{"id":22280,"date":"2025-04-18T13:37:58","date_gmt":"2025-04-18T13:37:58","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=22280"},"modified":"2025-04-18T13:41:57","modified_gmt":"2025-04-18T13:41:57","slug":"coffee-value-addition-in-ethiopia-gaining-via-foreign-investments","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2025\/04\/18\/coffee-value-addition-in-ethiopia-gaining-via-foreign-investments\/","title":{"rendered":"Coffee value addition in Ethiopia gaining via foreign investments"},"content":{"rendered":"\n

As Ethiopia navigates a possible 10% tariff by its biggest coffee market, the United States, value addition in the country is improving.<\/p>\n\n\n\n

According to the Ethiopian Herald<\/u><\/a>, foreign investors have pooled $10 million since 2022 towards export value addition.<\/p>\n\n\n\n

The investments could expand the marginal export share of value added coffee, currently at 1% of the total.<\/p>\n\n\n\n

It all starts with promotional campaigns that have been using the hospitality industry to advertise coffee products from local processors.<\/p>\n\n\n\n

According to Kassahun Geleta, CEO of Market Development and Promotion at the Ethiopian Coffee and Tea Authority, targets include visiting delegations.<\/p>\n\n\n\n

Challenges and Prospects<\/strong><\/strong><\/h3>\n\n\n\n

Challenges to value addition include the internationally popular quality beans from Sidamo and other regions, which sell lucratively. <\/p>\n\n\n\n

Besides, importers actually do the value addition themselves to gain profit, meaning that they only want to purchase raw beans.<\/p>\n\n\n\n

Prospects are there, however, especially in markets such as China, where coffee products are gaining demand. <\/p>\n\n\n\n

China currently orders 20,000 tonnes of raw beans from Addis annually, the eighth highest among Ethiopia\u2019s 84 foreign coffee markets<\/u><\/a>.<\/p>\n\n\n\n

Helpfully, 100 brands in Ethiopia already export processed products and are paving the way for newcomer investors.<\/p>\n\n\n\n

In the 2023-24 market year, value added export volumes from these companies and others rose to 500 tonnes. Although this was a pittance out of the total coffee exports of 298,500 tonnes worth $1.43 billion<\/u><\/a>, they still generated $4.2 million.<\/p>\n\n\n\n

This at a time when annual volumes could reach 400,000 tonnes in the 2024-25 market year, according to estimates. <\/p>\n\n\n\n

So, as Ethiopia bates its breath for possible Washington\u2019s tariffs after a\u00a090-day moratorium<\/u><\/a>, value addition is gaining. For the bigger picture of Africa\u2019s number one coffee shipper, browse through the statistics below.<\/p>\n\n\n\n

Statistics\u00a0<\/strong>on Coffee<\/strong><\/strong> Value Addition in Ethiopia<\/strong><\/strong> <\/h2>\n\n\n\n

Coffee is Ethiopia\u2019s second biggest export, contributing roughly 1\/3<\/u>rd<\/sup><\/u><\/a> of all forex revenue. At 19%<\/u><\/a> of all exports behind gold at 21%, coffee is a net earner that annually generates around $1.16 billion<\/u><\/a> (2021). Most of the returns come from shipments of raw beans, with value addition contributing $4.2 million<\/u><\/a> a year (2023).<\/p>\n\n\n\n

Is value added coffee in high production volume<\/strong> in Ethiopia<\/strong>?<\/p>\n\n\n\n

Value added coffee output in Ethiopia is low, for only 100 companies process it. Annual exports are at\u00a0500 tonnes<\/u><\/a>, as of the 2023-24 market year. This represents 1% of the 298,500 tonnes of all coffee under export in the same timeline.\u00a0<\/p>\n\n\n\n

Which value added coffee products does Ethiopia export<\/strong>? <\/p>\n\n\n\n

Coffee extracts are some of the related caffeine products that Ethiopia exports. The country shipped $224,000<\/u><\/a> woth of coffee\/tea extracts in 2023, most of it to Ireland and the UAE. This amount contributed to the $1.43 billion the country earned from all coffee shipments in the 2023-24 fiscal year. <\/p>\n\n\n\n

D<\/strong>oes c<\/strong>ost<\/strong> impact<\/strong> <\/strong>value added <\/strong>coffee processing in Ethiopia<\/strong>? <\/p>\n\n\n\n

Cost is not a major inhibitor for value added coffee processing in Ethiopia. Indeed, it takes only 8,000 birr<\/u><\/a> ($3.30) or 50% of the April 2025 global production cost to process 1 feresula<\/em> (17 kg) of coffee locally. The main barrier to processing is the high demand of the country\u2019s quality raw beans internationally.<\/p>\n","protected":false},"excerpt":{"rendered":"

As Ethiopia navigates a possible 10% tariff by its biggest coffee market, the United States, value addition in the country is improving. According to the Ethiopian Herald, foreign investors have pooled $10 million since 2022 towards export value addition. The investments could expand the marginal export share of value added coffee, currently at 1% of the…<\/p>\n","protected":false},"author":3,"featured_media":18200,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nCoffee value addition in Ethiopia gaining via foreign investments - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2025\/04\/18\/coffee-value-addition-in-ethiopia-gaining-via-foreign-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coffee value addition in Ethiopia gaining via foreign investments - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"As Ethiopia navigates a possible 10% tariff by its biggest coffee market, the United States, value addition in the country is improving. 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