Ethiopia’s coffee exports have recorded a strong start to the 2026/27 fiscal year. In the first quarter, the country earned US$878.52 million from 131,069.51 tonnes of coffee shipped to international markets, according to the Ethiopian Coffee and Tea Authority. Earnings increased by 15% year on year, reflecting stronger demand and the country’s expanding reach across global markets.
China emerged as Ethiopia’s third-largest coffee buyer, importing 15,125.54 tonnes worth US$103 million, representing approximately 12% of both export volume and revenue. Saudi Arabia remained 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.
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The United States, South Korea, Belgium, Japan and the United Arab Emirates also featured among the leading destinations. Russia entered the top ten for the first time, while the ten leading markets accounted for 82% of Ethiopia’s export volume and earnings.
China’s growing importance reflects a longer-term shift in Ethiopia’s coffee trade. During the full 2025/26 fiscal year, the country exported 47,836 tonnes to China worth US$347 million, compared with 34,284 tonnes valued at US$219 million in the previous year. This represented growth of approximately 40% in volume and 58% in value. The Ethiopian Coffee and Tea Authority has linked the expansion 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. Competition from other coffee-producing nations and fluctuations in international prices remain important considerations.
Coffee’s economic importance extends far beyond export receipts. A 2026 report by the United States Department of Agriculture estimates that approximately 5.9 million farmers are involved in Ethiopia’s coffee sector. This makes the industry 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. Their share of the value generated depends on productivity, input costs, access to buyers, quality premiums and the way prices are transmitted through the supply chain. Strengthening these connections is essential to ensuring that higher export earnings translate into improved rural incomes.
Ethiopia has also been promoting value addition through domestic coffee processing. USDA figures show 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.
Developing these activities can create skilled employment, strengthen local enterprises and allow Ethiopian businesses to retain a greater share of the final product’s value. However, achieving this requires reliable electricity, modern processing equipment, affordable finance, quality control, suitable packaging and access to international distribution networks.
The broader African coffee industry faces a similar challenge. Despite the continent’s position as a major producer, much of its coffee continues to enter international markets as unprocessed green beans, leaving significant processing and retail opportunities elsewhere. 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.
The declaration reflects a growing recognition that Africa’s participation in the global coffee industry must extend beyond cultivation and raw commodity exports. Expanding local roasting, processing and branding can support employment, strengthen domestic businesses and improve the value retained within producing economies.
Ethiopia’s first-quarter performance demonstrates the country’s capacity to expand its coffee exports and strengthen its position in international markets. Nevertheless, the country achieved 91% of its planned export volume and 85% of its US$1.033 billion revenue target for the quarter. The results therefore indicate strong performance alongside room for improvement.
For Africa, the opportunity lies in connecting export growth with stronger rural incomes, greater processing capacity and more diversified markets. Sustained progress will depend not simply on exporting more coffee, but on improving productivity, meeting international quality standards and retaining a larger share of the value through African businesses and workers.
