Agriculture News and Developments [Archive]

abesha

January 15th, 2010, 10:20 AM

A very interesting article:

Ethiopia – country of the silver sickle – offers land dirt cheap to farming giants

This is a country of the bent back and the silver sickle, where virtually all the crops have felt the calloused fingers of the peasant farmer working his tiny parcel of state-owned land. The ox pulls the plough and the donkey the cart, and fertiliser counts as agricultural technology.

Chugging into this picture on a bright green John Deere tractor came Hanumantha Rao, a former sugarcane farmer from India who is at the forefront of a revolution sweeping through Ethiopian farming. He hurried up to a hilltop on his company's farm in Bako, four hours' drive from the capital, Addis Ababa, and swept out an arm to indicate the land he has leased from the government: 11,000 hectares to grow rice, maize and oil palms.

In the fields below, boreholes were being sunk and roads graded. An airstrip will soon allow for a crop-spraying plane. Besides the new tractor Rao had been riding on that morning, there were 30 more on site. That was not many, he insisted, and neither was the farm especially large.

Further west in Gambella, Karuturi Global, the listed Indian horticulture company that employs Rao, is bringing in 1,000 new tractors to work the 300,000 hectares it has leased – making it one of the biggest farms in the Horn of Africa, if not the continent. "It is 120 kilometres [75 miles] wide," Rao said proudly. "Three hours to cross by Jeep."

Ethiopia's great land lease project is moved swiftly ahead. In an effort to introduce large-scale commercial farming to the country, the government is offering up vast chunks of fertile farmland to local and foreign investors at almost giveaway rates. By 2013, 3m hectares of idle land is expected to have been allotted – equivalent to more than one fifth of the current land under cultivation in the country.

The move is part of a wider trend that has seen other African and Asian countries seek to take advantage of high global demand and the cost of crops by offering agricultural land to foreign companies, private equity funds and governments, particularly those of import-dependent Gulf countries.

If done properly, the investments have the potential to increase local food availability and create badly needed jobs. If not – as was the case with the attempt by the South Korean firm Daewoo to lease half of Madagascar's arable land to grow corn for export in 2008, a deal many saw as 21st- century colonialism – they could prove disastrous.

In a food-insecure country such as Ethiopia, where several million people rely on food aid, the idea of offering fertile land to outsiders has raised concerns. But government officials point out that Ethiopia has vast reserves of underused land – 60m hectares of the country's 74m hectares suitable for agriculture is not cultivated – and insist no local farmers will be adversely affected. Esayas Kebede, investment support co-ordinator at the agriculture ministry, said that foreign companies were essential for the move from subsistence to commercial farming, a key part of the country's development strategy.

"There is no crop that won't grow in Ethiopia but we cannot produce quantity and quality. Why? It's a vicious cycle of the lack of capital and technology," he said. "So leasing land is a real opportunity for us."

So too for Karuturi. The Bangalore-based company, which is the world's largest grower of roses, has negotiated an extraordinarily good deal with the government. For its farm in Bako, Karuturi is paying no rent for six years and then only 135 birr (£6.50) per hectare per year for the remainder of the 50-year lease. In Gambella, a remote and sparsely populated region close to Sudan, the rent is only 15 birr per hectare (73p).

The company believes the potential for large profits is so great that it plans to invest nearly $1bn in its Ethiopian agricultural operations, according to managing director Sai Ramakrishna Karuturi. Within eight years, he hopes to be producing 3m tonnes of cereals – mostly maize and rice – a year on the Gambella farm, as well as palm oil and sugar. Some of the produce will be sold in Sudan and Kenya – where the company is in talks with the US Agency for International Development to build grain silos at a border town. Like all the foreign land investors in Ethiopia, the company is free to export as much of its produce as it likes, but Sai Ramakrishna Karuturi said most would be sold domestically, where there is a ready market.

"Ethiopia is a food importer and will continue to be for some time. With the high cost of transportation in Africa, it does not make sense for us to try to export beyond the region."

As with land, labour is also extremely cheap. The minimum wage in Ethiopia is about 8 birr (39p) a day. Karuturi, which hopes eventually to employ 20,000 people on its two farms, says it pays 10 birr (49p) a day and provides meals to its workers.

Rao, general manager of the Bako farm, said there was no shortage of locals desperate for jobs. "People here are very poor. They would work for 1 birr, and no one else pays more than 5 birr. So we are paying double."

Outside the farm gates, the feeling about Karuturi among peasant farmers was mixed. The company's 11,000 hectares were fallow before it arrived – the black clay soil is rich in nutrients but difficult to work without a mechanical plough – but some locals had grazed their cattle there and used to cross the farm to the nearest river, which is no longer possible.

Teresa Agassa, a 38-year-old man in gumboots who works a one-hectare plot, said it was good that some local people now had jobs – even if the wage was too small. But he spoke enviously of Karuturi's tractors.

"They're only for the company's benefit. Maybe there can also be benefits for us – but we will only know in the future."

Ethiopia's farming revolution

In the late 1970s Ethiopia's communist regime nationalised all land, and private ownership remains outlawed. The millions of small-scale farmers work under licence from the state, and most plots are one hectare or less, which has hampered efforts to improve food security. But the centralised tenure system has made it easy for the government to offer hundreds of idle farms to investors at cheap rates. A detailed database contains information on soil types, weather patterns, the nearest rivers, and suitable crops. The agriculture ministry is advertising 1.68 million hectares of land in the Benishangul-Gumuz, South Omo and Gambella regions. The greatest interest has come from India and Saudi Arabia, including Saudi Star Agricultural Development, which is growing 10,000 hectares of rice in Gambella. Firms from other Arab countries, and from China, Japan and the US have also expressed strong interest in leasing land.http://www.guardian.co.uk/world/2010/jan/15/ethiopia-sells-land-farming-giants

abesha

January 15th, 2010, 10:23 AM

Do anyone in the country ever go to sleep? thats ridiculously so much coffee do drink.

lol. Most Ethios drink coffee at least 2-3 times a day. When I was working there, there was coffee at breakfast, around 10 o'clock, after lunch and after dinner. Some people also had a cup in the afternoon, around 4-5 pm.

We drink lots of it.

Yoniii

January 15th, 2010, 11:52 AM

A very interesting article:

Ethiopia – country of the silver sickle – offers land dirt cheap to farming giants

http://www.guardian.co.uk/world/2010/jan/15/ethiopia-sells-land-farming-giants

I can't decide to if these are positive investments or colonialism. I don't like the fact that they can export how much they like. It will be disastrous if everything goes to export.

abesha

January 15th, 2010, 12:09 PM

Marwa1001

January 15th, 2010, 12:25 PM

Greening the Ogaden.... and finding folks *cough*highlanders*cough* to settle it! This shall be the end of the ONLF! Muahahahah!

If You couldnt settle in Ogaden for over a 1000 years what makes you think, you will be able to. Thanks for the free investment. ONLF will be around to make sure you never pass further the Oromo Land's.:nuts:

abesha

January 15th, 2010, 12:33 PM

Oh phunk off! This is not the thread for that crap :ohno:

Marwa1001

January 15th, 2010, 12:51 PM

Oh phunk off! This is not the thread for that crap :ohno:

Tell Your Folks that than. :lol:

abesha

January 15th, 2010, 12:55 PM

Yoniii

January 15th, 2010, 12:58 PM

Marwa1001

January 15th, 2010, 01:06 PM

Marwa please don't ruin this thread. Go and start another one in the Oasis and rant there all you want about Ethiopia.

He was just joking and that's it. We've all moved on but you are trying to hijack the thread.

I never meant to Ruin your thread and i have no issue and when i have something to say well than i just say it bluntly unlike people who take quirk japs.

Yonii

I guess you want another beat down my dear.:lol:

qweads

January 15th, 2010, 02:05 PM

I felt the same way as you when it first started.
This is something that has the potential to completely transform Ethiopia (positively) if it's properly managed.
I don't like the fact they can export 100%, and all tax free as well, but I think at this point in time it's difficult to get a better deal for our end due to the intense competition from other countries. We have to take what we can for now (beggars can't be choosers malet new).
With that said, the government should definitely intervene if the local market is not being supplied properly. I mean, Ethiopian land is not an extension of Saudi Arabia and India. Our people should not starve while food grown on our land for free is filling bellies in India and China.

I think it's a question of waiting and seeing. I think we'll know soon enough whether it's the right move or not. The next decade will be very telling. I think it's too early to be too pessimistic.

You're naive to think that this might help Ethiopia or that the government is looking after the best interest of the country. It's not that hard to grow some food in a country like Ethiopia which has lots of fertile land if the government really wanted to with all the support they get from the west and now from the east. The Meles government is just trying to make a quick buck out of fear that their time is up in Ethiopia.

Most rational people understand the importance of allowing, absolutely no one, to control the national food supply or lease large tracts of land like this. Madagascar was a good example where the corrupt government tried to lease large tracts of land to a Korean company...the rest is history.

Answer this question:
Do you see any other country "leasing" large chunks of land to someone else for this purpose?

abesha

January 15th, 2010, 02:37 PM

Plenty of African and Asian countries are actually leasing land under the same terms. What exactly is that supposed to prove?

Frankly, I'm tired of the eternal pessimism by Ethiopians when it comes to any news coming out of the government. I choose to give them the benefit of doubt in this case. You can call me naive all you want but your supposed superior realism is not going to all of a sudden cancel these deals.

All I'm saying is, let's wait and see instead of condemning it outright. How the government handles the situation within the next decade will show us whether this deal is beneficial to Ethiopians or if it's solely beneficial to Saudi Arabia, India, China, etc.

qweads

January 15th, 2010, 03:18 PM

All I'm saying is, let's wait and see instead of condemning it outright. How the government handles the situation within the next decade will show us whether this deal is beneficial to Ethiopians or if it's solely beneficial to Saudi Arabia, India, China, etc.

Well the Meles administration will have to deal with the people inhabiting those lands and the rest of Ethiopia much sooner than "the next decade". There is an election soon which most likely will be rigged. We'll see soon enough how the Ethiopian people respond when Meles or his cronies declare him the "winner" and if the people are willing to tolerate more of Meles in the future.

abesha

January 18th, 2010, 11:37 AM

Ethiopia's high-tech commodity exchange

Traded for centuries on the backs of camels, donkeys and mules, Ethiopian coffee was the first to reach foreign markets over 500 years ago. In modern times, Ethiopian coffee has struggled in global trade, with complaints of inconsistent quality, but the last 12 months have seen a dramatic shift in its fortunes. Launched in April 2008, the Ethiopian Commodity Exchange (ECX) has revolutionised coffee sales, handling transactions worth some US$240 million since December 2008, amounting to over 160,000 tons of coffee beans. Initially focussed on 'spot' transactions, for immediate sale and delivery of beans, the Exchange is now moving towards trade in coffee futures, and is also starting to market speciality coffees, in response to local pressure.

Transparent technology

The founding principles of the ECX are a guarantee of quality, quantity and prompt delivery. Deals are done through a system of money and commodity transfer which, so far, has proved extremely reliable for both buyers and sellers. According to the founder and CEO of the Exchange, Dr Eleni Gabre-Madhin, the computer-based trading system is so reliable that not a single day of trade was lost, nor a single default occurred in either payment or delivery in the opening year of trade. Transparency is key, with real time crop price information displayed on a network of digital display boards in 29 regional centres, and on the ECX website.

While the ECX hosts trade in a number of crops, including maize, wheat, haricot beans and sesame, coffee has been its main focus so far. Some 450 private traders have now joined as members of the Exchange, which operates from its headquarters in Addis Ababa. In order to offer the necessary guarantees, the Exchange has established 14 warehouses in the country's commercial hubs, where growers can take their beans to be weighed, graded and stored. Receipts from the warehouses are then taken to be traded at the ECX. In a recent attempt to increase trade volumes, private warehouses are also being accredited by the Exchange, if they are able to meet its standards.

To ensure that payments are made and received, buyers using the Exchange are required to transfer funds to a specific account. Once a deal is done, the Exchange instructs its bank to debit the buyer's account and credit the seller, a process that takes just two hours. But the ECX system also enables growers to borrow money using their deposited crop as collateral; seven commercial banks are now offering credit of up to 70 percent of the value of a warehouse receipt, giving farmers the chance to invest in future production at the right time of the season.

Future trading

Currently, ECX warehouse procedures have been able to guarantee an international standard of commercial grade coffee. A new development, however, involves refining the system to allow coffee beans to be sorted according to their precise origins, and therefore to be marketed as specialty coffee. A network of regional laboratories has been established, and 37 coffee graders have been accredited by the internationally recognised Coffee Quality Institute, following training by the Exchange. The Ethiopian government has also given its backing, drafting legislation to recognise international and national certification agencies for agricultural produce, including organic coffee.

Two further developments planned for 2010 are the development of online trading and trading in coffee futures. Unlike normal futures trading, however, where money, rather than actual volumes of crop, typically changes hands, the ECX is planning to introduce 'compulsory delivery' futures contracts. Deliveries will take place at a future time after the time of sale, such as 3, 6 or 12 months, but the price will be fixed when the sale is made. This allows better planning and reduced storage costs for buyers, while enabling sellers to be sure of their income.

In November 2009, the Exchange invited tenders for installation of an online trading system. Currently trading is done in person at the ECX headquarters, but with most coffee buyers coming from Europe, the Middle East and Japan, an online system will save considerable time and expense. Farmers are also excited by the prospect; many have enrolled on computer training courses, in order to take advantage of the system once it is launched. An estimated 850,000 small farmers have already become involved in the ECX system, around 12 per cent of the national total. Following the example of the Kenyan Agricultural Commodity Exchange and others, the ECX is also planning to make price information available by SMS messaging and automated voice response systems.

http://www.new-ag.info//focus/focusItem.php?a=1124

enkelfam

January 18th, 2010, 09:44 PM

ECX is definitely on the right track. If only we had CEO's like Dr Eleni Gabre-Madhin in all branches of the government especially ETC, things would have been different.

abesha

January 19th, 2010, 05:57 PM

An old article but interesting:

“Ethiopia experiences an economic boom; bamboo is one of the responsible cash crops for the rising wealth”

Source: AP TELEVISION, Sunday, February 17, 2008 9:44 PM

Agriculture is the back bone of the booming Ethiopian economy

From small family run holdings to large scale plantations, all are contributing to the growing GDP growth.

But the country’s recent success is not only due to agriculture.

A report issued by the International Monetary Fund says growth is happening because of a number of different factors.

They range from favourable weather boosting crop production, to foreign cash sent by Ethiopians living abroad.

Arnim Schwidrowski, a senior representative for the IMF, says since a large scale drought in 2003, the country has been experiencing yearly economic growth of 10 to 11 per cent.

Partly because of this sustained economic growth, small banks and insurance offices have been mushrooming across the capital.

Also, traditional Ethiopian exports, like coffee and flowers have also been fetching higher prices on the international market.

Emerging cash crops like bamboo, leather and sugar are also responsible for the rising wealth.

Nonetheless the reliance on agriculture for half of the nation’s GP, worries some Ethiopians.

Amare Babu, a meteorologist, says rainfall distribution is not even in Ethiopia.

In the past the country has suffered from disastrous droughts and famines.

With little irrigation available, small-holder farmers have to rely on the irregular rainfall.

The country’s main rainy season starts from June to Sept, followed by a dry season from October to January.

Little rain fall in the months from January to May.

The livestock industry also relies heavily on the weather.

Ethiopia is estimated to have the largest number of livestock in Africa, and the 10th largest in the world, according to USAID.

In terms of the annual GDP, livestock accounts for 15 per cent.

Belaga Tadesse, a livestock trader, says livestock is very important for Ethiopians.

Animals are used to plough fields, the dairy industry, and for meat and leather, according to Tadesse.

One head of cattle is trading at around $350 US Dollars, says Tadesse.

Nonetheless, growth of the Ethiopian economy is having some negative effects.

Inflation is high and people at the very bottom of the economic chain are feeling the rise in prices.

Most of Ethiopia’s 80 million population live below the poverty line, and live on $1 USD per day, according to figures released by United Nations.

Getachew Adem, from the country’s Ministry of Finance and Economic Development, says the problem they face is one of balancing the rising inflation with economic growth.

According to Adem inflation is at 17 to 18 per cent.

To ease the country’s reliance on agriculture, the government plans to expand other sectors, like banking and construction.

This is a move which the IMF support, as they believe that shifting from agriculture, to non-weather related sectors will make Ethiopia’s economy more resilient.http://eabpnews.wordpress.com/%E2%80%9Cethiopia-experiences-an-economic-boom-bamboo-is-one-of-the-responsible-cash-crops-for-the-rising-wealth%E2%80%9D/

Some bamboo furniture:

http://eabpnews.files.wordpress.com/2009/08/dsc00030.jpg

http://eabpnews.files.wordpress.com/2009/08/dsc00029.jpg

http://eabpnews.files.wordpress.com/2009/08/dsc00031.jpg

http://eabpnews.files.wordpress.com/2009/08/dsc_04.jpg

http://eabpnews.files.wordpress.com/2009/08/img_3808.jpg

http://eabpnews.files.wordpress.com/2009/08/dsc_06.jpg

http://eabpnews.files.wordpress.com/2009/08/img_3682.jpg

enkelfam

January 19th, 2010, 06:25 PM

Those are pretty decent household furniture's, especially for the middle and lower income population. If these small scale designers can modernize their production line and start making high end household furniture, they will definitely make some serious money.
It is one of those untapped local ventures, like almost every other sector.:lol:
But I believe I read somewhere on World bank report on Ethiopia, I believe, where they mentioned that the furniture industry in Ethiopia is one of the best comparing it to others ( like real estate, construction, ... ) but this was 5 years ago.

abesha

January 20th, 2010, 11:52 AM

Very long but very informative article on the large commercial ventures in Ethiopia. It's worth reading, it examines all sides of the issue.

Ethiopian "virgin land" for sale

According to the World Bank, as much as three-quarters of Ethiopia’s arable land is not under cultivation, and agronomists say that with substantial capital expenditure, much of it could become bountiful. Since the world food crisis, Meles Zenawi, a former Marxist rebel who has turned into a champion of private capital, has publicly said he is “very eager” to attract foreign farm investors by offering them what the government describes as “virgin land.”

Dr. Robert Zeigler, an eminent American botanist, flew to Saudi Arabia in March for a series of high-level discussions about the future of the kingdom’s food supply. Saudi leaders were frightened: heavily dependent on imports, they had seen the price of rice and wheat, their dietary staples, fluctuate violently on the world market over the previous three years, at one point doubling in just a few months. The Saudis, rich in oil money but poor in arable land, were groping for a strategy to ensure that they could continue to meet the appetites of a growing population, and they wanted Zeigler’s expertise.

There are basically two ways to increase the supply of food: find new fields to plant or invent ways to multiply what existing ones yield. Zeigler runs the International Rice Research Institute, which is devoted to the latter course, employing science to expand the size of harvests. During the so-called Green Revolution of the 1960s, the institute’s laboratory developed “miracle rice,” a high-yielding strain that has been credited with saving millions of people from famine. Zeigler went to Saudi Arabia hoping that the wealthy kingdom might offer money for the basic research that leads to such technological breakthroughs. Instead, to his surprise, he discovered that the Saudis wanted to attack the problem from the opposite direction. They were looking for land.

In a series of meetings, Saudi government officials, bankers and agribusiness executives told an institute delegation led by Zeigler that they intended to spend billions of dollars to establish plantations to produce rice and other staple crops in African nations like Mali, Senegal, Sudan and Ethiopia. “They laid out this incredible plan,” Zeigler recalled. He was flabbergasted, not only by the scale of the projects but also by the audacity of their setting. Africa, the world’s most famished continent, can’t currently feed itself, let alone foreign markets.

The American scientist was catching a glimpse of an emerging test of the world’s food resources, one that has begun to take shape over the last year, largely outside the bounds of international scrutiny. A variety of factors — some transitory, like the spike in food prices, and others intractable, like global population growth and water scarcity — have created a market for farmland, as rich but resource-deprived nations in the Middle East, Asia and elsewhere seek to outsource their food production to places where fields are cheap and abundant. Because much of the world’s arable land is already in use — almost 90 percent, according to one estimate, if you take out forests and fragile ecosystems — the search has led to the countries least touched by development, in Africa. According to a recent study by the World Bank and the United Nations Food and Agriculture Organization, one of the earth’s last large reserves of underused land is the billion-acre Guinea Savannah zone, a crescent-shaped swath that runs east across Africa all the way to Ethiopia, and southward to Congo and Angola.

Foreign investors — some of them representing governments, some of them private interests — are promising to construct infrastructure, bring new technologies, create jobs and boost the productivity of underused land so that it not only feeds overseas markets but also feeds more Africans. (More than a third of the continent’s population is malnourished.) They’ve found that impoverished governments are often only too welcoming, offering land at giveaway prices. A few transactions have received significant publicity, like Kenya’s deal to lease nearly 100,000 acres to the Qatari government in return for financing a new port, or South Korea’s agreement to develop almost 400 square miles in Tanzania. But many other land deals, of near-unprecedented size, have been sealed with little fanfare.

Investors who are taking part in the land rush say they are confronting a primal fear, a situation in which food is unavailable at any price. Over the 30 years between the mid-1970s and the middle of this decade, grain supplies soared and prices fell by about half, a steady trend that led many experts to believe that there was no limit to humanity’s capacity to feed itself. But in 2006, the situation reversed, in concert with a wider commodities boom. Food prices increased slightly that year, rose by a quarter in 2007 and skyrocketed in 2008. Surplus-producing countries like Argentina and Vietnam, worried about feeding their own populations, placed restrictions on exports. American consumers, if they noticed the food crisis at all, saw it in modestly inflated supermarket bills, especially for meat and dairy products. But to many countries — not just in the Middle East but also import-dependent nations like South Korea and Japan — the specter of hyperinflation and hoarding presented an existential threat.

“When some governments stop exporting rice or wheat, it becomes a real, serious problem for people that don’t have full self-sufficiency,” said Al Arabi Mohammed Hamdi, an economic adviser to the Arab Authority for Agricultural Investment and Development. Sitting in his office in Dubai, overlooking the cargo-laden wooden boats moored along the city’s creek, Hamdi told me his view, that the only way to assure food security is to control the means of production.

Hamdi’s agency, which coordinates investments on behalf of 20 member states, has recently announced several projects, including a tentative $250 million joint venture with two private companies, which is slated to receive heavy subsidies from a Saudi program called the King Abdullah Initiative for Saudi Agricultural Investment Abroad. He said the main fields of investment for the project would most likely be Sudan and Ethiopia, countries with favorable climates that are situated just across the Red Sea. Hamdi waved a sheaf of memos that had just arrived on his desk, which he said were from another partner, Sheik Mansour Bin Zayed Al Nahyan, a billionaire member of the royal family of the emirate of Abu Dhabi, who has shown interest in acquiring land in Sudan and Eritrea. “There is no problem about money,” Hamdi said. “It’s about where and how.”

A long the dirt road that runs to Lake Ziway, a teardrop in the furrow of Ethiopia’s Great Rift Valley, farmers drove their donkey carts past a little orange-domed Orthodox church, and the tombs of their ancestors, decorated with vivid murals of horses and cattle. Between clusters of huts that looked as if they were constructed of matchsticks, there were wide-open wheat fields, where skinny young men were tilling the soil with wooden plows and teams of oxen. And then, nearing the lake, a fence appeared, closing off the countryside behind taut strings of barbed wire.

All through the Rift Valley region, my travel companion, an Ethiopian economist, had taken to pointing out all the new fence posts, standing naked and knobby like freshly cut saplings — mundane signifiers, he said, of the recent rush for Ethiopian land. In the old days, he told me, farmers rarely bothered with such formal lines of demarcation, but now the country’s earth is in demand. This fence, though, was different from the others — it stretched on for a mile or more. Behind it, we could glimpse a vast expanse of dark volcanic soil, recently turned over by tractors. “So,” said my guide, “this belongs to the sheik.”

He meant Sheik Mohammed Al Amoudi, a Saudi Arabia-based oil-and-construction billionaire who was born in Ethiopia and maintains a close relationship with the Ethiopian Prime Minister Meles Zenawi’s autocratic regime. (Fear of both men led my guide to say he didn’t want to be identified by name.) Over time, Al Amoudi, one of the world’s 50 richest people, according to Forbes, has used his fortune and political ties to amass control over large portions of Ethiopia’s private sector, including mines, hotels and plantations on which he grows tea, coffee, rubber and japtropha, a plant that has enormous promise as a biofuel. Since the global price spike, he has been getting into the newly lucrative world food trade.

Ethiopia might seem an unlikely hotbed of agricultural investment. To most of the world, the country is defined by images of famine: about a million people died there during the drought of the mid-1980s, and today about four times that many depend on emergency food aid. But according to the World Bank, as much as three-quarters of Ethiopia’s arable land is not under cultivation, and agronomists say that with substantial capital expenditure, much of it could become bountiful. Since the world food crisis, Zenawi, a former Marxist rebel who has turned into a champion of private capital, has publicly said he is “very eager” to attract foreign farm investors by offering them what the government describes as “virgin land.” An Ethiopian agriculture ministry official recently told Reuters that he has identified more than seven million acres. The government plans to lease half of it before the next harvest, at the dirt-cheap annual rate of around 50 cents per acre. “We are associated with hunger, although we have enormous investment opportunities,” explained Abi Woldemeskel, director general of the Ethiopian Investment Agency. “So that negative perception has to be changed through promotion.”

The government’s pliant attitude, along with Ethiopia’s convenient location, has made it an ideal target for Middle Eastern investors like Mohammed Al Amoudi. Not long ago, a newly formed Al Amoudi company, Saudi Star Agricultural Development, announced its plans to obtain the rights to more than a million acres — a land mass the size of Delaware — in the apparent hope of capitalizing on the Saudi government’s initiative to subsidize overseas staple-crop production. At a pilot site in the west of the country, he’s already cultivating rice. Earlier this year, amid great fanfare marking the start of the program, Al Amoudi personally presented the first shipment from the farm to King Abdullah in Riyadh. Meanwhile, in the Rift Valley region, another subsidiary is starting to grow fruits and vegetables for export to the Persian Gulf.

Al Amoudi’s plans raise a recurring question surrounding investment in food production: who will reap the benefits? As we drove down to the waterside, through fields dotted with massive sycamores, a farm supervisor told me that the 2,000-acre enterprise currently produces food for the local market, but there were plans to irrigate with water from the lake, and to shift the focus to exports. In the distance, dozens of laborers were bent to the ground, planting corn and onions.

