Ethiopia is the origin of Coffee Arabica and the largest producer of coffee in Africa and the fifth largest coffee Producer in the world.
According to the information obtained from International Journal of Research Studies in Science, Engineering and Technology Volume 4, the annual coffee production in Ethiopia is with average yield of 6.34 quintal per hectare.
In 2014/15 Meher Season, the area allocated for coffee production was estimated to be 561,761.82 hectares from which about 4,199,801.56 quintal was obtained with average yield of 7.48 quintal per hectare.
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In 2015/16 production year Ethiopia produced an estimated 9.8 million bags that would rank the country as the third largest coffee producer in the world after Brazil and Vietnam, beating out Colombia and the fifth major exporter of Arabica coffee, globally next to Brazil, Vietnam, Colombia and Indonesia and the highest producer of coffee in all of African country.
Coffee occupies a crucial position in the Ethiopian economy, being the main revenue generator among exported commodities. The importance of coffee to Ethiopia transcends the exclusive economic dimension, playing a strategic role in the national development agenda.
The sector is characterized by a wide scope for development both in terms of production volume and qualitative excellence, is a key element in enhancing Ethiopia's economic prominence in the global context. Thanks to its intrinsic capacity for expansion and improvement, it represents an important strategic lever, capable of propelling the country towards a position of greater prestige and international competitiveness.
The coffee industry is an essential source of income for an estimated 15 million workers, providing a livelihood for countless farming families across the country and generating a GDP per capita of USD 2300 per year.
Coffee also plays an important social and cultural role in Ethiopian society, traditionally consumed at every family gathering, and religious festivity, thus justifying 50% of the production consumed domestically and with demand growing both quantitatively and qualitatively.
Ethiopian Coffee and Tea Authority announced that it has been working to enhance income from the sector, through supporting the sector by technology, expanding coffee land area and market destinations across the globe.
Director General of the Authority Adugna Debela (PhD) told Ethiopian Press Agency (EPA) that it plans to generate 2 billion USD through exporting 400, 000 tons of coffee in this concluded Ethiopian Fiscal Year (2017). However, more than its plan, it was able to generate 2.65 billion USD through exporting 469,000 tons of coffee.
Revenue from coffee export in this concluded Fiscal Year exceeds that of 2016 in 1.2 billion USD which is great difference adding that the country generated 1.4 billion USD from exports of 300, 000 tons of coffee in 2016 Ethiopian fiscal Year.
Emphasizing enabling environment created by reform administration led by Prime Minister Abiy Ahmad the director said that before the establishment of the administration country used to generate 600 up to 700 million USD from the sector annually.
The result was achieved due to the coffee reforms carried out since the reform administration, works done to increase coffee production and productivity, ensure coffee quality and expand the coffee market, he said.
Ethiopian coffee has generated the highest foreign exchange earnings in history this year. The amount of coffee exported this year has also set a record. The results were achieved through major efforts to increase coffee production and productivity, ensure coffee quality and expand the coffee market.
Japan, Germany, Belgium, Saudi Arabia and the United States have been the five largest importers of Ethiopian coffee for many years adding that the top ten countries are importing more than 76% of Ethiopian coffee. Ethiopia is currently exporting coffee to more than 66 countries.
China, South Korea and Jordan have previously underestimated Ethiopian coffee, he said, adding that China is now among the five largest importers.
Concerning supporting measures done for coffee producing farmers the director said that it is necessary to facilitate markets for coffee farmers to benefit them. Previously, coffee producer farmers were forced to sell their coffee produces on the fields. Changes in agricultural policy have now enabled farmers to sell coffee directly abroad. Currently, the authority is issuing certificates to many farmers to export their coffee products directly, he noted.
He said that many people are currently exporting value added coffee adding that it is necessary to facilitate markets for coffee farmers to benefit them. Previously, farmers were forced to sell their coffee produce on the fields.
Changes in agricultural policy have now enabled farmers to sell coffee directly abroad adding that in 2017 Fiscal Year, one farmer was able to export his coffee products directly and obtained 8 million USD. He added that farmers can export their coffee products if they have financial capacity, otherwise, they can sell in the country at good prices, he said.
Coffee production and productivity and foreign exchange earnings from coffee are also increasing every year. Coffee export is contributing significantly to the country's economic growth by generating up to 40% of foreign exchange earnings, he said.
Substituting old coffee plant with new coffee plant and expanding of coffee lands are also underway with special attention paid to them.
Coffee production is increasing by 200,000 hectares every year. Likewise productivity per hectare have been increased, Six years ago, up to six quintals of coffee was collected per hectare. However, currently up to nine quintals of coffee is being harvested per hectare.
The work being done to ensure that coffee continues to be the pillar of the country's economy is encouraging, but with the opportunities and strengths we have, it shows that we have a lot of work to do the director said.
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Green legacy program has been creating favorable condition to plant coffee seedlings as the coffee trees are planted in large number in areas where the coffee trees take shelter under the nearby forest. More than eight billion coffee trees have been planted so far under the green legacy program, he said.
He said it is necessary to provide various inputs to the farmers to increase the production and productivity of coffee. Farmers are being given training on how to wash and handle coffee to ensure the quality of the coffee. Ensuring the quality of coffee will help to become a strong competitor in the global market and sell coffee at higher prices, he said.
There is a lack of adoption of new technology to substitute old coffee plants with new ones to increase coffee production and productivity. When substituting old coffee trees, which started three years ago, only model farmers accepted the idea and implemented it. Other farmers adopted the idea and implemented it on a large scale after proving its productivity.
The authority is working extensively on not only coffee production but also tea production, flavorings and aromatics, he said. It is supporting the work in the field of tea production, especially in the Oromia region. After four and five years, the foreign exchange earnings from tea production will not be less than that obtained from coffee.
BY TAMERU REGASA
THE ETHIOPIAN HERALD WEDNESDAY 6 AUGUST 2025
