Report by Tom Canetti and Bastien Renouil for France 24
Ethiopia’s coffee sector is going through a difficult period after losing nearly a third of its value in recent months. The decline is largely driven by record exports from Brazil, another major global coffee producer, which have pushed international prices down and weakened Ethiopia’s leading source of foreign currency.
Ethiopian coffee, the country’s top export, is facing mounting pressure as global prices fall. While Ethiopian authorities have celebrated record export volumes, the price decline has significantly reduced export revenues, putting strain on the country’s economy and its key foreign exchange earnings.
In Yirgalem, reporters visited a coffee farm described as a source of family pride for its owners. The farm produces beans that meet high-quality standards and are considered premium-grade coffee. However, despite this strong reputation, the farm now faces growing uncertainty about its future. Income from exports has reportedly fallen by around 30% in just two months following a surge in supply from South America.
Abeni Alex from Yanna Estate Specialty Coffee said that farmers in Yirgalem are attempting to increase production in order to compensate for lost income. This has become a serious concern, as many livelihoods in the region depend heavily on coffee earnings. Ethiopia is also facing a shortage of foreign exchange, and despite falling prices, farmers are still required to export their beans under government policy.
Some farmers have responded by stockpiling their coffee instead of selling it immediately, hoping that prices will recover in the future. However, this strategy carries significant risks, including storage costs, quality deterioration, and continued uncertainty in global coffee markets.
Gizat Worku, director of the Ethiopian Coffee Association, warned that storing coffee for long periods reduces its freshness and overall quality. He explained that prolonged storage can negatively affect aroma, flavor profile, and ultimately market value.
