Ethiopian Coffee Auctions and Export Reform — 2026-09-11
Ethiopia's coffee sector continues to dominate economic headlines as the sector overtakes gold in export earnings, with local media highlighting the shift. Recent reports indicate a record $3 billion in coffee export revenue for the 2025/26 fiscal year, driven by high global prices and increased production volumes.
Ethiopian Coffee Auctions and Export Reform — 2026-09-11
Coffee Sector Surpasses Gold in Export Earnings
Recent reporting by state-affiliated media outlets, including Addis Standard (via AMN), confirms that for the first time in modern history, coffee has overtaken gold as Ethiopia’s primary source of foreign currency earnings. This milestone was achieved during the recently concluded fiscal year, reflecting both volume growth and favorable international pricing. The shift underscores the critical role of agricultural commodities in stabilizing the national balance of payments.
Record $3 Billion Export Revenue for 2025/26 Fiscal Year
The Ethiopian Coffee and Tea Authority (ECTA) reported that annual coffee production expanded to 1.5 million tonnes this year, up from 500,000 tonnes five years ago. Consequently, coffee export earnings reached a record US$3 billion in the 2025/26 fiscal year, significantly exceeding previous targets. This surge is attributed to improved quality standards and strategic government investments in training and sustainability.
Birr Depreciation and Central Bank Intervention Impact Trade
The Ethiopian Birr has fallen to a record low near 162 per dollar, prompting the National Bank of Ethiopia to conduct an unscheduled US$500 million foreign exchange sale on August 20, 2026. This auction matched the entire quarterly allocation, aiming to stabilize the forex market which directly impacts coffee exporters' ability to repatriate earnings and import inputs. The volatility affects the conversion of Birr-denominated ECX auction prices into USD export contracts.
African Continental Free Trade Area (AfCFTA) Engagement
Ethiopian business leaders and the Ethiopian Chamber of Commerce have intensified engagement with the AfCFTA framework, positioning coffee exports as a key driver for intra-African trade integration. Recent forums in Mojo highlighted efforts to streamline cross-border logistics and tariff reductions for agricultural goods, potentially opening new regional markets for Ethiopian coffee beyond traditional Western buyers.
Local view
Local media, including Addis Standard (via AMN) and Fana Media Corporation, are focusing heavily on the symbolic importance of coffee surpassing gold in export value. Reports emphasize that this achievement validates the government's long-term strategy of prioritizing agricultural productivity over extractive industries. Stakeholders note that while the macro-economic figures are positive, local farmers remain sensitive to input costs, which have risen alongside the Birr's depreciation.
Context & numbers
- Export Revenue: US$3 billion for the 2025/26 fiscal year.
- Production Volume: Annual production reached 1.5 million tonnes in the current year.
- Exchange Rate: The Birr hit a record low of approximately 162 ETB per USD in late August 2026.
- Forex Auction: A $500 million unscheduled FX sale was conducted by the central bank on August 20, 2026.
On the radar
- ECX Daily Data: Traders are closely monitoring daily ECX trade data published by platforms like 2merkato.com for real-time price signals in Birr per Feresula (17kg).
- Global Supply Shifts: Forecasts suggest a potential surplus in global coffee production led by Brazil in 2026, which could soften prices; however, Ethiopian specialty premiums remain resilient due to quality differentials.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
