The Coffee harvest is progressing well. Cherry prices are all over the place, where there is more competition prices approach 40 Birr/kg cherry where there is less competition cherry prices are closer to 30 Birr/kg; this 10 birr/kg range equates to around 75 c/lb green equivalent! In Limu areas where competition is stronger prices are by and large higher than in Guji at present, where not all washing stations are operating yet. We have heard reports that a number of washing stations are not operating because the agrabe/owner is struggling to find financing or does not believe that the cherry price allows for a margin to be made. Security wise there are no major concerns at present in the coffee growing areas and both farmers and agrabes are being able to harvest and process the crop unabated.
External pressure on the waring Ethiopia parties is mounting; the US government has removed Ethiopia from the AGOA group of countries that have preferential access to US markets. While the UN has not exonerated Tigrayan Forces from human rights atrocities committed during the recent campaign in Amhara region. Behind the scenes, African and other governments are exerting increasing pressure on both sides to resolve the conflict. The overwhelming worry is that the conflict results in the disintegration of Ethiopia and further destabilises the wider Horn of Africa region.
Inflation has stopped going up, albeit stabilising at 34%! Food inflation however continues at very high levels, around 40% which is putting a lot of strains and pressures on ordinary Ethiopians already reeling from the fighting and subsequent uncertainty.
Birr 47.64 =USD 1
Have a good weekend