Southern Nations, Nationalities and Peoples
SNNPR produces 45% of Ethiopia's coffee including Yirgacheffe and Sidama, benefiting from relative stability while neighboring regions experience insurgency and displacement.
Southern Nations, Nationalities and Peoples Region produces nearly 45% of Ethiopia's coffee output, making it the second-largest coffee producer after Oromia. The region contains famous coffee-growing zones including Sidama, Yirgacheffe, Kochere, Wolayta, and Bench Maji, each with distinctive terroir that commands premium prices in specialty markets. Ethiopia's coffee exports are projected to reach a record 7.8 million bags in 2025-26, with SNNPR contributing a substantial share.
The region demonstrates niche differentiation in agricultural production. While Oromia dominates high-quality Arabica, SNNPR produces both Arabica and Robusta varieties across diverse microclimates. Kerchanshe Group's 2025 initiative to distribute 3 million improved seedlings targets both SNNPR and Oromia, with enhanced varieties yielding up to 62 quintals per hectare with irrigation—nearly double traditional output. Employment in the coffee sector has gradually increased in SNNPR and the newly separated Sidama region.
SNNPR faces the challenge of maintaining agricultural production amid Ethiopia's broader instability. Unlike Oromia, which experiences active OLA insurgency, or Amhara with its Fano conflict, SNNPR has remained relatively peaceful. This stability creates opportunity for agricultural investment but also means the region absorbs displaced persons from conflict zones, straining local resources. The coffee economy provides income to farming households, but global commodity price volatility and climate variability create persistent uncertainty.