Later, when I asked a couple of workers how much they were paid, they said nine birr each day, or around 75 cents. It wasn’t much, but Al Amoudi’s defenders say that’s the going rate for farm labor in Ethiopia. They argue that his investments are creating jobs, improving the productivity of dormant land and bringing economic development to rural communities. “We have achieved what the government hasn’t done for how many years,” says Arega Worku, an Ethiopian who is an agriculture adviser to Al Amoudi. (Al Amoudi declined to be interviewed.) Ethiopian journalists and opposition figures, however, have questioned the economic benefits of the deals, as well as Al Amoudi’s cozy relationship with the ruling party.

By far the most powerful opposition, however, surrounds the issue of land rights — a problem of historic proportions in Ethiopia. Just down the road from the farm on Lake Ziway, I caught sight of a gray-bearded man wearing a weathered pinstripe blazer, who was crouched over a ditch, washing his shoes. I stopped to ask him about the fence, and before long, a large group of villagers gathered around to tell me a resentful story. Decades ago, they said, during the rule of a Communist dictatorship in Ethiopia, the land was confiscated from them. After that dictatorship was overthrown, Al Amoudi took over the farm in a government privatization deal, over the futile objections of the displaced locals. The billionaire might consider the land his, but the villagers had long memories, and they angrily maintained that they were its rightful owners.

Throughout Africa, the politics of land is linked to the grim reality of hunger. Famines, typically produced by some combination of weather, pestilence and bad governance, break out with merciless randomness, unleashing calamity and reshaping history. Every country has its unique dynamics. Unlike most African nations, Ethiopia was never colonized in the 19th century but instead was ruled by emperors, who granted feudal plantations to members of their royal courts. The last emperor, Haile Selassie, was brought down by a famine that fueled a popular uprising. His dispossessed subjects chanted the slogan “land to the tiller.” The succeeding Communist dictatorship, which took ownership of all land for itself and pursued a disastrous collectivization policy, was toppled in the aftermath of the droughts of the 1980s. Under the present regime, private ownership of land is still banned, and every farmer in Ethiopia, foreign and domestic, works his fields under a licensing arrangement with the government. This land-tenure policy has made it possible for a one-party state to hand over huge tracts to investors at nominal rents, in secrecy, without the bother of a condemnation process.

Ethiopia’s government denies that anyone is being displaced, saying that the land is unused — an assertion many experts doubt. “One thing that is very clear, that seems to have escaped the attention of most investors, is that this is not simply empty land,” says Michael Taylor, a policy specialist at the International Land Coalition. If land in Africa hasn’t been planted, he says, it’s probably for a reason. Maybe it’s used to graze livestock, or deliberately left fallow to prevent nutrient depletion and erosion.

There is an ongoing debate among experts about the extent of the global land-acquisition trend. By its nature the evidence is piecemeal and anecdotal, and many highly publicized investments have yet to actually materialize on the ground. The most serious attempt to quantify the land rush, spearheaded by the International Institute for Environment and Development, suggests that as of earlier this year, the Ethiopian government had approved deals totaling around 1.5 million acres, while the country’s investment agency reports that it has approved 815 foreign-financed agricultural projects since 2007, nearly doubling the number registered in the entire previous decade. But that’s far from a complete picture. While the details of a few arrangements have leaked out, like one Saudi consortium’s plans to spend $100 million to grow wheat, barley and rice, many others remain undisclosed, and Addis Ababa has been awash in rumors of Arab moneymen who supposedly rent planes, pick out fertile tracts and cut deals.

Of course, there have been scrambles for African land before. In the view of critics, the colonial legacy is what makes the large land deals so outrageous, and they warn of potentially calamitous consequences. “Wars have been fought over this,” says Devlin Kuyek, a researcher with Grain, an advocacy group that opposes large-scale agribusiness and has played a key role in bringing attention to what it calls the “global land grab.”

It wasn’t until Grain compiled a long list of such deals into a polemical report titled “Seized!” last October that experts really began to talk about a serious trend. Although deals were being brokered in disparate locales like Australia, Kazakhstan, Ukraine and Vietnam, the most controversial field of investment was clearly Africa. “When you started to get some hints about what was happening in these deals,” Kuyek says, “it was shocking.” Within a month, Grain’s warnings seemed to be vindicated when The Financial Times broke news that the South Korean conglomerate Daewoo Logistics had signed an agreement to take over about half of Madagascar’s arable land, paying nothing, with the intention of growing corn and palm oil for export. Popular protests broke out, helping to mobilize opposition to Madagascar’s already unpopular president, who was overthrown in a coup in March.

The episode illustrated the emotional volatility of the land issue and raised questions about the degree to which corrupt leaders might be profiting off the deals. Since then, there has been an international outcry. Legislators from the Philippines have called for an investigation into their government’s agreements with various investing nations, while Thailand’s leader has vowed to chase off any foreign land buyers.

But there’s more than one side to the argument. Development economists and African governments say that if a country like Ethiopia is ever going to feed itself, let alone wean itself from foreign aid, which totaled $2.4 billion in 2007, it will have to find some way of increasing the productivity of its agriculture. “We’ve been complaining for decades about the lack of investment in African agriculture,” says David Hallam, a trade expert at the Food and Agriculture Organization. Last fall, Paul Collier of Oxford University, an influential voice on issues of world poverty, published a provocative article in Foreign Affairs in which he argued that a “middle- and upper-class love affair with peasant agriculture” has clouded the African development debate with “romanticism.” Approvingly citing the example of Brazil — where masses of indigenous landholders were displaced in favor of large-scale farms — Collier concluded that “to ignore commercial agriculture as a force for rural development and enhanced food supply is surely ideological.”

In Ethiopia, Mohammed Al Amoudi and other foreign agricultural investors are putting Collier’s theory into practice. Near the southern town of Awassa, in a shadow of a soaring Rift Valley escarpment, sits a field of waving corn and a complex of domed greenhouses, looking pristine and alien against the natural backdrop. On an overcast July morning, dozens of laborers were at work preparing the ground for one of Al Amoudi’s latest enterprises: a commercial vegetable farm.

“For a grower, this is heaven on earth,” says Jan Prins, managing director of the subsidiary company that is running the venture for Al Amoudi. Originally from the Netherlands, Prins says he assumed that Ethiopia was arid but was surprised to learn when he came to the country that much of it was fertile, with diverse microclimates. The Awassa farm is one of four that Prins is getting up and running. Using computerized irrigation systems, the farms will grow tomatoes, peppers, broccoli, melons and other fresh produce, the vast majority of it to be shipped to Saudi Arabia and Dubai. Over time, he says, he hopes to expand into growing other crops, like wheat and barley, the latter of which can be used to feed camels.

The nations of the Persian Gulf are likely to see their populations increase by half by 2030, and already import 60 percent of their food. Self-sufficiency isn’t a viable option, as the Saudis have learned through bitter experience. In the 1970s, worries about the stability of the global food supply inspired the Saudi government to grow wheat through intensive irrigation. Between 1980 and 1999, according to a study by Elie Elhadj, a banker and historian, the Saudis pumped 300 billion cubic meters of water into their desert. By the early 1990s, the kingdom had managed to become the world’s sixth-largest wheat exporter. But then its leaders started paying attention to the warnings of environmentalists, who pointed out that irrigation was draining a nonreplenishable supply of underground freshwater. Saudi Arabia now plans to phase out wheat production by 2016, which is one reason it’s looking to other countries to fill its food needs.

“The rules of the game have changed,” says Saad Al Swatt, the chief executive of the Tabuk Agricultural Development Company, one of the kingdom’s largest farming concerns. Al Swatt’s company was one of those that met with Robert Zeigler about farming rice; he says that with government encouragement, he is looking at expanding into countries like Sudan, Ethiopia and Vietnam. “They have the land, they have the water, but unfortunately, they don’t have the system or sometimes the finance to have these large-scale agricultural projects.” Al Swatt says. “We wanted to export our experience and really develop those areas, to help people.”

About 10 percent of the more than 80 million people who live in Ethiopia suffer from chronic food shortages. This year, because of poor rains, the U.N. World Food Program warns that much of East Africa faces the threat of a famine, potentially the worst in almost two decades. Traditionally, the model for feeding the hungry in Africa has involved shipping in surpluses from the rest of the world in times of emergency, but governments that are trying to attract investment say that the new farms could provide a lasting, noncharitable solution. (“It’s better than begging,” one Ethiopian official recently told the African publication Business Daily.) Whatever the long-term justification, however, it looks bad politically for countries like Kenya and Ethiopia to be letting foreign investors use their land at a time when their people face the specter of mass starvation. And many experts wonder whether such governments will go through with the deals. Ethiopia, after all, was one of the countries that banned grain exports during the recent spike in world food prices. “The idea that one country would go to another country,” says Robert Zeigler, “and lease some land, and expect that the rice produced there would be made available to them if there’s a food crisis in that host country, is ludicrous.”

The hyperinflationary spiral that caused the world food crisis had multiple causes. The harvests in 2006 and 2007 were the worst of the decade, hedge funds and other players in the commodities markets appear to have driven up prices and government subsidies for biofuels encouraged farmers to grow crops that ended up as ethanol. But the environment and demography are more lasting issues, and experts predict that prices, which have declined since their peak, are likely to stabilize significantly above precrisis levels. This represents a danger to the developing world, where the poor spend between 50 and 80 percent of their income on food, but it may also present an opportunity. If one good thing has emerged from the crisis, it’s a growing awareness of Africa’s unrealized agricultural potential. Because where there are appetites, there are profits to be made.

In late June, several hundred farmers and investment bankers came together in Manhattan to survey the landscape at a conference on global agriculture investment. The food crisis has served as a catalyst for the sleepy agricultural sector, spurring financial firms like Goldman Sachs and BlackRock to invest hundreds of millions of dollars in overseas agricultural projects, so the mood was heady for business, though depressing for humanity. There much talk of Thomas Malthus, the 19th-century prophet of overpopulation and famine.

“Beware of 2020 and beyond, because we think there could be genuine food shortages by that period,” Susan Payne, the chief executive of Emergent Asset Management, told the audience during a talk on Africa’s agricultural potential. She showed a series of slides citing chilling statistics: grain stocks are at their lowest levels in 60 years; there were food riots in 15 countries in 2008; global warming is turning arable land into desert; freshwater is dwindling and China is draining its reserves; and the really big problem that contributes to all the others — the world’s population is growing by 80 million hungry people a year. The United Nations Food and Agriculture Organization estimates that in order to feed the world’s projected population in 2050 — some nine billion people — agricultural production needs to increase by an annual average of 1 percent. That means adding around 23 million tons of cereals to the world’s food supply next year, a little less than the total production of Australia in 2008.

“Africa is the final frontier,” Payne told me after the conference. “It’s the one continent that remains relatively unexploited.” Emergent’s African Agricultural Land Fund, started last year, is investing several hundred million dollars into commercial farms around the continent. Africa may be known for decrepit infrastructure and corrupt governments — problems that are being steadily alleviated, Payne argues — but land and labor come so cheaply there that she calculates the risks are worthwhile.

The payoffs could be immense. In a country like Ethiopia, farmers put in backbreaking effort, but they yield about a third as much wheat per acre as do Europe, China or Chile. Even modest interventions could start to close this gap. One small example: the black soil I saw throughout the Great Rift region. Known as vertisol, it’s a product of volcanic activity and possesses the nutrients to produce enormous harvests. Because of its high clay content, however, it becomes sticky and waterlogged during the rainy season, which makes it very difficult to plow by traditional methods. With the addition of advanced implements, improved seeds and fertilizer, you can double the amount of wheat it yields. Ethiopia, like all of Africa, is full of such opportunities, which is one reason the World Bank says that investing in agriculture is one of the most effective ways to speed economic development on the continent.

Yet agriculture has historically been a tiny item in foreign-aid budgets. For years, governments, private foundations and donor institutions like the World Bank have been urging African governments to fill the spending gap with private investment. Now, at the very moment a world food crisis has come along, creating the perhaps fleeting possibility of an influx of capital into African agriculture, some of the same organizations are sending conflicting messages. The Food and Agriculture Organization, for instance, co-sponsored a report calling for a major expansion of commercial agriculture in Africa, but the organization’s director-general has simultaneously been warning of the “neocolonial” dangers of land deals. “We’re making them feel that it’s sinful,” says Mafa Chipeta, a Malawian who oversees Ethiopia and the rest of eastern Africa for the organization. “Why are we not saying, here is an opportunity?”

One focus of agricultural investment in Ethiopia is the region of Gambella, near the border with Sudan. The World Bank says it has more than four million acres of irrigable land. “It’s emerald green, the whole place is fertile and they have only 200,000 people down there,” says Sai Ramakrishna Karuturi, head of an Indian commercial farming company. Earlier this year, Karuturi signed an agreement with the government to lease close to 800,000 acres on which he will grow rice, wheat and sugar cane, among other crops. Karuturi told me he doesn’t have to export the food to make money; there’s plenty of profit potential in the East African market. He has flown in John Deere tractors, agricultural experts from Texas A&M and commercial farmers from Mississippi to help him get things going. He says he’s raising $100 million in capital from private equity firms for the first phase of the project, which he estimates will ultimately cost well over a billion dollars. “Recently, I saw a lot of articles . . . where they referred to me as a food pirate,” Karuturi says. “This whole thing is so elitist, it’s ridiculous. They want Africa to remain poor.”

But the argument against enormous land concessions needn’t be based solely on appeals to human rights, environmental warnings or romanticism. It’s possible to be a believer in development without endorsing Paul Collier’s view that the small landholders stand in its way. In fact, there’s a whole school of economic thought that says that Collier is wrong, that big is not necessarily better in agriculture — and that the land deals therefore might be unwise not because they’re wrong but because they’re unprofitable. A recent World Bank study found that large-scale export agriculture in Africa has succeeded only with plantation crops like sugar and tea or in ventures that were propped up by extreme government subsidies, during colonialism or during the apartheid era in South Africa.

This record of failure is one reason that the government of Qatar, in addressing its food-security concerns, has chosen to concentrate on investing in existing agribusinesses rather than just acquiring land. That’s just one of many ways to invest in farming without removing the African farmers. On a bright Rift Valley afternoon, I went to see another option, a cooperative scheme under which a group of around 300 Ethiopians, working plots of 4 to 10 acres, were getting into export agriculture. During the European winter, they grew green beans for the Dutch market. The rest of the year, they cultivated corn and other crops for local consumption. The land had been irrigated with the help of a nonprofit organization and an Ethiopian commercial farmer named Tsegaye Abebe, who brought all the produce to market.

As a breeze riffled through a tall field of corn, a group of farmers, wearing sandals made from old tires, told me the arrangement, while not perfect, was beneficial in the most crucial respect: they weren’t toiling for someone else. Not far away, a Pakistani investor had taken over a government cattle ranch, once an area free for grazing, and had put fences and trenches in place to keep out the local livestock. The Ethiopians who worked there were miserable.

The farmers had heard rumors that foreign investors were eyeing still more Ethiopian land. Imam Gemedo Tilago, a 78-year-old cloaked in a white cotton shawl, shook his finger, vowing that Allah would not allow the community to remain passive. But that was a problem for the future, and the farmers had more grounded concerns. I noticed, driving down the rural paths that led to this farm, that the earth looked parched in places, and the cattle were showing their ribs through their dull brown hides. The worried farmers told me that this year, the seasonal rains were late in coming to the Rift Valley. If they didn’t arrive soon, there’d be hunger.

(The above article is written by Andrew Rice, a contributing writer and the author of “The Teeth May Smile But the Heart Does Not Forget,” about a Ugandan murder trial.)

http://www.ethiopianreview.com/content/11346

BUTEMBO21

January 20th, 2010, 12:01 PM

Abesha,

Doesn't Ethiopia has plants manufacturing some agri-tractors? do you know many plants are there ? any websites?

abesha

January 20th, 2010, 12:07 PM

There was one but I never hear anything about it. It might be closed, but I doubt it since it has an active website.

abesha

January 20th, 2010, 12:08 PM

There was one but I never hear anything about it. It might be closed but I doubt it since it has an active website.

BUTEMBO21

January 20th, 2010, 12:10 PM

There was one but I never hear anything about it. It might be closed but I doubt it since it has an active website.

Closed why?:bash: dod you know the website?

abesha

January 20th, 2010, 12:17 PM

Here's some news on an assembly plant:

Ethiopia: Plant to assemble lower horse-powered tractors

sun | June 2nd, 2009 at 5:59 am |

Adama – The Nazareth Tractor Assembly Plant, one of the state-owned enterprises, has announced plans to assemble lower horse-powered tractors in a bid to enable local farmers procure its new product.

The assembly also said it has secured 33.7 million Birr income from sales of tractors and trailers over the last 10 months obtaining gross profit of over 3.6 million Birr.

Assembly acting manager, Fatuma Idris told ENA that her organization has already finalized a study aimed at undertaking market-centered reforms.

She said the assembly, in collaboration with Kaliti Steel Factory, envisages substituting the inputs and technologies being imported from Belarus.

According to the manager, the plant is enjoying huge market potential as a result of the ever-growing agro-industry, investment, construction, road, and water resource development sectors.

Hence, she said, the assembly will begin assembly of lower horse-powered tractors as of the coming Ethiopian fiscal year.

The assembly, established some 25 years ago, has 130 employees at present.

(ENA)http://www.ethiopianreview.com/articles/7852

abesha

January 20th, 2010, 12:30 PM

That's the only one I know of. The website used to be www.adamachamber.com but it's not there anymore.

enkelfam

January 20th, 2010, 04:07 PM

I hope they do a good job of making good quality products, because so far our steel products are pretty bad. Well, it is a good start and at the right price will sure provide a boost in productivity for the local farmers ( more than 20 million of so of them)

abesha

January 22nd, 2010, 05:41 PM

Older article:

Ethiopia says rebound in coffee harvest will boost exports

ADDIS ABABA (Reuters)

- Ethiopia is pinning its hopes on a rebound in harvests and prices for its crucial coffee sector to boost export earnings to $2.9 billion in 2009/2010, the trade minister said on Wednesday.

Coffee accounted for some 60 percent of Ethiopia's foreign exchange revenue in the 2007/2008 (June/July) season, when it earned more than $525 million from exports of 170,888 tonnes of mostly high quality arabica beans.

But earnings slumped to just $375.8 million for 133,993 tonnes in 2008/2009 after bad weather obliterated entire crops in some growing zones.

"Coffee production this fiscal year is estimated to be 20 to 30 percent more than that of last year," Trade Minister Girma Birru told Reuters in an interview.

http://af.reuters.com/article/investingNews/idAFJOE5AO0H120091125

enkelfam

February 4th, 2010, 07:52 PM

Over 15,000 farmers are to benefit from a pilot project to assist in implementing efficient and environmentally sustainable irrigation.
With support from Israel and Germany, the project is to be implemented in 13 areas of the country in four regional states: Amhara, SNNPR, Oromia and Tigray.
It is particularly aimed at helping small and medium farms, whose owners are struggling to make a living in harsh environments where rain-fed agriculture is predominantly practiced, said Mastwal Ejigu, a representative from the Amhara Regional State's Bureau of Water Resources.
This makes them susceptible to problems arising from seasonal variability of rainfall, he said, adding that technologies to assist these farmers in adapting to climate change have become increasingly important.
On Monday, Germany, Israel and Ethiopia signed the tripartite implementation agreement to launch the project.
According to the project managers, productivity will be expected to increase by 40 percent per unit area. :applause:

Apart from the irrigation systems, the scheme will improve water management and usage of alternative sources of water, such as treated waste water.
"This is mainly important in terms of technology transfers," Mastwal told Capital, referring to the huge experience Israelis have from projects in their own arid areas.
He said the three parties will contribute funds, personnel, equipment, training and services.
Germany, via GTZ, is to contribute 1.5 million Euros, while Israel will provide long-term experts for technical assistance, consultancy, as well as training, equivalent to around one million dollars.
The project in up to 16 water catchment areas will include advice on choosing the best irrigation systems, financing infrastructure changes, and how to market produce.
German Chargé d'Affaires Michael Biontino said the new German Government has only recently renewed its commitment to the trilateral mode of cooperation with Israel and Ethiopia.
He said Israel's irrigation experience in arid and semi-arid land will be a great advantage to the project.
"Under carefully assessed conditions, this technology, facilitated by the German Technical Cooperation, may greatly benefit our partner countries," Mr. Biontino said.
The four-year agreement (2009-2012) was signed by Sileshi Getahun on behalf of Bashir Abdhullai, State Minister at the Ministry of Agriculture and Rural Development, and Nicole Heppner, Deputy GTZ Country Director and Mr. Oded Ben-Haim, Ambassador of the State of Israel to Ethiopia.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=12258:farmers-to-benefit-from-israeli-irrigation-expertise-and-german-funds&catid=12:local-news&Itemid=4

Ahadu

February 5th, 2010, 10:18 AM

"Far more valuable than gold is a particle of Ethiopia's earth." Emperor Tewodros IV, telling his troops to make sure that when British visitors departed they should have their boots cleaned.

^^^^
Sorry enkelfam - am a bit off from the topic.

From your foot-note: "Emperor Tewodros IV or II???"......but anyways, just to point out that the emperor was the most bloodiest Tyrant, Mass Murderer & Torturer that Ethiopia ever witnessed. I am confident that a mass grave still exist on Magdala - if a proper archaeology dig is performed.

BTW: he never committed suicide after being defeated:, (1) based on concrete evidence, he was killed by his followers i.e. there was a sort of coup d’état at the very last minute. (2)according to Napier's note, two distinct bullet holes on his head were visible (Hmmm, can you kill yourself twice?) – To get the truth, we, Ethiopians, need to do a modern day CSI on his skeleton (Remember his remain is still on Magdala!). (3) He repeatedly has tried to escape from his fortress - there is plenty of evidence for that. Unfortunately, Magdala was surrounded by Gala /Oromo tribes - who were his arch enemies.

So, we may need to be a bit reserved before glorifying some emperor that we do not know well!!

Regards

abesha

February 5th, 2010, 03:02 PM

Ethiopia sees higher coffee prices for Africa
Fri Feb 5, 2010
By Duncan Miriri

ADDIS ABABA (Reuters) - African coffee producers are expected to enjoy higher prices this year thanks to falling output in Colombia, the world's third biggest exporter, the chief executive of the Ethiopia Commodity Exchange (ECX) said.

"The outlook for Arabica prices seems to be they will continue upwards because of the shortfall of production in Colombia," Eleni Gabre-Madhin told Reuters late on Thursday. "We think this is a very good opportunity for African fine coffees."

The ECX, which was launched in mid-2008, sold about 161,000 tonnes of beans -- or 70 percent of the Horn of Africa nation's output -- last year at a value of $380 million.

Eleni said Arabica prices had already posted a 20 percent gain on the international market this year. Together with other developments in the industry, she added, that pointed towards good earnings for African farmers from their harvests in 2010.

"That seems to be translating into our market as well ... because of the very significant increase in the higher quality coming in, we expect that return to farmers will go up probably by more than that," Eleni said in an interview. "We are seeing a shift from lower grade coffee to higher quality coffee."

ECX, which in addition to its core business of trading commodities also carries out quality certification, warehousing, clearing payments and disseminating market data, partnered with a U.S. organisation last year to boost specialty coffee supply.

Coffee grades were increased to 10 from five through addition of new criteria like the geographical origin of a particular lot, Eleni said, adding the top two grades were fetching a 10-15 percent premium above commercial grade coffee.

"Now we have a way to measure it (quality) and a way to reward it and that has had a direct impact on the incentive of the producers to produce higher quality, to do better post-harvest handling and bring higher quality market to the market," she said.

Although traded volumes through the open cry system on the exchange's floor were up 72 percent last month year-on-year, Eleni said it was not clear if the trend would continue.

"I would have to hazard a guess of around 30-40 percent higher on last year," she said, adding the priority for the exchange was to install an online trading platform.

She expected the multi-million dollar undertaking to be completed in two years, along with the introduction of forward and future contracts, warehouse receipt financing, where farmers can borrow against receipts of beans delivered to the ECX.

The balance of Ethiopia's coffee output which is not sold through the ECX is sold locally or exported directly.

http://af.reuters.com/article/investingNews/idAFJOE61407Z20100205?sp=true

abesha

February 5th, 2010, 03:09 PM

Scientists, Donors Blast Ethiopia's Bio Safety Law

Scientists and farmers are urging Ethiopia to reconsider a new biodiversity law they say restricts agricultural research and could hamper delivery of urgently needed food aid. The law has prompted foreign donors to cut off funding to Ethiopian scientific research institutions.

Ethiopia's government held a two day forum this week to hear objections to a Biodiversity Proclamation approved by parliament last July, on the final day before summer recess. The law's stated objective is to protect biodiversity, as well as human health and animals, from 'the adverse effects of modified organisms'.

But critics say the proclamation chokes off research into improving crop production in a country suffering chronic food shortages. Tilaye Feyisa, assistant professor of plant biotechnology at Addis Ababa University says anyone involved in studying genetic engineering is subject to strict government regulation.

"It is really excellent proclamation to prevent the research in the areas of plant genetic engineering," said Tilaye Feyisa. "It stops, because if you break this proclamation, even unintentionally, you can be put in prison for one to three years."

Tilaye says funding for research on genetically modified organisms, or GMOs, has dried up since the law went into effect.

"The money we get is from outside sources," said Tilaye. "We write proposals, when the country is against GMOs, having this proclamation, we don't get any money for research from foreign donors. It is killing the scientific research."

Tilahun Zewelde is a former plant scientist at the Ethiopian Research Organization. He now work at Uganda's Agriculture Biotechnology Support Program. Speaking at this week's meeting, he charged Ethiopia's law was written by environmental extremists and adopted without review by a parliament that had no idea of its consequences.

"We can't even teach students life science and biotechnology," said Tilahun Zewelde. "And the main reason it was drafted by very biased people. Biased in the sense biotechnology is bad, genetic engineering is bad and multinationals are going to take over everything, control the seed business. And the actual technology users were not involved in drafting process. So it's one sided, not good for country."

Biotechnology experts from other African nations came to the forum to express concerns about the Biosafety Proclamation. Togolese scientist Jacob Mignouna is Technical Director of the African Agricultural Technology Foundation. He says the law rejects conclusive evidence about the safety of genetically modified organisms in common use.

"There's no need to reinvent the wheel," said Jacob Mignouna. "The world has moved on. This technology has been proven. This is the message our colleagues from Ethiopia should understand and look carefully and see how we can move forward to embrace new technology at the same time protecting biodiversity in this great country."

But Minister of State for Agricultural Development Abera Deresa says Ethiopia is not convinced by available evidence that GMOs are safe. The Agriculture Ministry was a main sponsor of the forum, but Abera says the government has a duty to protect the public until the scientific community does more to prove GMOs pose no threat to health or to Ethiopia's biodiversity.

