Ethiopia's coffee, gold income declines

Compared to last year, Ethiopia's export has shown decline this year on major export commodities of the country including coffee and gold, which fall 25% and 27%, respectively.

Prime Minister Hailemariam Desalegn told Parliamentarians on Thursday while presenting his report of the past nine months. He attributed the decline to gold and coffee prices fall globally.

"Though we have witnessed 9% increase in agricultural commodities export, because coffee represents a major portion in the export, we didn't achieve necessary result from our agriculture which constitutes 80% of our export," he said. Total export growth of the country is now stood at only 2% compared to last year.

During the fiscal year concluded July 7, 2013, Ethiopia has earned $3.15 billion by exporting agricultural commodities, minerals and manufactured goods to 133 countries. Out of the total earnings coffee covers around $745 million.

On the other hand, the premier also mentioned oil seeds export over the past nine months (July - March 2013/14) has shown 57% increase while flower is also up by 7% compared to last year same period.

To compensate the export income caused by price falls, the government is trying to increase the amount of export commodities such as oil seeds, flower and cereals, according to the prime minister. "it is mandatory to compensate the loss in prices decline by increasing amount and diversification,"  he said.

In relation to the manufacturing goods export he indicated that leather and textiles export has shown improvement by 12% and 14% in the last nine months compared to similar period last year. Though the plan for manufacturing sector growth for the period was 30%, it has only witnessed 11.4% growth.

Source@http://newbusinessethiopia.com/index.php/buss/99-agribusiness/771-ethiopia-s-coffee-gold-income-declines