Coffee Exports Hit $1.35 Billion in Half-Year, But Ministry Warns Hoarders as Global Prices Fall

EBR_News Mar 11, 2026

By Betegbar Yaregal

Ethiopia generated $1.35 billion from coffee exports in the first six months of the current fiscal year, shipping 200,000 tons to international markets, though the volume fell short of the target as some exporters withheld stock anticipating further price increases, according to the Ministry of Agriculture.

Communications Director Yimer Dawud told a press briefing today that coffee remains Ethiopia’s largest export commodity, contributing 50 to 65 percent of agricultural export earnings and over 25 to 30 percent of total export revenues. The country ranks fourth globally in coffee exports and third in Arabica production, behind Brazil, Vietnam, and Colombia.

The government has set an ambitious target of exporting 600,000 tons and earning $3 billion by the end of the fiscal year. However, only 74 percent of the volume target was achieved in the first half, despite exceeding revenue projections. Yimer attributed the shortfall to “the wrong assumption that the production stock and the dollar exchange rate would increase,” leading some exporters to hoard coffee in anticipation of better prices.

The Ministry issued a clear warning that global coffee prices are now anticipated to decline, urging farmers and exporters to bring their product to the central market immediately. “Farmers are vulnerable to incorrect market information,” Yimer said, calling on the Ethiopian Coffee and Tea Authority, cooperatives, regional stakeholders, and the media to conduct joint awareness campaigns.

The warning follows a meeting convened earlier this week by Minister of Agriculture Adisu Arega with producers, exporters, and suppliers in Addis Ababa. The Minister told participants that authorities are aware of exporters who purchased and stored large volumes expecting prices to rise further, but noted that global prices have recently begun to fall, increasing the risk of losses for those delaying sales.

Coffee sustains the livelihoods of more than four million smallholder farmers in Ethiopia and supports an estimated 15 to 20 million people across the value chain. The sector’s performance is closely watched amid ongoing macroeconomic reforms aimed at strengthening export-led growth and external balances.

The Ministry also announced that the Coffee and Tea Authority, in collaboration with regional stakeholders, will coordinate the Coffee Trading Task Force with security forces to strengthen monitoring and law enforcement processes down to the grassroots level, targeting entities that hoard products.