Ethiopia Reviews Macroeconomic and Coffee Sector Performance for 2025, Presents 2026 Plans

Ibushaba – July 27, 2025 (Qahwa World) – The Ethiopian Coffee and Tea Authority convened a high-level internal meeting to evaluate the performance of the national macroeconomic plan and the Authority’s operational plan for the 2025 Ethiopian fiscal year, while also presenting strategic plans for the upcoming 2026 fiscal year.

The meeting was led by Dr. Adugna Debela, Director General of the Authority, who delivered a detailed report highlighting that Ethiopia’s coffee exports generated $2.6 billion in revenue during the last fiscal year — a record figure that exceeded expectations.

Dr. Debela noted that this achievement was publicly recognized by Prime Minister Dr. Abiy Ahmed, and attributed the success to collective efforts from all levels of leadership and staff across federal, regional, and local levels, as well as stakeholders throughout the coffee value chain — including farmers, exporters, and support organizations.

Global Trade Context and Economic Outlook

The report also addressed global market conditions affecting Ethiopia’s performance. Dr. Debela stated that trade activity in the United States has declined, whereas growth was observed in the Middle East and China.

From 2019 to 2022, global trade expanded steadily, but it began to slow thereafter and stabilized during 2024, according to data presented during the meeting.

The report attributed this slowdown to several key factors:

• Lower global fuel prices

• Rising costs of fertilizer and agricultural inputs

• Decline in consumer purchasing power

Coffee Price Trends and Export Outlook

The report emphasized that the average global price of coffee hovered around $7 per kilogram, with projections suggesting it could reach $8 in 2025, though prices may decline again in 2026.

It was noted that increased U.S. tariffs have negatively impacted Ethiopia’s coffee export growth, while demand in Europe has weakened. In contrast, Asian markets continue to show upward trends in consumption and trade.

Ambitious Targets for 2026 Fiscal Year

Looking ahead, Dr. Debela outlined Ethiopia’s targets for the 2026 fiscal year, which include increasing total national export revenue to $9.4 billion, of which $3 billion is expected from coffee alone.

Key highlights of the plan include:

• Raising coffee export volume from 470,000 metric tons to 600,000 metric tons

• Expanding cultivated coffee farmland from 32 million hectares to 33 million hectares

• Achieving $3 billion in revenue from coffee exports

He emphasized that coffee remains a strategic economic pillar for Ethiopia, on par with gold in national significance. The report urged stakeholders to recognize their shared responsibility in sustaining and advancing the sector’s success.

Agricultural Performance Summary

In addition to coffee, the report revealed that total agricultural export earnings reached $4 billion during the past year, with a goal of $4.7 billion set for the upcoming fiscal year.

Coffee, Tea, and Spice Sector Developments

The Authority confirmed that coffee exports exceeded 470,000 metric tons, generating $2.6 billion in revenue. This marks a significant improvement from previous years. The report also reviewed the performance of tea and spice sectors, which will be further developed as part of Ethiopia’s broader agricultural value chain strategy.