Tag: Ethiopian Coffee and Tea Authority

Ethiopia Earns $762.7 Million from Coffee Exports in Q1 FY 2025/26

Posted on by Qahwa World

Addis Ababa – Qahwa World

Ethiopia generated $762.75 million in revenue from coffee exports during the first quarter of the 2025/26 fiscal year, according to the Ethiopian Coffee and Tea Authority. The figure represents a 47% increase, or $243.73 million more than the same period last year, exceeding both export and revenue targets.

Dr. Adugna Debela, Director General of the Authority, announced that the country exported 113,542 tons of coffee between July and September 2025, achieving 75% of the planned export volume of 151,969.41 tons. However, the revenue reached 123% of the quarterly target of $622.5 million, underscoring higher prices and stronger market performance.

Leading Destinations

Germany remained the largest buyer, importing 20,793.14 tons (18%) and contributing $138.18 million (18%) to total earnings. Saudi Arabia followed with 16,088.45 tons (14%), generating $102.18 million (13%), while Belgium ranked third with 13,910.92 tons (12%) and $93.45 million (12%) in revenue.

Other key destinations included China (4th), the United States (5th), South Korea (6th), the United Arab Emirates (7th), Japan (8th), Italy (9th), and the Russian Federation (10th). Together, these top ten markets accounted for 80% of the total export volume and 79% of Ethiopia’s foreign exchange earnings. Compared with the same period of the previous fiscal year, the top destinations saw 3% growth in export volume and a significant 52% increase in revenue.

Key Drivers Behind the Growth

Dr. Adugna attributed the strong performance to multiple strategic initiatives introduced by the Authority, including:

Expanding coffee export markets to new destinations such as China.

Enhancing data quality and modernizing trade monitoring through a centralized coffee database and a secure data exchange system that tracks daily shipments.

Providing traders and stakeholders with monthly global and domestic market updates to support informed decision-making.

Reinforcing supervision to ensure exporters meet delivery timelines and contractual obligations.

Introducing a weekly minimum contract selling price aligned with global market trends.

Strengthening bilateral cooperation and knowledge exchange with countries that have advanced coffee production and management experience.

The Authority emphasized that these measures are part of Ethiopia’s broader effort to maximize export revenues and solidify its position as Africa’s leading coffee producer and exporter.

Ethiopia Raises Capital Requirements for Coffee Exporters

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Addis Ababa – September 14, 2025 – (Qahwa World) – The Ethiopian Coffee and Tea Authority (ECTA) has announced sweeping changes to the country’s coffee export regulations, significantly increasing the minimum capital required for exporters. The move, introduced under Directive 1106/2025, aims to professionalize the sector, reduce malpractice, and ensure higher quality standards in Ethiopia’s leading export industry.

Private coffee exporters must now hold a starting capital of 15 million birr, up from just 1 million birr — a 15-fold increase. Trade associations and corporate entities such as joint stock and limited liability companies face an even steeper jump, from 1.5 million birr to 20 million birr, more than 13 times the previous threshold. ECTA stated that previous rules were inadequate to monitor exporters and prevent the misuse of certificates of competence.

In addition to higher financial requirements, all exporters — except farmer exporters — are now obligated to establish an ECTA-certified coffee laboratory for basic quality testing. They must also employ a qualified coffee taster with at least a diploma and a renewed proficiency certificate, with each taster restricted to serving only one dispatcher.

The decision has divided stakeholders. Veteran exporter Semachew Ababu welcomed the directive, saying it would “refine the market” by filtering out under-funded players and ensuring greater consistency in quality for international buyers.

But smaller businesses voiced concerns. Entrepreneur Sosena Desalegin criticized the sudden hike, calling it “impossible to raise that much money overnight for a new business,” warning that it could stifle new entrants and competition.

Independent experts acknowledged the directive’s goal of curbing illegal practices but cautioned against the unintended consequences. “It may limit the sector to a few large players, which is not healthy for long-term growth and diversification,” one expert observed.

The new guidelines came into effect this week and are expected to reshape Ethiopia’s coffee export market, potentially concentrating power in the hands of larger companies while tightening quality controls across the sector.