Ethiopia’s Coffee Sector Blooms: Record Earnings and Global Competitiveness on the Rise
Ethiopia, the ancestral home of coffee, is witnessing a significant resurgence in its vital coffee sector. Through a concerted effort involving improved varieties, modern agricultural practices, and strategic reforms, the nation is not only boosting its production but also solidifying its position as a major player in the global coffee market, with substantial implications for foreign exchange earnings.
The Ethiopian Coffee and Tea Authority has reported that these initiatives are yielding tangible results, leading to increased output and a notable uptick in export performance. Coffee remains the cornerstone of Ethiopia’s foreign exchange revenue, and the recent gains in productivity are directly translating into higher earnings for the country.
Shafi Omar, Deputy Director-General of the Ethiopian Coffee and Tea Authority, elaborated on the extensive work undertaken in recent years. He emphasized the government’s pivotal role in fostering economic growth by ensuring that coffee production meets both the quantity and quality demands of the international market.
Key strategies driving this progress include:
- Varietal Improvement: Replacing older, less productive coffee trees with superior, improved varieties.
- Technological Adoption: Expanding the use of modern agricultural technologies across coffee-growing regions.
- Nurturing New Growth: Planting coffee seedlings as part of the national Green Legacy Program, contributing to long-term yield enhancement.
These reforms have demonstrably contributed to a steady and impressive rise in foreign exchange earnings derived from coffee exports.
A Surge in Export Revenue
Ethiopia’s export performance has seen a dramatic improvement, with earnings reaching USD 1.6 billion in the first five months of the 2025/2026 fiscal year. This figure represents a significant leap from USD 1.4 billion in the 2021/2022 fiscal year and USD 907 million in the 2020/2021 fiscal year.
Looking ahead, the nation has ambitious plans to further capitalize on this momentum. The government aims to generate over USD 3 billion from the export of 600,000 tons of coffee during the 2025/2026 fiscal year.
Beyond the export of raw coffee beans, Ethiopia is also actively pursuing strategies to expand its presence in international markets with value-added coffee products, aiming to capture greater economic benefits from its renowned coffee heritage.
Targeted Interventions in Bale Zone
In a testament to the nationwide focus on quality and quantity, specific interventions have been implemented in regions like Bale Zone. Muawiya Fuad, Deputy Head of the Bale Zone Agriculture Office, highlighted the targeted efforts to enhance coffee production within the zone.
These initiatives have included:
- Seedling Distribution: Widespread distribution of improved coffee seedlings to farmers across the zone.
- Tree Management: Pruning or replacing old and less productive coffee trees to boost overall yield and quality.
Currently, coffee cultivation in Bale Zone spans over 68,000 hectares of land, with 407,400 quintals collected, achieving an impressive 93 percent of the zone’s target. The zone is aiming to supply 15,000 tons of coffee to the central market.
To address challenges in both production and post-harvest handling, the Agriculture Office has provided practical training. This training focuses on:
- Improving coffee quality.
- Enhancing competitiveness in the market.
- Maximizing economic benefits for producers, farmers, and other stakeholders.
Farmers are being strongly encouraged to adhere to best practices, such as harvesting only fully ripe red coffee cherries and employing proper processing techniques to meet stringent market standards.
As part of a broader commitment to quality improvement, over 600,000 square meters of coffee drying wire beds have been prepared by private investors and various organizations throughout Bale Zone, facilitating better post-harvest processing and preserving the quality of the beans.
