Coffee Production in Ethiopia
Globally, there are three primary coffee growing regions: Central and South America, Africa and the Middle East, and Southeast Asia. Ethiopia, the largest coffee producer in Africa, accounts for 17% of the global coffee market.
Challenges Faced by Ethiopian Coffee Farmers
Most Ethiopian coffee is grown on small farms without resources to adapt to climate change. Lack of access to credit and land titles hampers productivity, with farmers often receiving below the government-set minimum price for their coffee.
Importance of Coffee to the Ethiopian Economy
Coffee farming employs 15 million people in Ethiopia and contributes significantly to the country’s economy, with coffee representing 25% of export earnings. Despite the economic significance, many farmers live in poverty due to low earnings and lack of support from exporters.
Specialty Coffee Potential and Market Share
Ethiopia’s coffee industry has the potential for over 90% of its coffee to be considered specialty grade if proper harvesting and processing methods are followed. However, Ethiopia’s market share in global coffee exports remains low at just 3%.
Impact of Coffee Industry on Farmers
Most Ethiopian coffee farmers struggle with poverty, earning less than $1 daily. Exporters benefit greatly from the industry, but farmers lack tools, training, and bargaining power to improve their situation.
Coffee Farming Landscape in Ethiopia
Coffee is cultivated on over 4 million small farms in Ethiopia, with regions like Sidamo offering ideal climate conditions for coffee production. However, farmers face financial challenges, with many earning minimal profits per crop.
Domestic Coffee Consumption in Ethiopia
Almost 50% of Ethiopia’s coffee production is consumed domestically, indicating a significant local market for coffee that is expected to exhibit steady growth in the future.