KANYA COFFEE EXPORT | YEAR-END NEWSLETTER 2024/2025
“Rooted in Quality. Grown with Care.”
📍 Addis Ababa, Ethiopia
🗓️ Published: July 2025

A Year of Growth, Quality & Strategic Investment

The 2024/2025 coffee season has been a transformative and highly successful year for KANYA Coffee Export. We are proud to announce that our state-of-the-art coffee processing and bagging warehouse in Burayu subcity, adjacent to Addis Ababa, became operational this year. This modern facility has significantly enhanced our operational capacity, allowing us to process and deliver coffee efficiently and in alignment with our customer contracts.

What matters most is quality — and that’s where we’ve seen the most impact. Our warehouse has enabled us to maintain consistent control over the quality of coffee processed from our stations in Guji, Sidamo, and Yirgacheffe. We’ve received overwhelmingly positive feedback from our global customers regarding the timeliness of shipments and the superior quality of our Arabica beans.

Market Dynamics: Cherry Prices Surge

While operational achievements mark a high point, the year was also met with market challenges. In particular, a sharp rise in cherry prices — driven by global coffee price increases and the depreciation of the Ethiopian Birr — limited our ability to meet export volume goals.

To put this into context:

• In May/June 2025, Grade 4 and 5 cherry prices rose to 14,000 birr per feresula, up from 7,000 birr the same time last year — a 100% increase.
• This price surge affected exporters across Ethiopia, putting pressure on profit margins.

National Coffee Sector Performance

Ethiopia remains a leader in Arabica coffee.
🌱 In the past 12 months, the country exported over 468,966 tons of green coffee, targeting $2.6 billion USD in earnings.
🌾 Remarkably, for the 2024/2025 season, Ethiopia produced 1.1 million tons of coffee — a record-breaking increase from previous years where production ranged between 400,000 – 500,000 tons.
📈 Looking ahead, the Ethiopian Coffee and Tea Authority forecasts production to grow to 1.3 million tons in the 2025/2026 season.

Looking Ahead: KANYA’s 2025/2026 Strategy

As part of our long-term commitment to sustainable sourcing and quality, we are:

• Opening new washing and drying stations across Guji, Sidamo, and Yirgacheffe.
• Signing vertical integration agreements with suppliers to ensure traceability and sustainability.
• Finalizing full compliance with the EU Deforestation Regulation (EUDR) — preparing our supply chain for increased regulatory scrutiny and European market access.

We anticipate stiff competition ahead, with many new players entering the Ethiopian coffee export market, attracted by rising global demand and prices.

2025/2026 Arabica Coffee Forecast: Outlook & Analysis

🌍 Global Price Forecast (July 2025 – July 2026)

Based on current market dynamics and expert projections:

• Arabica coffee prices are expected to remain elevated, fluctuating between $2.60 and $3.50/lb on the ICE futures market through mid-2026.
• The primary drivers will be:
  • Continued currency devaluation in producing countries like Brazil.
  • Unfavorable weather (El Nino/La Nina patterns) in Latin America affecting yields.
  • Rising compliance costs (such as EUDR) increasing the cost of production.

📦 Supply & Demand Dynamics

• Supply:
  
  Global Arabica production is projected to face constraints, especially in Brazil and Colombia, due to climate stress and aging coffee trees. Ethiopian output is expected to increase but may be offset by cherry price volatility.
• Demand:
  
  Demand for certified, traceable, and specialty Arabica coffee is growing fast — especially in Europe, Asia, and North America. Consumption is expected to grow by 1.5–2% globally, with the specialty segment growing at nearly double that rate.

The result?
We expect tight supply conditions and firm prices, offering exporters like KANYA a strong opportunity to maintain premium offerings and capture value in high-quality markets.

Final Thoughts

At KANYA Coffee Export, we remain committed to excellence, transparency, and long-term partnership with our farmers, suppliers and international buyers. As we move into the 2025/2026 coffee season, we look forward to building on our momentum, ensuring the highest quality standards, and navigating market shifts with agility and vision.

Thank you for your continued support. Let’s brew a better future — together. ☕🌍

Contact Us:
📧 export.manager@kanyacoffeeexport.com
🌐 www.kanyacoffeeexport.com
📍 Addis Ababa, Ethiopia