Coffee exports plummet despite slight improvement in the sector

Reporter, Ethiopia

October 3, 2009

Hayal Alemayehu

Coffee export earnings during the first two months of the current Ethiopian fiscal year dropped by over 20 percent compared to that of the same period of the previous year while the export sector in general registered a slight improvement, it was learnt.

Some USD 82.6 million was secured from 28,245 tonnes of coffee export during the reported months. The earnings obtained from the export were over USD 17 million lesser than that for the same period of the previous year,, according to customs data obtained by The Reporter.

The coffee export during the stated period was 17 percent short of government’s target.

Earnings secured from the steadfastly growing flower export during the reported months has picked up by about USD 4.5 million in comparison to the same period of the previous year. The earning obtained, however, falls 35 percent short of target.

During the reported two months, a total of USD 250 million was secured from the export sector, up by 0.3 percent against that of the same period of the previous year. However, the earnings secured from the overall export is 22 percent short of target.

The country’s export of goods are projected to rebound in volume by about 12 percent in 2009/10 and maintain a healthy level over the medium term, led by coffee, oilseeds, pulses, flowers, garments and leather products, according to the International Monetary Fund’s (IMF) projection. Export prices are, however, projected to remain weak, growing at an annual rate of one percent.

In contrast, exports of services are projected to grow at a faster rate of over 20 percent per annum as investments in the telecom and electricity sectors begin to pay financial dividends in terms of export receipts, according to the IMF.