Since Ethiopian farmers are price takers, changes in the world production and prices of coffee directly and significantly affect Ethiopian coffee prices, and thus, farmers' profits. Moreover, when coffee prices are low, many farmers suffer from inadequate income, and thus, hunger. Previously, in the lean period preceding harvest (June to September), farmers would borrow at high interest rates from private lenders to subsist and improve their farming practices and harvests.
Since Ethiopian farmers act as price takers, shifts in global coffee production levels and prices have a direct and considerable influence on Ethiopian coffee market prices and, subsequently, farmers' revenues. As a result, low coffee prices frequently lead to insufficient income for many farmers, resulting in hunger. Previously, during the pre-harvest lean period (June to September), farmers would borrow at high interest rates from private lenders to sustain themselves and improve their farming practices.