All of the above has led to some Ethiopian exporters not being able to fulfill the contracts agreed with international buyers when prices were much lower. This is because prices per kg of cherries have reached as high as ETB 90 (USD 1.5) in areas like Guji and local exporters have been caught between the low prices of the contracts signed last year and the explosive increase in cherry prices and inputs in 2022.
Supply and price are always inversely related: the lower the supply, the higher the price. But the relationship between production and quality is direct. During a negative biennial cycle mixed with drought, this combination creates a vicious loop that especially affects importers looking only for specialty coffee.