Tag: Production

Ethiopia Launches Strategic New Phase for Tea Development

Posted on by Qahwa World

Addis Ababa – Qahwa World

In the Jimma Zone of Oromia, a major tea development initiative has been launched under the leadership of Dr. Meles Mekonnen and Dr. Adonya Debela, with participation from senior government officials, aiming to enhance national agricultural productivity.

Prime Minister Dr. Abiy Ahmed highlighted that this initiative represents a strategic effort to elevate Ethiopia’s tea production, strengthening the national economy and expanding domestic and international market reach.

Dr. Adonya Debela, Director General of the sector, noted that over 13,000 hectares are currently planted with tea, with plans to expand to 30,000 hectares in the near future, focusing on fertile lands in Oromia and southwestern Ethiopia.

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Officials emphasized that the project leverages natural resources and local human capacity, supported by continuous monitoring from the regional agriculture office, ensuring high productivity and quality.

Gitu Gemechu, head of Oromia’s Agriculture Bureau, added that tea development receives “strategic priority,” and the expansion will not only increase production but also enhance product quality and the region’s role in local and global markets.

Overall, the Jimma project marks a transition from traditional farming practices to organized industrial development, reflecting Ethiopia’s ambition to strengthen its position as a leading global tea producer, while engaging investors and farmers to secure long-term sustainability and economic success.

Uganda Projects 558,000-Ton Coffee Crop, a 15% Increase for 2025/2026

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Kampala — Qahwa World

Uganda is forecasting a major rise in coffee production, projecting a 15% increase for the 2025/2026 crop year (October–September), as new coffee plantations begin to yield harvests, according to Gerald Kyalo, Commissioner of the Coffee Department at the Ministry of Agriculture.

The East African country—Africa’s leading coffee exporter—expects to harvest 558,000 metric tons, equivalent to 9.3 million 60-kilogram bags, up from 8.1 million bags in the previous season. The projection represents a 14.8% rise, or 72,000 tons more than last year’s output of 486,000 tons.

“The major reason is increased planting. Many farmers have planted coffee which we anticipate will come into production this year and will inevitably push up exports as well,” Kyalo told Reuters.

Over the past years, the government of President Yoweri Museveni has distributed free coffee seedlings to both new and existing farmers to expand their acreage or open up new farmland. Additionally, the government has been providing free fertilisers to help the country reach its ambitious target of producing 30 million bags annually by 2030.

Uganda predominantly grows the Robusta variety, though Arabica is also cultivated in highland regions. Production and export volumes have been climbing steadily, boosted by global coffee price gains and maturing new trees that have begun producing fruit.

In the 12 months to August 2025, Uganda earned $2.2 billion from coffee exports, up 57% from the previous year—a record performance that underscores the sector’s growing strength. Since the country exports nearly 95% of its coffee, the larger 2025/2026 crop is expected to further boost export revenues and consolidate Uganda’s position as a key player in the global coffee market.

With expanded planting, favourable weather, and strong global demand, Uganda continues to reinforce its status as one of Africa’s fastest-growing coffee producers—well on its path toward becoming a top global coffee powerhouse.

U.S.-Made Coffee Remains More Expensive Than Imports Despite Tariffs

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Dubai – Qahwa World

Throughout 2025, U.S. consumers have witnessed a steady rise in prices across nearly all goods following the administration’s decision to impose tariffs on imported products from global trade partners. Coffee has been no exception, even though the United States relies almost entirely on imported beans to satisfy domestic demand.

Data shows that coffee prices rose by 14.5% between July 2024 and July 2025, while roasted and packaged coffee in supermarkets increased by 21.7% between August 2024 and August 2025. These price hikes are largely attributed to tariffs affecting major coffee-producing nations such as Brazil, which supplies around 40% of the world’s coffee, and Vietnam, the second-largest global exporter.

Despite rising international prices, coffee produced within the United States remains significantly more expensive — a trend unlikely to change. Coffee cultivation requires specific geographical and climatic conditions found only in limited areas of the country, most notably Hawaii, where the right soil and altitude allow for small-scale production of high-quality beans. Even so, the total domestic yield accounts for barely 1% of what Americans consume annually.

Experts in both agriculture and finance agree that the United States lacks the natural and environmental capacity to achieve self-sufficiency in coffee production, even if domestic and imported prices were equal. Consumption far exceeds what local producers can supply, and expanding cultivation faces both economic and ecological constraints. The country’s main coffee-growing regions — Hawaii and Puerto Rico — can only cover a fraction of nationwide demand.

While tariff policies are intended to strengthen local industries and reduce reliance on imports, coffee remains a clear exception. Natural limitations make large-scale domestic production unfeasible, and imported coffee continues to be more affordable and abundant despite higher tariffs. Analysts conclude that the American coffee market will remain deeply tied to global supply chains — particularly to producers in Brazil, Vietnam, and Ethiopia — regardless of future policy changes or tariff increases.