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Ethiopia's coffee industry is increasingly pivoting towards Asian markets, with China rapidly emerging as a primary destination for its flagship agricultural export. This strategic shift comes as the European Union's deforestation regulation approaches implementation. The move is critical for Ethiopia's coffee sector, which sustains an estimated 20 million livelihoods and generated a record US$3 billion in foreign exchange during the 2025/26 fiscal year. Industry stakeholders are concerned that the EU's new traceability requirements could impose substantial compliance costs on Ethiopia's millions of smallholder coffee farmers, despite the country's long-standing tradition of shade-grown and agroforestry-based production. In the recently concluded fiscal year, China became Ethiopia's third-largest coffee purchaser, importing 47,836 metric tonnes valued at US$347 million. This marks a significant increase from the previous fiscal year's 34,284 tonnes, worth US$219 million. Just two years prior, China ranked seventh...

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