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Ethiopia has Potential to Earn Additional USD 5.8B bn from Coffee Export

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Ethiopia has Potential to Earn Additional USD 5.8B bn from Coffee Export

(3 Minutes Read)

If Ethiopia’s coffee biodiversity can be protected and made to provide sustainable benefits, it can generate an additional income of up to 5.8 billion USD per year, stated the Coffee Biodiversity researcher, Tadesse Woldemariam.

Ethiopia is widely considered as the birthplace of coffee, and its wealth has led it to be called the bank of coffee biodiversity among African countries. However, despite a suitable ecosystem for the sector, the country is not yet benefiting from the sector as expected.

Coffee Biodiversity Researcher Tadesse Woldemariam told ENA that Ethiopia’s vast coffee biodiversity enables the country to improve the quality and productivity of coffee. Noting that there are many genetic resources of forest coffee in coffee growing areas, and these resources are pivotal to preserving the coffee species.

He stressed modernizing genetic laboratory machines is essential to improve the quality of coffee apart from preventing coffee diseases and combating climate change. To this end, putting in place proper mechanisms for the protection of coffee’s biodiversity is imperative, he said.

The researcher pointed out that the activities carried out in collaboration with UNESCO have protected the Yayu, Kefa, Sheko, and Messenger coffee biodiversity forests. He noted that coffee farmers need to be provided with technology and expertise to preserve the natural taste and quality of coffee.

Ethiopia’s coffee is highly competitive on both domestic and international markets, according to Inter-Africa Coffee Organization (IACO) Secretary General Solomon Rutega. A key advantage underpinning quality is local consumption. Ethiopia boasts one of Africa’s highest per capita coffee consumption rates at 50 percent. It is highly competitive because it competes both with the domestic and international markets, Rutega stated. This high level of local demand pressures suppliers to maintain exceptionally high bean quality.

The African Continental Free Trade Area (AfCFTA) presents opportunities for pan-African coffee trade. Rutega sees potential for Ethiopian exporters to sell specialty coffee directly to North African markets which typically source from overseas. Further integration would link high-output regions with largely untapped consumer markets as per capita consumption lags in sub-Saharan Africa.

Also Read:  

https://trendsnafrica.com/ethiopian-coffee-exhibition-in-london-to-promote-exports/

https://trendsnafrica.com/ethiopian-coffee-industry-crosses-milestones/

https://trendsnafrica.com/ethiopian-coffee-industry-crosses-milestones/

As Ethiopia generates huge foreign currency from coffee exports, research-driven activities must be strengthened to protect coffee biodiversity and the ecosystem for sustainable use, the researcher stressed. The nation planned to earn 1.75 billion USD by exporting 350,000 tonnes of coffee in the fiscal year.