ECTA Spearheading Ethiopian Coffee’s Global Expansion

July 26, 2024

It is clear that coffee exports play a huge role in generating income for Ethiopia. Inexpensive and served everywhere, on any occasion, coffee is a powerful factor in promoting conviviality and social relations. In the capital, Addis Ababa, and every other city in the country, one can drink coffee on the street, on the pavement, sitting on a little stool, and catching up on neighborhood news. One can also find it in luxury international hotels and airports, where the preparation ritual is performed on a little stage, according to an article.

The article goes on to say the mistress of the house can show off her skills, while young women get an opportunity to be noticed. The streets of towns and villages are filled with the fragrant fumes of home-roasted coffee, mingled with the scent of burning incense. Coffee is so irresistible that it is said to attract invisible genies, which are appeased by the purifying properties of the incense. Fresh herbs and flowers are scattered on the ground as a sign of welcome.

It is widely believed that the Ethiopian Coffee and Tea Authority (ECTA) has been discharging a wide spectrum of fruitful activities that can take the country’s economy to the next level of accomplishment. As Ethiopia has been working around the clock with the purpose of taking the sector to new heights and putting into effect various effective strategies, the envisioned target has been accomplished and is heading in the right direction.

In the same way, by exporting coffee to various nations worldwide, the country has been earning a large amount of money breathing life every so often into Ethiopia’s economy. ECTA disclosed that the country has earned 1.43 billion USD from exporting 298,500 tons of coffee during 2023/24 fiscal year.

Briefing journalists recently, ECTA Director General, Adugna Debela (PhD) said that this year’s export volume has seen a50, 000 tons of coffee product increment compared with the same period last year.

According to the Director General, the country had secured 218 million USD by supplying 46,000 tons of coffee to the world market last June alone. Of this, 90% of the activity was done through vertical integration strategy.

“Utilizing the vertical integration approach helps to provide world standard coffee to the international market, avoid bureaucratic red tape, and ensures farmers benefit. Though a number of challenges are existed such as the Red Sea problem, lack of containers, and logistics constraints, it has gained remarkable revenue from coffee even exporting through airlines cargo,” he added.

Adugna recalled that some 1.42 billion USD revenue had been obtained last year from exported coffee. It means that this year’s revenue is the first of its kind in the history of country’s coffee export, he said.

He further stated that Saudi Arabia and China respectively have imported 55,000 and 25,000 tons of coffee in the just ended Ethiopian fiscal year.

He also noted that the U.S, Germany, Belgium, Japan, Spain, and Saudi Arabia are the leading countries of Ethiopian coffee destinations.

Speaking to the Ethiopian Press Agency (EPA), ECTA Public Relations and Chief Communication Officer Shalemariam Gebremedhin stated that the stated amount was gained from over 43,481 tons of coffee export in last May. During the past 11 months, over 252,466.98 tone of coffee was exported and the nation has gained 1,208,073,000 USD in return.

Compared with the past three consecutive years, the export performance is said to register upsurge. Besides the emphasis given by the government, the active participation of farmers, suppliers, exporters and other key actors in the coffee sector have contributed to the growing performance.

Highlighting activities that the Authority has been undertaking to enhance productivity and address challenges related to market, Shalemariam noted that promising results have been gained in creating smooth purchasing system.

“The fact that the marketing opportunities have been varied, it has contributed to address the sector’s challenges.”

The price of more than 80 to 90% of the export coffee is being set by suppliers and exporters. Hence, the direct market linkage created few years back, not only allowed to increase quantity but it had also played vital role in ensuring quality in the coffee sector,” the officer stressed.

With regard to expanding market destinations, Shalemariam mentioned that the ECTA has put in place various strategies in sustaining the already existing market destinations as well as exploring new ones. Thus, it has explored new destinations including China, UAE, Taiwan, Japan and Sudan, among others.

Similar efforts have been exerted in maintaining the existing market destinations, promoting Ethiopian coffee through taking part on international exhibitions, as well as in coffee cup of excellence. Moreover, the authority will continue providing follow up and support on coffee exporters and closely work with state bureaus and concerned institutions, he remarked.

