Ethiopia’s coffee industry is grappling with significant market losses following a three-year ban on the export of raw coffee to coffee-producing countries. The Ethiopian Coffee and Tea Board implemented this restriction on June 13, 2021, citing the need to maintain competitiveness and ensure that the country’s coffee is marketed alongside its seeds. However, this decision has led to the disappearance of key markets, including India, for Ethiopian coffee producers.
A recent study revealed that the ban has caused producers to lose access to vital export markets, negatively impacting their livelihoods. Ethiopia, which is home to over one million refugees and asylum seekers, has a long-standing tradition of coffee cultivation, but the restrictions have limited the ability of farmers to sell their products internationally.
In response to these challenges, the Embassy of India in Addis Ababa, in collaboration with Ethiopia’s Ministry of Agriculture, released a joint market research report on August 19, 2024. The report outlines opportunities for exporting various agricultural products, including oilseeds, pulses, cotton, precious stones, and coffee from Ethiopia to India.
The report emphasizes the need for Ethiopia to address challenges in its agricultural export sector, particularly in the coffee industry. It highlights the importance of improving farming practices, investing in infrastructure, and focusing on marketing efforts to enhance the quality and marketability of Ethiopian coffee.
Ethiopia has historically supplied raw coffee to countries like India, Brazil, Indonesia, and Colombia. However, the lack of prior notification or agreements regarding seed matching has hindered Ethiopia’s competitiveness in the global market. The study suggests that by improving farming practices and investing in infrastructure, Ethiopia can boost the quality of its coffee and increase its market benefits.
The global demand for specialty and sustainable coffee presents a significant opportunity for Ethiopian coffee to establish a strong position in international markets. Experts believe that strategic partnerships, government support, and effective promotion will be essential to realizing this potential and ensuring that Ethiopian coffee is respected and sought after globally.
Stakeholders in the coffee industry have emphasized the importance of maintaining the quality of Ethiopian coffee to meet the stringent requirements of the Indian market. They have identified challenges such as limited access to international markets, lack of market information, and inflation as major obstacles to growth.
Girma Amente, Ethiopia’s Minister of Agriculture, noted that bilateral trade with India reached $2.8 billion in 2022, indicating a strong partnership. However, he emphasized that exports to India, totaling $80 million, are crucial for growth.
The report provides an extensive analysis of Ethiopia’s production and export landscape for key agricultural products, including coffee. It also outlines the government’s updated agricultural policy, which aims to improve productivity, strengthen value chains, and expand market access for farmers and producers.
Anil Kumar, the Indian Ambassador to Ethiopia, reiterated his commitment to promoting and facilitating bilateral trade, highlighting the need for collaboration to address the challenges faced by Ethiopian coffee exporters.
As Ethiopia navigates the complexities of the coffee export market, the focus remains on enhancing the quality of its coffee, improving market access, and ensuring that the benefits of trade are shared among all stakeholders in the coffee industry.
