Behind every flavourful cup of Ethiopian coffee, there is a story of the rich heritage of tradition and culture. Ethiopia isn’t just known for its unique coffee profiles—it’s the birthplace of coffee and currently stands as the fifth-largest exporter of coffee beans in the world. Coffee exports in Ethiopia have generated about 30 per cent of the country’s earnings from exports.
Demand for coffee beans from Ethiopia is increasing all over the world for its complex flavour profile. Last fiscal year, Ethiopian coffee exports generated about $1.43 billion. There was a 20% increase in coffee volume compared to last year, which shows the potential of coffee production in Ethiopia. In this blog, let us discuss the benefits of investing in the coffee production of Ethiopia.
Favourable climate conditions for coffee
The country has climate conditions that are favourable for coffee production. Ethiopia’s unique geography makes it an ideal region to grow coffee. Ethiopia also has the ideal range of temperature and rainfall pattern for coffee production. The region has fertile soils with minerals and organic matter. The coffee grown in Ethiopia is organic and chemical-free. These factors result in the production of high-quality coffee.
The coffee plants grow slowly in high altitudes, and the beans from such plants have complex flavor profiles. Furthermore, the moderate temperature during the day and cool climate at night enhance the development of coffee cherries. The volcanic soil with organic matter in the Ethiopian region helps the plant to receive all the essential minerals for its growth.
The beans produced in the Yirgacheffe region give an acidic and floral flavour to the coffee. The cool and humid climate of Sidamo produces beans with citrus notes of flavour. Dry climate conditions of Harar give fruity and vinous-flavoured beans. The humid condition of the Kaffa region produces coffees with spicy notes.
Demand for Ethiopian heirloom varieties
Coffee buyers and exporters love Ethiopian heirloom varieties as they have unique flavour profiles. The term Ethiopian heirloom refers to numerous varieties of the coffee plant that have been cultivated in the country for centuries. The country grows thousands of Ethiopian heirloom varieties that are genetically diverse. Its flavor profile ranges from citrus, fruity, floral, and spicy.
The unidentified local and natural varieties of the coffee plants of the country give a unique flavour and aroma to the coffee bean. The uniqueness of these coffee beans makes them desirable for coffee buyers and roasters. It has high value in the global marketplace.
Support from the government
The quality of Ethiopian coffee beans has improved from government support. The government is taking initiative to support the local farmers to improve the quality and productivity of the beans. During this Ethiopian budget year, the country is aiming for US $2 billion from exporting 400,000 tonnes of beans.
The government of Ethiopia is supporting this industry through financial investments, policy reforms, and international partnerships. However, the country is facing challenges with limited financial access and changing trade regulations.
Recently, the Italian government has invested US$ 10.91 million in Ethiopia’s coffee industry. This shows the global recognition of Ethiopian beans. The United Nations Industrial Developmentn (UNIDO) is also working together with Ethiopian stakeholders for the development of the Ethiopian coffee industry. These initiatives aim to offer financial assistance to support local farmers, coffee exporters, small businesses, and the Ethiopian coffee supply chain to compete in the global market.
Increase in demand for speciality coffee from Ethiopia.
Coffee lovers demand coffee with unique flavours offered by coffee beans from Ethiopia. The major importers of speciality coffee from Ethiopia are Germany, Saudi Arabia, and Japan. There is an increase in demand for Ethiopian speciality coffee with a compound annual growth rate of 10.4%. Farmers and local producers in Ethiopia can benefit from the surge in demand for speciality coffee.
The quality of Ethiopian specialty coffee comes from the organic agricultural farming methods, hand-picked cherries, natural processing methods, and quality control. The additional income from the specialty coffee is benefitted by all the stakeholders in the coffee production, including local farmers.
Social impact
Investing in Ethiopia’s coffee helps the local farmers of the country. Millions of people in Ethiopia cultivate coffee for their livelihood. The farmers can benefit from better wages and working conditions. As Ethiopia is the birthplace of Arabica coffee, the support given to the local farmers helps in preserving the traditional methods of coffee cultivation.
Profits from the Ethiopian coffee production help in the overall development of Ethiopian society, as they can be used to build schools and health centres. It can also support women’s participation in farming and trade.
Environmental Impact
The Ethiopian farmers grow coffee under the shade of native trees. If organisations and governments invest in Ethiopian coffee production, it helps the environment as it protects the biodiversity and soil fertility of the region.
The initiatives that protect organic farming help to reduce water pollution and lower the carbon footprint. Moreover, investments in sustainable farming protect the ecosystem of Ethiopia.
Rise in demand due to health benefits
- Ethiopian coffee is rich in antioxidants and supports heart health
- Consumers are demanding natural and single-origin coffee because they are healthy.
- As the Ethiopian coffee is clean, organic, and rich in flavour, it has a premium value in the global market.
- There is a growing demand for Ethiopian coffee that will guarantee investor returns.
Major trends in the Ethiopian Coffee market
The key factors that are affecting the Ethiopian coffee market are:
- Increase in demand for Ethiopian coffee beans from emerging markets in Asia and Africa.
- The demand for speciality coffee from Ethiopia.
- Surge in e-commerce businesses that offer customers a variety of coffee products.
- Conscious customers who value sustainable and ethically sourced coffee beans
- Use of the latest technology in roasting, packaging, and brewing enhances the quality of coffee consumption.
Conclusion
Investing in Ethiopian coffee production is important as it supports a sustainable supply chain, uplifts local communities and preserves the environment. As Ethiopian coffee is rich in its flavour profile, it has more demand in the existing and emerging markets. The major benefit of investing in Ethiopian coffee lies in its contribution to society and the environment. It also helps in preserving the tradition and culture of Ethiopia.