Director General of the Authority, Adugna Debela, revealed recently to local media that an impressive 460 million seedlings have been cultivated to bolster production.

The current fiscal year has seen the establishment of expansive tea plantations spanning 30,000 hectares, a significant leap from the previous concentration of tea production in just 5,000 hectares across Wushwush and Gumero.

Despite exporting 950 tons of premium processed tea leaves and generating 2.1 million USD in foreign currency within the 11 months of this fiscal year—a substantial 50,000-ton increase from the previous year—Adugna emphasized that Ethiopia has only scratched the surface of its potential in the tea industry.

The limited involvement of investors in the sector has constrained Ethiopia’s ability to capitalize on its abundant resources and generate substantial foreign exchange, he said, adding annual earnings from tea exports have yet to surpass the 3 million USD mark, highlighting the vast untapped potential of the industry.

ECTA Deputy Director-General Shafi Oumer highlighted that the competition provides a platform for smallholder farmers to showcase their unique coffees to a global audience, thereby enhancing their livelihoods and preserving the rich heritage of Ethiopian coffee.

ENCA President Hussein Ambo (PhD) remarked on the deep cultural significance of coffee in Ethiopian social life.

Hussein emphasized that the competition improves coffee production and quality, creates awareness among smallholder farmers, and ensures sustainability in both the marketplace and for farmers by providing significant revenue, quality incentives, market access, and broader economic growth. He acknowledged challenges such as competition between large farms and export companies, limited awareness, and logistical issues faced by Ethiopian farmers.

In a similar vein, USAID Ethiopia Deputy Mission Director Tim Stein praised Ethiopia as one of the world’s top coffee producers, known for its unique flavor and aroma profiles. He stated that the US government, along with USAID and the United States Department of Agriculture, is working with Ethiopian coffee farmers, graders, and exporters to build a robust coffee sector. USAID is supporting the training and recertification of Ethiopian graders to ensure the sector’s growth.

It is recalled that the 20th African Fine Coffees Conference and Exhibition and the First African Coffee Week 2024 kicked off in the recent past at the Millennium Hall, in Addis Ababa.

A four-day conference was co-organized by the three African coffee-based organizations, namely, the Inter African Coffee Organization, the Robusta Coffee Agency of Africa and Madagascar, and the African Fine Coffee Association, according to information obtained from the Ethiopian News Agency.

The annual conference brought together around 2,000 regional and international coffee roasters, traders, producers, buyers, and professionals under one roof to discuss policies, sustainability, and access to finance, coffee competitions and other actions.

Considering Ethiopia as one of the major global coffee producers, this conference is a great testament being convened in Ethiopia to recognize the country’s potential for coffee development, it was indicated.

Opening the conference, Chairman of Inter African Coffee Organization (IACO) and Ethiopian Minister of Agriculture Girma Amente said the conference is a pivotal platform for knowledge exchange and experience sharing.

Acknowledging the role of coffee in empowering the economy, Girma said the government of Ethiopia has prioritized coffee as one of valuable economic growth engines and is committed to supporting the sector.

Massive reforms have also been implemented to resolve the challenges being witnessed in the sector both globally and locally, he indicated.

Ethiopian Coffee and Tea Authority Director-General said on his part, the establishment of new reforms and the amendment of regulations have been resulting in a positive impact in the Ethiopian coffee sector.

He also underlined the need for enhancing the participation of the private sector that would significantly transform the coffee development sector.

African Coffee Week is crucial to further advocate the coffee sector, Secretary General of Inter Africa Coffee Organization (IACO), Ambassador Solomon Rutega said.

Expressing the continued commitment of IACO to support the coffee sector, the secretary general said, “We can navigate any challenges together. Ethiopia hosted the event for the fourth time as the East African nation is one of Africa’s specialty coffee countries.”

BY ADDISALEM MULAT

THE ETHIOPIAN HERALD FRIDAY 26 JULY 2024