section_path: Economy/Exports
section_name: Exports
paragraph_text: Exports
  
  Ethiopia is often considered as the birthplace of coffee since cultivation began in the 9th century. Exports from Ethiopia in the 2009–2010 financial year totalled US$1.4 billion. Ethiopia produces more coffee than any other nation on the continent. "Coffee provides a livelihood for close to 15 million Ethiopians, 16% of the population. Farmers in the eastern part of the country, where a warming climate is already impacting production, have struggled in recent years, and many are currently reporting largely failed harvests as a result of a prolonged drought".
  
  Ethiopia also has the fifth largest inventory of cattle. Other main export commodities are khat, gold, leather products, and oilseeds. Recent development of the floriculture sector means Ethiopia is poised to become one of the top flower and plant exporters in the world.
  
  Cross-border trade by pastoralists is often informal and beyond state control and regulation. In East Africa, over 95% of cross-border trade is through unofficial channels. The unofficial trade of live cattle, camels, sheep, and goats from Ethiopia sold to Somalia, Djibouti, and Kenya generates an estimated total value of US$250–300 million annually (100 times more than the official figure).
  
  This trade helps lower food prices, increase food security, relieve border tensions, and promote regional integration. However, the unregulated and undocumented nature of this trade runs risks, such as allowing disease to spread more easily across national borders. Furthermore, the government of Ethiopia is purportedly unhappy with lost tax revenue and foreign exchange revenues. Recent initiatives have sought to document and regulate this trade.
  
  With the private sector growing slowly, designer leather products like bags are becoming a big export business, with Taytu becoming the first luxury designer label in the country. Additional small-scale export products include cereals, pulses, cotton, sugarcane, potatoes, and hides. With the construction of various new dams and growing hydroelectric power projects around the country, Ethiopia also plans to export electric power to its neighbours.
  
  Most regard Ethiopia's large water resources and potential as its "white oil" and its coffee resources as "black gold".