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Home News

Ethiopian PM says coffee sector has doubled despite challenges

by April Hawksworth
October 14, 2024
in Africa, Coffee economics, News
Reading Time: 2 mins read
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Image: Eric Isselée/https://stock.adobe.com/

Image: Eric Isselée/https://stock.adobe.com/

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Ethiopian Prime Minister Abiy Ahmed says the country has doubled its annual coffee production from 500,000 tonnes to over one million tonnes within the past five years, despite challenges.

During a Coffee Awards and Recognition program at the Ethiopian Science Museum on 10 October 2024, Ahmed honoured farms, exporters, cooperatives, and individuals excelling in the coffee sector. He also noted the country’s ambition to solidify its status as the world’s leading coffee producer and exporter.

Ahmed attributed the growth of the sector to the Green Legacy Initiative, which had a goal of planting 25 billion seedlings nationwide when it was launched five years ago. Since its implementation, 8.5 billion trees have been planted.

“Today, we celebrate the fruits of our labour and commitment to the Green Legacy initiative, which has revitalised not only our coffee sector but the entire agricultural framework of this nation,” says Ahmed.

Ahmed described a surge in domestic coffee consumption which, coupled with rising export revenues that have exceeded US$1 billion, has led to coffee transitioning from a local staple to a valued export product.

In terms of economic impact, Ethiopia’s coffee export revenue has seen substantial growth, jumping from US$700 million in 2018 to US$1.4 billion in 2023, with aspirations to reach US$2 billion this fiscal year.

“Coffee is not just an economic driver; it’s the foundation of our culture and identity,” says Ahmed.

The Prime Minister cited coffee plant renewal as a challenge in this sector, with many farmers hesitant to replace ageing trees. To mitigate this, the government is implementing financial incentives and informing farmers on the technical know-how to enhance productivity sustainably.

The Coffee Awards and Recognition program also recognised notable contributors to the coffee industry and included various award categories ranging from top-performing coffee exporters to cooperatives and associations that have significantly impacted the sector.

Among the awardees, Abdullhakim Mohammed Geleto emerged as the leading exporter with 33,162 tons exported (US$123.2 million), and Tracon Trading Plc and Hadid Trading Plc following closely with 14,805 tons  (US$84.33 million).

For Ahmed, efficient logistics and agricultural innovation are essential to the country’s coffee value chain.

“Logistics, value addition, and innovative practices will remain key focus areas as we work together to push the boundaries of our agricultural achievements,” he says.

Earlier this year, Ahmed was awarded the Agricola Medal by the Food and Agriculture Organization of the United Nations (FAO), in recognition of his “leadership and vision in transforming agrifood systems”, particularly through the Green Legacy Initiative.

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