There was a change of head of department at the Ministry of Agriculture in the past few days. The incoming team is putting increased pressure on the Coffee and Tea Authority (CTA), Millers and Shippers to accelerate shipments and increase USD flows to the country. Commercial mills are full of coffee that is stuck, not being shipped due to poor quality that is not meeting overseas’ buyers quality expectations. So previously made contracts, when prices were higher (when NY was higher and Minimum Registration Prices were higher), remain unshipped and instore addis warehouses bringing the normal flow to a grind. To make matters worse, the very wet weather in Addis and upcountry is impeding the movement of coffee from growing areas to Addis for processing due to poor roads becoming impassable and coffee absorbing air moisture further deteriorating quality. All very bleak at the moment…
The wet weather has been beneficial to the lower coffee growing areas, however at higher altitudes (in areas like Guji and Yirgacheffe) heavy rain has knocked off the first flowers and had a negative impact on crop potential for 23/24. Something to monitor in coming weeks.
Minimum Registration Prices were increased earlier in the week by the CTA by 1 to 3 c/lb depending on quality category.
Forex Birr 54.26 = USD 1
Have a good weekend.