Education | Kilimanjaro Specialty Coffees

How is coffee market volatility affecting prices in Ethiopia?

2/28/2025

The global coffee market is currently experiencing unprecedented volatility, with New York Arabica coffee prices reaching all-time highs. On February 10, 2025, Arabica futures rose to $4.30 per pound, marking the 13th consecutive session of record prices. However, just yesterday, prices fell to $3.86 per pound, breaking the $4 barrier in a single day. This volatility is primarily attributed to adverse weather conditions in Brazil, the world’s leading coffee producer, where dry and hot weather has significantly impacted coffee-growing regions. As a result, Brazilian farmers are hesitant to sell their limited supplies, further exacerbating the global shortage.

In response to these global market dynamics, the Ethiopian government has implemented a minimum coffee price directive aimed at protecting local producers and ensuring that as many dollars as possible flow into the economy. This policy requires Ethiopian coffee exporters to sell at or above a predetermined minimum price, which is adjusted weekly based on international market trends and the prevailing exchange rate.

Record future prices V/S average cherry prices

2/5/2025

The recent surge in Arabica coffee futures on the New York Stock Exchange, which yesterday reached an all-time high of $3.75 per pound, has complex implications for African coffee producers. While economies such as Ethiopia, Kenya or Rwanda will benefit from higher prices, small farmers, who account for 90% of African coffee producers, often struggle to capitalise on these gains. Factors such as rampant inflation, high input costs and reliance on middlemen reduce their potential profits.

In Ethiopia, 6 kg of cherries are needed to produce 1 kg of green coffee, the price per kilogram of cherries is still low compared to the price achieved by coffee futures on international markets. During the 2024-25 harvest that just ended, the average price per kg of cherry on the local market has fluctuated between 80 to 90 birr per kilogram (approximately $0.5 to $0.55 USD), which represents a fraction of the value that coffee futures fetch on the global market. This is partly due to the intermediation structure in the Ethiopian market, where farmers often rely on local cooperatives and traders who buy the cherry at lower prices before it reaches the international market.

What is the minimum export price for Ethiopian coffee?

12/12/2024

Ethiopia consumes about half of the coffee it produces on the domestic market, usually lower-quality lots, as high-quality coffee is usually reserved for international sales. The government prohibits the sale of export-quality coffee on the local market, even when local prices are more favourable. However, there is a domestic demand for high-quality coffee, which can be illegally supplied with higher-quality coffee when local prices exceed those offered by exports.

In February 2020, the Ethiopian Coffee and Tea Authority established a minimum export price for coffee, as well as a semi-official minimum price for coffee at local sales centres. The minimum export price is calculated daily, based on the global weighted average of the price given to different grades of coffee from different regions. At the time, the measure increased the price of green coffee by a range of approximately 0.5 to 1 USD/lb for grade 1 (best quality) coffee. And exporters selling coffee below the minimum price were made subject to legal action by the Ministry of Trade.

Coffee prices, EUDR, Trump and other calamities.

11/28/2024

How these chaotic times affect roasters?

Coffee has been traded in the world for 400 years, and the harsh reality is that during each of these years, without exception, coffee growers have remained poor and exporters rich. This is, of course, a basic, simple and shallow analysis, but it only has one thing in its favor, and that is that it stands the test of time.

The test of time must be framed in a period long enough to understand a long-range phenomena, with the slow movement and measurement of its parameters. As it is in this case, about money, coffee and 400 years, a basic but fundamental tool to identify the errors of a system and to be able to establish its potential solutions. This is why the impact of specialty coffee on the coffee industry CANNOT be assessed on the basis of a very specific set of situations that generated an exponential rise in coffee prices to a 50-year high on the New York Stock Exchange.

NATURAL ANAEROBIC FERMENTATIONs in rwanda

10/23/2024

In recent years, the popularity of specialty coffees has changed the landscape of international trade. The focus has shifted from regular "Starbucks-type" commercial coffee to unique, traceable, and experimental products. This trend has attracted a global and diverse audience and has enhanced financial benefits for producers.

