By: Kassahun Chnie.
The Ethiopian Coffee and Tea Authority reported that Ethiopia exported more than 298,000 tons of coffee in the recently concluded fiscal year, earning $1.43 billion in revenue. This represents a significant contribution to the nation's economy and highlights Ethiopia's strong presence in the global coffee market.
In an exclusive interview with EBC Amharic, Dr. Adugna Debela, Director General of the Coffee and Tea Authority, reflected on the achievements and challenges of the year. He emphasized that Ethiopia's coffee production is unique, noting that coffee is cultivated under the shade of trees, a traditional method that contributes to its distinct flavor. However, Dr. Adugna acknowledged that this method, along with the use of older coffee varieties, has led to lower productivity levels compared to modern farming techniques.
"While we've faced challenges in terms of development, market access, and international competition, the income from coffee remains substantial," Dr. Adugna said. He pointed out that Ethiopia exported 50,500 more tons of coffee in 2016 compared to the previous year, demonstrating the country's growing export capacity. This increase in both quality and quantity of coffee has strengthened Ethiopia's position in the global market.
Dr. Adugna also highlighted ongoing efforts to replace traditional coffee varieties with new, higher-yielding ones to boost productivity. These innovations, he said, could potentially double Ethiopia's coffee output in the coming years.
To further improve the coffee industry, the authority is working to streamline the supply chain by allowing farmers to sell their products directly to the central market, reducing intermediaries and increasing farmers' profits. Dr. Adugna emphasized that this move, along with other market reforms, could help farmers raise their income from coffee production from 40% to as much as 80%.
The director general sees great potential for Ethiopian coffee traders in the evolving macroeconomic landscape. He believes that the changes underway will enhance Ethiopia's global competitiveness and address issues such as illicit trade, paving the way for even greater earnings in the future.
Ethiopia, known as the birthplace of coffee, continues to promote its rich coffee heritage to the world while striving to modernize its production methods and increase revenues.