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Thursday, 28 January 2016

Ethiopia Plans To Increase Coffee Exports By 45% Despite Food Shortages

The Ethiopian government plans to increase coffee exports by 45 percent in 2016 through incentives and increased support to farmers as the population suffers food shortages in one of the worst droughts in 50 years. Coffee made up almost half of Ethiopia’s gross domestic product in 2014, according to the World Bank, BusinessWeek reported. The crop was responsible 84 percent of exports and 80 percent of total employment in Ethiopia. The U.N. estimates that 15 percent of Ethiopians will face food shortages in 2016. That’s 15 million people, ABC reports. Crop production has failed completely in some areas of Ethiopia and is down 50-to-90 percent in others, according to the U.N.’s Food and Agriculture Organisation. Aid groups are calling Ethiopia’s food shortages a “code red emergency” and questioning the international response, according to ABC. Ethiopian coffee makes up 18 percent of the German market and 16 percent of Saudi Arabian demand, BusinessWeek reported.

Source: AFK Insider