Ethiopian Domestic Coffee Trade Update

In the first two weeks of July, the coffee prices around Jimma zone for G1 coffee was between 5450 – 5600 ETB ($100 -$103) , where G2 coffees and old crops were sold for 4500 ETB ($82.30) per feresula which is equivalent to 17 kilos.                                         

The common payment method used is paying after receiving the items. The farmers were receiving the money only after the buyer sold out. Some farmers rarely receive advance less than 30% of the actual cost. Coop Bank of Oromia was the most preferred bank by farmers where they are seldom also Commercial Bank of Ethiopia.

Most of the time the farmers sell their coffee to the exporter based on the prior relationship; so that the exporter pays back to the farmer after exporting the coffees and receiving payments from the foreign end buyer. Some exporters buy by vertical integration agreement.

The main challenge in the month of July was security issues around Gera District and heavy summer rain across Jimma Zone. As a result, we are unable to travel deep into the farm to carry out other routine activities as needed.

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