"Among scientists there is a division," said Abera Deresa. "A certain number of scientists who are not for GMO, a certain number of scientists who are for GMO. So we have to assess why this is happening."

Abera says the government is reviewing the Biosafety Proclamation, and may ask parliament to make changes.

Meanwhile, aid donors say the law could restrict shipments of food intended for more than five million Ethiopians facing malnutrition.

The United States provides nearly 80 per cent of Ethiopia's food assistance.

Among the U.S. supplies currently on the way is roughly 30,000 metric tons of corn-soy blend and vegetable oil, which are typically produced from bioengineered corn and soy.

The Ethiopian government has issued a waiver to allow the products to come in to the country, but the waiver is due to expire at the end of February.
http://www1.voanews.com/english/news/environment/Scientists-Donors-Blast-Ethiopias-Bio-Safety-Law-83595222.html

abesha

February 7th, 2010, 11:32 PM

SPS-LMM, ESAP sign agreement to develop livestock market information system

Friday, 01 January 2010

Addis Ababa, January 1 (WIC) – The Ethiopian Sanitary and Phytosanitary and Livestock and Meat Marketing Program (SPS-LMM) financed by the United States Agency for International Development (USAID) has signed an agreement with the Ethiopian Society of Animal Production (ESAP) for developing livestock market information system (LMIS).

The agreement was signed by Belachew Hurrissa, SPS-LMM Marketing Specialist and Deputy Chief of Party, and Dr. Tadelle Dessie, Presidents of the ESAP in the presence of Agriculture and Rural Development State Minister, Dr Abera Deresa.

Dr. Abera on the occasion said the agreement would have a significant contribution to effectively exploit livestock resources and expedite the economic growth of the country.

Commending efforts of ESAP and SPS-LMM to improve the livestock sector in Ethiopia, the state minister pledged to offer the necessary support for SPS-LMM and the association.

Presidents of the ESAP, Dr. Tadelle, on his part said the association is undertaking various researches as well as designing policies with a view to increasing competitiveness of meat and live animals export from Ethiopia.

Dr. Tadelle added that LMIS is vital for actors involved in the livestock sectors in Ethiopia and it has immense role to ensure the food security of producers particularly that of the pastoral communities through providing accurate and timely market information.

Marketing Specialist and Deputy Chief of Party of SPS-LMM, Belachew Hurrissa, said as part of its major activities, SPS-LMM program has contracted ESAP to develop livestock market information database aimed at providing comprehensive, accurate and timely market information on producers, fatteners, traders, meat processors, exporters and policy makers.

In developing the database, states of the art information technologies in managing the market information collection, transmission, analysis and dissemination to users is envisaged, he added. The Ethiopian Sanitary and Phytosanitary and Livestock and Meat Marketing Program (SPS-LMM) is implemented by the Texas Agricultural Experiment Station of the Texas A & M University System in collaboration with the Ministry of Agriculture and Rural Development (MoARD).

http://www.waltainfo.com/index.php?option=com_content&task=view&id=18283&Itemid=45

abesha

February 7th, 2010, 11:36 PM

Company developing palm oil trees in Dasenech woreda

Thursday, 31 December 2009

Dasenech, December 31 (WIC) – Italy's Enel Green Power Share Company has reportedly begun developing palm oil trees with 320 million birr in Dasenech woreda of south Omo zone this budget year.

Woreda Pastoralist Area Investment Promotion Office Head, Belay Metekiya, told WIC that the development activity is underway on 30,000 hectares of land through harnessing the Omo River.

He said the palm oil development activity has created job opportunities to 300 pastoralists.

Company General Manager, Belachew Haile, on his part said 6,000 hectares of land has so far been developed with palm oil trees.

Upon going fully operational after two years, the development activity will create jobs to more than 10,000 inhabitants of the area, Belachew said.

The company will construct health and education facilities to pastoralists of the area, he indicated. http://www.waltainfo.com/index.php?option=com_content&task=view&id=18221&Itemid=45

abesha

February 7th, 2010, 11:39 PM

Federal government said keen to develop groundwater resource in Somali region

December 29, 2009 -- Deputy Prime Minister, Addisu Legesse reaffirmed federal government’s commitment toward developing the immense groundwater resource located in Somali regional state.

Addisu said the federal government will be providing the necessary support toward the successful completion of the project since the on-going project aims at improving the livelihood of the pastoralist communities living in the region.

The deputy prime minister made the statement while visiting the on-going drainage development project launched in Shinele Zone of the regional government. He said eight water wells sunk in two localities of the zone over the last one year have shown that the groundwater resource located in the area will enable pastoralists carry out irrigation development projects besides curbing shortage of clean water service in the region.

Chief of the Somali State Administration, Daud Mehamed said encouraging results have been witnessed in the state in encouraging pastoralists carry out agricultural development activities through utilization of groundwater.

He said the federal government in collaboration with the Oromia state administration has been undertaking drainage development project in the area in a bid to develop 1.2 million hectares of fertile land in the region through irrigation.

He said 50 pastoralist households will begin developing 100 hectares of land through utilization of four water wells sunk in the area after a month.

The visiting high-level delegation, which is led by the deputy prime minister, reportedly held fruitful discussions with local elders as to how to foster overall development among the pastoralist communities. (ENA) http://www.waltainfo.com/index.php?option=com_content&task=view&id=18130&Itemid=45

enkelfam

February 9th, 2010, 03:12 AM

WB committed to lend up to $500m for further irrigation

A study for the irrigation of 20,000ht of land in the Tana Basin was delivered by the Tahal Group, a Netherlands based engineering company, to the Ministry of Water Resources (MoWR) on Monday, February 1, 2010.

The ministry will invite tenders within the coming two months for the construction of the irrigation facilities, Fekahmed Negash, director of the Plan, Study, and Follow-up Directorate at MoWR, told Fortune.

This is part of a larger irrigation project to develop 100,000ht by building dams across five rivers in the area approved by Nile Basin countries and supported by a 100 million dollar loan from the World Bank (WB). It encompasses vast tracts of land in Nile Basin areas in Amhara, Benishangul-Gumuz and Oromia regional states.

Construction of the dams is underway across the Reb and Megech rivers by the Water Works Construction Enterprise (WWCE) under MoWR, while two more will be added across the Gumora and Angier rivers.

Tahal’s study includes details on the various canals that are to be made and the ground levelling that is to be carried out.

The development of the entire 100,000ht will require additional water, which will be obtained from wells, Fekahmed informed Fortune.

The ministry has already invited tenders to dig the wells attracting six international companies including Sogrean Consultants, the British Geological Survey, Schulberg Water Services, Royal Hegkoning and Egis Bceom, the last of which did not make any offer, although it had bought the bid document, Fekahmed said.

When this project gets underway, it will be the second major irrigation project in the Tana Basin following the Koga Irrigation Project, which is being used for the development of 7,000ht.

“These irrigation projects mainly target the farmers in the area who are living hand to mouth,” Fekahmed said. “It aims to encourage the farmers to produce crops for export.”

However, most of the remaining 80,000ht of land is located in remote areas where there are no farmers, so investors will be given land there, he said.

The ministry anticipates that a total of 180,000ht of land could be developed using the water from this project as well as from the Tana Beles Hydroelectric Project, which will be inaugurated in a few months. This will require further agreements with Nile Basin countries, but the World Bank has already committed itself to lend 400 million dollars to 500 million dollars, Fekahmed said.

http://www.addisfortune.com/Tana%20Basin%20Study%20Aims%20to%20Irrigate%2020,000ht.htm

abesha

February 9th, 2010, 08:26 AM

That's great news! I like that they've already started construction of the dams, it's not just empty rhetoric.

enkelfam

February 9th, 2010, 08:37 AM

yes, I agree. They are actually doing what they are planning, wow. I do have to say things are slowing improving, it is hard for us Ethiopian's to accept it, but the developments on the agricultural front are on the right tract.

abesha

February 9th, 2010, 08:04 PM

Ethiopian grape industry burgeoning under Fintrac

ADDIS ABABA, Ethiopia — As table grapes emerge as a new business opportunity in Ethiopia, Fintrac is in on the ground floor to help, working with growers and international buyers through the Agribusiness and Trade Expansion Program (ATEP).

The program quickly deployed its team of specialized agronomists in November 2007 to get production underway. Lead client Luna Fruit, in Oromia, dedicated 10 hectares to grow the Red Flame Seedless variety and had its first harvest in February 2009, which yielded 18,000 kilograms. Fintrac’s agronomists and specialized consultants helped Luna Fruit owner Tesfalidet Hagos cultivate the vines and harvest the fruit and continue to support him with marketing assistance, farm expansion and infrastructure improvements that include packing, grading and cooling facilities.

Through Fintrac’s market linkages and logistics support, Luna Fruit sent a trial shipment of its first harvest to buyers in the Middle East and reports indicated that color, texture and Brix level, or sugar content, were well received and now Luna Fruit is aiming to export its next harvest by sea.

“Growing table grapes in Ethiopia would be unimaginable without the support I received from Fintrac,” Hagos said.

With fertile soil and favorable weather, the Oromia region of Ethiopia is ideally suited for table grape production, which is why Luna Fruit was able to harvest within a year and a half. In other countries, it can take as long as three years for grape seedlings to mature and bear fruit. As Luna Fruit’s vines mature, Hagos expects another harvest later this year that will yield 80,000 kilograms.

“We believe we will have a strong competitive edge since we are expecting our harvest in October and November when the world supply of table grapes is at a minimal level,” Hagos said.

Fintrac is also working with two other lead client table grape growers to build this emerging industry. These farmers regularly receive agronomic and postharvest handling support. For this group of growers, Fintrac is also developing integrated marketing strategies to establish a common brand for Ethiopia, facilitating buyer missions and more trial shipments, setting up shipping options for growers, and working to consolidate supply to meet demand in Europe and the Middle East.

Fintrac ATEP is an aggressive, market-led effort designed to energize four industry sectors — coffee; hides, skins and leather; oilseeds; and horticulture. Fintrac’s effort in these sectors is increasing sales and incomes for thousands of Ethiopian farmers, processors and traders and increasing employment throughout the country. The program is funded by USAID.

http://fintrac.com/ethiopiangrapeind.asp

abesha

February 9th, 2010, 08:22 PM

From California To Sebeta
People and Personalities
Written by Mina Yirga - Horizon Ethiopia Staff Writer
Saturday, 21 November 2009

the trappings of an AT&T VP’s position in favor of farming in Ethiopia is certainly not a typical career move but that is exactly what Daniel Gad did 6 years ago. Today, he is one of a vanguard of agricultural pioneers using modern, international standard farming and post harvest techniques to supply a whole new range of agricultural products to international markets.

For many years, Daniel had been a telecom executive with AT&T in California’s famed Silicon Valley. But he had always had a love for growing things which he kept up as a hobby even while employed there. The route from growing vegetables in a home garden to operating two thriving farms in Ethiopia (Omega Farm and Metrolux Flowers) might still seem like a stretch but there were other factors that pushed him to take the big jump. “My idea was to own my own business and produce something that employs people. I studied the opportunities carefully and found out that Ethiopia could be a lucrative center for agribusiness.”

Raising Standards

After moving back to Ethiopia from the US in 2002, he began the process of setting up his farms. Metrolux Flowers – located in the Holeta area – came first, part of the growing floriculture industry at the time. But it may be Omega Farms (Sebeta) – engaged primarily in horticulture – that is probably on the leading edge of Ethiopian agribusiness today. Omega produces a variety of vegetables for export to European markets and in order to do so, Daniel has implemented a tightly controlled methodology that ensures his produce is GLOBALGAP certified and meets all sanitary standards his exacting markets require. Daniel recalls the work it took to establish Omega, “What we had received first was a space left filled with various vegetables. We had to work on changing the structure to export quality vegetable products. Our vegetable selection gives us the rotation. Our major concern is on hygiene and food safety.”

Some of the vegetables Omega exports abroad are snow peas, sweet corn and mange tout. A key to keeping buyers happy is having a year round supply which Omega accomplishes by means of staggered planting and harvesting over its 30 hectares. “The key elements in accessing the international market are consistency and commitment. We try our best to grow 10-12 months a year keeping the maximum quality. The other factor being, a grower has to know what drives his buyer.”

These concepts are what drive another effort that Daniel is a key member of. Aurora Fresh is a consortium of worldwide growers and marketers dedicated to providing sustainable sourcing for year round supplies of fresh produce to global markets. It includes several other suppliers from Ethiopia as well as other parts of Africa and Latin America and could hold great promise for unlocking access to international markets for many future horticulture efforts in Ethiopia.

Local Opportunity

Daniel also believes there is a sizable local market for high quality produce. Lettuce and herbs are grown on small plots at Omega and supplied to markets in Addis. On the drive to Omega’s location just south of Sebeta, many pickup trucks can be observed overloaded with fruits and vegetables that seem worse for the wear of the open drive from wherever they came. The sight causes Daniel to remark, “Post harvest care is one of the most important elements of providing top quality produce with the highest standards of safety and sanitation.” This is why he is currently constructing a state of the art pack house on Omega’s grounds.

He is not the only entrepreneur in the family. His wife, Akiko runs the Rainbow Flowers chain in Addis and is also behind one of the city’s top health clubs, Bodywise off Pushkin Square. Together, they are also in the process of building a mega recreation complex around the Kaliti area that is expected to feature a golf course, athletic facilities and entertainment venues for kids and adults alike.

Through it all, Daniel maintains a rigorous focus on his agricultural ventures believing that Ethiopia’s potential for great success in this sector can be tapped into by entrepreneurs like himself whom he repeatedly express great willingness to help. “We have the climate. We have the land. We have the water for huge production. If we work hard and in the right direction, we can put the country on the map,” Daniel concludes.

http://www.horizonethiopia.com/index.php/The_Agriculture_Issue/People_and_Personalities/From_California_To_Sebeta.html

abesha

February 9th, 2010, 08:27 PM

Are Ethiopians missing out on Ethiopian Agriculture?
Business and Development
Written by Melaku Sahlu - Horizon Ethiopia Staff Writer
Wednesday, 02 December 2009

In the first quarter of this year, the Hortiflora Ethiopia 2009 Exhibition was held at the Millennium Hall on Bole Road. Walking into the main exhibition area, one was immediately greeted by an impressive array of booths displaying everything from beautiful flowers (LOTS of them!) to fresh produce, fertilizers, greenhouse equipment and more. There was just one odd circumstance at the exhibition that one could not help but also notice after just a short while there…the majority of attendees (both visitors and exhibitors) were obviously foreigners.

Of course it is true that millions of Ethiopians are in fact farmers although mostly as smallholders engaged in subsistence farming or producing small quantities of cash crops like coffee from 1 or 2 hectares. But it is the recently resurgent sector of commercial farming in which foreign firms seem to be making much greater inroads than the country’s own nationals.

Neglected Sector

Recent news that very sizable tracts of land have been awarded to investors from Saudia Arabia, Turkey and even Djibouti are further evidence indications that foreign investors see very are very much attracted by the naturally strong prospects for agriculture in Ethiopia supplemented as they are by strong financial incentives to engage. In fact, over the past 5 years or so, they have been entering the sector in ever larger numbers including a number of German and Israeli firms looking to cultivate massive holdings for biofuel production. Any news regarding big agricultural investments by Ethiopians however, is few and far between. Floriculture may seem to be an exception to this rule but even given all the hoopla over Ethiopian flowers, there are only 85 such farms in the entire country covering only 1100 hectares (out of a total arable land mass of 23 million hectares). And, in any case, a good many of them are joint ventures with foreign firms

Instead, the bulk of attention by Ethiopian investors and entrepreneurs has focused on sectors such as real estate development, construction, rental of construction equipment and hospitality. Sectors considered easier and safer to operate in with the promise of faster payoffs given the burgeoning growth of urban centers and infrastructure throughout the country thus far. Not coincidentally perhaps, these also happen to be sectors in which foreign investment is significantly restricted.

Perking Intrigue

There is an increasing interest in the sector by Ethiopians who are either finally getting wise to the strong incentives the government provides or beginning to look away from the service industry investments for the moment. If you take a drive down to visit a horticulture farm in Awassa. Only a short drive outside of Addis, you will see the occasional swoop of greenhouses rising softly from the otherwise uneven landscape dotted by hundreds of smallholder farms. Many of these greenhouses produce flowers but a growing number (though still small) also produce vegetables for export. Even more frequent are the stories of an early vanguard of Ethiopians eagerly grabbing hundreds of hectares of agricultural land albeit with little idea of exactly what do with it.

Powerful government incentives in the sector along with diminishing returns from the construction, real estate and other previously hot sectors are no doubt playing some part in the new levels of interest. But so is the fact that agricultural pioneers such as Genesis Farms (General produce, poultry and dairy) have clearly demonstrated a strong business model for supplying a variety of quality products to the local market. Omega Farms (Vegetables), Jittu Horticulture (Flowers) and Luna Farms (Grapes) are examples of up and coming agricultural businesses that demonstrateing that Ethiopian farm products can compete strongly in the export market to the Middle East and to Europe. Finally, sectors which had previously held an inordinate portion of Ethiopian’s investment interest in the recent past (and btw in which foreign investment is largely barred) such as real estate, and construction and other similar areas, have in recent years begun to show cracks in the highly speculative fabric of their inflated profit structures.

Overcoming Obstacles

Clearly, significant financial resources (which most Ethiopian investors do not have access to) underpin many of the foreign investments in the sector and are a prerequisite for undertakings on the scale seen thus far. A number of share offerings – including Jacaranda and Bright Hope Agroindustry (out of Bahir Dar) – have sprung up recently in answer to this particular challenge. But these are early days yet, and the jury is still out on the success of these efforts otherwise. Of course such ventures do not have to involve tens of thousands of hectares. Significant quantities of vegetables for example, can be adequately grown on just 30 hectares of land requiring much less initial capital and could be a better fit for more of the Ethiopian investors beginning to explore the sector.

It is also true that there is some amount of knowledge gap to be overcome by these potential investors. Basic agriculture may not be rocket science. But it certainly isn’t child’s play either. And what some might find surprising in a country where 80% of the population work force is engaged in smallholder farming, is that many of the potential investors (read ‘well to do urbanites’) have little actual experience or even academic knowledge on the subject. Not helping matters much is the fact that a significant portion (if not all) of the capacity building assistance from the government or the numerous development organizations in Ethiopia, is targeted at smallholders. USAID’s ATEP program (implemented by Fintrac) is one exception to this rule as is the Dutch development organization, SNV which both make efforts to provide some level of assistance to commercial investors in commercial agriculture especially those of a smaller scale.

Finally, some of the aforementioned vanguard of Ethiopian agricultural investors have run into problems while trying to implement their ventures. An increasing number are reporting friction with smallholders in the area who sometimes regard commercial ventures as a direct threat to their livelihood. In the absence of education or cooperative frameworks to reduce such friction and instead build mutually beneficial partnerships, the only answer to such problems is stronger law enforcement which unfortunately is a farfetched prospect in many of the remote, rural areas hosting such investments. This is an area which federal and regional governments must address quickly and effectively before it casts a lasting shadow on the sector.

‘Untapped potential’ is a phrase that has been used to describe agriculture in Ethiopia by many observers and is one that holds the promise of profit in financial terms as well as goodwill. Whether the intent is to help solve chronic food insecurity in Ethiopia or to capitalize on the significant market needs in food supply that exist both locally and abroad, it is high time the Ethiopian private sector embraced agriculture as a significant investment opportunity and primary driver of the country’s economic development for the foreseeable future.
http://www.horizonethiopia.com/index.php/Business_and_Development/Are_Ethiopians_missing_out_on_Ethiopian_Agriculture_.html

abesha

February 16th, 2010, 03:00 PM

Saudi Rice Farm in Ethiopia to Get Japanese Factory, ENA Reports

By Jason McLure

Feb. 16 (Bloomberg) -- An Ethiopian company owned by Saudi billionaire Mohammed Al-Amoudi signed a contract with Japan’s Satake International Co. Ltd. to build a $9.4 million rice- processing plant in the Horn of Africa country, the Ethiopian News Agency reported, citing Haile Asegide, director general of Saudi Star Agricultural Development Plc.

The 10,000-hectare farm in western Ethiopia will grow rice for export to the Middle East, the Addis Ababa-based news service said.

http://www.businessweek.com/news/2010-02-16/saudi-rice-farm-in-ethiopia-to-get-japanese-factory-ena-reports.html

abesha

February 16th, 2010, 03:07 PM

Amhara state irrigating close to 1 mln ha land

Thursday, 11 February 2010
Bahir Dar, February 11 (WIC) – The Amhara State Agriculture and Rural Development Bureau said it has begun developing close to one million hectares of land through irrigation.

Bureau Public Relations Department Head, Shiferaw Tesfaye, said the development activities are underway in all zones of the state.

He said 230,000 hectares of land has been developed over the past three months alone.

He said more than 70 million quintals of crop, vegetables and fruits will be reaped from the 262,000 hectares of land due to be developed in two-round until May, 2010.

According to Shiferaw, about 2 million farmers will take part in the irrigation development.

He said the state government has allocated half a billion birr for the irrigation development. More than 130,000 cubic meter compost is being prepared for this purpose.

The state developed 347,000 hectares of land through irrigation last budget year.

http://www.waltainfo.com/index.php?option=com_content&task=view&id=19488&Itemid=45

abesha

February 19th, 2010, 09:21 AM

Ethiopia starts trading premium coffee locally

ADDIS ABABA (Reuters)

- Ethiopia moved trade in its specialty coffee to an Addis Ababa-based commodities exchange on Wednesday, instead of selling the beans at overseas auctions.

Up to 30 percent of the beans from Africa's biggest coffee producer are classified as premium, but higher prices for the fine coffees were not trickling down to farmers, the Ethiopian Commodity Exchange (ECX) said.

"Farmers will receive a minimum of 85 percent of the final export price," ECX said in a statement. "A historic first for Ethiopia's coffee farmers who (normally receive) below 40 percent, among the lowest share of the final price in the world."

Ethiopia, which prides itself as the birthplace of coffee, had been talking to key players in the global specialty coffee industry since November on how best to handle the trading of premium brands.

Premium coffees will now be traded once a month in Addis Ababa with international buyers given the chance to test the coffee before bidding.

Some 27 international buyers from the United States, Europe and Japan registered to take part in the first trading session on Wednesday. They bid on 44 lots from 35 farmers' cooperatives and 9 independent growers.

The ECX was set up in 2008 to replace a murky auction system that was often abused by market players.

Ethiopia earned $376 million from coffee exports in 2008/09 down from $525 million in 2007/08.

http://af.reuters.com/article/investingNews/idAFJOE61G0HR20100217

abesha

February 19th, 2010, 09:24 AM

Al Amoudi to Plant Rice in Ethiopia

Ethiopian born Saudi oil tycoon Sheikh Mohammed Hussein Ali al Amoudi had reached an agreement with the Ethiopian government to acquire 110,000 hectares of prime farmlands.

One of Amoudi's subsidiary companies Saudi Star Agriculture Development p.l.c. will produce rice, what and sugar beets in Gambella, Benishangul, Amhara and Oromiya regions of Ethiopia.

Amharic business reporters Henok Fente interviewed former agriculture minister Haile Asegede about details of creating one of Ethiopia's largest agricultural operations. Al Amoudi, a longtime supporter of the Ethiopian government and Prime Minister Meles Zenawi, is one of several foreign investors seeking to take advantage of the federal government's interest in leasing sizable pieces of farmland to foreigners willing to build corporate farms.

