Ethiopia launches nationwide crackdown on coffee hoarding to boost export performance 

ETHIOPIA – Ethiopia’s Minister of Agriculture, Addisu Arega, has ordered a nationwide inspection campaign to address speculative hoarding of coffee by suppliers and exporters, a practice he says is undermining the country’s coffee export performance. 

The inspections are set to begin on Saturday, targeting traders and exporters allegedly manipulating supply and prices. 

The move follows growing concern that Ethiopia is falling short of its coffee export volume targets despite favorable international prices and extensive government support.  

Speaking during a high-level review of the first quarter implementation of the national coffee export plan, Minister Addisu expressed dissatisfaction with the sector’s performance. 

According to the ministry, export revenue increased by 47% compared to the same period last year, surpassing targets by 23%. However, the total coffee volume exported reached only 75% of planned levels, a shortfall the minister said could jeopardize the nation’s broader export objectives. 

“The sector is receiving substantial government incentives and support, yet the delay in achieving volume targets is disappointing at a macro level,” Minister Addisu said. “The problem is not about funding or global prices but about missing our volume goal of 600,000 quintals.” 

Industry sources attending the meeting confirmed frustration within the sector, noting that although higher global prices have boosted earnings, speculative trading and hoarding have restricted supply.  

Some farmers and traders have reportedly withheld coffee stocks, expecting further price increases, while others, particularly brokers, are accused of stockpiling to artificially influence prices. 

“To tackle this, we have instructed immediate inspections nationwide to ensure coffee flows into central markets,” the minister stated.  

He also directed the Ethiopian Coffee and Tea Authority (ECTA) to impose stricter penalties on those found hoarding or engaging in practices that damage market integrity and product quality. 

During the meeting, which gathered over 140 exporters and industry experts, participants acknowledged that speculation is a key issue but cited other systemic challenges such as illicit brokers, weak tax enforcement, and disruptions in the supply chain. 

An exporter told Capital that legitimate coffee traders are struggling with volatility and market distortion caused by unlicensed intermediaries. “Illegal brokers masquerading as farmers are flooding the market, undermining compliant exporters who follow tax and quality regulations,” the exporter said. 

Reports also indicate that some individuals registered as farmers are exporting unusually large quantities of coffee, far beyond legal limits, by exploiting loopholes in taxation and inspection systems. 

Minister Addisu reaffirmed the government’s resolve to protect farmers by reinforcing minimum farm-gate price policies, strengthening supply chain transparency, and offering incentives to attract more private sector investment. 

Ethiopia aims to double its annual coffee export revenue from $5 billion to $10 billion, with coffee alone projected to contribute $3 billion in the coming years. 

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