Ethiopia gain from surging coffee prices
Ethiopia’s arabica coffee export earnings are forecast to climb 25% to about US$900 million (RM2.85 billion) in 2014-15 because of higher prices after a drought damaged plants in the biggest grower of the bean, Brazil, an industry group said. Arabica prices on the Ethiopia Commodity Exchange could average US$2 a pound if supplies of the crop in the world market are tight, Ethiopian Coffee Exporters’ Association general manager Alemseged Assefa said in the capital, Addis Ababa. Ethiopia is Africa’s biggest producer of the crop and the origin of the arabica plant. “Prices are favourable this year because of the Brazilian coffee drought,” Alemseged said in an interview on Monday. “We presume that price will continue because of the drought.” Arabica has surged 71% in New York since January after a drought hurt plantings in Brazil, the world’s biggest exporter of the beans, fuelling speculation that consumption may outstrip supply. The Brazilian woes come as plantings in Cen