In today's agriculture report, Surafel Fantaye, interviewed Ethiopia's agriculture and rural development minister, Dr. Abera Disasa, on the new foreign farmer policy. Abera said Ethiopia's fertile lands need the capital and technology of global investors and assured listeners that individuals displaced by these new corporate farms were fairly compensated in their relocation
http://www.nazret.com/blog/?blog=5&page=1&paged=2

There's a video if you follow the link.

enkelfam

February 23rd, 2010, 05:29 AM

ECX Hosts Bid to Associate African Exchange

The Ethiopian Commodity Exchange (ECX) is to host a consultative meeting of representatives from different African commodity exchanges on Wednesday, February 25, 2010, to form the African Commodity Exchanges Association.
The suggestion to form the association was raised at a forum held in Lusaka, Zambia organised by the United Nations Conference on Trade and Development (UN CTAD) at the end of September 2009 with the theme of “Improving the Functioning of Commodity Markets in Eastern and Southern Africa through Warehouse Receipt Systems and Market-based Interventions.”
“This was something the forum participants suggested,” Eleni Gabre-Madhin (PhD), chief executive officer of the ECX told journalists at a press conference held at her office last Friday February 19, 2010.
It is expected that participants will discuss the mission which the association wants to achieve and the process of making Addis Abeba the seat of the association’s secretariat, according to Eleni.
The ECX has been granted sponsorship for the event from the United States Agency for International Development. In the same week, it is going to host a daylong knowledge forum together with the United Nations Development Programme (UNDP) on February 24, 2010.
This is going to be an experience sharing roundtable to talk about the best practices and challenges of establishing and working with commodity exchanges in Africa. Participants are expected to come from Ghana, Nigeria, Uganda, Zambia, Tanzania, Sudan and Zimbabwe. Executives of the National Derivatives and Commodities Exchange of India and the South African Futures Exchange are also expected to take part.
During just the last six months, the ECX has hosted groups from Kenya, Zimbabwe, Sudan, Ghana and the Philippines which came to look at Ethiopia’s experience and how it had helped the market.
“This shows that Ethiopia is not only a recipient but that it has also started sharing best practices with the world,” Takele Teshome, programme analyst on Food Security and Recovery at the UNDP told Fortune.
The UNDP has been providing financial assistance to the ECX since 2008. It gives out 1.5 million dollars a year, according to him.
The ECX has within last week started the Direct Specialty Trade (DST), a platform whereby the coffee producers can directly contact and sell their produce to international buyers.
On Wednesday, February 17, 2010, there were 44 lots of specialty coffee that came for the first DST session. Participants including 35 primary cooperatives and nine commercial growers came to sell their coffee, while 27 registered international buyers, representing coffee importers and roasters in North America, Europe, and Japan came to buy the high quality coffee. The lowest price given was 2.15 dollars while the highest went as high as 4.02 dollars.
http://www.addisfortune.com/ECX%20Hosts%20Bid%20to%20Associate%20African%20Exchange.htm

enkelfam

February 24th, 2010, 12:33 AM

HILINA plumps up

Following an upgrading of its factory, a family-owned company, Hilina Enriched Foods Plc, is planning to be able to satisfy Ethiopia’s therapeutic nutritional food demand next year by producing Plumpy Nut.
Plumpy Nut is a high protein, high energy, ready to use peanut-based paste that is used to feed moderately and severely malnourished children.
Malnutrition is currently responsible for more than half of all deaths among children under age five in the country.
According to UNICEF, the number of chronically malnourished children has decreased since 1996, but remains alarmingly high.
In the worst scenario, the demand for therapeutic foods could be as high as 1,300 metric tonnes per month, but it is normally between 600 and 700.
This year, Hilina Foods manufactured 7,200 metric tons of Plumpy Nut products, allowing it to meet more than 60 percent of Ethiopia’s therapeutic food needs
“However, we are targeting the worst scenario,” says Belete Beyene, Managing Director of Hilina Enriched Foods, who owns 51 percent of the company, with the rest owned by French company, Nutriset, who were the first to produce the French-designed product.
With the support of Nutriset, the company plans to be able to satisfy therapeutic food demand by the middle of 2011, once the upgrading of its factory on the Dessie road just outside Addis Ababa is finished by the end of this year.
Formulated by French scientist Andre Briend in 1999, Plumpy Nut has been used to save children’s lives in major emergency situations in Darfur, Niger and Malawi.
Hilina sources 85 percent of the ingredients for Plumpy Nut locally, with the peanuts coming from Gojjam and the Harar area. Sugar also is grown here, but the minerals and additives are imported from France, while the milk powder comes from India.
The major customer of Hilina is UNICEF, who use it to feed children facing acute malnutrition, with others being the Bill Gates Foundation, who use it to feed children living with HIV/AIDs.
“Half of our production will be consumed here, with the other half exported to other African countries,” Belete said.
In June 2006, Hilina signed the franchise agreement with the French company Nutriset for the production of Plumpy Nut.
In addition to Plumpy Nut, in the coming three months, the factory will begin manufacturing the recently approved supplementary Plumpy and supplying the World Food Programme (WFP) to tackle moderate and acute malnutrition.
The factory was inaugurated in 2007 by Ann M. Veneman, UNICEF Executive Director, Mrs. Amy Robbins, a private donor who enabled the purchase of production equipments, and Girma Birru, the Ethiopian Minister of Trade and Industry.

http://www.capitalethiopia.com/index.php?view=article&id=12379%3Ahilina-plumps-up&option=com_content&Itemid=4

abesha

March 9th, 2010, 09:44 AM

Banana potential assessed

By Muluken Yewondwossen
Representatives of Chiquita Brands International, one of the two largest banana producer and marketers in the world, paid a visit to Ethiopia recently to evaluate the potential of the country. According to source from one of non-governmental organisations that supports the improvement of banana cultivation, the delegation visited and discussed with growers around Arbaminch, which is 505km south of Addis Ababa, and one of the major sources of the fruit in the country.
According to the source, the Chiquita representatives also held a meeting with the farmers and officials of Ethiopian Horticulture Agency, which is under the mandate of Ministry of Agriculture and Rural Development, about the current situation of the cultivation and the country's export potential.
A source said that Chiquita has an interest to export banana for the Middle East market from Ethiopia if the production quality becomes export standard.
Currently, US-based Chiquita delivers products from Latin America and West Africa for Middle Eastern countries, however, the shipment cost would lower if the company exported from Ethiopia.
"While in the current situation, the country banana production needs more improvement than it has now," a source told Capital.
According to the information, the meeting that held at Hilton Hotel was mostly focused on quality production as the standard of the company.
Currently, Ethiopian bananas are exported to Djibouti with the majority for the local market. The country has huge potential for banana production, and currently produces more than 200,000 tons a year.
Ethiopia has good potential to produce vegetables and fruit due to its suitable climate. Currently, the country exports fruit and vegetables to the Middle East and European markets. The Djibouti market is a major destination for fruit and vegetable exports from Ethiopia. For instance, from the total export of fruit and vegetables about 20 per cent is transported by plane, while the balance is taken by trucks to Djibouti.
More than 90 percent of internationally-traded bananas are produced on massive mono-crop plantations in Latin America, West Africa and the Philippines. These plantations are mostly controlled by just five companies.
The two largest producer and marketers of bananas are both US-based companies: Dole Food Co. (formerly Standard Fruit) and Chiquita Brands International (formerly known as the United Fruit Company, then United Brands). Each accounts for just over a quarter of all bananas traded internationally. Then comes Fresh Del Monte Produce, controlled by the Chilean-based IAT Group (capital held in the United Arab Emirates), that controls some 15 percent of the banana trade.
Bananas are grown in more than 100 countries, but the first ten producers secure 75 percent of the gross production volume. The world's largest banana producers are India (16.8 million tons), Brazil (6.7 million tons), China (6.4 million tons), and Ecuador. Apart from the mentioned countries, Philippines, Indonesia, Costa Rica, Mexico, and Thailand belong to the 10 leading producers.
Ecuador remains the largest banana supplier to the world market, as it exports 80 percent of the produced commodities. Costa Rica, Philippines, Colombia and Guatemala follow Ecuador in the list of the largest banana suppliers. India is the largest banana producer, but occupies only 41st place among exporters.

http://capitalethiopia.com/index.php?option=com_content&view=article&id=12448:banana-potential-assessed&catid=12:local-news&Itemid=4

abesha

March 16th, 2010, 03:29 PM

Indian Firms Get 15,000ht for Tea, Bio Fuel

Two Indian firms, Verdanta Harvest Pvh and Shapoorji Pallonji are to sign a contractual agreement with the Ministry of Agriculture and Rural Development (MoARD) to lease a large plot, reliable sources disclosed.

The land that will be leased is going to be used to grow tea and Pongamia Pinnata, a plant used for bio fuel and industrial chemical production. The bio fuel will be used for vehicles, while the chemicals will be used for the textile industry.

The Agricultural Investment Support Directorate, headed by Essayas Kebede, gave 5,000ht of land to Verdanta Harvest Pvh and 10,000ht to Shapoorji Pallonji after examining their business plans. Shapoorji’s request, however, was for 50,000ht.

Verdanta’s plot is around Tepi, in the the Southern Nations and Nationalities and Peoples (SNNP) Regional State. Land is being searched for Shapoorji, which is growing a plant never before grown in Ethiopia.

Experts deployed by Shapoorji are in the SNNP Regional State studying the feasibility of the area for the plant, according to Essayas.

The company will also set up a factory to process the production of the biogas and chemicals.

“The two companies are already trying to recruit human resources from Jimma and Haromaya universities,” Essayas said.

The lease period for both companies will not be more than 20 years.

It is expected that both companies are planning to invest 100 million Br each from their own sources.
http://addisfortune.com/Indian%20Firms%20Get%2015,000ht%20for%20Tea,%20Bio%20Fuel.htm

abesha

March 16th, 2010, 03:33 PM

Peas please exporters

One of the two largest vegetable and fruit growers and exporters in Kenya, SunRite Farm, is interested in exporting fresh peas from Ethiopian commercial growers.

The cultivation of fresh peas despite was not undertaken, vegetable, fruit and flower investments having vastly grown in Ethiopia in the last few years. But since a year ago, a few farm owners are cultivating the product after USAID introduced it. According to a senior agronomist at USAID, fresh peas are a high value vegetable and receive a good return from export. "It has about 12 birr net profit per kilogram, which is exceeded by about 7 birr than other fruit and vegetable returns," the senior agronomist explained to Capital.
A source said that it is a good product for the current fresh peas' growers and encouraged others to engage in it.

SunRite has 4,000 hectares of vegetable and fruit farms: 3,000 hectare in Kenya, one of the country's largest, and 1,000 hectare in Tanzania.
SunRite has exported 17 kinds of vegetable and fruit for 27 countries worldwide by its own aeroplane. For a few months, senior representatives of SunRite have visited Ethiopia, including a week ago when they visited four vegetable farms in Gurage Zone of Southern Nations Nationalities and Peoples Regional State.

Melaku Tedla, another senior agronomist of USAID, told Capital that Ethiopia has a more favourable climate than the two major fresh peas exporters in Africa: Kenya and Zimbabwe. "We produced 10 tonnes of fresh peas per hectare, but the maximum production in Kenya has not exceeded from six tonnes per hectare. That's why they began to show interest in cultivating here," Melaku added.

According to Melaku, the plant is more comfortable at high altitudes, including a high water supply, and Ethiopia is better suited to cultivate the plant without disease, which affects Kenyan farms. "Currently Kenyan are using intensive chemical and fertiliser for fresh peas for cultivation," a source at USAID said.

Currently, seven commercial farmers cultivate the product on 50 hectares. About five from the state growers were engaged in flower cultivation. Most of the farms are around the capital of the zone, Welkite, 150km west of Addis Ababa.

Currently, Ethiopian-based flower farms are shifting to fruits and vegetable due to higher profits.

According to sources at USAID, within a month Sun Rite will do the first trial export from an Ethiopian farm. Melaku added that SunRite has a plan to use small out grower farmers after it established its reputation and will also produce by itself in the future.

Ethiopia is currently growing horticulture products on over 2,000 hectares of land in Southern Nations Nationalities and Peoples, Amhara and Oromia states.
From 83 members of the Ethiopian Horticulture Producers and Exporters Association about 10 are involved in fruit and vegetable investment.

From the total 2,800 hectare of land covered by flower and horticulture, 1,600 hectares is allotted to horticulture. Most of the sector's developed land is in Oromia within a 200km radius of Addis Ababa.

Abadula Gemeda, president of Oromia, recently told Capital that his regional administration is preparing 5,000 hectares of land for horticulture investment.

http://capitalethiopia.com/index.php?option=com_content&view=article&id=12484:peas-please-exporters&catid=12:local-news&Itemid=4

abesha

March 16th, 2010, 04:32 PM

DDT Ban Forces Pesticide Co to Export StockpileThe state owned Adami Tulu Pesticide SC is concerned about the stock of 400tn of Dichlorodiphenyltrichloroethane (DDT) it has in its possession after the decision of the Ministry of Health (MoH) to ban its use starting this year.

Due to this decision, Adami Tulu, located 170km south-east of Addis Abeba, which had imported the raw materials for the production of 800tn of DDT this year, is required to stop indefinitely. It was engaged in the production of pesticides and chemicals.

The ministry has reached this decision after realising that the anopheles mosquito that transmits malaria has acclimatised to the chemical.

MoH also attributes the reason for banning the use of DDT to traces being observed on some exportable goods, according to Tedros Adhanom (PhD), minister for Health.

Apparently, Adami Tulu requested the ministry use the 400tn of DDT that it already had in stock two weeks ago, sources disclosed.

Since the company has not been getting sufficient revenue and DDT is the only source of income, it has become a concern, according to sources at the company.

The request has not been accepted by the ministry.

"We will export the DDT in the company's stock to other countries," Tedros told Fortune.

The MoH has selected two chemicals, Deltametrin and Malatine, to replace DDT and Adami Tulu Pesticide has opened a letter of credit one week ago from the CBE to purchase 400tn of the former.

"Deltametrin, compared to DDT, is environmentally friendly," an expert at the Ministry of Health said.

http://allafrica.com/stories/201003160751.html

abesha

March 23rd, 2010, 04:57 PM

Ethiopia's ECX launches Direct Specialty Trade

-Farmers will receive a minimum of 85 percent of the final export price

By Dereje Berhanu

ADDIS ABABA, Ethiopia – The Ethiopia Commodity Exchange (ECX) has launched its Direct Specialty Trade, on February 17, 2010. In the first day of the trading market Ethiopian specialty coffee was sold by one USD higher than that of the New York market. This market is a new platform in which producers of specialty coffee can transact directly with international buyers seeking to purchase premium beans on a fully traceable basis.

In the first day there were 44 kinds of specialty coffee presented for sale in the first DST session, representing 35 primary cooperatives and 9 commercial growers. There are 27 registered international buyers, representing coffee importers and roasters in North America, Europe and Japan. From registered buyers nine international roast campanies participated and six companies buy products in the first day market. International buyers pre-register for the DST session and are able to order samples and to participate in a cupping session prior to the bidding.

According to ECX more than half of the coffees are graded above specialty cupping score of 85, indicating top quality. The high price is paid to Adado Union from famous coffee producer area Yergachefa in 4.1 USD. Entirety day 1397 tons of coffee were directly sold to international buyers on the price of half a million USD.

“This market is different in its quality, traceability and transparency. One condition for participation in DST is that farmers will receive a minimum of 85 percent of the final export price, a historic first for Ethiopia's coffee farmers who are considered to normally receive below 40 percent, among the lowest share of the final price in the world. At the same time their share increases if farmers use Union’s” said Dr. Eleni Gabre-Madhin, CEO of the Exchange.

According to Eleni ECX is going to audit the largest share to farmers. ECX's new Direct Specialty Trade (DST) is established as a monthly bidding session in which small farmer cooperatives and commercial growers may deposit specialty grade coffees in advance in ECX warehouses. The ECX grading system used to identify these specialty coffees. It is based on the *international "Q" grading system developed in partnership with the Specialty Coffee Association of America (SCAA), and launched by ECX in November 2009.

DST is an innovative way to enable direct trade that is reliable, fully traceable, transparent, and sustainable. By coordinating buyers and sellers, DST adds value to farmers who can benefit from greater competition and to buyers who can discover truly special coffee types. DST also enables trade of certified coffees, such as Organic, Fair Trade, Rainforest – certified ones, among others.

"DST closes the real gap between farmers seeking to benefit from the international market and buyers interested in tracing these coffees to their origin. DST also raises the visibility and profile of all Ethiopian coffee sorts, and thus is a clear win-win for all" stated Eleni.

In the country where Arabica coffee has been cultivated indigenously for longer than anywhere in the world, the very large majority of the finest Ethiopian coffees is produced by farmers, who are mostly unaware of the market premium their coffee sorts deserve. Because these farmers lack the means and knowledge to directly access the international market, they can not profit from the value potential of their coffee production. Theses circumstances denied them the opportunity to transform their livelihoods and sustainable grow out of poverty. http://ssinformer.com/business_news/Africa/eastern/ethiopia/trade/2010/february/19/eth_bus_2010-02_19_001.html

abesha

March 30th, 2010, 10:32 AM

Exports Leave Orange Market Undersupplied, High-priced

Orange prices remain stable at 16 Br per kilogram while the market continues to be undersupplied for a prolonged time period that began in early February, 2010. Fruit sellers at Atkilt Terra and elsewhere as well as consumers seem to agree on one thing. The shortage is caused by exports.

A shortage in the supply of oranges has been seen around Addis Abeba, and both sellers and customers believe the shortage is created by exports.

“The price of oranges has been dramatically increasing for the past few years. Customers, however, have not stopped purchasing the fruit,” said Girma Seleshe, a consumer who was buying the scarce fruit at a store around Mexico Square.

A customer who was surprised when told that a glass of orange juice was 16 Br at one of the fruit stores around Arat Kilo asked how much a kilogram of the whole fruit would cost him. The answer was the same.

In many places even the available fruit was of such poor quality that many potential buyers were put off. Nigesty Hagose, a house wife living around Kotebe, wished to take oranges to visit a sick friend but was faced by such types of fruit at stores around Haya Hulet Mazoria,so she opted for bananas.

“You do not take bananas to visit sick people,” she said, “but I have no choice.”

Traders in various parts of the town blamed EtFruit for causing the shortage.

Upper Awash Agro Industry Enterprise, a major orange grower, blames the shortage on poor rains the previous, year affecting this year’s production. The Ethiopian Fruit and Vegetable SC (Etfruit) also failed to take the fruit in time to avoid spoiling, according to Yetederesu Mamuye, Horticulture Development expert at the Upper Awash Agro Industry Enterprise.

Upper Awash produces all year long though the production rate increases from June to February and decreases during the rest of the year. The oranges also have identifying names. There are twelve types of orange seeds which are Valencia, Apple, Hamlin, Navel, Jafa, Temple, Miniola, Fur Child, Orland, Nova, Panica, and Tangerine. All these different types of oranges have different qualities. They differ in size, sweetness and colour.

Etfruit takes oranges from the Upper Awash twice a year after competing in a bid with other buyers. It takes the most. The other buyers are small traders who take comparatively small amounts. If they bought it for three Birr from the producer they might sell it for eight Birr in town, considering transportation costs, according to Mengistu Kebede, general manager of EtFruit.

Mengistu denies Yetenberus claim that the enterprise does not collect the oranges it has bought from the farm in time; waiting instead until they are spoiled. However, his enterprise prefers to export the oranges because of low demand in Addis Abeba.

The oranges collected from Monday to Thursday are used for the local market, and those collected on Friday and Saturday are exported to Djibouti, he says.

Data from the Ethiopian Revenue and Customs Authority (ERCA) indicates that orange exports since 2005 have gone almost exclusively to Djibouti, with very few exceptions to Sudan and the United Arab Emirates.

Between 2005 and 2008, total annual exports ranged between 2.35 million and 2.65 million kilograms with respective revenues ranging from between 6.9 and 8.6 million Br.

There was a leap in 2009, however, with a total export of over 3.3 million kilograms and 15.44 million Br in revenue. Data for 2010 was not available because of a computer breakdown at the ERCA.

Export is becoming a priority, according to Mengistu, because of the government’s need for hard currency. The enterprise, however, exports produce after taking into consideration both the international and local markets.

The reason there is a shortage in the market, according to the EtFruit manager, is that this is not the season for oranges.

Of the 12 varieties that are grown in Ethiopia, only Valencia oranges are produced throughout the year. However, its production rate is minimal, thereby fixing prices at their high rates.

“Only 40ql are collected per day in March, which is not enough for Addis Abeba’s residents,” Mengistu said.

Production will peak at 2,000ql per day from June to February, according to Mengistu.

Prices are expected to go down at that time as supply improves.
http://addisfortune.com/Exports%20Leave%20Orange%20Market%20Undersupplied,%20High-priced.htm

abesha

March 30th, 2010, 10:33 AM

Kanan Devan Tea enters Ethiopia

Kochi: Kanan Devan Hills Plantations Company (KDHP) that owns and runs Tata Tea estates in Munnar (Kerala), is planning to go global by entering into joint venture with a tea company in Vietnam and acquiring management control of an Ethiopian tea estate.

KDHP signed an agreement last week with Lam Dong Tea Joint Stock Company (Ladotea) of Vietnam to set up a tea processing and manufacturing unit, TV Alexander, managing director of KDHP said.

Ladotea is one of the largest producers of tea in South Vietnam, supplying 6,000-8,000 tonne of tea per annum. KDHP will invest Rs 36 crore in the joint venture company formed to establish the new factory. The unit will process and manufacture black tea, instant tea and green tea extract.

The company would also market and export these products worldwide, he added.

The capacity of the units would be 12 lakh kg per year of black tea, 7.4 lakh kg of instant tea and close to 1 lakh kg of green tea, Alexander said. KDHP has been also given the right to invest in the Vietnamese company, which is listed in the Vietnam Stock Exchange, he added.

Separately, KDHP has also signed an agreement with East Africa Agri Business Private Limited company of Ethiopia to manage their 500 hectares tea estate.

KDHP will transfer the latest technology of tea planting, growing, harvesting and manufacturing of black tea to the African company. KDHP will also assist in planting tea in 5,000 hectares of land and will also have the option of investing in the equity of the company at a future date, Alexander said.
http://www.financialexpress.com/news/Kanan-Devan-Tea-enters-Ethiopia/597204/

enkelfam

April 7th, 2010, 08:18 PM

Ethiopia, Germany sign declaration of intent for cooperation in agriculture

Ethiopia and Germany on Tuesday signed an agreement of declaration of intent which enable to reach final agreement for establishment of the Ethio-German Agricultural Further Training Center (ATC).

A German delegation led by Gerd Muller, State Secretary of the German Ministry of Food, Agriculture and Consumer Protection, has been paying an official visit from April 3-8 to Ethiopia.

The delegation which is also comprised of modern agricultural technology suppliers and seed producers, have met with government officials from the Ministry of Agriculture and Rural Development and other private sector representatives.

Ethiopian State Minister of Agriculture and Rural Development Abera Deressa and German State Secretary of the Ministry of Food, Agriculture and Consumer Protection Gerd Muller signed the accord at the German House here in Addis Ababa.

Speaking on the occasion, Muller said Ethiopia has a great potential in agriculture sector and Germany has keen interest to intensify cooperation with Ethiopia in the sector.

He said Germany imports 30 per cent of coffee coming from Ethiopia, and it would like to continue supporting the farm industry in the country.

The Ethio-German Agriculture Further Training Center (ATC) to be established here in Ethiopia within a year long period will mainly focus on production techniques for wheat, barely and potatoes with strong emphasis on mechanized systems, he added.

The private sector engaged in agricultural activities, agriculture administration, state farms and researchers will among others be the main beneficiaries of ATC, Muller said.

Deressa on his part said the signing is a good initiative and would further speed up the signing of the final agreement which enable to cooperate in the agriculture sector.

He expressed his belief the Germany which have excellent experience in the sector would support Ethiopia's endeavor in agricultural activities.

It was on the 22nd of September, 2009 Ethiopia and Germany set in motion to establish ATC and to further cooperate in the agriculture sector.

http://world.globaltimes.cn/africa/2010-04/519671.html

soulsoul

April 8th, 2010, 03:58 PM

I read all the 4 pages, very interesting...
IT seems that ethiopian govt have very ambitious plan for agricultural boom, and looking at the news, its like a snowball with more and more investment...
I found also good thatthe investing compgnies are hiring top agricultural expert and taking serious step to optimize the investment

abesha

April 19th, 2010, 05:01 PM

Another Ethiopian who went back home and invests in farms. I think I've already posted about a couple others. Good to see it's not all foreign investors.

What’s a Diaspora Businessman from Los Angeles Doing in Merhabete?

Five minutes into my conversation with Getaw Mekonnen, I could tell that he was an entrepreneur. He briefly introduced himself and went straight down to the reason why he would like to speak to me. We had met during a coffee break at a USAID VEGA Ethiopia experience sharing workshop where I made a presentation about Precise Consult International’s Diaspora Business Center initiative which works to unleash the potential of the Diaspora for development back home.

Here I am talking about it and Getaw was actually doing it. Getaw was born and raised in a small town called Mida Weremo Woreda in the historic region of Merhabete, North Shewa. After completing his elementary and high school education at Arbegnoch School in Alem Ketema, he left for Addis Ababa where he enrolled at the university. But times were tough. It was the dying days of the Derg and then President Mengistu Hailemariam was giving a speech at the university intending to recruit all the students for military duty against the rapidly advancing rebels. By the end of the speech, it was just decided and all university students were loaded on a chain of busses and sent to a military training center at Blate, in Southern Ethiopia.

All of a sudden, Getaw found himself a military conscript going through grueling physical exercises in a difficult region. Fortunately for the students, the rebels took control of Addis Ababa before they even finished their training. Thousands of young men then fled further South into Kenya as refugees. Their hopes and dreams were to earn a visa to learn, live, and work in the West.

Getaw entered Kenya along with his fellow students. His natural entrepreneurial tendencies served him well. In Kenya, he engaged himself in various business ventures before earning a chance to relocate to New Zealand. He was gainfully employed with a Government agency there for a while but living on a salary was at this point becoming quite unacceptable. So he ventured back out into business. Sometime later, he moved once again, this time to Los Angeles, California and continued to engage himself in business where he is excelling.

But Getaw has always been a man who never forgot where he came from. After so many years living on three continents, he still spoke the crisp and sophisticated Amharic of his region. Soon enough, his dreams to close the giant circle that is his life by moving back to the region that raised him was back on track. Three years ago, he took his first tentative steps by acquiring 185 hectares of farmland Meda Woremo woreda of the Amhara Regional State. By engaging some of his relatives and childhood friends into the venture, he invested close to six million ETB into the farm and produced two successive crops. Encouraged by the results, he acquired a further 500 hectare farmland in the country’s fertile Benishangul Gumuz Regional State.

So what does it take to leave everything behind and move back to Ethiopia? And what is Getaw’s advice to those in the Diaspora hoping to make the transition? “As far as the environment goes, it is really no longer that difficult to return and do business in Ethiopia” says Getaw. “Your challenge is going to be around finance as the banking system here is not quite that advanced. It is important that you save enough money before you move back.” Getaw pauses for a second and continued “the other important thing is to really do a firsthand assessment of the situation yourself. Where you fit in is not exactly the same as any other business person. You need to find what interests you and where you have experience. This is simply a task you cannot outsource to anyone. You need to do your own research”.

I couldn’t agree more with Getaw.

Getaw Mekonnen is currently looking for a partner to upgrade the capacity of both his farms in Merhabete and Benishangul-Gumuz. He can be reached at getawmc@hotmail.comThis e-mail address is being protected from spambots, you need JavaScript enabled to view it
Henok A. http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=1309:whats-a-diaspora-businessman-from-los-angeles-doing-in-merhabete&catid=67:ei-blog

abesha

April 21st, 2010, 01:02 PM

Timret ploughing ahead with dairy farms
By Muluken Yewondwossen

Newly-formed Timret Agro Industry Share Company has announced it has the land for a second dairy farm.
Gebeyehu Bekele, CEO of Timret Agro Industry said that the agro industry firm has secured 50 hectares of land around Sheno in Oromia Regional State for the dairy farm, which will include cattle fattening and poultry. It is also in the process of acquiring an additional 104 hectares of land from Amhara Regional State for the production of animal food, and it also has another 121 hectare of land around Sendafa, which is already engaged in dairy farming. All of the investment areas are close to each other and are popular for milk and milk products. According to Gebeyehu, the current capacity of Sendafa farm is 20,000 litres per day.
According to the head of the company, recently Timret started the production of pasteurised milk, and ultra high temperature (UHT) powder milk production will be part of the project.
The first general assembly of the share company was held on April 11 at Global Hotel and elected seven board members.
Gebeyehu told Capital that his company was established by 720 founding shareholders with a total investment of 13 million birr.
"We were offered shares worth 150 million birr, but we decided to start the investment on the stated capital," the CEO said. "While the founders' share sale has closed, we will offer another round in the near future to increase the company capital to do different projects based on our plans."
Recently, Timret and Summit Agro Industry, a subsidiary of MIDROC, signed a memorandum of understanding to include Summit as a shareholder and for it to provide 3.1 million birr worth of pasteurised machinery for Timret's dairy. Summit also contributed 150 cattle. Summit's machinery has a capacity to pasteurise a maximum of 60,000 litres of milk per day.http://www.capitalethiopia.com/index.php?view=article&id=12665%3Atimret-ploughing-ahead-with-dairy-farms&option=com_content&Itemid=4

abesha

May 12th, 2010, 10:26 AM

Girma:Reliance on farming is ending

In an exclusive interview, the Minister of Trade and Industry, Girma Birru, says that agriculture’s long-standing dominance of the Ethiopian economy is gradually coming to an end.

The agriculture sector’s overall GDP share will decline in five years’ time, ending the sector’s long dominance of the industry and service sector, Trade and Industry Minister Girma Birru has said.

