Ethiopian Coffee Booms Despite Looming EU Regulation

Addis Abeba — Ethiopia's coffee industry is experiencing a robust year, with exports reaching a staggering $1.2 billion in the past 11 months, according to the Coffee and Tea Authority.

This revenue stems from the export of 252,446 tons of coffee to international markets.

Adugna Debela, Director General of the Authority, noted, "Ethiopia has a high chance of surpassing the all-time high revenue obtained two years ago" from coffee exports.

In the 2021/22 fiscal year, the country achieved a record of $1.4 billion by exporting 300,000 tons of coffee.

Adugna's optimism is grounded in the performance results achieved in May 2024.

During this month alone, 43,481 tons of coffee were shipped, surpassing the planned target by 5%.

In terms of revenue, the country earned $209.5 million during the month, exceeding the planned figure by 7%.

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

The EU, a crucial market for Ethiopian coffee, accounts for roughly 30% 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.

Currently, Ethiopia exports coffee to 50 to 60 countries, and authorities are working to expand its market reach. Efforts include organizing coffee fairs in various countries to promote Ethiopian coffee.

Additionally, Ethiopian Airlines has recently halved the shipping cost of coffee to the Middle East and Asia to $1.5 per kilogram, aiming to encourage exporters and boost sales in these regions.

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