Until about a decade ago, coffee processing primarily utilized natural, honey, and washed methods, each of which offered a wide range of sensory qualities in the coffee. During these processes, fermentation occurs naturally through local microorganisms, including bacteria, yeasts, and fungi, which interact with the coffee mucilage. The metabolites produced by these microorganisms can penetrate the coffee seeds, resulting in two types of effects: beneficial ones, such as desirable organic acids, esters, alcohols, and sugars; and harmful ones, which include undesirable organic acids and toxins that can negatively impact the quality of the coffee beans.

Rwanda Natural Anaerobic vs. Rwanda Classic Natural Fermentations

9/27/2024

As we all know, the way coffee is processed has a significant impact on the flavours that end up in the cup. Two fascinating methods that are not often talked about too much are Natural Anaerobic Fermentation and Natural Classic Fermentation. We have a new selection from Rwanda on the way and we want you to know what to expect.

1. Classic Natural Fermentation

In the classic natural process, coffee cherries are picked and then dried with the fruit still on the bean. The fruit's sugars and pulp influence the flavour during drying. This method gives the coffee a fruity, sweet, full-bodied profile with rich, bold notes.

Our go-to flavour profile: We look for deep, fruity, and sometimes wine-like flavours. Most often, they have a heavy body and a rustic profile but with a sweet aftertaste.

MEET THE PRODUCER: RWANDA GASHARU

9/20/2024

Gasharu Coffee is a specialty coffee producer located in Southern Rwanda. It has gained a reputation in the specialty coffee world for its high-quality beans and commitment to sustainability and community development.

History and Background
Gasharu Coffee is a family-owned business that has been growing coffee for generations. The Gasharu region, located in the Western Province of Rwanda near Lake Kivu, is ideal for coffee cultivation due to its rich volcanic soil, high altitudes, and favourable climate. The family behind Gasharu Coffee has taken advantage of these natural advantages to produce some of Rwanda's finest specialty coffees.

Burundi & Ruanda, regional report.

9/5/2024

Our Kenyan coffees have arrived in Barcelona in perfect conditions and we have already delivered most of the pre-booked orders to our European roasters. The exceptional quality of the different lots makes us very satisfied and now is the time to focus on the next origin.

The recent coffee harvest in Burundi and Rwanda concluded at the end of July, directing in the yearly challenge of selecting our next partner and origin. While the cup quality is paramount, we recognize that other critical factors influence this decision. To minimize any external biases, we rely on a meticulous process of blind analysis and cupping.

A LOGISTICAL NIGHTMARE: Why did it take Kenya so long to get to Barcelona?

7/19/2024

The situation in the Red Sea has become more complex in recent months. To protect their crews, ships and cargo, shipping companies are changing their routes to avoid the Red Sea and go around the Cape of Good Hope at the southern tip of the African continent. However, the risk zone in the Red Sea has expanded and attacks are occurring in areas further from the coast. As a result, ships have to take longer routes, which increases the time and cost of bringing the coffee to Barcelona.

Due to the above, the transit time of our shipment from Kenya was extended to 60 days, which is double the usual transit time. Furthermore, upon reaching the Mediterranean, ships are being diverted to ports in Morocco and Spain, which causes serious overcrowding and congestion in container unloading. All major shipping companies are using these ports for transhipments, putting immense pressure on port capacities in the Mediterranean region and pushing them to the limit.

Burundi: Corruption at the top, hits hard at the low.

6/5/2024

Before privatizing the coffee industry in Burundi in 2008, all coffee production was under the control of the state-owned company Sogestal, which is now virtually bankrupt. As a result of this privatization, the situation of small coffee producers has deteriorated. The government, under pressure from the World Bank, transferred most of the washing stations it used to control to foreign or multinational companies, leaving small coffee producers with very little to support themselves.

Coffee is very important to Burundi, accounting for 80% of the country's export earnings and supporting the livelihoods of 55% of the population, approximately 750,000 families, the majority of whom are smallholder farmers. In 2007, the president of Burundi at the time declared that coffee belonged to the producers until it was exported. This agreement allowed them to oversee the supply chain and gave them the right to receive 72% of the revenue from international coffee sales. But in reality, little or none of that has happened.