Girma explained the economy has witnessed signs of structural transformation and the manufacturing and service sectors should dominate by 2015.

Ethiopia’s GDP growth has been a staggering success for the government: over 10 percent six years in a row. After nine month of this budget year, Prime Minister Meles Zenawi last month confirmed another double digit GDP growth for this year.

The government’s critics, such as MP Lidetu Ayalew, leader of the Ethiopian Democratic Party, say the figures do not indicate a structural economic transformation: “The economy is still built on the shoulder of traditional farming practices as has been the case for decades.”

Agriculture’s GDP share stood at 43 percent in the last fiscal year, according to Ministry of Finance and Economic Development (MoFED), while at the start of the five year plan that ends this year it was 46 percent.

Five years ago, industry’s share was 14 percent, and last year MoFED said the share is 13 percent. This meant a failure to meet a target to improve it to 16.5 percent. The service sector, however, was at a commanding 44 percent in the period, although the government had targeted keeping it at around the 40 percent it was at five years ago. The three percent the service sector gained was supposed to be industry’s.

The proportion of GDP generated by agriculture could be slashed to as low as 35 percent by 2015, Girma said on Friday in an exclusive interview with Capital.
Another five year plan is being devised by government agencies to be put into place if the ruling EPRDF win the forthcoming election.

Despite having a similar growth rate to industry, Girma said the overall share of the agriculture sector will decline by around eight percent, indicating an economic transformation, according to experts.

Girma’s remarks came despite official government reports showing agriculture closely trailing the industry sector in growth. In the last fiscal year, for example, the agriculture sector grew by 6.4 percent, while industry and service grew by 9.9 percent and 14 percent, respectively.

The agriculture sector’s exports are actually leading in growth, solidifying the sector’s traditional dominance. According to a Ministry of Trade and Industry report submitted to parliament, agriculture exports have registered an average growth of 22.6 percent, while it is only 12.6 percent for manufactured products.

Girma Birru explained this by saying the increase in exports from the agriculture sector itself is a sign of the transformation: “Our agriculture has been subsistent farming dominated agriculture.

“Over time there has been a shift from producing for own consumption, to farmers producing by looking at market signals in order to fulfill the demand of others.
“This is the beginning sign of structural transformation. This is one of the reasons exports from agriculture have been growing.”

“Agriculture has been growing fast, but when compared to the rate of growth of the agricultural sector, industry is slightly different.

“Industry has been growing on average at 9.8 percent per annum for the last five years, the growth of the agriculture, while it was fast, was slightly less.
“The service sector has been growing much faster than both.”

The manufacturing sector, according to Girma’s report submitted to parliament last month, is growing by 10.2 percent.

“If we define the industry to mean production of goods and services for the purpose of sales, then manufacturing and service sectors growth combined are the industry figures. This means the shift has been very clear,” Girma said.

“In the coming years definitely this transformation will be deepened. In my own judgment, the agriculture sector’s share towards the end of 2015 could go down to as low as 35-40 percent because the exported-oriented manufacturing industry and the import-substitutive industries will continue to grow as you see today,” Girma added.

The economic structural transformation, Girma insisted during the interview, may not be felt due to the long period it requires but it is happening significantly, preparing the ground work for the coming clear change.

“Seven years ago, from our total production of electric power, the households’ consumption share, for lighting and such, was about 70 percent. The other 30 percent was for industries, including services.

“Now it has shifted; the opposite is true. The consumption of the manufacturing and other service sectors is now 70 percent, while households’ share has been reduced to 30 percent,” Girma said, demonstrating how the non-agriculture sectors have grown into notable players in the economy.

In the rare exclusive interview, Girma addressed some of the burning concerns of consumers, ranging from the sugar situation and cement market measures to the lifted subsidies on petroleum products.

He is running for a parliament seat in the upcoming poll, despite some veteran cabinet colleagues such as Tefera Walwa and Bereket Simon retiring. Girma, according to one newspaper, was among favourites expected by the public to replace Meles, although the PM’s expected retirement has now been delayed for another five years. Girma remarked in the interview whether he will extend his two decades of service to the federal government or not.

Capital will publish the full interview next week.http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=12785:girmareliance-on-farming-is-ending&catid=12:local-news&Itemid=4

yosef

May 13th, 2010, 04:11 PM

^^ that is an interesting read. The economy seems to have redefined itself in a big way in less than 20 years, I think the service sector is probably a big reason why...but it looks like even the industrial sector is outpacing agriculture in growth trends (9.8% vs. 6.4% in the last year alone).

Especially surprising was consumption of power shifting from the dominance of household consumption to manufacturing and service. Alot of change in a small amount of time.

yosef

May 13th, 2010, 04:12 PM

this following article might belong in more than one section, since it involves both agriculture and power development

Emami plans big foray into Ethiopia, other African countries

Tue, May 11 03:42 PM

New Delhi, May 11 (IANS) The Emami group, the $165 million Indian personal care and ayurvedic medicine major, is making a big foray into Africa, the newest frontier for Indian companies, not just in their traditional lines of businesses but also in contract farming and power generation.

'In Ethiopia, Emami Biotech has been allotted 100,000 acres of land by the Investment Commission. We will cultivate edible and non-edible oil seeds and cereals like gram, maize, sunflower, soya and jatropha,' said the company's director Aditya V. Agarwal.

'The cost in the first phase is Rs.400 crore ($85 million),' Agarwal told IANS over phone, adding: 'Labour is only a small cost. The benefit is in the availability of land. We are most interested in this aspect. We have successfully availed land without any hassles.'

According to him, one of the reasons why the group's focus was on Africa was that the large continent accounted for a sizeable share of their exports, which form 15 percent of their sales turnover, reaching out to 60 countries.

'It is more than just about money. Ours is also a poor country and we are improving so we can relate to the degree of progress there too. It would definitely pay in the long term,' he said.

'Another reason particularly so far, the Ethiopian government has been very cooperative and this is one of the major reasons - 'why Ethiopia'. They are very approachable and willing to help which works well for us.'

Agarwal said plans were also on for Rs.1,500-crore ($335 million) additional investment in Ethiopia for a 300-mw power plant. 'Feasibility and viability studies are currently underway,' he said. Nigeria and South Africa are also on the group's radar.

He hoped that just as his Emami group will benefit from the projects planned in Africa in general and Ethiopia in particular, these countries, too, would derive opportunities from his group's investments there.

'One of our major projects being cultivation, it creates a lot of employment, leading to growth, inflow of foreign money, development of natural resources like land and water, training and education of residents and therefore awareness and progress.'

Headquartered in Kolkata, the 30-year-old Emami group has such brands in its stable as Boroplus, Hairlife, Sardi Ja and Sona Chandi Chyawanprash. In recent months, it has acquired the ayurvedic medicines major Zandu and diversified into realty business.

http://in.news.yahoo.com/43/20100511/836/tbs-emami-plans-big-foray-into-ethiopia_1.html

Yoniii

May 13th, 2010, 08:36 PM

abnet

May 13th, 2010, 11:58 PM

"The IFAD-supported 'Fodder Adoption Project' and the CIDA-supported IPMS project at ILRI work with a range of local stakeholders in Ada'a Woreda in Ethiopia ..."

http://www.ethiotube.net/video/9134/Innovation-in-Ethiopian-Dairy-Systems

A very interesting video, efficiency programs like this are what's needed to get us out of famine and food aid.

thanx yonii very interesting video. i am very amazed how the people comunicate and use of words. very simple and easy words ,and the people look they are living comfortable life has a 'woz' :cheers:

abesha

May 18th, 2010, 12:41 PM

Elemtu dairy allotted land

Elemtu Integrated Milk Industry, a share company established by some Oromia-based state enterprises and companies a few months ago, has been allotted 20 hectares of land from Oromia Regional Administration to erect a dairy plant at the cost of 30 million birr.
Elemtu, which was officially established in January this year with a start-up capital of 40 million birr to participate in agricultural investment, has organised a ceremony to lay down a cornerstone on Tuesday, May 18 around Sululta town, 15km north of Addis Ababa in Finfine Special Zone on the future dairy site.
Elemtu was established by over 550 shareholders including Oromia Water Works Design and Supervision, Oromia Road Construction Enterprise and Oromia Seed Enterprise, all of them are regional administration bureaus, and Tumsa Endowment, Kiduse Gabriel Forest Development and Different Business, Oromia Coffee Production Union, Oromia Forest and Wild Enterprise, Oromia Cooperative Bank (OCB), Oromia Insurance Company (OIC) and Oromia International Bank. These are some of the major shareholders of the company.
Dr. Ahmed Ibrahim, general manger of Elemtu, told Capital his company also has a plan to process meat for local and export markets in the future.
The share company is in negotiations with Oromia Agriculture and Rural Development Bureau to buy three poultry farms controlled by the bureau in Adele, Ambo and Nekempt.
According to Dr. Ahmed, in late 2011 the dairy plant will start production. He said the company is in talks with an Indian firm regarding them doing a complete construction of the dairy. The general manager said the meat plant will commence in 2011 after the completion of the dairy project.
The general manager said Elemtu is preparing to import veterinary medicines and equipment to distribute in the country, mainly in Oromia Regional State, which has the largest livestock population in the country.
Currently, Elemtu board is chaired by Belachew Hurisa, livestock market and dairy expert, and Serkalem Assefa, vice chair and head of Oromia Auditor General, Hailu Worku (Dr, Eng) at Addis Ababa University are Brhanu Adenew (Dr) are some of the 11 board members, in addition OIC and OCB are members by their representatives.http://www.capitalethiopia.com/index.php?view=article&id=12811%3Aelemtu-dairy-allotted-land&option=com_content&Itemid=4

abnet

June 9th, 2010, 11:56 PM

Nation expects 60 mln quintals agricultural output this belg season

Addis Ababa, June 8 (WIC) – The Ministry of Agriculture and Rural Development (MoARD) said Ethiopia expects 60 million quintals of agricultural output from the land developed this belg season.

Ministry Public Relations Bureau Head, Tarekegn Tsige, told WIC that the output will be harvested from 2.7 million hectares of land developed in various parts of the country, including Oromia, SNNP, Tigray and Amhara states.

Sufficient agricultural inputs were disturbed among farmers, he said, adding, agricultural professionals at all levels are providing the necessary support.

Maize, wheat, potato, sweet potato, fruit and vegetable, are among the outputs expected to be harvested this belg season, according to Tarekegn.

Ethiopia collected close to 10 million quintals of agricultural outputs last belg season, it was learnt.
Last Updated ( Tuesday, 08 June 2010 )

2010 , waltainfo.com. All Rights Reserved. Addis Ababa, Ethiopia

yosef

June 26th, 2010, 04:28 PM

Fantale integrated irrigation project | 18,000 hectares (7,000 completed) | Utilizes the Awash River

Awash irrigation project to assist resettlement of pastoralists

By Merga Yonas

The first phase of Fantale integrated irrigation project, which could help the resettlement of Karayu pastoralists, is to be inaugurated on July 26 next month. Of the irrigation project covering 18,000 hectares, some 7,000 hectares has been completed for usage by the pastoralist under the first phase scheme, Assefa Kumsa, general manager at Oromia Water Works Design and Supervision Enterprise (OWWDSE), told The Reporter.

Though the enterprise was planned to cover 10,000 hectares, lack of cement in the country had hampered progress of the construction phase. During the second phase, OWWDSE plans to cover more than 7,000 hectares within the coming two years, the general manager said.

The project is not like others where the enterprise could move on to the design or construction phase. The enterprise covers the study, design and construction part of the integrated irrigation simultaneously. The project has been financed by the Oromia regional government and it could cost up to half a billion birr, Assefa said.

Water is carried from the Awash River via a 100km of pipeline. After running 50km, the pipeline divides into three. OWWDSE has designed the irrigation pipe in such a way as to draw 18 cubic metres of water per second, which is an amount that can be easily managed by the project without much waste.

The water is then distributed by using canals dug into the ground to cover 18,000 hectares of land in Fantale and Boset weredas of the East Shewa Zone of the Oromia Regional State.
The water flows through the farms' irrigation ditches and out into the valleys and the drainage basin of Argoba in Northern Shewa of the Amhara Regional State. It then joins the Kassam Dam in the Afar Regional State.

Up to 36,000 Karayu families in the two weredas, mostly pastoralists, will be able to use the irrigation facility free of charge, Godana Daba, chief engineer of the project at the Oromia Water Works Construction Enterprise (OWWCE), told The Reporter.
:cheers:

"The project could serve as a model for other pastoralist areas," Godana added, saying that it would allow the community to adopt a technology that will change their mindset.

OWWDSE is now working on a similar irrigation project in the Bale Zone of the Oromia Regional State, which was launched months ago at a cost of 400 million birr. The project will use the Web River, which is a tributary to the Wabe River, and will cover 15,000ht in Raitu, Dawe Sarar and Dawe Kachan weredas.
The project, initiated four years ago, was intended to assist the settlement of Karayu pastoralists. Traditionally, the livelihood of the Karayu people in the Awash Valley is characterized as "transhuman pastoralism". This involves seasonal movement following a regular migratory pattern between dry- and wet-season grazing areas. Their herds include cattle, camels, goats, sheep and donkeys.

The area falls under the semi-arid agro-ecological zone with an estimated annual rainfall of 543mm. However, the rainfall pattern has changed in recent times and recurrent drought has lately become a dominant factor. This has affected the livelihoods of both the pastoralists and agro-pastoralists. Thus, due to lack of access to traditional grazing grounds and water points, the traditional system has been curtailed and can no longer function adequately.

SOURCE (http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=717:awash-irrigation-project-to-assist-resettlement-of-pastoralists&catid=98:news&Itemid=511)

Not bad, cant wait to see how this is used by the people and the benefits of it all.

yosef

June 26th, 2010, 04:34 PM

some news about ECX

WFP, ECX sign MoU

The World Food Program (WFP ) signed a Memorandum of Understanding (MoU) with the Ethiopia Commodity Exchange (ECX) enabling to take part in auctions to purchase local products. ECX Chief Executive Officer, Dr. Eleni Gebremedhin and WFP Country Director Mohammed Diab signed the MoU.

http://www.wfp.org/content/wfp-ecx-sign-mou

ECX to accredit specialty coffee growers

The American Coffee Quality Institution (CQI) has given a right for the Ethiopian Commodity Exchange (ECX) to hand out quality standard certificates to local specialty coffee exporters.

Previously, the American association was the only entity to give the certificate for specialty coffee exports.

The certificate will enable producers to get better price and market in worldwide. The exchange has launched recently the specialty coffee trading on its floor.

FULL ARTICLE (http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=12978:ecx-to-accredit-specialty-coffee-growers-&catid=12:local-news&Itemid=4)

The Nomadic Warrior

June 26th, 2010, 10:42 PM

http://www.thehindubusinessline.com/2010/06/26/stories/2010062653370100.htm

Our Bureau

Hyderabad, June 25

Consider this: Ethiopia is offering one acre of land on annual lease for just $1 for 100 years.

“We can grow pulses there and bring it back to the country,” Dr S. Ayyappan, Director-General of ICAR, said.

The ICAR (Indian Council of Agricultural Research) has said that Africa promises gold for agricultural entrepreneurs, scientists and academics.

He called upon academicians and entrepreneurs to look at the opportunity seriously. He also mooted the idea of sending teams comprising retired professors and scientists and entrepreneurs to explore the opportunity.

“You may not believe that some countries in the African continent are offering land for very cheap rentals. We can take advantage of this,” he said.

Dr Ayyappan was speaking at the Acharya N.G. Ranga Agricultural University (ANGRAU) which hosted the two-day conference of Deans of Agricultural Universities from across the country.

He asked the Deans to encourage entrepreneurs to tap such opportunities.

Severe Shortage

Quoting a recent survey, he said the Indian agricultural universities and colleges faced severe shortage of faculty, crippling academic and research activity. According to him, 50 per cent of all agricultural universities have vacancies of about 30 per cent. And three universities have more than 60 per cent vacancies and 19 have vacancies between 30-45 per cent and 15 universities, up to 30 per cent.

Faculty strength in agriculture and horticulture colleges was at 55 per cent and the strength in veterinary colleges was at 49 per cent.

Academicians are reluctant to take up professorship in north-eastern States, he said.

Caution

While cautioning the universities to upgrade quality of research and farm activity, he said the accreditation process would monitor all aspects.

“We have accredited 31 universities so far. Another eight are in the process. We are looking at revamping the curriculum. We have allotted Rs 422 crore to modernise the university farms and establish ICT infrastructure,” he said.

Please tell me this is a joke

abesha

June 29th, 2010, 10:48 AM

Not technically agriculture, but it is part of agri-business.

Shoe Firms Undergo Testing for Big US Deal

Anbessa completes the first commercial US order

Ethiopian shoe factories are to sell six million dollars’ worth of shoes through USAID’s Agribusiness and Trade Expansion Programme (ATEP) after delivering the test order issued to them.

The ATEP has created a linkage with seven local shoe factories, including Anbessa Shoes, Kangaroo Shoes, Peacock Shoes, Ramsay Shoes, Walia Shoes, Ras Dashen Shoes, and OK Jamaica Shoes. These companies will be able to produce shoes for three US companies that have placed orders, once they meet certain requirements based on test orders placed with them. The three US companies could place orders for up to half a million shoes.

The United States, one of the biggest shoes markets in the world, has recently started looking for other sources of footwear besides China, which accounts for 86pc of the world’s shoe production, the reason being the increasing price of production in China.

Brown Shoe Company Inc, one of the biggest shoe retailers and wholesalers in the US, which recorded 2.3 billion dollars’ worth of sales in 2009, is one of the three companies looking to Ethiopia.

The test orders were placed to see how efficient the delivery of the shoes is. The fashion season in the US, which usually lasts 120 days, requires that orders be delivered on time before the season passes.

“The test orders will let the US companies know whether the banking system, delivery, and shipment of goods are to their liking, as a delay in orders usually means a 30pc loss for them,” said Teshome Kebede, vice director of the ATEP.

“Once a shoe factory has been tested by one company, they may not need to be tested by another,” said Teshome.

Each shoe factory will take orders out of the 500,000 total according to their capacity to produce by a certain delivery time.

As part of the test order, Anbessa Shoe Factory delivered 10,000 pairs of shoes to Bass Shoe Company on Wednesday, June 24, 2010, making it the first US commercial order.

The Agribusiness and Trade Expansion Programme (ATEP) is a five-year, initiative of the United States Agency for International Development (USAID). It began in 2006 and is due to end in the coming year.http://addisfortune.com/Shoe%20Firms%20Undergo%20Testing%20for%20Big%20US%20Deal.htm

This is pretty big deal. If they get these deals, it can open the floodgates of investors.

abesha

June 29th, 2010, 12:25 PM

United Bank to Grant Loans Based on Warehoused Produce

The Commercial Bank is also expected to sign with ECX

Farmers and businesses in Ethiopia are now able to borrow money from United Bank SC against agriculture products and goods stored at warehouses of the Ethiopian Commodity Exchange (ECX) through “warehouse receipt financing.”

Warehouse receipt financing, also known as inventory credit, is the use of securely stored goods as loan collateral. The farmers and businesses will store their produce at one of the eight warehouses of the ECX, for which they will be issued receipts that can be presented to an eligible bank to a draw loan.

The agreement signed between the ECX and United Bank on June 23, 2010, makes United the first of such banks.

The bank, according to the agreement, will grant loans amounting to 80pc of the value of the stored produce. Berhanu Getaneh, president of United Bank, and Eleni Gabre-Madhin(PhD), CEO of the ECX, signed the agreement.

The new system will cater to up to 96pc of businesses and farmers who have had to use loan sharks to secure the loans that they needed, according to Eleni.

The ECX invited all commercial banks in September 2009 to participate in the pilot phase of this new programme in Ethiopia. Out of those that showed an interest, United Bank SC and the Commercial Bank of Ethiopia (CBE) were selected for readiness to provide the service. The number of branches of United Bank’s branches, totally 42, and the fact that it is one of the first banks in Ethiopia to implement information communication technology (ICT) to facilitate its services were said to be the criteria that qualified it as the first bank to sign the agreement.

The CBE is expected to sign the agreement within the next two weeks.

United Bank was incorporated as a share company on September 1998. At the time of its establishment, UB’s authorised capital was 100 million Br. As of June 30, 2009, the bank’s assets totalled 4.7 billion Br and its total capital was 520 million Br.http://addisfortune.com/United%20Bank%20to%20Grant%20Loans%20Based%20on%20Warehoused%20Produce.htm

abesha

June 29th, 2010, 12:28 PM

Co-op Pledges Exporting at Cost

A newly formed horticulture cooperative is to set up provision of cargo freight services to members on a cost recovery basis.

Horticulture growers have long complained about the amount they pay for cargo freight services for their exports and input supplies, like chemicals and fertilisers, as being too costly. Six months ago, horticulture growers met at the conference hall of the Ethiopian Horticulture Development Agency and appointed a steering committee. That led to the establishment of the Ethiopian Horticulture Cooperative (EHC) on May 12, 2010.

Currently, only two companies, Ethio Horti SC and Flower Port Cargo Plc, provide freight forwarding service for 1.7 dollars to two dollars per kilogramme using cargo planes that they have chartered from Ethiopian Airlines. This rate is considered too steep by exporters.

The new cooperative would provide cargo freight services to its members only at a cost recovery rate, it said at a ceremony held at Hilton Hotel on June 24, 2010, attended by Abera Deressa (PhD), minister of Agriculture and Rural Development (MoARD) and several stakeholders. A feasibility study is said to be underway to determine how the non-profit scheme could be realised.

“The cooperative’s immediate plan is to charter a cargo plane from Ethiopian Airlines to provide freight forwarding service to its members,” said Tesfaye Gebrehiwot, shareholder and general manager of Tinaw Business Plc, who was a member of the steering committee and is now the chairman of the cooperative.

The cooperative also plans to provide supplies to its members at cost, according to Yonas Tsegaye, secretary and board member of the EHC. The cooperative hopes to be financed by member contributions and assistance from foreign donors.

“We at least have more options now, so it will be more advantageous for us,” Selam Retta, farm manager at Roshanara Roses, said.

But, those already providing freight services to the sector are very sceptical as to the viability of the cooperative’s plan to provide the service at cost. They also doubt that they will lose their clients.

“There are various costs that should be taken into account, handling costs, bank interest, cargo rate, and administrative costs,” said an official at Flower Port Cargo.

Flower Port Cargo charters seven flights per week from Ethiopian Airlines and one flight per week from EgyptAir charging 1.7 dollars per kilogramme with a one week credit system and a fine of 0.05 cents per week levied for late payments. The rate had exceeded two dollars when the price of petroleum spiked, two years ago.

“They [the EHC] are still undertaking the feasibility study, but they do not pose a threat to our business, as we have our own marketing strategy as well,” he said.

Ten to 12 chartered flights per week are required for the next year to meet the demand, he said.

Flower Port was established in 2008 by Sher Ethiopia and Trade Path International. Ethio Horti was the first provider of the service after its establishment in mid 2004 by various horticulture producers and exporters.

Currently, there are more than 85 horticulture producers operating in the country.

The horticulture industry has secured 153.6 million dollars from exports during the last ten months, according to reports from the Ethiopian Horticulture Development Agency,http://addisfortune.com/Co-op%20Pledges%20Exporting%20at%20Cost.htm

Simfan34

July 1st, 2010, 05:39 AM

Not technically agriculture, but it is part of agri-business.

Shoe Firms Undergo Testing for Big US Deal

http://addisfortune.com/Shoe%20Firms%20Undergo%20Testing%20for%20Big%20US%20Deal.htm

This is pretty big deal. If they get these deals, it can open the floodgates of investors.

I'll be ordering the patent leather loafers at the Chez Sole soon. Never knew you could eat shoes. :lol:

enkelfam

July 7th, 2010, 02:55 PM

MUMBAI: Karuturi Global Ltd (KGL), the world's largest organised player in the floriculture industry said that it would invest $ 100-mn for setting up a sugar-cane crushing plant in Ethiopia (Africa).

"We will invest $100-mn in a phased manner to set up a sugar-cane plant in Ethiopia. The first phase of the plant is expected to be operational by October this year," KGL's Promoter and Managing Director, Ramakrishna Karuturi, told reporters on the sidelines of an event here today.

The plant will have a capacity to crush 7,000-tonnes per day, he said. The company will use 15,000-hectares of its three-lakh hectares of land it recently bought in Ethiopia for sugar-cane plantation, he said.

KGL is a global market leader in production and export of cut roses. It caters to the domestic and international markets through its Indian, Ethiopian and Kenyan operations.

The company exports cut roses to Europe, south-east Asia, the Middle-East, North America, Australia, Japan and New Zealand, besides sales in India. Exports constitute about 90 per cent of its revenues.

http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/paper-/-wood-/-glass/-plastic/-marbles/KGL-to-invest--100-mn-in-cane-crushing-plant-in-Ethiopia/articleshow/6138975.cms

enkelfam

July 15th, 2010, 06:55 AM

July 14, 2010 - Ethiopia is able to increase its forest coverage to 9 percent, up from only 3 per cent ten years ago, the Ministry of Agriculture and Rural Development said, according ENA.

The increase to forestry coverage is attributed to the forestation campaign launched all over the country in the last ten years, the Ministry told ENA in press statement it issued here on Tuesday.

The Ministry said some 2.5 billion various seedlings will be transplanted throughout the country in this rainy season.

The seedlings will be transplanted on denuded lands covering over a million hectares, according to the statement.

http://www.ezega.com/News/NewsDetails.aspx?Page=heads&NewsID=2461

Great Job! 2 thumbs up!!

FYI: the best way to continue this growth in the forestation is aggressive promotion of environmentally friendly cooking stoves, so people don't go back to the usual cutting trees for energy.

kind of like this:

http://www.youtube.com/watch?v=JLh3cQ-JU_o

abesha

July 15th, 2010, 09:27 AM

Ethiopia's agriculture quickly expanding

afrol News, 14 July - According to Ethiopian government statistics, the country's key agricultural sector has grown at an annual rate of 10 percent over the past 15 years; much faster than population growth.

Ethiopia has periodic problems of feeding itself - best illustrated by the dramatic 1984-85 famine that spurred the international Live Aid action. Since that, the country has experienced similar droughts, which however not resulted in mass-killing famine.

According to Ethiopia's President Girma Woldegiorgis, this is both due to the country's economic policy shift and a strong growth in the agricultural sector.

Only since 1995, Ethiopia's agricultural sector has grown at an average rate of 10 percent each year - of course with periodic ups and downs according to annual rainfalls. But many of the country's farmers have also become more independent from rainfall, with many irrigation projects and wells being introduced.

