Ethiopia has exceeded US$3 billion in coffee export earnings during the 2025/26 fiscal year, setting a new national record and underscoring coffee’s continued importance as the country’s leading agricultural export and largest source of foreign exchange. The milestone was announced by Agriculture Minister Addisu Arega during discussions on a new five-year national coffee development programme.
According to the Ministry of Agriculture, export earnings increased from approximately US$2.65 billion in the previous fiscal year to more than US$3 billion, reflecting continued improvements in production, productivity and coffee quality across the value chain. Officials credited farmers, cooperatives, exporters, investors and public institutions for the record performance.
Building on the achievement, the government has approved a five-year coffee sector development strategy aimed at doubling annual coffee export revenue to US$6 billion by 2031.
A central objective of the strategy is to increase average national coffee productivity from about 9 quintals per hectare to 21 quintals per hectare. The programme will focus on expanding the use of improved and disease-resistant coffee varieties, strengthening agricultural research, enhancing extension services and improving support systems for coffee producers.
For Ethiopia’s millions of smallholder coffee farmers, higher productivity is expected to improve farm incomes while increasing export volumes and strengthening the country’s position in premium international coffee markets. Coffee supports the livelihoods of more than four million smallholder producers and contributes roughly one-third of Ethiopia’s export earnings, making the crop a cornerstone of both rural development and national economic growth.
The strategy also places emphasis on improving coffee quality, expanding value addition and strengthening competitiveness in global markets. Analysts note that while recent export growth has benefited from stronger international Arabica prices, sustained gains over the longer term will depend on continued investments in productivity, climate resilience, farmer training and market access.
For African coffee-producing countries, Ethiopia’s latest programme highlights a broader continental trend towards increasing productivity rather than relying solely on expanding cultivation. As governments seek to boost export earnings while improving smallholder livelihoods, investments in improved planting material, extension services and quality enhancement are becoming increasingly central to national coffee development strategies.
