In the first half of April, coffee trade on the Ethiopian Coffee Exchange (ECX) declined by about 30% compared to the same period in previous years. This seems explained by lower supplies to the market - by farmers as well as traders - as well as by more bypassing of the Exchange.
Local and international prices are diverging. This increasing wedge is seemingly driven by higher logistical and administrative costs due to the COVID-19 crisis. For example, transport costs have significantly increased in the last months, by about 15% for local transport and 70% for international transport.
While international prices did not decrease, ECX prices did. Consequently, farmgate prices for cherries are down as well, compared to last month by about 20% and last year by almost 10%. Read the full article.
