Coffee is a beverage obtained from coffee plant’s fruit called cherry. The coffee plant refers to any type of tree in the genus madder family which is actually a tropical evergreen shrub that has the potential to grow 100 feet tall. Coffea arabica and Coffea robusta are the two most commonly cultivated species of coffee plant having economic significance. Arabica accounts for about 70 percent of the world's coffee production. Robusta coffee trees represent about 30 percent of the world's market

The coffee trees grow well in tropical regions with abundant rainfall, year-round warm temperatures with no frost. The coffee tree needs an average temperature between 17° C to 23° C with abundant precipitation and good soil conditions for good growth. The coffee plant produces its first full crop of beans at about 5 years old and then remains productive for about 15 years.

Domestic Scenario: Ethiopia is known to be the birth place for coffee. Coffee is the major export commodity cultivated in Ethiopia. Coffee grown in Ethiopia is known all over the world for it excellent quality and flavor. Today, Ethiopia stands as the biggest coffee producer and exporter in Africa and amongst the leading in the world.

Coffee Varieties: The type and grade of coffee is highly diverse in Ethiopia. Ethiopia is the producer for the several renowned varieties of coffee including Sidama, Yirgacheffe, jimma and Harar. Apart from these, there are several other famous varieties that Ethiopia produces. The Ethiopian coffee is processed in two ways, washed processing and the sundried processing.

Commercialization: The crop of coffee is the major earner of foreign exchange for the country. It is the primary exportable commodity that earns the valuable foreign exchange for the country. However, coffee is also having a vibrant domestic market.

Prices: Coffee prices exhibited high inter year variations from season to season. These variations are a combined effect of the factors reflecting domestic supply and the periodic trends of the global coffee demand and supply situations. Also the variation can be seen between different varieties and grades of the coffee also. Some varieties like the yeirgacheffe and sidama command considerable premium in the International markets.