Necessary action planned for coffee production obstacles

Ethiopia's Ministry of Agriculture states it will take necessary action against elements hindering and sabotaging coffee production. Coffee plays a key role in the national economy, with a target to export 600,000 tons in the budget year. Challenges have affected export volumes despite revenue gains.

Addis Ababa, March 11, 2018 (Fana) – Yimer Dawd, spokesperson for public relations and communication at Ethiopia's Ministry of Agriculture, issued a statement on coffee production and the global market situation.

Ato Yimer noted that coffee holds a significant role in Ethiopia's economy, particularly in the agricultural sector. Efforts are underway to export 600,000 tons of coffee in the budget year to generate 3 billion dollars in revenue.

Challenges arose in meeting export volume targets during the first six months of the budget year. Exports reached 200,000 tons, yielding 1.35 billion dollars—exceeding revenue goals but achieving only 74% of the volume target.

The ministry attributes the shortfall to a mistaken belief that production shortages and dollar scarcity are the primary causes. To address the issue, it plans to secure steady coffee supplies for the world market, build reserves to prevent production declines, and implement firm measures against sabotaging elements.

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Global coffee prices are tumbling due to anticipated record harvests from major producers like Brazil, Vietnam, Colombia, and Indonesia. Brazil's Conab agency projects Arabica output could reach 49 million bags in 2026/27, up from 37.7 million last year, thanks to favorable rainfall. Ethiopian exporters warn of tougher times ahead with collapsing margins and rising uncertainty.

Ethiopia is creating many jobs to support its green economy, according to the Ministry of Agriculture. This comes amid a workshop in Addis Ababa organized by the FAO focusing on agriculture and forestry development. The event highlights sustainable practices to boost productivity.

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