Exporter's estimated cost of goods

Exporter's cost of goods has more than doubled

Alexander Hansen
March 11, 2022
Ethiopia

Exporter's Estimated Cost of Goods



It's often difficult to understand the direct impact surging cherry and parchment prices have on cost of goods (COG). This is why we've developed a simple calculator that estimates the exporter's cost of goods based on ETB/feresula and USD/ETB exchange rate.
 
In 2019 we wrote about price transparency in Ethiopia and reported that parchment traded at 1780 ETB per feresula. With an annual inflation rate of 28%, rising coffee prices and regulatory changes, the average 2021/2022 feresula prices in Ethiopia are quite different. To understand why, we suggest you read our past posts on harvest update, price development and currency and coffee.
 
The average cost/feresula

  • For a medium to large exporting company owning 5+ stations that hold their own export license, hence also control the production costs, is reported to be 5200 ETB.
  • For a vertically integrated station that don't hold an export license and depend on singing an export agreement with a 3rd party exporter is reported to be 5600 ETB.

Farmers that process their own coffee receives market price for their parchment. In November afarmer could receive 3000 ETB/feresula but as much as 6500 in February and 9-11.000 in March.


Alex's past roles have covered many responsibilities including supply chain, quality, sales, buying and management.