At the same time, Ethiopia's population growth has dropped from the record level of 3.4 percent in 1992 to a still high current growth rate of 2.6 percent annually. Combined with the agricultural sector's growth, this means more food is produced per capita each year.

According to President Girma, Ethiopia's agriculture has grown faster for the past 15 years "following the favourable policies put in place and prime attention paid to the sector." A government shift towards free market economy had helped farmers invest in their lands.

At the same time, the Ethiopian economy has seen record growth rates for the last decade, improving the market for agricultural products and providing government with new revenues to invest in infrastructure.

The new figured were presented at an Addis Ababa event celebrating the tenth anniversary of the organisation Sasakawa Global 2000, which according to President Girma had plaid a major role "in transforming Ethiopia's agricultural sector and address food insecurity challenge."

President Girma presented awards to former US President Jimmy Carter and former Mozambican President Joaquim Chissano, thanking them for their contribution in the establishment of the organisation.

"When Sasakawa Global 2000 came to operate in Ethiopia, we were also reforming the misguided economy that lasted for almost two decades. The organisation's programme in Ethiopia was a timely call that greatly helped transform our agricultural sector. Soon after we embraced the approaches of the organisation, our cereal harvest exceeded 11 million tonnes in the year 1996," President Girma said.http://www.afrol.com/articles/36513

This is quite believable. Everyone in Ethiopia will tell you that farmers now have more money than they've ever had before. They are becoming consumers themselves nowadays. In fact, the general belief last time I was there (3 years ago) was that the urban poor have been neglected and farmers have received a lot of attention.

Yoniii

July 15th, 2010, 03:14 PM

Ethiopia's agriculture quickly expanding

http://www.afrol.com/articles/36513

This is quite believable. Everyone in Ethiopia will tell you that farmers now have more money than they've ever had before. They are becoming consumers themselves nowadays. In fact, the general belief last time I was there (3 years ago) was that the urban poor have been neglected and farmers have received a lot of attention.
This is great news, but are they talking about the general agriculture market with the huge foreign investments where food will be directly shipped to Port Djibouti..

abesha

July 15th, 2010, 07:07 PM

^^ No, the subsistence farmers, because they say since 1995. Commercial farmers arrived just a couple of years ago.

Yoniii

July 15th, 2010, 08:16 PM

^^ No, the subsistence farmers, because they say since 1995. Commercial farmers arrived just a couple of years ago.
Then this is better news than what I first thought. :)

abesha

July 21st, 2010, 11:41 PM

Advanced tractor production opportunity for top students

Industries for Africa (IfA), a Swedish-based foundation, has launched a mega project which allows top African mechanical engineering students to manufacture tractors and other machines.

The project will enable Africa to produce machinery using 100 percent local resources and advanced technology.

“We train the students using numerous computer programs on tractor production and creating machines using only local resources,” said Orjan Ring, Founder of Industries for Africa.

“Africa has all the natural resources needed to produce such machinery, what it lacks is only the technology to develop these resources. And our foundation has found the solution to address this bottle neck,” he said.

The project will be implemented in selected African countries for the coming ten years and Ethiopia is one of the other three counties chosen by the foundation to start with. Senegal, Togo and Ghana are other countries selected by the foundation.

The shortcut technology transfer project among other things is expected to boost the agricultural productivity of Sub Saharan African countries while saving the hard currency they spend from importing the machinery from abroad.

“The double-digit GDP growth of Ethiopia for the past six years and the large population of the country and the richness of natural resources are among the major reasons we decided to start the project here,” chairman of the foundation, Andrea Lennberg, said.

The foundation has now invited high-achieving mechanical engineering students in Ethiopia to contact the foundation via email. After completing its review, the foundation will also announce two additional Sub-Saharan African nations for similar projects.

According to the foundation heads, they will collaborate with ethiopian institutes to provide training at universities. The mechanical tools needed for the training will be imported by the foundation to produce a tractor. The process includes about 400 small-scale industries.

“We will train students for all fields of the small industries that include the ground level productions; like the mining of iron ore locally,” the foundation members said. “According to our research, the country has most of the resources locally, which are needed for tractor manufacturing and the training helps the trainers to develop their own skill to produce the necessary equipment for the industry,” they said.

If the country does not have some resources, it will import from other African countries working with the foundation.

The foundation plans to help students to establish their own industry. “We will facilitate the trainees to get finance from local banks and micro financial institutions to found their company,” the foundation members explained.

Ten top students will be selected for the first round training and will be provided with financing mechanisms, which will allow them to get money to establish machinery manufacturing factories here in Ethiopia after completing the training. Advanced tractor production opportunity for top students. The machineries and tractors, which the students are expected to manufacture locally after taking practical and theoretical training using new technology, meets international standards and is cost competitive.

The foundation also plans to purchase 10 percent of the machines to for distribution to European markets in order to generate hard currency for African counties. The IfA members said that the training will take from one year to six months based on the courses.

Industries for Africa is a nonprofit organization funded by major continental and global donor organizations. The goal of the Industries for Africa Foundation is to aid the people in Africa in building the sustainable industrial infrastructure that they so desperately need.http://capitalethiopia.com/index.php?option=com_content&view=article&id=13102:advanced-tractor-production-opportunity-for-top-students&catid=12:local-news&Itemid=4

Technology transfer, I like it :cheers:

Yoniii

July 22nd, 2010, 06:25 AM

^^ :applause: Amazingly good news, this is how you help. Best possible form of "aid".

enkelfam

July 22nd, 2010, 07:24 AM

^^ :applause: Amazingly good news, this is how you help. Best possible form of "aid".

+1

Great idea. Inspiring young college students to think about how the theoretical information can be utilized to solve 'real' problems on the ground.

abesha

September 20th, 2010, 03:29 PM

http://www.bbc.co.uk/news/business-11346643

BBC Report on the ECX.

abesha

September 20th, 2010, 03:36 PM

From the LA Times

The report found that about half the 406 land acquisitions in Ethiopia and the 405 deals in Mozambique from 2004 to 2009 came from foreign investors. Foreign investment in Sudanese agricultural land was expected to increase fivefold by 2014.

http://articles.latimes.com/2010/sep/19/business/la-fi-farm-land-grab-20100919

Thought you would be interested since we've discussed whether Ethiopians are actively participating in acquiring commercial farmland.

Simfan34

September 20th, 2010, 06:11 PM

Only half? That mean the other half are Ethiopians. That's good!

abesha

September 25th, 2010, 07:05 PM

Amhara State computerizing records of farmers’ land ownership
Wednesday, 22 September 2010

Addis Ababa, September 22 (WIC) -The Amhara State Environmental Protection, Land Administration and Use Bureau said the efforts launched to computerize records of the land ownership of farmers have become successful.

Bureau Public Relations Head, Girma Melese, told WIC that the computerized land record system which was began in 45 woredas of the state at a pilot level has become fruitful.

He said the bureau has so far computerized land ownership records of 753,800 farmers residing in 685 kebeles of the state.

According to Girma, the implementation of computer running land registration system helped easily address problems related to land rights in addition to increasing productivity of farmers, among others.

He said the bureau has so far issued land ownership certificates to 94 per cent of the 3.4 million farmers who requested land use rights last Ethiopian budget year.http://www.waltainfo.com/index.php?option=com_content&task=view&id=23471&Itemid=134

abesha

September 26th, 2010, 12:09 AM

Karuturi foresees USD one billion from export

Karaturi Global Limited, India’s largest private investment company in Ethiopia, is expecting to generate USD one billion in export revenues. The amount (which is half of the country’s export income of the previous year) is expected to be earned from the 311,000 hectares that it will be cultivating in Ethiopia, Sai Ramakrishna Karuturi, founder and managing director of the Indian conglomerate told The Reporter.

The company acquired about 300,000 hectares of land in Gambela region where it will cultivate maize, rice, palm and sugarcane while it received the balance around Holeta area for a rose farm project, according to Karuturi.

The Indian conglomerate, which received the largest farmland allotted for investment project in Ethiopia, is finalizing negotiation with the Exim Bank of India which gave it the green light to raise a USD 180 million for the USD1.4 billion ambitious project the company is set to launch. The total amount of land the company took is about six times the size of Addis Ababa.

“The bank is willing to provide us a USD 50 million guarantee to raise a USD 180 million for the project,” Karuturi told The Reporter. “We will be raising the balance from various financial institutions to realize our project.”

The first phase of Karuturi’s project involves a 100 ha of land on which the company will cultivate maize, rice, palm and sugarcane, according the Karuturi. The company plans to set up a sugar, palm oil and rice factories in Ethiopia in the future.

Karuturi will start exporting next March while it expects to generate export revenues worth USD one billion when production is in full swing.

Sources told The Reporter that Karuturi has been given the green light from the Ministry of Water Resources to use the Baro River, one of the tributaries of the Blue Nile, for its farmland in Gambela region. The company will simply divert water from the river and use it to develop the region, according to Karuture.

The company last week received 15 brand-new tractors made by the renowned, U.S.-based tractor manufacturer, John Deere, for its project. The company received the tractors from Gedeb Engineering, the sole supplier of tractors in Ethiopia. Having a horse power ranging from 425 to 475, each tractor has a capacity to cultivate over a 100 ha of land an hour and the company will procure more of them in the coming months.

The company, according to the plan, was supposed to receive the tractors at a ceremony to be held at the Millennium Hall. However, with the company that administers the hall, Addis Park, requesting a 200,000 birr, Karuturi received the trucks at a ceremony held at the NOC fuel station close to Bole International Airport.

Karuturi told The Reporter that his company in Ethiopia currently hires up to 10,000 employees while the number of permanent and temporary employees will jump to 40,000 when the company starts cultivating the whole 311,000 ha land.http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1139:karuturi-foresees-usd-one-billion-from-export&catid=98:news&Itemid=511

So how much of the $1 billion will be Ethiopia's?

African Lion

September 26th, 2010, 03:49 AM

Karuturi foresees USD one billion from export

http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1139:karuturi-foresees-usd-one-billion-from-export&catid=98:news&Itemid=511

So how much of the $1 billion will be Ethiopia's?

Not much! The land/water and food will go out of the country as well. Other then Woyane nationalizing all this land in the future I cant see how it could possibly help the country.

Ahadu

September 26th, 2010, 04:48 AM

Not much! The land/water and food will go out of the country as well. Other then Woyane nationalizing all this land in the future I cant see how it could possibly help the country.

:ohno:
Blame Woyane/Zenawi for everything under the sun. Excellent excuse to cover too many lazy azzzz

"...land/water and food will go out of the country as well..." What the hell is that means for God sake?? Is the Indian company exporting the land / water too??:lol: How stupid we are getting by the day?

I cant see how it could possibly help the country.
Of course - you are too blind to see it....let me write it for you BIG.

Karuturi told The Reporter that his company in Ethiopia currently hires up to 10,000 employees

^^ open your eyes!!

Yoniii

September 26th, 2010, 12:12 PM

Not much! The land/water and food will go out of the country as well. Other then Woyane nationalizing all this land in the future I cant see how it could possibly help the country.
I was just going to mention Ahadu's point, the company estimate to be hiring around 40 000 workers by the time they reach their "a billion in profit goals". That, plus the foreigner currency the country will be getting is what helps this country.

I see your point, it won't look good having tons of food being exported while people still rely on food assistance within the country. But this is commercial farming, not UN Food assistance farming. Besides, half of these land contractors are given to Ethiopians.

Simfan34

September 26th, 2010, 03:52 PM

I was just going to mention Ahadu's point, the company estimate to be hiring around 40 000 workers by the time they reach their "a billion in profit goals". That, plus the foreigner currency the country will be getting is what helps this country.

I see your point, it won't look good having tons of food being exported while people still rely on food assistance within the country. But this is commercial farming, not UN Food assistance farming. Besides, half of these land contractors are given to Ethiopians.

I think that employment is enough- I'm simply glad to see the land utilized well. In addition, over 1/2 of the land being owned by Ethiopians I think offsets any fears.

What I don't get was that land we were to have sold to Sudan.

African Lion

September 26th, 2010, 06:35 PM

:ohno:
Blame Woyane/Zenawi for everything under the sun. Excellent excuse to cover too many lazy azzzz

"...land/water and food will go out of the country as well..." What the hell is that means for God sake?? Is the Indian company exporting the land / water too??:lol: How stupid we are getting by the day?

Of course - you are too blind to see it....let me write it for you BIG.

Karuturi told The Reporter that his company in Ethiopia currently hires up to 10,000 employees

^^ open your eyes!!

This is an old fashioned land grab and Ethiopia will not benefit. I know you love the Ethiopian flag burning TPLF but have some sanity. I dont see how slave work/wages are going to replace a mans land. THese farmers are working for slave wages because the government has took away their so called "idle land". Dont believe the hype because Ethiopia will not get anything out of giving your land away for pennies while you have millions starving. You seriously think that there is such a thing as "idle land", nonsense. You are "overjoyed because the land,food,money and water are going for export while the government/country gets pennies and slave work.

I was just going to mention Ahadu's point, the company estimate to be hiring around 40 000 workers by the time they reach their "a billion in profit goals". That, plus the foreigner currency the country will be getting is what helps this country.

I see your point, it won't look good having tons of food being exported while people still rely on food assistance within the country. But this is commercial farming, not UN Food assistance farming. Besides, half of these land contractors are given to Ethiopians.

I think that employment is enough- I'm simply glad to see the land utilized well. In addition, over 1/2 of the land being owned by Ethiopians I think offsets any fears.

What I don't get was that land we were to have sold to Sudan.

This is a new Geber/Neftegna system arrive. This looks like feudalism to me, land confiscated and you get to work for someone else for slave wage. This is slave wages and nothing that is going to help the country out of poverty. The best thing to do is to have private property rights and sell the land to Ethiopians for Agribusiness.

Ethiopia needs an agricultural revolution and our people can do it if the Marxist government will let the private market do what it has to do.

abesha

September 26th, 2010, 07:41 PM

African Lion

September 26th, 2010, 07:56 PM

^^ An agricultural revolution will bring commercial farms, which means that huge amounts of land will be used by corporations etc. It's inevitable. Besides, 80% of Ethiopia's population will not remain rural indefinitely.

What else is supposed to happen? Are you upset because they are foreigners or because they are commercializing the land?

An agricultural revolution is necessary and the primitive subsistance farming has to go but we need an agricultural policy that can help the country. I dont see how giving land to forigners is going to help the country. Their are plenty of Ethiopians including my family who are not allowed from lease any land and developing it for commercial agriculture. If that was not bad enough the government has confiscated "idle land" and has given it away vertually free to people that export the food and profits overseas.

I'm waiting for someone to tell me "how" Ethiopia will beneifit.

abesha

September 26th, 2010, 08:09 PM

How come your family is not allowed?

I know people who've gone back and opened horticultural and other agricultural ventures. Are you assuming you'd be disallowed?

There are a lot of Ethiopians from the diaspora who've gone back, taken land from the government, but are just speculating (i.e. they don't start the project, they wait so that they pass it on to someone else at a profit). They have had their land taken back for those reasons, but of course they complain that the government doesn't want Ethiopians involved instead of telling the whole story.
Other than that, if you get to work on the farm, I don't see how it's a problem. Half of the 400+ commercial projects approved over the last couple of years have been for Ethiopian entrepreneurs.

Simfan34

September 26th, 2010, 09:43 PM

This is a new Geber/Neftegna system arrive. This looks like feudalism to me, land confiscated and you get to work for someone else for slave wage. This is slave wages and nothing that is going to help the country out of poverty. The best thing to do is to have private property rights and sell the land to Ethiopians for Agribusiness.

Ethiopia needs an agricultural revolution and our people can do it if the Marxist government will let the private market do what it has to do.

I'd say most people around the world, especially in the developed world, work for a wage on commercial farms. Of course it ridiculous that people, in this day and age, cannot own land, but I think it is a good thing that millions of Ethiopians will no longer have to farm in order to literally live.

Hersh

September 27th, 2010, 03:18 AM

I'd say most people around the world, especially in the developed world, work for a wage on commercial farms. Of course it ridiculous that people, in this day and age, cannot own land, but I think it is a good thing that millions of Ethiopians will no longer have to farm in order to literally live.

I think the situation is more like "millions of Ethiopians can no longer farm in order to literally live."

It's a matter of perspective.

abesha

September 27th, 2010, 04:44 AM

But they are working on the new farms though.

Anyway, we'll see what will happen in the next couple of years.

Simfan34

September 27th, 2010, 05:05 AM

I think the situation is more like "millions of Ethiopians can no longer farm in order to literally live."

It's a matter of perspective.

Now, when you say that, do you mean they're not able to farm or they time has passed for subsistence farming?

abesha

September 27th, 2010, 05:11 PM

Karuturi Ploughs $10m into John Deere Tractors
The agro company plans to acquire an additional 50 million dollars worth of equipment

Karuturi Agro Products Plc., an Indian agricultural company, received 15 John Deere tractors on Wednesday, September 22, 2010, from Gedeb Engineering Plc, the sole distributor of the brand in Ethiopia, as part of a 10 million dollar order it had placed with the latter.

The handover ceremony of the tractors, 10 of which have 475 horsepower and five with 425 horsepower, was held at the National Oil Corporation’s (NOC) Bole station.

Before receiving the keys to the tractors, Surya Rao Karuturi, father of Sai Ramakrishna Karuturi, founder and managing director of the company, carried out pooja, a Hindu ritual performed on many occasions including the beginning of a new venture.

“These tractors come with attachments and complementary equipment such as planters, self-propelled sprayers, harvesters, and support equipment like fuel supply etc.,” Karuturi told Fortune. “Comprehensively, we spent 10 million dollars on all these. Each tractor costs around 350,000 dollars stand alone and can plough 75ht a day.”

The attachments are currently at Djibouti Port and are expected to arrive in about three months, according to Chombe Seyoum, managing director of Gedeb Engineering.

The tractors are to be used on 300,000ht Karuturi has leased in Jiksaw, Itang, and Lare weredas in Gambella Regional State, 700km west of Addis Abeba, one of the five projects it has in the country, according to the managing director.

To date, it is the company’s largest project with an investment of 1.4 billion dollars that incorporates the farming of palm oil, rice, and sugarcane, with the prospect of constructing a sugar mill.

The other projects are a 10,000ht investment in farms in Bako, Oromia Regional State, 251km southwest of the capital which it has leased for 30 years for the cultivation of maize, rice, and vegetables; a 188ht rose farm 15km from Weliso Town with a capital of 80 million dollars; and two rose farms on a total of 50ht in Holetta Town with a capital of 18 million dollars.

“These tractors are for the Gambella project,” Karuturi told Fortune. “We are getting more equipment worth 50 million dollars.”

Along with the 15 tractors imported for Karuturi, Gedeb has also shipped in four tractors for Morell Agro Industry Plc, an American company that is cultivating drought resistant wheat on 10,000ht in Bale, Oromia Regional State.

With such huge projects in the country, Karuturi has bought insurance policies from Nyala Insurance SC, the first insurer to provide crop insurance, for its crops, vehicles, and employees as well as maritime insurance.

Two years ago, Gedeb Engineering delivered 27 tractors with 75 horsepower to Karuturi, Chombe told Fortune.

Gedeb, which was established in 2005 with a capital of one million Birr that has since grown to 10 million Br, has been the sole distributor for John Deere in the country since 2006 and imports tractors, combiners, and different agricultural machineries.http://addisfortune.com/Karuturi%20Ploughs%20$10m%20into%20John%20Deere%20Tractors.htm

Gedeb Engineering is making a killing here! Within 5 years, their capital increased from 1 million to 10 million ETB

Simfan34

September 28th, 2010, 10:46 PM

Are the tractors assembled in Ethiopia?

abesha

September 28th, 2010, 10:53 PM

No they are imported.

abesha

September 30th, 2010, 04:43 PM

Sesame, pea bean to trade exclusively on ECX

By Muluken Yewondwossen

The Ethiopian Commodity Exchange (ECX) is set full speed ahead to introduce sesame and pea bean exclusive trading on its floor in early October.

The management team and staff of ECX and the Ethiopian Commodity Exchange Authority (ECEA), which control the trading, are lobbying producers and suppliers throughout the potential production areas for the past three months.

The exchange has opened new facilities including warehouses in the major areas of production to facilitate collection and to accelerate trading.

However, the exchange which had launched sesame trading in May 2009 has not fully managed the seed trading as it has coffee.

A government proposal to allow the Ethiopian Commodity Exchange (ECX) to trade commodities exclusively following cabinet approval was endorsed in parliament in January.

First tabled before the house back on November 26, 2009, an amendment on the existing proclamation that first established ECX proposed that decisions for commodities to be traded exclusively through ECX should be left to the Council of Ministers.

According to the Ministry of Agriculture and Rural Development (MoARD), which tabled the amendment legislation, the move would ease expansion projects for the exchange.
Haile Berhe, marketing manager of Guna Trading, one of the major sesame exporter companies, told Capital that some of the sesame exporters were opposed to ECX’s plan.

This export product may incur problems if it transacts under the new trading system, although the new system also has some constructive ideas.

“The daily price rate of sesame on international market is not like other export products, within a single day it may vary by large amounts. While the trading prices on ECX floor may not increase or decrease on that percentage,” Haile said.

“This is one of the major exporters’ fears and the government’s concern,” Haile added. But, he said, currently traders have accepted the new decision. “We will trade under the exchange floor and try to resolve problems together with ECX,” Haile added.

The transactions on sesame through ECX will begin as of October 8, 2010, according to the information obtained from the exchange. In addition only a week later (October 15) another new item, pea been, will be part of the electronic system.

Currently, the exchange is registering limited trading members for the two products that will allow them to be a market actor on the exchange floor. Some of the traders that come from different production areas of the country have been trained on the electronic trading system on Thursday at the exchange trading floor at ECX headquarter.

The coming months are the major peak season for crop production in the country. Sesame is one of the major export items. Ethiopia is the world’s fourth largest sesame producer after China, India and Myanmar.

ECX is a domestic market system linking local suppliers with exporters and other buyers. The trading bell first rang on the trading floor of the ECX in April, 2008. When it began, the exchange traded wheat, maize and haricot beans, taking on coffee trading on December 2, 2008.http://capitalethiopia.com/index.php?option=com_content&view=article&id=13458:sesame-pea-bean-to-trade-exclusively-on-ecx-&catid=12:local-news&Itemid=4

My knowledge of this is quite limited so I need to ask. In other countries, are commodities like this exclusively traded through their commodity exchanges?

abesha

October 1st, 2010, 07:27 PM

Interview with Ethiopia exchange CEO Dr Eleni

Jimma Times: While working for the World Bank (WB), seeing the devastation in Ethiopia by the 2002 drought has influenced your ECX initiative. Do you think the ECX will help to eradicate starvation in Ethiopia in this new decade?

Dr. Eleni Gabre-Madhin:Yes. I think that there is no doubt whatsoever that market distribution and the means, including costs, of transferring food from where it is produced to where it is consumed is fundamental to achieving food security. This is universal fact although we ignored it for so long in Ethiopia and throughout Africa. Luckily this is no longer the case. The Asian Green Revolution that fed millions and turned the Indian sub-continent from a basket case to a bread basket did not just get the technology of seed, water, and fertilizer right, it also depended on putting in place a food procurement and distribution system. In Ethiopia, it is my view that ECX will play such a role in ensuring that our market works to get food where it needs to go as efficiently and sustainably as possible.

Jimma Times:You appeared in the Technology, Entertainment, Design (TED) Talks program and the ECX was featured on the PBS. And ECX was expected to bring transparency and trust into the market. Do you feel the initial praise your ECX received has been overshadowed by the ensuing criticism?

Dr. Eleni Gabre-Madhin:Transparency and trust are very big and ambitious objectives. And there will be some winners and some losers when change comes. When there is transparency, that means that those who benefitted from the lack of transparency may be inconvenienced. These become the early opponents of such a change. However, the game changer is when, over time, the bigger share of winners will drown out the voices of the minority of those who feel disadvantaged by the new system. And more importantly, over time, those who felt initially inconvenienced by the change will modify their business practices and learn new paradigms so that they too can benefit from the new system.

I believe this is the evolution we have seen with regard to ECX over the past few years. First, there was initial hope and excitement. As the system took hold, those who felt they were going to lose their earlier advantages were very loud in their protest. But those who benefitted, the small traders and farmers who were earlier exploited by the lack of transparency and trust, started to see the advantages of the new system and we are now seeing and hearing their appreciation loud and clear, although their voice may not be heard in the same places or in the same way. Their satisfaction is silencing the protestors. And even the early critics are now adapting and starting to benefit as well. This will only continue.

Jimma Times: Despite the criticism ECX received earlier, there are many Ethiopians who appreciate the dedication and the patriotism of several Ethiopians inside ECX (including you) who sacrificed their big jobs and comfortable lives in the WEST or Diaspora. What was the first reaction of your ECX founding staff members when they saw the negative response to their hardwork and their sacrifice for their country?

Dr. Eleni Gabre-Madhin:To be honest, neither I nor the dedicated staff members recruited from both within and outside Ethiopia are working for the popularity cause. We are motivated by our passion and conviction that what we are doing is a huge, indeed transformational, agenda for Ethiopia’s future generations. Our vision is to work on behalf of the voiceless, so we were not distracted by the initial voices of protest, which can only be expected when such change occurs and which we had anticipated. There was no disappointment or question of deviation from the course we were on. That does not mean that we are not a listening and learning organization or that we are not responsive. In fact, we strongly uphold and have continuously reinforced our principle that we are service providers to the market, and have engaged in hundreds of hours of consultation with thousands of market actors over the past few years. I always tell the traders and farmers that we work for them, that we are here for them. We have committees made up of private traders and farmers in every site we operate in and we are extremely flexible in responding with solutions and modifications of our system to meet the needs of our market. But we do so without compromising the basic principle that we are here to create a fair, transparent, orderly, efficient market for all. I believe our openness and responsiveness combined with our adherence to principle has earned us a huge amount of trust and respect, and I would like to believe, even affection from our market.

Jimma Times: Not only economic based criticism but also Politics had as much part in driving the negative criticism the ECX faced earlier. Do you think your individual efforts to reach out to your critics - with letters to the media - was effective method?

Dr. Eleni Gabre-Madhin:Because I believe such a major change affecting so many millions of Ethiopians’ lives cannot be done without continuous dialogue and reaching out, I have used many and varied forms of communication, including social media such as blogs, but also town hall meetings, press interviews, stakeholder forums, newspaper articles, media advertising, awareness creation and training, corporate sponsorships, and participation in numerous conferences and external events. In addition, my office and that of my colleagues is open and our open door policy is well known. People from all over the country and abroad regularly call and visit and they are always welcome. The most effective approach is the face-to-face meetings that we hold continuously. However, in our global context, this is not always possible, so other means are sometimes the only option. I am not sure if it was effective or not to respond to queries by social media, but I considered it necessary.

