions

Sunday, June 23, 2024
Heartbreak for Kenya Lionesses as they fall to China in Olympics Repechage final

Heartbreak for Kenya Lionesses as they fall to China in Olympics Repechage final

Sunday, June 23, 2024
Live Updates