By Andrew Cawthorne
ADDIS ABABA, May 17 (Reuters) - Ethiopian coffee exports are on course to rise about 2 percent to some 187,000 tonnes in the 2006/07 season, worth around $450 million, the head of the local exporters' association said on Thursday.
"As I see from sales quantities so far, it will be a little bit higher than last year, around two percent," Abdulrezak Sherif, new chairman of the Ethiopian Coffee Exporters' Association, said at his office in Addis Ababa.
"The market is better than last year. Prices have improved. There is more demand. Maybe we will this year reach $450 million, I think."
Africa's largest coffee producer and the birthplace of the bean, Ethiopia exported 183,000 tonnes worth $427 million in 2005/06.
Total annual coffee production, including that used for domestic consumption, was 330,000 tonnes last season, and Abdulrezak said the 2006/07 outturn would be similar.
The chairman said he had taken over the association in April with the intention of encouraging more government involvement in the sector, particularly in the training of farmers to improve quality and quantity.
"The government is working hard now to help teach farmers, there are some very good training programmes," said Abdulrezak, who is also managing director of the private firm Ethiopian Commodities.
Coffee remains Ethiopia's top export commodity, though flower farmers predict their booming industry could overtake it soon.
"I do not think so. I think coffee will remain the biggest exporter for a long time," Abdulrezak said, predicting this year's expected two percent rise in export quantity could jump by a further five percent the following season.
Germany remains Ethiopia's top export market, with 30 percent, followed by Japan (20 percent), Saudi Arabia (10-12), Belgium (10), France (6 percent) and the United States (5.8 percent), the export head said.
"What we see generally with the Americans is that they are not keen on quality coffees. They are looking for lower-quality," he said.
"Japan is a growing market."
Abdulrezak said he did not want to comment in detail on the recent trademark dispute between Ethiopia and Starbucks <SBUX.O>, but welcomed their joint announcement earlier this month of an agreement in principle.
"The important thing is that there should be cooperation. The most important thing here is that they should pay a reasonable price to farmers."
Weather conditions in Ethiopia's main coffee-growing areas had remained favourable in the last season, with heavy rainfall in other parts not affecting the industry, Abdulrezak said. "We haven't really had weather problems."