As far as politics is concerned, I try to steer clear of either engaging in or allowing ECX to becoming politicized, but this is not something entirely in our control. Our agenda is economic development, not politics, and a market should be considered a neutral instrument for economic activity and growth.

Jimma Times: Do you believe now the ECX is at a stage where it is a household name among almost all farmers and producers in rural Ethiopia?

Dr. Eleni Gabre-Madhin: A household name! That is an objective in and of itself! Not sure. Probably in the coffee sector, it would be hard to imagine that most market actors, including farmers, would not have heard of ECX in some form or shape.

Jimma Times: Certainly, you have talked with and met many farmers, families, businesses and heard many touching stories through out Ethiopia. What was one special moment during the last year that gave you the most satisfaction about what you were trying to achieve with ECX?

Dr. Eleni Gabre-Madhin: There are many many instances where I have learned so much about people’s aspirations and how the idea of something like ECX was important to them. I have been truly blessed to have witnessed so much change in people’s lives in such a short time. I have come to realize how powerful the emotional content of what we do is. In this job, I have seen, and shared, tears by grown men when the unexpected becomes reality. Perhaps the most touching is the story of the sesame farmers up in Humera who simply could not believe that they could receive their payment in its entirety within twenty-four hours of selling the commodity to an exporter and that they could know the price without fear of being cheated or getting the wrong information.

Disbelieving us, but willing to try our system anyway, the farmers went to the local bank the next morning following the sale. When they saw their bank balance credited with their payment through ECX, with faces incredulous and emotional, I have to believe their lives and their sense of empowerment would never be the same. And that is change that means something.

Jimma Times: There were some reports of tension and disagreements between the Specialty Coffee Association of America (SCAA) and ECX. What is the current status of the SCAA-ECX relationship?

Dr. Eleni Gabre-Madhin: There was an initial period of some months with misunderstanding and misinformation with the US based specialty buyers on what we were trying to do. Quite early on, since mid-2009, they have accepted that a producer country has the right to create the system it thinks will best benefit its own people and we have been working in full partnership with SCAA, as well as Japanese and European buyers. Our specialty coffee grading system has been aligned to meet SCAA protocols and every ECX coffee grader is SCAA certified. This builds international confidence in our domestic supply chain. We have an excellent collaborative relationship with SCAA with future projects currently being planned. The second consecutive forum on Ethiopian coffee and ECX at the annual SCAA meeting last April in California was very successful and publicly confirmed the fruits of our partnership.

Jimma Times: In August Vice President of African Development Bank (AfDB) Professor Mthuli Ncube said Ethiopia needs to establish Stock Market soon. Is your ECX interested in participating in such efforts to create an Ethiopian stock exchange?

Dr. Eleni Gabre-Madhin: I believe that there is growing consensus that the Ethiopian economy is reaching a stage where the formation of a stock market is appropriate. When Prof. Ncube of the African Development Bank visited us recently, as a financial market expert, he became quite enthusiastic about the potential for extending our system to a stock exchange after seeing our operation. ECX does not yet have a position on exactly how the stock exchange should be created, but we are certainly willing and ready to support any such efforts or to leverage from the vast learning we have had over the past few years.

Jimma Times: 10 years from now, what do you hope for the ECX to have achieved in Ethiopia and globally?

Dr. Eleni Gabre-Madhin:ECX’s Vision as defined collectively by our employees at our start in 2008 is “to transform the Ethiopian economy by becoming a global commodity market of choice.” Now everyone is talking about transformation with the launching of our country’s five year Growth and Transformation Plan. My hope is that, in the coming decade, our current efforts bear fruit in creating a market which serves as a global reference market for the African commodities produced on African soil, that our ECX commodity and derivatives prices are quoted on exchanges around the world, that our farmers are empowered to make better investment and commercial decisions, that our private trading community becomes solidified and consolidated into modern firms, that the backbone of our economy rests on manufacturing, industry, and services rather than agriculture, and that our children aspire to better lives.http://jimmatimes.com/article/Interviews/Interviews/Interview_with_Ethiopia_exchange_CEO_Dr_Eleni_Jimma_Times/33767

I hope to see a stock market in Ethiopia by 2015.

abesha

October 1st, 2010, 08:00 PM

A documentary on how the ECX works

http://www.diretube.com/etv-reports/ethiopia-commodity-exchange-ecx-video_f1dba9871.html

Ahadu

October 10th, 2010, 05:24 AM

DhM3_rBtwvM&feature=related

Y-7b9QbVJUo&feature=related

cBtJmGXTGnU

abesha

October 10th, 2010, 06:29 AM

That first clip was painful to watch, what a horrible journalist.

Anyway, thanks for posting.

Ahadu

October 10th, 2010, 08:57 AM

That first clip was painful to watch, what a horrible journalist.

Thank you for sharing my pain!:)

Simfan34

October 10th, 2010, 04:19 PM

Better than ETV...

abesha

October 11th, 2010, 05:56 PM

Indian Firm Leases Gambella Plot for Rice

Company plans to cultivate mainly rice for export to the US with intensification
system that uses less water

Sannati Agro Farm Enterprise (SAFE) Plc received a 10,000ht plot of land in Dimi District, Gambella Region, for the cultivation of rice, pulses, and cereals, from the Ministry of Agriculture and Rural Development (MoARD) on October 1, 2010.

SAFE, which was established with an investment capital of 10 million dollars, received the land for a total of 39.5 million Br on a 25-year lease at 158 Br per hectare per year which is to be paid annually for the duration of the lease. The company paid 1.58 million for the first year.

“We are planning to cultivate mostly rice, all of which will be exported to the United States (US),” Pradeep Mannemela, chairman of SAFE, told Fortune. “We will use a system of rice intensification (SRI) which uses less water than marshy rice fields.”

Although the company has a rice field in India, which, at 300ht is very small when compared to the land they have acquired in Ethiopia, the land it acquired in Gambella has two advantages over other places, according to Mannemela.

“One is the ability to export which we cannot do in India,” he told Fortune. “The other, most important, factor is that the land consists of 7.2pc organic material which is very important for rice cultivation, as opposed to 0.05pc in India.”

The average organic material required for rice cultivation is two to three per cent.

“Even with that, we will be rotating the crops we cultivate with pulses, which injects nitrogen into the land, and cereals to replenish the land,” he said.

The company has already ordered equipment like tractors, planters, and seeders from New Holland, an American brand that is produced in India, which is worth 1.5 million dollars to two million dollars and should arrive in December 2010, according to Mannemela.

The new land acquisition by SAFE makes it the fourth Indian company to lease land in the Gambella Region, along with Karaturi, Ruchi Soya, and BHO Agro Plc. Out of these, Karaturi leads the pack in magnitude with 300,000ht for the cultivation of wheat and maize which is also meant for export.

Mannemela, who is trained as a computer scientist, owns Verinon Technology Solutions Ltd, an Information Technology (IT) company. He started this company, based in the US, with an Ethiopian partner.

“I got into agriculture because it is where the next economic boom will be as it was in IT in 2000,” Mannemela told Fortune. “Even though I am into IT, my family has been cultivating rice for generations.”

The company plans to expand its agricultural endeavours and may acquire up to 100,000ht in Ethiopia, according to the investment proposal it submitted to MoARD.

“We have big plans but we would like to prove ourselves on this land before we go to the next level,” Mannemela said.

Simfan34

October 12th, 2010, 12:21 AM

Can't wait to see this!

Ahadu

October 12th, 2010, 02:53 AM

He started this company, based in the US, with an Ethiopian partner.
“I got into agriculture because it is where the next economic boom will be as it was in IT in 2000,”
^^ What?
The dot-com bubble lasted only for five years (1995–2000). In 2000 the bubble has already burst on our face (March 2000 to be exact)...........lost my first job right then!

abesha

October 12th, 2010, 02:57 AM

LOL

You know what's funny? We both read the same sentence, but focused on completely different parts. I myself was wondering why out of the two, it was not the Ethiopian that is investing in agriculture in Ethiopia?!

Completely overlooked the IT part.

Yoniii

October 15th, 2010, 01:11 PM

Developing nations need stronger connections to world markets to stabilize prices and reduce hunger, according to Eleni Gabre-Madhin, the chief executive officer of the Ethiopia Commodity Exchange.

Trading floors in developing nations give farmers more- accurate pricing information and encourage construction of the storage facilities, roads and telephone networks needed to foster agriculture, Gabre-Madhin said today in an interview at the annual World Food Prize conference in Des Moines, Iowa.

Farmers in Ethiopia, with experience in commodity trading, “think global and multinational, rather than thinking local,” she said. “That means they’re able to make better decisions on when to sell” and pay closer attention to crop quality, she said.

Ethiopia is the world’s sixth-biggest coffee producer and fifth-largest grower of lentils, chickpeas, sesame and sorghum, according to the United Nations. The Ethiopia Commodity Exchange trades corn, wheat, coffee, white and red kidney beans and soon will be adding sesame. The country’s agricultural sector suffers from frequent drought and poor cultivation practices, according to the U.S. government.

The World Food Prize recognizes achievement in food and agriculture that alleviates hunger and poverty globally. The annual conference brings together governments, businesses and humanitarian organizations to discuss farming and international development.

To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

http://www.bloomberg.com/news/2010-10-14/african-farmers-must-be-tied-to-markets-ethiopia-commodities-chief-says.html
^^

abesha

October 19th, 2010, 04:38 AM

Gov’t Bans Raw Cotton Exports

Local demand soars as does international price

The Ethiopian government has banned the export of raw cotton due to an increase in demand from local textile and garment manufacturers and a hike in the international price, sources at the Ministry of Trade (MoT) disclosed to Fortune.

“The local demand for cotton this year is expected to be 57,000tn while supply is expected to be 51,000tn,” Assefa Aga, general manager of Ethiopian Cotton Producers, Ginners, and Exporters Association (ECPGEA), told Fortune. “If there is no ban on exports, local textile producers will be forced to import cotton from other countries for a lot of foreign exchange.”

The proposal for the ban on the export of raw cotton, which was drafted by the Ethiopian Textile Industry Development Institute (ETIDI), has been discussed by stakeholders in the sector over the past weeks. Concern that the ban comes when they have already made commitments to export raw cotton to international clients, was raised by some members of the ECPGEA.

A committee comprising representatives from Ministry of Agriculture and Rural Development (MoARD), MoT, Ethiopian Textile Garment Manufacturers Association (ETGMA), and ECPGEA is expected to decide on similar exceptional matters till Friday, October 23, 2010, according to Assefa.

The reason for the ban, aside from the gap in supply and demand, is the gap in the foreign exchange earned when raw cotton is exported as opposed to when value has been added to it.

“A kilogramme of raw cotton may be sold for a maximum of two dollars,” Endalkachew Sime, secretary-general of ETGMA, told Fortune. “Yet, a kilogramme of garments that requires 1.2kg for its production can be sold for 15 dollars.”

This is consistent with the draft Five-year Growth and Transformation Plan (GTP), which aims to increase export earnings and import substitution. At the end of the five years in 2015/16, revenues from the export of textiles are expected to reach 100 million Br, according to the GTP.

The MoT sent a letter to the Ministry of Finance and Economic Development (MoFED), National Bank of Ethiopia (NBE), and Ethiopian Revenues and Customs Authority (ERCA) on October 7, 2010 notifying them of the decision to ban the export of raw cotton. The letter was sent to these institutions as they are involved in different aspects of the process of export.

Cotton growers are not that alarmed by the decision as they have been promised that they can sell their cotton at international prices locally, according to Assefa.

A couple of years ago, the global market price was 0.67 dollars per pound but it has since skyrocketed to 1.27 dollars per pound, the highest of the last 15 years, according to a report from Reuters. However, the doubt that garment manufacturers will be able to buy all the cotton that is produced at once, is one concern that has been raised.

“This might leave some producers cash strapped and unable to buy fertilisers and agricultural inputs until they are paid,” Assefa told Fortune. “The committee will meet with the Development Bank of Ethiopia (DBE) about ways in which growers can secure loans.”

While Ethiopia has three million hectares of land that can be used for cotton production, the country is using only 110,000ht, according to Endalkachew. Only 10 of the 50 members of the ETGMA, which was established in 2003, regularly export products made from cotton.

When compared with a small country like Mauritius, which has a population of 1.2 million people and two textile and 180 garment factories, Ethiopia’s performance in textile exports is very low. Mauritius registered 670 million dollars from the export of textiles and garments in the 2009/10 fiscal year.http://addisfortune.com/Gov%E2%80%99t%20Bans%20Raw%20Cotton%20Exports.htm

abesha

October 19th, 2010, 04:51 AM

Yellow Wheat Rust Infects Three RegionsThe fungal disease affects different strains of wheat

Close to 460,000ht of wheat plants have been infected with yellow rust, a fungal disease, in 29 zones in the Amhara, Oromia, and Southern Nations, Nationalities, and Peoples (SNNP) regional states.

The disease, which started in Arsi and Bale zones in Oromia Regional State, affects only a select strain of wheat, according to Mohammed Shemsu, deputy manager of Public Relations of the Ministry of Agriculture and Rural Development (MoARD).

“The disease affects the wheat in its early stages when the leaves are wide,” Mohammed told Fortune. “However, once the wheat grows the leaves become smaller and less susceptible to the disease.”

The disease usually occurs early in the growth season, infecting both the leaf blades and leaf sheaths, and can even affect spikes when in epidemic form. A stunted and weakened plant with shrivelled grains, fewer spikes, and a loss in the number of grains per spike and grain weight are the symptoms.

Oromia Regional State was the first to be affected as it plants its crops earlier than other regions. The disease then migrated to the SNNP Regional State and reached the Amhara Regional State later.

To date, the government has sprayed 113,005ht of land with 71,367 litres of fungicide, according to Mohammed. Efforts by regional states and farmer cooperatives are underway to spray the remaining infected areas.

Currently, the situation is being monitored by the Food and Agriculture Organisation (FAO) of the United Nations (UN) which is coordinating a response but was unwilling to comment on the issue until the plans have been finalised.

So far, the yellow wheat rust has affected the Kubsa-1685 and Galma-604 strains of wheat.

“We have now readied 71,367 litres of fungicide to spray if the disease spreads,” Mohammed told Fortune. “Yet, the lasting solution is to plant resistant strains.”

Although the price of wheat has not been affected yet and remains generally stable, an unchecked spread will affect the price once the harvests are collected, an agro economist, who wished to remain anonymous, told Fortune.http://addisfortune.com/Yellow%20Wheat%20Rust%20Infects%20Three%20Regions.htm

Yoniii

October 19th, 2010, 11:31 PM

3FKR0P7J1XE

popa1980

October 20th, 2010, 12:52 AM

Indian Firm Leases Gambella Plot for Rice

Really? All the rice will be exported to the USA?!

abesha

October 20th, 2010, 03:56 AM

^^What's the problem?

Ethiopians don't eat rice so I don't think it's a big deal. We should diversify our food source, but I don't think it's going to happen anytime soon.

Simfan34

October 20th, 2010, 05:53 AM

Darn it, I was going to say that, but thought it would be stupid!

ja'far

October 20th, 2010, 05:53 AM

^^What's the problem?

Ethiopians don't eat rice so I don't think it's a big deal. We should diversify our food source, but I don't think it's going to happen anytime soon.

Ethiopians don't eat rice.:)

I didn't know that?

ja'far

October 20th, 2010, 05:54 AM

Darn it, I was going to say that, but thought it would be stupid!

:lol:

One good reason why we need more woman leaders in Africa.

abesha

October 20th, 2010, 07:37 AM

Ethiopians don't eat rice.:)

I didn't know that?

Really?

Well, rice is not part of the cuisine really, except in the eastern part of the country. I know the Hararis eat some as well as Somalis, but I don't think it's really extensive there either. The rest of the country pretty much ignores rice. In cities, people eat rice the way they eat pasta, it's basically a foreign food that's prepared only occasionally.

popa1980

October 20th, 2010, 05:47 PM

I didnt realise Ethiopians dont eat rice.

But then they should be bringing in investors who want to produce crops that Ethiopians actually eat. That land could better serve the people of Ethiopia.

Simfan34

October 20th, 2010, 06:00 PM

I didnt realise Ethiopians dont eat rice.

But then they should be bringing in investors who want to produce crops that Ethiopians actually eat. That land could better serve the people of Ethiopia.

Hence the other 50% of investors who are Ethiopian. While I'm sure not all of them plan not to export, I'm sure the same applies to the other 50% who are foreign.

abesha

October 20th, 2010, 06:26 PM

I didnt realise Ethiopians dont eat rice.

But then they should be bringing in investors who want to produce crops that Ethiopians actually eat. That land could better serve the people of Ethiopia.

Half the commercial land investment deals of the past couple years are with Ethiopian investors, so I'm sure they are mindful of that.

Also, even if the produce is not traditionally eaten in the country, it doesn't mean there is no market for it. For instance, ever since strawberry farms arrived in Ethiopia, you find strawberries for really cheap in shops throughout the country. This is a fruit that was never consumed before, and the farms are primarily geared towards export. The same thing is seen with the flower industry. Flowers are found everywhere for cheap now, even though their primary market is the export market.
There is a market in Ethiopia for these producers (even foreign), so I'm pretty sure they'll sell their produce in the country.

popa1980

October 20th, 2010, 07:27 PM

Half the commercial land investment deals of the past couple years are with Ethiopian investors, so I'm sure they are mindful of that.

Also, even if the produce is not traditionally eaten in the country, it doesn't mean there is no market for it. For instance, ever since strawberry farms arrived in Ethiopia, you find strawberries for really cheap in shops throughout the country. This is a fruit that was never consumed before, and the farms are primarily geared towards export. The same thing is seen with the flower industry. Flowers are found everywhere for cheap now, even though their primary market is the export market.
There is a market in Ethiopia for these producers (even foreign), so I'm pretty sure they'll sell their produce in the country.

Thats a big advantage you guys have. A varied climate that can grow tropical foods in the lowlands- and temperate foods like strawberries, wheat and apples in the highland. Ethiopias agric potential is IMMENSE. Plus you have infertile, cash-rich markets like Saudi, closeby.

abesha

October 20th, 2010, 07:47 PM

popa1980

October 20th, 2010, 10:01 PM

^^Absolutely. This is why it's so frustrating to me to see what previous governments have neglected.

Ethiopia is one of very few countries not only in Africa, but in the world, that can grow just about anything, from tropical, to temperate, to desert plants. We have something like 10 microclimatic zones.
We have the potential to feed the entire Middle East and most of Africa.

Theres certainly not many countries of Ethiopias size which have such a varied climate- Peru, Bolivia, Colombia are the ones I can think off. In Africa, maybe only SA and Kenya come close.

Simfan34

October 20th, 2010, 10:47 PM

I once read Ethiopia could feed most of Europe.

abesha

October 21st, 2010, 04:56 AM

http://www.diretube.com/diretube-explore/advancing-agriculture-in-ethiopia-video_593531702.html

abesha

October 22nd, 2010, 05:17 AM

Performance report by ECX http://www.diretube.com/ethiopian-news/ecx-is-moving-forward-performace-report-video_176f92d73.html

DZman

October 22nd, 2010, 06:57 AM

Performance report by ECX http://www.diretube.com/ethiopian-news/ecx-is-moving-forward-performace-report-video_176f92d73.html

That lady Eleni, she is not only the prettiest thing but also the smartest one.
I think I am in love with her. :)
Long live sista

teklu

October 22nd, 2010, 11:23 AM

Half the commercial land investment deals of the past couple years are with Ethiopian investors, so I'm sure they are mindful of that.

This idea is way exaggerated, i try to see the figures and Ethiopian's investment except "star AG " of Almoumid are still limited to low scale commercial farming which requires less than 100ha.The figure explains only with respect to the numbers of investor engaged not the ha of land they leased. Only "kartuires" acquisition is way greater than the combined land acquired by the Ethiopian investor except star AG.

I wish the government puts some sort of specific requirement for pre-processing and marketing within Ethiopia, while giving the land for those investor and put minimum wage target on those companies. like forcing them to sell 30% of their product within Ethiopia or sth! putting a minimum requirement of Agro-processing before exporting

I don't think this land lease and sale is a cake walk as most of u in this form think, the investor came to take advantage of the very inhuman working wage and cheap land not for helping anybody. I guess, this is the gov't JOB to insure from being taken advantage of.

The worst think I noticed is most of them even did not brought capital to Ethiopia that much, they are using the capital provided by the gov't which ranges up to 70% through lone and lone guaranty. I notice some of them even failed to pay their lone and left the country. I am a bit concerned why this advantage is not taken by the Ethiopians investor. The government policy was supposed to give advantage to Ethiopian investor but instead the foreign ones are getting the advantage, is funny right?:lol:

For example when leasing land is frozen all over the country, still they are giving lands to those Indian investor.

I guess this is due to the bureaucracy because nobody hates making money and i don't believe Ethiopians are lazy!

popa1980

October 22nd, 2010, 12:22 PM

abesha

October 22nd, 2010, 03:42 PM

This idea is way exaggerated, i try to see the figures and Ethiopian's investment except "star AG " of Almoumid are still limited to low scale commercial farming which requires less than 100ha.The figure explains only with respect to the numbers of investor engaged not the ha of land they leased. Only "kartuires" acquisition is way greater than the combined land acquired by the Ethiopian investor except star AG.

I'm sure they mean deals as well, however the average Ethiopian investor does not have the money to acquire enormous amounts of land. That is not the government's fault. This is not some kind of conspiracy against Ethiopian investors. I'm sure if an Ethiopian can afford to lease land to the magnitude of Karuturi, they would be allowed to. We can't expect the country to stop and wait until Ethiopians who have the capital decide to get off their butt and start farms.

In terms of size of land, keep in mind that all our news comes from foreign sources, not Ethiopia, so because of that, they have a stake in showcasing the size of land acquired by foreigners. IOW, we don't know what Ethiopians are acquiring.

I wish the government puts some sort of specific requirement for pre-processing and marketing within Ethiopia, while giving the land for those investor and put minimum wage target on those companies. like forcing them to sell 30% of their product within Ethiopia or sth! putting a minimum requirement of Agro-processing before exporting

This I agree with.

I don't think this land lease and sale is a cake walk as most of u in this form think, the investor came to take advantage of the very inhuman working wage and cheap land not for helping anybody. I guess, this is the gov't JOB to insure from being taken advantage of.

No business is out to help people. Businesses are not charities and shouldn't be expected to act as such. They came to take advantage of low land prices, cheap labor, cheap water, etc. That in itself is not bad at all. That's what attracts FDI in countries like Ethiopia. You can't expect them to come to spend $15 an hour per employee. If they're going to pay that, they might as well go to countries with better infrastructure and with a huge already developed internal market.

The worst think I noticed is most of them even did not brought capital to Ethiopia that much, they are using the capital provided by the gov't which ranges up to 70% through lone and lone guaranty. I notice some of them even failed to pay their lone and left the country. I am a bit concerned why this advantage is not taken by the Ethiopians investor. The government policy was supposed to give advantage to Ethiopian investor but instead the foreign ones are getting the advantage, is funny right?:lol:

I think the point of the capital is to encourage them to come to the country. We are competing against dozens of other countries so it's basically a race to the bottom.

Ethiopians are a difficult breed. For instance, when I was back in Addis a few months ago, I also asked this same question to businessmen and others I met. The consensus was that Ethiopians were given a lot of land, but they never intended to develop them. They just hold on to it and wait years, as speculation basically. Eventually, the government gets fed up and takes back the land and gives it to someone else, usually a foreigner because they are serious about developing it.

You can see this attitude even in Addis. How many plots of land are there around the city in prime areas, fenced off for years, but not going anywhere? Then you see on the news that the government warns them to get started on the land or it will take it back.

There's not much the government can do here.

For example when leasing land is frozen all over the country, still they are giving lands to those Indian investor.

I guess this is due to the bureaucracy because nobody hates making money and i don't believe Ethiopians are lazy!

Where did you see that? I don't remember reading anything about that.

Simfan34

October 22nd, 2010, 10:08 PM

You can see this attitude even in Addis. How many plots of land are there around the city in prime areas, fenced off for years, but not going anywhere?

You could say that again....

Yoniii

October 23rd, 2010, 02:09 PM

I0neNgM4Z2g

Addis Ababa, October 20, 2010 (Addis Ababa) -

The International Center for Agricultural Research in the Dry Areas (ICARDA) announced that Ethiopia is capable to ensure food security in the near future through utilizing its potential resources and conducting researches.

An ICARDA team visited various farm lands in Lume Ejere, Ade’a and Gimbichu in East Shoa Zone of Oromia State and also North Shoa Zone to observe expansion of agricultural technologies in Ethiopia.

ICARDA Director-General, Dr. Mahmoud Solh said in connection with the visit that improvement of livelihood of farmers indicates encouraging results gained through agricultural research in the country.

The country is the second largest beans producer next to China in the world, he said, adding, it has managed to export chickpea to more than 20 countries and this shows maximum potential of the country.

Its chickpea and lentil products are getting increased demand both in the foreign and local markets.

The director said Ethiopia will be a good example to neighboring countries with regard to agriculture development.

He lauded the Ethiopian government in its efforts to give prime attention to the agriculture sector.

The country, which he knows since 1972, has been registering encouraging results during the past 10 years, the director said, adding, the ICARDA will support Ethiopia’s efforts to ensure food security. - ENA (http://www.ena.gov.et/EnglishNews/2010/Oct/20Oct10/124012.htm)

popa1980

October 23rd, 2010, 02:48 PM

The WB/IMF/UN and other insititutions have actulaly recommended that Africa follow nations like Thailand- with a focus on small farmers- than go down the Brazil commercial farming route which has caused a lot of friction and social problems.

Ghana has focused on small farmers with great success. You will have a better effecr on poverty this way.

abesha

October 23rd, 2010, 03:09 PM

Well there are a lot of projects for small farmers so I'm not worried about that. For instance, the massive irrigation project using the Tana Beles dam is almost done, so that will transform the lives of people in that region (who are recipients of aid).

However, it is inevitable that commercial farming will take over from them in the future, otherwise it's highly inefficient use of labor.

Yoniii

October 23rd, 2010, 03:23 PM

I think there's enough land for massive commercial farmings and smaller, local, projects.

Remember that Ethiopia has the same population as Germany, but it's three times it's size or almost 5x the UK.

abesha

October 24th, 2010, 10:47 PM

For info on the commercial farming of the country, I suggest reading this comprehensive report by Access Capital, kindly posted by Yupes in another thread.
If you have time, read the entire report, it's completely worth it for those of us who are exhausted trying to gather proper information on the country.

