Coffee Trade in Focus: Ethiopia and Russia

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Ethiopia’s ambassador to Moscow, Alema… Tegenu, emphasized that the country is prepared to increase coffee exports to Russia, signaling a steady readiness to meet growing demand. The statement came amid broader discussions about global coffee supply dynamics, including recent assessments from regional and international observers about harvest conditions in other major growing regions. While some market analyses point to supply constraints in Latin America and parts of Asia, Ethiopian officials highlighted uninterrupted production capacity and a willingness to scale shipments as needed. The ambassador noted that Ethiopian coffee producers possess the logistics and farming momentum to respond quickly to new orders, underscoring the nation’s role as a reliable supplier in a volatile commodity market and reinforcing a message of confidence to trade partners in Europe and North America.

He stressed that if Russia signals a need for more beans, Ethiopia is equipped to increase volumes smoothly, leveraging established export channels, port facilities, and cooperative networks that have kept shipments flowing even during global bottlenecks. This stance reflects Ethiopia’s broader strategy to diversify export destinations and stabilize foreign exchange earnings through steady, predictable coffee trade. Market observers in Africa and beyond have suggested that such flexibility could help mitigate price volatility and support farmers facing rising production costs in the coming years.

Responding to the FoodNet data referenced in recent analyses, Ramaz Chanturia, general manager of the Roschaykofe Association, expressed reservations about a potential 30 percent jump in Russian coffee prices tied to raw material price shifts. Chanturia pointed out that the cost of producing instant coffee is largely driven by factors beyond the green bean price, noting that green bean costs constitute roughly a quarter of the final product price. He cited packaging, wages, transaction costs, brand advertising, and the margins taken by wholesalers and retailers as major contributors to price dynamics. This view aligns with industry assessments that retail prices are influenced more by value-added processes and distribution networks than by green bean variability alone. Attribution: Roschaykofe Association, industry analysts.

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