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Ethiopia Agribusiness Report Q2 2014

Ethiopia Agribusiness Market: New market information published

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2014-04-03 05:15:04 - Ethiopia Agribusiness Report Q2 2014 - a new market research report on

The production prospects look broadly favourable for the Ethiopian agriculture sector over the medium term. This will largely be due to more investment in the sector along with higher incomes contributing to consumption growth. We believe the sugar sector has the most potential, as investments in new sugar refineries will make sugar one of the few reliable agricultural exports over the forecast period.

We see relatively pedestrian output growth for Ethiopia´s coffee sector, as we are anticipating lower average global prices in the coming years. In terms of grains, the country´s food security is expected to remain relatively stable over the short term. However, even with recent multinational interest in the country´s farmland, Ethiopia is likely to remain a net grain



importer over the medium term.

Key Forecasts

- Corn production growth in 2017/18: 22% to 6.7mn tonnes. Domestic demand growth will fuel production, although we believe the country will become a net corn importer over the long term.

- Coffee consumption growth to 2018: 10% to 3.2mn bags. Economic gains will boost consumption, although Ethiopians already have high per capita consumption rates compared with neighbouring Kenya and Uganda.

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Mike King
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