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.
Due to Ethiopian farmers' role as price takers, changes in global coffee supply and prices have a profound effect on Ethiopian coffee market prices and, consequently, farmers' income. When coffee prices are low, many farmers struggle with insufficient earnings, leading to hunger. Historically, during the pre-harvest lean period (June to September), farmers relied on high-interest loans from private lenders to get by and improve their farming methods.