Ethiopian Commodity Exchange to launch coffee trading

The Ethiopian Commodity Exchange (ECX) announced that it has finalized preparations to launch coffee trading in the coming few months.

ECX Chief Executive Officer, Dr. Eleni Gebre-Madhin, announced that the government is in the process of preparing detailed directives for the introduction of coffee in the exchange market.

According to Dr. Eleni, the introduction of coffee in the exchange market will foster the export market. Ethiopian coffee can also get the opportunity to get linked to the New York market, she indicated.

In addition, she said, the introduction of coffee to the ECX would enable foreign buyers to directly refer to the Ethiopian market.

There have been many consultations with producers and exporters on how to launch coffee trading in the Ethiopian Commodity Exchange, she said, further indicating that the government will be handling the directive.

"Over time, the existing auction system in the coffee trading will be transferred to commodity exchange. After a transition period the government will issue a public directive on what would be happening to the coffee trade and it will be transitioned to the ECX," Dr. Eleni said.

According to the Chief Executive Officer, the electronic commodity exchange would make the coffee export process reliable and efficient.

In addition to coffee ECX will introduce trading of sesame, chickpea, sorghum, barley, teff and niger seed, she added.

Currently the ECX is trading only wheat, haricot been and maize, it was learnt.