Normal continues even better
The harvest has primarily started in the lowland areas & we are awaiting the final stage of cherry maturation across Yirgacheffe, Guji & a few additional highlands along with its partial harvest which started this week. Prices for cherries range between 28 and 37 Birr per kg which is 225 and 300 USC/lb FOB equivalent. The situation in Addis remains peaceful. Travel to some of the coffee-growing regions is a bit monitored. One can travel on the main roads while passing security checkpoints which include trucks that need to reach washing and natural processing stations. Our producing partners are working diligently to set up a smooth operation as possible. On a national scale, export volumes seem to be stable as the Addis Ababa-Djibouti road is working peacefully. At Bole Airport commercial flights within Ethiopia and abroad continue to operate per their schedule and Addis Ababa remains one of the busiest transit hubs in Africa.
ECX Membership seats at 8 mils. ETB
It is to be recalled that ECX’s recent announcement in selling 30 of its membership seats and following this two companies offered the highest price seats at Birr 8 mil ETB. Owning a seat at ECX has had its lucrative gains for exporters until recent years in which vertical integration took the major role in the supplies of coffee. Some exporters still have concerns about the availability of coffee at ECX floors on the ongoing year due to ECTA’s execution in direct marketing. At Sinopia we will continue to in serving our clients with our robust sourcing networks across farms, supplying partners & our trading seats at ECX.
https://www.thereporterethiopia.com/article/ecx-seats-fetch-8-mln-birr
The rise in consumption & recovery in prices
In October 2021, ICO found that coffee prices had reached new multi-year highs, as the monthly average of the ICO composite indicator price increased by 6.8 percent to 181.57 US cents per pound, as compared to 170.02 US cents per pound in September 2021. The levels reached in October 2021, mark a 71.5 % increase as compared to the coffee price of 105.85 US cents per pound that was recorded in October 2020. The average price recorded in October 2021 is the highest recorded since 182.29 US cents per pound which were recorded in February 2012. According to the ICO, these price levels for the 2020/21 coffee year mark a significant recovery from the low levels experienced over the past three coffee years. The projection for total production in the 2020/21 coffee year is 169.64 million bags, representing a marginal increase of 0.4 percent from the 168.98 million bags harvested in the 2019/20 coffee year & 8.6%higher than an average of the last 10 coffee years. Consumption is expected to rise 1.9 percent to 167.15 million bags in 2020/21 as compared to the 164.02 million bags for the coffee year 2019/20.
https://www.ico.org/coffee_prices.asp
