Despite notable export earnings, the performance of non-coffee major agricultural commodities remains a concern for industry stakeholders, particularly in light of ongoing economic reforms.
Ambassador Girma Birru, Chairperson of the Export Steering Committee, acknowledged the overall achievements but pointed out a consistent shortfall in meeting targets. This issue is especially relevant as the broader macroeconomic reform agenda—including the implementation of a freely floating exchange rate system—is designed to stimulate the export sector.
During its latest meeting, the Export Steering Committee assessed the underperformance in the volume of goods exports managed by the Ministry of Trade and Regional Integration (MoTRI).
While these exports have performed well in terms of value, their volume has faced significant criticism, a concern raised during a committee meeting on Tuesday, December 23.
This issue was further discussed at the Export Price Board meeting chaired by MoTRI Minister Kassahun Gofe on Thursday, December 25. Subsequently, the Ethiopian Pulses and Oil Seeds Exporters Association (EPOSEA) informed its members in a letter dated Friday, December 26.
The letter, a copy of which was obtained by Capital, disclosed that EPOSEA board members met with MoTRI and other officials to review the export performance of oilseeds and pulses.
It warned of a substantial backlog of export commodities awaiting shipment. As a result, the Ministry has mandated that exporters must quickly ship these goods at a newly revised, lower price set by the Price Board, or risk confiscation and resale through the Ethiopian Commodity Exchange.
“Minister Kassahun warned that the ministry is legally empowered to confiscate export goods if they are not shipped on time,” sources explained, clarifying the rationale behind the significant reduction in the latest indicative prices.
Sector experts and exporters confirmed a major price drop; for instance, sesame prices have decreased by up to USD 100 per ton.
Sources noted that a considerable quantity of goods from the previous harvest season, which should have been exported before the new production period began a month ago, remains in storage.
“The primary demand from the government and MoTRI is to clear this months-old stockpile quickly,” they added.
However, exporters are grappling with a sharp decline in global prices for key commodities like sesame.
Experts attribute this to an oversupply driven by increased production from newer entrants such as Brazil and Pakistan, along with expanded output from countries like Mozambique and Tanzania.
Ambassador Girma acknowledged that global market conditions largely dictate the performance of oilseeds and pulses, adding that “the supply chain is another key factor influencing the sector’s expected success.”
He informed Capital that in the first five months of the 2025/26 budget year, export revenue reached 120% of its target, reflecting a 66% increase compared to the same period last year.
Girma, a senior advisor to the Prime Minister with decades of economic leadership experience, emphasized that the recent economic reforms should lead to greater diversification into industrial and higher-value agricultural exports.
While he commended industrial export performance, he noted, “the agricultural sector must be improved.”
Sources informed Capital that while revenue targets are being met, the committee strongly recommended that export volumes should also reach their objectives.
Girma emphasized that data from the sixth and seventh months will be crucial for obtaining a comprehensive overview.
Last year, hard currency earnings from coffee and gold experienced remarkable growth, aided by macroeconomic reforms such as foreign exchange liberalization. However, the performance of pulses and oilseeds did not meet expectations.
In recent discussions with MoTRI, exporters highlighted high local market prices and misaligned ministry indicative prices as significant barriers.
They contend that the weekly indicative price does not accurately reflect international benchmarks, leading local farmers and suppliers to hold out for unrealistic rates. This discrepancy has resulted in fewer export contracts than anticipated.
Sector experts agree, describing the local market as ‘messed up’ due to a disconnect from global price signals. They urge the government to better align local prices with international references.
Ethiopia earned USD 8.3 billion in exports last fiscal year, primarily driven by gold and coffee, and projects an increase to USD 9.4 billion for the current year. For other MoTRI-regulated agricultural commodities like oilseeds and pulses, the aim is to boost earnings to nearly USD 1 billion. This comes after a disappointing performance in the previous fiscal year, where earnings from these sectors fell to USD 876 million, missing the target and declining from the prior year’s USD 907 million.
