2020 events that Ethiopian coffee beans need to pay attention to the harvest time of coffee beans

This year is a year with a slightly smaller harvest.

First of all, as far as the production season cycle is concerned, the 2019 season is a bumper harvest year, and 2020 is originally expected to be a year with a smaller harvest. But Ethiopia as a whole is a country where coffee cultivation is growing year by year, slightly making up for this disadvantage.

The production season has been delayed quite a lot.

This year, due to the late arrival of the rainy season, the whole production season has been postponed by more than one month. This year, the scaffolding is full of cherries, high altitude areas, and even began the first wave of harvest. Predictably, the arrival of the new production season is bound to be at least a month later than in previous years.

The purchase price of cherries has soared this season.

Almost every exporter says that the purchase price of cherries has risen sharply this year, and the following factors should be behind it. Since coffee exports have always been an important source of foreign exchange income for Ethiopia, in order to stimulate exports, before the start of the production season, the Ethiopian government announced that it would let the Ethiopian currency plummet, causing exporters and processing plants to expect that they had more chips to buy cherries, so at the beginning of the production season, they began to pursue prices and small farmers to buy cherries, superimposed on each other. It is said that the highest purchase price for cherries is 40% higher than last year.

Mandatory minimum prices (Minimum Price Quotation, MPQ) imposed by ECX and the National Bank

In order to increase its foreign exchange earnings, the Ethiopian government decided to impose a minimum price, stipulating that contracts lower than MPQ are not allowed to be registered in the national bank. On the other hand, the setting of MPQ is unreasonably high, resulting in an instantaneous contraction in the export volume of Ethiopia compared with the previous year. Coupled with the impact of delayed production season, we expect that there will be a shortage of goods in the new production season in the first half of the year. Under the trend of rapid decline in trading volume, the Ethiopian government is bound to have pressure to reduce or even cancel MPQ. This trend is also slowly taking place, and it is expected that the supply of goods in various markets in the new production season will ease to a considerable extent after June.