The Coffee & Tea Authority lowered Minimum Registration Prices this week to try to keep the momentum going however, last few days NY terminal levels declined further so registrations will lag and slowdown as a consequence. There are plenty of offers from shippers however these are not at attractive price levels. Quality of shippers Washed coffee stocks is currently very poor, mixed with old crop it is very disappointing. Naturals are yet to arrive in Addis in any sort of volume, the disparity between price expectations from overseas buyers and local farmers/agrabes is still substantial. We expect that over the coming weeks increasing volumes of Naturals will arrive as shippers ready shipments to fulfill commitments established when NY ventured into the 190’s a couple of weeks ago.
Now to the rumours…the Government is unhappy with low export registrations over the last few months, by all accounts February 23 exports will again be disappointing (around 10 k MT). To boost coffee export revenues, rumour has it, that the Government is considering allowing Foreign entities to become exporters… if this were to happen it would be a huge shift in Government policy and would have far reaching consequences for the Ethiopian coffee industry. The Coffee & Tea Authority is leading this process and is working on legislation that would make this possible. Timeline would be at least 1 year for this to come to fruition, probably much longer. Watch this space…
Birr 53.79 = USD 1
Have a good weekend.
Leave a ReplyWant to join the discussion?
Feel free to contribute!