The promises of 2021/22 & the gist of 2020/21
Our deeper roots in the Ethiopian coffee supply chain & markets have given us comprehensive experience & understanding of the 2020/21 crop with expert insight into the promises of 2021/22. A year ago we candidly shared the prospects of the 2020/21 crop which performed very well. Here are some of our key review points & a look into 2021/22.
Looking back on 2020/21's Ethiopia's green coffee
1.300,000 ha of old coffee plants have been removed & has been replaced by new seedlings which will generate a fine coffee in 3 years.1.2 million ha of land is covered with coffee out of which the active 900,000ha yielded 600,000 mt of 2020/21’s crop with 7.5q/ha.
2. The increased processing of coffee through the vertical integration market which accounted for 90% of green coffee exported. Until the end of July 2021, 6000 linkages have been created in shipping 133,000mt of green coffee overseas. This has contributed to a notable volume increment by 33% to grade 1 coffee, 6% to grade 2 coffees, 41% to grade 3 coffees from the previous year.
3. COE achievements where destination markets reached 33 countries. Coffees with a cupping score of 87.38-90.60 were presented with average prices of 32.12 /Ib., the highest bid being $150/Ib. & a total proceeds of $1,803,557.95.
4. It has been an excellent year as we capitalize on the growing Asian green coffee market. We had a fulfilling experience particularly in the East Asian market as we participated in the Cafe Show Seoul 2021 & Busan coffee show enabling us to learn the needs & interests of our new importing partners whilst strengthening our relations with existing ones. Dubai’s Gulfood 2021 was also one of the liveliest events of the year where we explored the trends in the upcoming global coffee center & formed fruitful relationships. Our Asian representation was well enhanced where we showcased our specialty Single-origin Natural Yirgacheffe Gr 1 at Singapore micro-lot Hybrid auction 2021 amassing appreciation from numerous coffee connoisseurs.
The promises of 2021/22's Ethiopia's green coffee
1. We are in the midst of the much-awaited harvest which is expected to yield 280,000mt export supplies expected to bring 11% increment compared to 2020/21 export supplies of 248,000mt from total produce of 457,200mt.
2. Highly regulated trade: It is generally expected to increase the volume of coffee traded through vertical integration despite recently increased trade at ECX’s floor, the continent
‘s first commodity exchange. Friday has seen the exchange’s record trade $11MM in its 14-year history from diverse commodities with 842,605kg green coffee traded. This came with a 43.4% volume increase from the previous week’s same-day trade of 587,560kg green coffee.
3. Increased prices for Ethiopian coffee: It is recalled that export prices have seen an average of $1.81/Ib., generally expected to increase for the 2021/22 crop.
4. New importing destinations: We have seen the growing imports from South Korea, China, Taiwan compared to the long-existing European destinations. We generally expect volume increases by processing type & grade across these relatively new destinations.
ECTA’s DG, Dr. Adugana recently told the Ethiopian reporter about the third COE. Adugna emphasized the undergoing preparations & remarked on the expected increase of participants.
