- Coffee export earnings approach $3bn, up from about $1.4bn–$1.5bn in prior years
- Export volumes increased, exceeding 300,000 tonnes, driven by improved supply and pricing
- Global coffee prices declined after peaking, with futures falling from recent highs
- Brazil expected to produce over 60 million bags, increasing global supply
- Coffee accounts for over 30% of Ethiopia’s total export earnings
- FX inflows from coffee support import financing and reserve accumulation
- Price decline risks could reduce export earnings despite higher volumes
Why it matters?
Coffee drives a large share of Ethiopia’s FX inflows, directly financing imports. A global price decline, despite higher export volumes, could reduce FX availability, affecting trade balance, logistics demand, and import capacity.