In 2020, the Ethiopian Coffee & Tea Authority and the National Bank of Ethiopia (NBE) introduced a minimum coffee price directive. This rule affects more than just exporters. Importers and roasters must also understand this pricing mechanism to secure Ethiopian coffee at great value.
The rule requires Ethiopian coffee exporters to sell at or above a set minimum price. If a sale contract does not meet this requirement, the NBE will not register it. Without registration, exporters cannot obtain export permits, making it impossible to ship the coffee.
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The Ethiopian government introduced this rule to stimulate foreign currency flow. Ahmed Shide, Ethiopia’s Finance Minister, stated, “Foreign exchange is one of the major bottlenecks currently, and we are working comprehensively to address that.” Adugna Debala, General Director of the Association, also supports this initiative.
The minimum prices change weekly and depend on the coffee’s region, grade, and exporter type. Exporters fall into four categories: growers, unions, vertically integrated exporters, and commercial exporters. Regardless of category, all exporters must follow the same procedure.
Every Tuesday, the NBE will update these new minimum prices. Exporters must then base their contract prices on these figures.
In a highly volatile market, roasters and green coffee buyers must understand pricing mechanisms. With record-breaking New York C (NYC) market prices, Ethiopian minimum prices have surged to historic highs. Unlike the daily fluctuations of the NYC market, NBE minimum prices change only once a week. This timing difference can create opportunities for roasters to book Ethiopian coffees at great value.
Ethiopian export and import regulations are constantly changing. Frequent rule changes make it challenging for roasters to navigate the market. Understanding how these changes should influence your sourcing strategies, can make a crucial difference. To succeed, you need a reliable partner who understands these dynamics and can guide you through the process.
Trabocca actively monitors market trends and regulatory updates to identify the best times to book coffee. With a large office in Addis Ababa and close communication with suppliers, we stay ahead of market developments. Whether you need guidance on timing or alternative sourcing regions, we are here to help. Contact your Trabocca representative to discuss your Ethiopian coffee sourcing strategy.