Early ripening expected for Djimmah producing areas

The Coffee and Tea Authority (C&TA) launched a new Coffee Development Strategy. The 15 year program focuses on the following corner stone issues:

• research
• production-enhancing extension services
• processing
• value addition
• marketing
• sector strengthening

The coffee sector is responsible for 30% of Ethiopia foreign earnings and these are expected to grow from < USD 1 B in 2019 to between 3.5 and 4.5 B by 2033 and employing 2.7 Million people in production and other activities along the value chain. The aim is to export over 15 M bags by the mid 30’s, an ambitious target since current export volumes hover around 5 M bags.

Upcountry prices are not receding, Grade 5 offered by Agrabes at an equivalent FOB of around 230-240 usc/lb. There are many stale Sidamo 4 shorts that exporters have renegotiated as Lekempti 4; Wellega region coffees are struggling to reach Addis not due to insecurity but impassable roads, destroyed by heavy rainfall of the past few weeks. Export figures are expected to be announced next week. We are not expecting any major deviations from the recent trend.

Fuel prices have increased 25% at the pump (home use gaz increased 30%). There are more and more fears that inflation will take off once again in the coming weeks and months. Exporters foresee their costs also increasing as a result of energy price hikes.

We are expecting an early crop in Djimmah areas (Limu and Benchi Maji) due to recent weather favouring cherry ripening. Still a few weeks off before the new crop starts.

Meanwhile, Ethiopia and Sudan’s leaders have meet on the sidelines of a conference in Kenya and made progress in resolving the latest border skirmishes: https://www.bbc.com/news/world/africa?ns_mchannel=social&ns_source=twitter&ns_campaign=bbc_live&ns_linkname=62c5324bb893776ef334330e%26Ethiopia%20and%20Sudan%20leaders%20agree%20to%20solve%20border%20row%262022-07-06T08%3A11%3A07.134Z&ns_fee=0&pinned_post_locator=urn:asset:36c55e56-e9cc-4c44-9203-b703476603bb&pinned_post_asset_id=62c5324bb893776ef334330e&pinned_post_type=share

Birr 52.03 = USD 1

Have a good weekend.