Ethiopia's Coffee Exports Earn US$878 Million in First Quarter

Ethiopia's coffee exports have made a strong start to the 2026/27 fiscal year, with earnings of US$878.52 million from 131,069.51 tonnes of coffee shipped to international markets. This represents a 15% increase in earnings compared to the same period last year. The growth is attributed to stronger demand and the country's expanding reach across global markets.

China has emerged as Ethiopia's third-largest coffee buyer, importing 15,125.54 tonnes worth US$103 million, which accounts for approximately 12% of both export volume and revenue. Saudi Arabia remains the largest destination, purchasing 28,362.77 tonnes valued at US$196.85 million, followed by Germany at 22,924.18 tonnes worth US$136.69 million. Other leading destinations include the United States, South Korea, Belgium, Japan, and the United Arab Emirates.

Russia has entered the top ten list of Ethiopia's coffee export destinations for the first time. The top ten leading markets accounted for 82% of Ethiopia's export volume and earnings. China's growing importance as a buyer reflects a longer-term shift in Ethiopia's coffee trade. In the 2025/26 fiscal year, Ethiopia exported 47,836 tonnes to China worth US$347 million, compared to 34,284 tonnes valued at US$219 million in the previous year.

The Ethiopian Coffee and Tea Authority attributes the expansion of coffee exports to China to organic coffee shipments, improved logistics, and stronger trade relations. Diversifying export destinations gives Ethiopia greater access to international demand and reduces dependence on traditional markets. However, sustained growth will also depend on maintaining product quality, responding to changing consumer preferences, and meeting the standards required by importing countries.

Coffee is a significant contributor to Ethiopia's economy, with approximately 5.9 million farmers involved in the sector, according to a 2026 report by the United States Department of Agriculture. The industry is an important source of livelihoods for farming households and a significant contributor to the activities of local traders, processors, transport operators, and exporters. However, national export earnings do not reveal how much income reaches farmers.

Ethiopia has been promoting value addition through domestic coffee processing. The United States Department of Agriculture reports that roasted coffee exports increased to approximately 27,380 bags in 2023/24, from 8,530 bags in 2022/23. Although the segment remains relatively small, the increase points to opportunities for expanding processing, packaging, and branding within the country.

The broader African coffee industry faces a similar challenge of limited processing and retail opportunities on the continent. The 2025 G25 Africa Coffee Summit in Dar es Salaam addressed this challenge through the Dar es Salaam Declaration, which set a target for at least half of Africa's coffee to be roasted and traded within or outside the continent by 2035. Ethiopia's first-quarter performance demonstrates the country's capacity to expand its coffee exports and strengthen its position in international markets.

Key points

• Ethiopia's coffee exports earned US$878.52 million in the first quarter of 2026/27.
• China has emerged as Ethiopia's third-largest coffee buyer.
• The Ethiopian Coffee and Tea Authority aims to increase local value addition through domestic coffee processing.