Tropiq

Did you know that the schedule of coffee arrivals at Addis Ababa's dry mills follows a distinct pattern each year? Washed coffees lead the pack, arriving first in February. They're followed by naturals in March-April, with experimental coffees and commercial grades rounding out the season.

However, managing the influx of these coffees is a complex task. When warehouses overflow with beans, it can lead to a multitude of challenges - from quality control to traceability. Ensuring that each batch of coffee retains its unique flavor profile becomes a strenuous task when storage spaces are packed to the brim.

Having a local presence becomes invaluable in such situations. By being on the ground, buyers can maintain oversight of the sourcing and storage process, and ensure they're getting the quality they're paying for. It also allows for relationship building with farmers and suppliers, leading to more ethical and sustainable sourcing practices. This is what we do.

The global price of Arabica coffee rose from 3.718 USD/kg in April 2021 to 5.910 USD/kg in December 2021, representing an increase of approximately 59%.
In 2022 it decreased by approximately 20.9%, but Ethiopian cherry and FOB prices continue to increase. Why?

The price of coffee on the global market doesn't necessarily dictate the price on the local market. factors such as inflation, exchange rate, political instability, supply and demand can have a more direct impact on local prices.

It's also worth noting that the global price of coffee can be influenced by factors that are not specific to Ethiopia, such as the supply and demand dynamics in other coffee-producing countries, changes in consumption patterns, and speculative trading on commodities markets.

The increase in the price of cherries from 40-60 BIRR per KG during the 2021/2022 harvest to 70-115 BIRR per KG in the 2022/2023 harvest can be linked to several factors.

Apart from the official inflation rate, there are unofficial factors that could contribute to the high prices. For example, in February 2023, headline inflation was reported to be 32.0%, almost three times the Government of Ethiopia's annual average inflation target of 11.9%. Additionally, the unofficial exchange rate was around 95 Ethiopian Birr to the US dollar, significantly higher than the official exchange rate of 53.62 Birr to the dollar. This could make imports more expensive and increase costs for Ethiopian coffee producers.