As I posted in the other thread, notice the figures on land acquisitions in SNNP region, where out of the 60 000 ha leased to commercial developers, 12% went to 2 foreign companies, while the remaining 88% of the land went to local developers. For those of us concerned with the land deals, this should be an indication that Ethiopian investors are not as sidelined as we thought.

http://accesscapitalsc.com/downloads/The-Ethiopia-Macroeconomic-Handbook-2010.pdf

It starts on page 13/40 (page 9 of Handbook).

abesha

October 25th, 2010, 07:45 PM

New Laboratory to Monitor Agriculture Quality

Ministry aims to ensure the quality and safety of agricultural commodities

The ministry of Agriculture and Rural Development (MoARD) opened a laboratory for monitoring and testing the quality of agricultural products in the compound of the Ethiopian Quality and Standards Authority (EQSA) at a cost of two million dollars funded by the government, on Monday, October 18, 2010.

Equipped with gas chromatography, a mass spectrometer, a fluid management system, and a high-speed pressurised liquid extraction system, the laboratory is aimed at conducting high-level chemical and quality analysis of products in Ethiopia.

“The laboratory will be able to analyse organic constituents in agricultural products and ensure the quality and safety of agricultural commodities for both domestic and international consumption,” said Girma Selasie, project director of the laboratory. “Staffed with two PhD holders, the laboratory will also give training and hold workshops and seminars on good agricultural practices (GAP) to stakeholders so that they can tackle product quality challenges of exportable commodities.”

One of the pieces of equipment, the gas chromatography, is used for separating and analysing compounds that can be vaporised without decomposition. It tests the purity of a particular substance, separates different components of a mixture, can identify a compound, and prepare pure compounds from a mixture.

A mass spectrometer measures the mass-to-charge ratio of charged particles used for determining masses of particles, for determining the elemental composition of a sample or molecules, and for elucidating the chemical structures of molecules.

Able to run different tests and analysis with the equipment in the laboratory, MoARD aims to have it accredited.

“The next phase is to get accreditation so that our analyses are internationally accepted,” Girma told Fortune. “Then we can export products which have been certified by the laboratory.”

The Japanese Ministry of Health, World Health Organisation (WHO), and Food and Agriculture Organisation (FAO) are among the first bodies from which MoARD wants to obtain approval of the tests run in the laboratory.

The laboratory has already started analysing and running tests on coffee and is expected to start the same with sesame seed in the next two months.

“We have the infrastructure now and we can give any type of service if there is a need for it,” Girma told Fortune. “We want to analyse honey because much of it is being exported these days.”http://addisfortune.com/New%20Laboratory%20to%20Monitor%20Agriculture%20Quality.htm

abesha

October 25th, 2010, 07:52 PM

Commodity Exchange Rakes in 44m Br
The Ethiopia Commodity Exchange (ECX) registered 44 million Br in operational revenues during the 2009/10 fiscal year, an increase from 17.4 million Br in comparison with the previous year, it disclosed during its first National Stakeholders Forum, held at the Sheraton Addis on Thursday, October 21, 2010.

Ever since its establishment in 2008, the ECX has been extending its trading activities from one hour of trading per week to all day trading throughout the week. As a result, it has increased its monthly trade value from 83 million Br to 491 million Br in 2009.

“The revenues will be used to scale up the activities and expansion of the service,” said Eleni Gabre-Madhin (PhD), chief executive officer (CEO) of ECX.

The number of daily buyers and sellers has increased from 15 to 110 while that of daily trades has increased from less than 10 to 100. The trading volume reached 183,710tn, representing a value of 4.6 billion Br.

The ECX consistently maintained a zero default market guarantee and next day payment to any seller and buyer in the country.

“This has helped to stop a lengthy wait and to minimise the risk of defaults,” Eleni said.

Unwashed coffee accounted for 61pc of the total transactions, increasing the trade volume from 138,000tn to 221,000tn. This also increased the trade value from 2.7 billion Br to 6.7 billion Br, an increase of 148pc, to which the price increment in the international market contributed much, according to Eleni.

Most of the trading activities were conducted by 345 limited members with transactions made through seven banks working with the ECX. Commercial Bank of Ethiopia (CBE) made 42pc of the transactions.

Since its establishment, the ECX has increased its number of laboratories to 11 and its warehouses to 30.

“The number of warehouses is not enough to meet demand,” Eleni said. “The demand calls for the participation of the private sector to build specialised warehouses.”

To reduce the volume of humid coffee being stored and dried in the warehouses, ECX will start humidity loss adjustments before it receives the coffee, according to Eleni.

The ECX, which mainly trades coffee in large amounts, is expanding its trading operations. It aims to trade sesame seeds, maize, wheat, and white pea beans, which it currently trades, at the level it trades coffee, according to the CEO.

Earlier this year, the ECX made an agreement with World Food Program (WFP) to sell 40,000 metric tonnes of maize.

During the forum, the shortage of bags and quantity reduction of coffee due to poor measurement machines found in the regional states as well as infrastructural problems, were raised by the participants.

The ECX is studying a project to tag bags with a Radio Frequency Identification (RFID) System which can identify the type and source of the coffee, Eleni said.

The ECX was established on April 24, 2008, and traded in coffee. Out of 450 commercial market actors registered as members, 100 are founding members with the rest being limited members. It has 808,348 farmers represented as members through 874 farmers associations in 14 unions. http://addisfortune.com/Commodity%20Exchange%20Rakes%20in%2044m%20Br.htm

Simfan34

October 25th, 2010, 11:11 PM

^^:)

Well there are a lot of projects for small farmers so I'm not worried about that. For instance, the massive irrigation project using the Tana Beles dam is almost done, so that will transform the lives of people in that region (who are recipients of aid).

I must say, there has to have been a better way to go about doing the first Tana dam.

The Nomadic Warrior

October 27th, 2010, 08:08 PM

Simfan34

October 27th, 2010, 08:35 PM

Ethiopia Plans to Rent Out Belgium-Sized Land Area to Produce Cash Crops

Ethiopia will lease a land area about the size of Belgium to private investors for growing rice, cotton and other crops aimed at generating foreign-exchange, an Agriculture Ministry official said.

The Horn of Africa nation plans to rent out 3 million hectares (5 million acres) of farmland over the next five years, Abera Deressa, minister of state for agriculture, said in an interview in Addis Ababa, the capital, on Oct. 22.

The strategy forms part of a government policy that also aims to wean Africa’s second-most populous nation off a donor- funded food program that supports 7.8 million Ethiopians.

“Everywhere we want to increase the amount of land to be leased,” Abera said. “We have abundant land available.”

Ethiopia’s government has identified agriculture as the “major source” of the 11 percent growth rate targeted by the Finance Ministry in a five-year economic plan unveiled in August. The industry accounts for 80 percent of exports and 43 percent of gross domestic product in Africa’s biggest coffee- producing nation, Abera said.

Since August 2009, Ethiopia has leased about 200,000 hectares of land to 16 domestic and foreign companies, according to the Agriculture Ministry. Ten of the investors have started developing their allocated plots.

Saudi Star Agricultural Development Plc, owned by Ethiopian-born Saudi billionaire Sheikh Mohammed al-Amoudi, has taken 10,000 hectares in the low-lying western Gambella region, while Karuturi Global Ltd. of India has leased more than 300,000 hectares in Gambella and Baka, according to its website.

Food Aid

The government is advising American, Canadian, Chinese, Ethiopian and Indian investors to grow “high value” crops including soya beans, palm oil and bio-fuels, rather than cereals, to help feed the approximately 13 million Ethiopians that require some form of food aid, Abera said.

“If we get money we can buy food anywhere,” he said. “Then we can solve the food problem.":lol::lol:

The cost of plots ranges from 111 Ethiopian birr ($6.89) per hectare in peripheral areas such as Gambella and the north- westerly Benishangul Gumuz region, to 2,000 birr per hectare in the fertile Ethiopian Rift Valley adjacent to Addis Ababa, Abera said. Investors are being offered “good prices” to encourage investment, he said.

“Ideologically we are against rent seeking,” he said. “We want to see productive economic activity. We want to see investment. The advantage is more than from the land rent.”

Or, I could do this:

Ethiopia Plans to Rent Out Belgium-Sized Land Area to Produce Cash Crops

Ethiopia will lease a land area about the size of Belgium to private investors for growing rice, cotton and other crops aimed at generating foreign-exchange, an Agriculture Ministry official said.

The Horn of Africa nation plans to rent out 3 million hectares (5 million acres) of farmland over the next five years, Abera Deressa, minister of state for agriculture, said in an interview in Addis Ababa, the capital, on Oct. 22.

The strategy forms part of a government policy that also aims to wean Africa’s second-most populous nation off a donor- funded food program that supports 7.8 million Ethiopians.

“Everywhere we want to increase the amount of land to be leased,” Abera said. “We have abundant land available.”

Ethiopia’s government has identified agriculture as the “major source” of the 11 percent growth rate targeted by the Finance Ministry in a five-year economic plan unveiled in August. The industry accounts for 80 percent of exports and 43 percent of gross domestic product in Africa’s biggest coffee- producing nation, Abera said.

Since August 2009, Ethiopia has leased about 200,000 hectares of land to 16 domestic and foreign companies, according to the Agriculture Ministry. Ten of the investors have started developing their allocated plots.

Saudi Star Agricultural Development Plc, owned by Ethiopian-born Saudi billionaire Sheikh Mohammed al-Amoudi, has taken 10,000 hectares in the low-lying western Gambella region, while Karuturi Global Ltd. of India has leased more than 300,000 hectares in Gambella and Baka, according to its website.

Food Aid

The government is advising American, Canadian, Chinese, Ethiopian and Indian investors to grow “high value” crops including soya beans, palm oil and bio-fuels, rather than cereals, to help feed the approximately 13 million Ethiopians that require some form of food aid, Abera said.

“If we get money we can buy food anywhere,” he said. “Then we can solve the food problem."

The cost of plots ranges from 111 Ethiopian birr ($6.89) per hectare in peripheral areas such as Gambella and the north- westerly Benishangul Gumuz region, to 2,000 birr per hectare in the fertile Ethiopian Rift Valley adjacent to Addis Ababa, Abera said. Investors are being offered “good prices” to encourage investment, he said.

“Ideologically we are against rent seeking,” he said. “We want to see productive economic activity. We want to see investment. The advantage is more than from the land rent.”

Yoniii

October 27th, 2010, 09:31 PM

Simfan's version makes more sense.

Nomadic, did you believe private investors (Ethiopian, Indian or others) would give away their crop for free? That might been the way of business during the communist Derg but not today.

The government has to buy the food to give to people that depend on food aid.

abesha

October 27th, 2010, 09:38 PM

There's absolutely nothing wrong with the government having money. What is your problem with that? Governments need revenue. :weird:

The Nomadic Warrior

October 28th, 2010, 07:31 AM

Simfan,

Firstly,

Sheikh Mohammed al-Amoud is Arab not Ethiopian. His father is Arab and so is he heritage. He isn't Ethiopian. His loyalty lies with the Arabians not Ethiopians hence why he is an Saudi citizen not Ethiopian. He is basically a foreigner

The government is advising American, Canadian, Chinese, Ethiopian and Indian investors to grow “high value” crops including soya beans, palm oil and bio-fuels, rather than cereals, to help feed the approximately 13 million Ethiopians that require some form of food aid, Abera said.

You should have highlighted the whole paragraph. They are advising them to produce crops which isn't going to solve the food shortage but rather make it worse. How is foreigners buying land to export food help the massive food shortage?

Investors are being offered “good prices” to encourage investment, he said.

What are these good prices? Selling massive land at cheap prices isn't investment for the people of the land but rather exploitation. Easy for the TPLF to sell other people's land when their land is barren and dry.

Yoniii

October 28th, 2010, 01:37 PM

Simfan,

Firstly,

Sheikh Mohammed al-Amoud is Arab not Ethiopian. His father is Arab and so is he heritage. He isn't Ethiopian. His loyalty lies with the Arabians not Ethiopians hence why he is an Saudi citizen not Ethiopian. He is basically a foreigner
You decide what he is? His father is from Yemen, mother from Ethiopia. He spent his first 20 or so years in Ethiopia, born and raised there. He is also the biggest investor and employer in Ethiopia. I am a Swedish citizen, that doesn't make me less Ethiopian.:nuts:

Leasing land for commercial use is a way of getting foreign currency. You can go and lease land, so can any Ethiopian or foreigner. These deals makes the headlines because of their investment size, that doesn't mean that Ethiopians aren't investing.

Any investment is good for the country. Government gets money = can buy food (instead of depending on foreign aid). Not to mention the amount of jobs that will be created in those regions. I want the private sector to handle such investments, not the government, this isn't the communist Derg era anymore.

Simfan34

October 28th, 2010, 02:36 PM

^^It seems that the anti-Ethiopians on this site seem to think they have the right to decide who is what.

popa1980

October 28th, 2010, 02:44 PM

^^It seems that the anti-Ethiopians on this site seem to think they have the right to decide who is what.

If I can remember, Nomadic is Somolian....that would make sense!

popa1980

October 28th, 2010, 02:48 PM

What your government needs to do is say to people- whether foreign or local- you can come and farm cotton for example- but 25% of the land needs to be also for locally consumed food crops. Thats the way to do it.

abesha

October 28th, 2010, 04:32 PM

^^ I agree with that. It doesn't have to completely lay on the floor and get walked over. The good thing for Ethiopia is that we have a large internal market so even without the government's interference, there is a good chance the local market will be supplied.

BTW, in Ethiopia the problem is not really food production, it's people not having money to purchase the food. So those on food aid or whatever are not going to benefit from the commercial farming for the simple reason that they don't have money to buy the food in any case. This is why the government representative above said the gov will be getting money out of these deals. With that money, it opens up options on how to deal with the destitute.

Karuturi's tractors

http://www.horizonethiopia.com/images/stories/Newsfeeds/KaruturiTractors2.jpg

http://www.horizonethiopia.com/images/stories/Newsfeeds/Karuturi1.JPG

Addis Ababans were treated to the curious site lately of some really large tractors lined up at the NOC gas station on the very tip of Bole Road by the airport. So huge were these tractors that their tires were well beyond the height of all the pedestrians passing by them, agog with curiosity as to what they were and where they came from. Even one of these massive monsters would have been enough of passerby’s attraction but with 15 of them lined up at the already cramped gas station, the tractors basically dominated the skyline in the area and the curiosity driven conversation of the myriad passers by.

These were in fact the property of Karuturi Global – an Indian firm engaged in a variety of agriculture sector investments in Ethiopia. In fact, Karuturi is perhaps the poster child for the big land grabs that have characterized large scale agricultural investment in Ethiopia over the recent paste. Its 300,000 hectare development in the Gambella region qualifies as one of the largest landholdings awarded to any company or individual in the country. With floriculture ventures in Ethiopia (since 2004), Kenya and India, the company is said to be the largest exporter of cut flowers in the world. It has recently stated its intent to move into a wider range of agricultural activities with its large landholdings in Ethiopia set to underpin its ambitions of becoming a major supplier of food commodities to the global market.

The 425-475 horsepower John Deere tractors reportedly cost the company $10 million USD along with all of their attachments according to an official of the company in an interview with Fortune. Able to plough 75 hectares in a single day, they will likely be called upon frequently to help the company achieve what it vows to be as much as $1 billion in exports a year in the near future. Perhaps companies like this are what the government’s Growth and Transformation Plan is counting on to at least double exports in the next 5 year period.http://www.horizonethiopia.com/index.php?option=com_content&view=article&id=436:karuturi-tractors-make-big-splash-on-bole-road&catid=63:speaking-of&Itemid=183

popa1980

October 28th, 2010, 06:02 PM

abesha

October 28th, 2010, 06:17 PM

But when production rises, price will inevitably fall.

In the UK, we spend about 10% of our income on food.

In Ghana, I heard people can spend up to 50%!

A whole chicken in Ghana costs the same as in the UK. Thats unacceptable.

Yes the prices are very high right now, which is why I said that those investors will find a ready-made market right there in Ethiopia. Huge population + high prices = money to be made.

Karuturi for instance, have said that although they have the right to export 100% of their produce, they plan on supplying the local market because of the large demand.

The market itself will take care of it IMO. As mentioned earlier, you see the same thing has happened with strawberry exporters for instance.
They were set up to export 100% of their produce, but they have found a large market in Ethiopia so you can go to most grocery stores in Addis and even other cities and you will be able to buy strawberries for very reasonable prices.

As for the destitute buying food, lower prices would definitely help, however, the problem is bigger than that. There is need for them to improve their output to secure themselves against the volatility of food prices, so the government has to build irrigation infrastructure for instance. That's where the foreign currency helps. For example, an area that has a big problem with drought is in Amhara region, where something like 2 million people are recipients of aid. The Tana Beles dam was completed this year on a tributary of the Nile, and a massive irrigation project is currently being finalized. This one project is expected to dramatically drop the number of people in that region that will be aid recipients. This type of long-term solution for the poorest can only happen if the government has money to spend.

But back to my point, thats the way the white farmers in Zimbabwe did it, their farm was divided into an export-oritented section- tobacco etc, this was imperative because it gave them access to hard currency. The other part of their farms was directed to local consumption- maize, dairy etc.

Ethiopia is too lucrative for the investors to back away just because they have to farm some local produce. I think 25% is a decent mandatory figure.

But I like what Ethiopia is doing- the other sleeping giants of African agriculture dont seem to be so aggerssive in developing this sector- DRC, Nigeria, Angola, Mozambique, Zambia, Tanzania.

I wish the government made them do it, but I don't know if it's going to happen. Maybe they'll put more constraints in the coming years. They may have felt they had to lower the demands considerably to attract investors at the beginning, but once these ventures are up and running, they may have more leverage with any new entrant.

popa1980

October 28th, 2010, 11:52 PM

So the leases are for how long?

Simfan34

October 29th, 2010, 01:35 AM

Usually for 99 years.

popa1980

October 29th, 2010, 01:47 AM

Usually for 99 years.

Man, thats a long time.

Personally, I prefer the ideals of HPB of Ivory Coast.

Simfan34

October 29th, 2010, 01:53 AM

^^What was that? Have foreign domiciled investors?

popa1980

October 29th, 2010, 02:18 AM

^^What was that? Have foreign domiciled investors?

In summary, focusing on small scale farming and enourage mini-commercial plantations with 10-100 acres. It was a HUGE success and because this was focused on small scale farmers the wealth was spread better than the route Ethiopia is going. Rural poverty was maybe 15% at one point in the 80s. 15%!!! To put things in perspective you typically get rural poverty rates of 50+% in Africa today. Even in Ghana which has one of the lowest poverty rates in SSA I think its about 40%.

Thailand have done the same.

Ethiopia is losing perspective because it has got too excited with the interest and is in such a rush to develop its agriculture that it risks "doing a Madagascar".

On an aside, HBP took on the Akan chiefs and in 1961 said that ALL undeveloped land has to be given to the state. I wish Ghanaian leaders would stand up to the chiefs in this way. Ethiopia doenst have that problem because all the land was nationalised a long time ago.

BUTEMBO21

October 29th, 2010, 02:42 AM

But when production rises, price will inevitably fall.

Indeed, its going to fall to the point where it will be so cheap that no one will worry much.

Its what happened in Katanga province. when prices where sky high.$1,200/ 1 tonne of corn. Now its $500/tonne. I think it will fall further down as more tractors arrive and road being built as we speak.

Whereas in Goma, its $200/ tonne.

In the UK, we spend about 10% of our income on food.

In Ghana, I heard people can spend up to 50%!

A whole chicken in Ghana costs the same as in the UK. Thats unacceptable.

50% of income? thats like Kinshasa (which is only second to Luanda):bash:

Some forumers just came back from there and they couldn't believe the prices.:ohno:

But back to my point, thats the way the white farmers in Zimbabwe did it, their farm was divided into an export-oritented section- tobacco etc, this was imperative because it gave them access to hard currency. The other part of their farms was directed to local consumption- maize, dairy etc.

Ethiopia is too lucrative for the investors to back away just because they have to farm some local produce. I think 25% is a decent mandatory figure.

But I like what Ethiopia is doing- the other sleeping giants of African agriculture dont seem to be so aggerssive in developing this sector- DRC, Nigeria, Angola, Mozambique, Zambia, Tanzania.

Unfortunately not. Only seems to be interested importing rice from poor like Vietnam. when only 2 nations could feed the continent.

Good job on Ethiopia. Way to Go.

Simfan34

October 29th, 2010, 02:44 AM

In summary, focusing on small scale farming and enourage mini-commercial plantations with 10-100 acres. It was a HUGE success and because this was focused on small scale farmers the wealth was spread better than the route Ethiopia is going. Rural poverty was maybe 15% at one point in the 80s. 15%!!! To put things in perspective you typically get rural poverty rates of 50+% in Africa today. Even in Ghana which has one of the lowest poverty rates in SSA I think its about 40%.

Thailand have done the same.

Ethiopia is losing perspective because it has got too excited with the interest and is in such a rush to develop its agriculture that it risks "doing a Madagascar".

On an aside, HBP took on the Akan chiefs and in 1961 said that ALL undeveloped land has to be given to the state. I wish Ghanaian leaders would stand up to the chiefs in this way. Ethiopia doenst have that problem because all the land was nationalised a long time ago.
Ahh, I see, it would be a better path. HBP was truly a visionary, but they didn't diversify enough, so things went downhill in the 80s...

abesha

October 29th, 2010, 05:05 AM

So the leases are for how long?

Usually for 99 years.

That's not true at all.

Leases for residential purposes are 99 years. For commercial uses, it's usually 50 years max.

For agricultural commercial ventures, according to Access Capital, it is a max of 45 years. A lot of the deals I've heard of are around 25-30 years. The only one I know that even reaches 45 is Karuturi.

Simfan34

October 29th, 2010, 05:12 AM

That's not true at all.

Leases for residential purposes are 99 years. For commercial uses, it's usually 50 years max.

For agricultural commercial ventures, according to Access Capital, it is a max of 45 years. A lot of the deals I've heard of are around 25-30 years. The only one I know that even reaches 45 is Karuturi.

Well, wow, I stand corrected!

Hersh

October 29th, 2010, 11:06 AM

Actually the prime minister has been criticized for focusing too much on small scale farming and discouraging large scale commercial farming, against the advise of many. It's only recently that such large scale projects started as a means of obtaining some skills and technology transfer. In reality, the focus is still on small scale farmers as far as I can tell. Of the 75 Million or so hectares of farmable land the country has, only something like 3 million has been made available for these large scale, foreign-run projects.

The focus is still on the small farmers. That's why these days, the farmers are the rich folks with the cash....whereas in the past, even merely calling someone a "farmer" would be considered an insult, as it meant you were really poor and unskilled.

In summary, focusing on small scale farming and enourage mini-commercial plantations with 10-100 acres. It was a HUGE success and because this was focused on small scale farmers the wealth was spread better than the route Ethiopia is going. Rural poverty was maybe 15% at one point in the 80s. 15%!!! To put things in perspective you typically get rural poverty rates of 50+% in Africa today. Even in Ghana which has one of the lowest poverty rates in SSA I think its about 40%.

Thailand have done the same.

Ethiopia is losing perspective because it has got too excited with the interest and is in such a rush to develop its agriculture that it risks "doing a Madagascar".

On an aside, HBP took on the Akan chiefs and in 1961 said that ALL undeveloped land has to be given to the state. I wish Ghanaian leaders would stand up to the chiefs in this way. Ethiopia doenst have that problem because all the land was nationalised a long time ago.

abesha

November 13th, 2010, 05:05 AM

Karuturi Global Eyes East African Markets for Crops Grown on Ethiopia Land

Karuturi Global Ltd., an Indian food processor, plans to exploit East Africa’s market potential by selling crops grown on land leased from Ethiopia’s government within the region, Chief Executive Officer Sai Ramakrishna Karuturi said.

The company, based in Bangalore, will produce commodities including palm oil, sugar and rice on 312,000 hectares of rented land. The intention is to sell the crops within the 19-member Common Market for Eastern and Southern Africa, Karuturi said in an interview on Nov. 10 in Addis Ababa, the capital.

Neighboring and regional countries are increasingly becoming the largest buyers of Ethiopian goods, according to Access Capital. Somalia and Sudan, for example, are both individually larger export markets for Ethiopia than the U.S., Italy, or Great Britain, the Addis Ababa-based research company said in a report last month.

Karuturi has an agreement to provide 40,000 tons of rice to neighboring Djibouti and a proposed Comesa customs agreement may lead to domestically produced rice gaining preferential access to Kenya, he said. The company also sees “large potential” in the Ethiopian palm oil, rice and sugar market. Average annual sugar consumption in the country is 6 kilograms (13.2 pounds) per capita, compared with 30 kilograms internationally.

“There are still a lot of Ethiopians who don’t know what sugar tastes like,” Karuturi said. Rice consumption may expand to 100,000 tons from 22,000 tons “if I can deliver rice at 10 birr ($0.61) a kilogram,” he said.

Palm Oil

Per capita edible oil consumption is also relatively low in Ethiopia, according to Karuturi. The intention is to sell the 80,000 tons of palm oil produced on an Ethiopian market that he expects to expand threefold to 300,000 tons per year.

Ethiopia plans to rent out 3 million hectares (5 million acres) of land, an area the size of Belgium, over the next five years to private investors to grow cash crops and generate foreign exchange, the Agriculture Ministry said last month.

Karuturi plans to have a third of its 300,000-hectare plot in Gambella, in western Ethiopia, developed by April 2013 and the whole farm ready for planting by April 2015, the CEO said. The company has invested $90 million dollars in the project so far and has budgeted a further $260 million, he said.

Water is abundant in Gambella and the company will build its own irrigation and energy infrastructure rather than rely on an “over-burdened government,” Karuturi said.

Baro River

Two tug boats have been purchased to transport goods via the Baro River to destinations including Lake Victoria on the Ugandan border and Port Sudan on the Red Sea coast.

The Baro River is the “only navigable” waterway in Ethiopia, Karuturi said. “It puts us right into the heart of East Africa.”

Critics of Ethiopia’s land leasing program have said the process has displaced residents. Solidarity Movement for a New Ethiopia, a Washington-based advocacy group, said the government has told many people in Gambella they will be removed from their homes to make way for the Karuturi farm.

Karuturi said no one has been displaced as Gambella is the “most thinly populated area in this part of the world.”

Ethiopia is Africa’s second-most populous nation, with about 80 million inhabitants, according to the U.S. State Department’s website. http://www.bloomberg.com/news/2010-11-12/karuturi-global-eyes-east-african-markets-for-crops-grown-on-ethiopia-land.html

Yoniii

November 14th, 2010, 03:53 PM

(AF) The Ethiopian Commodity Exchange (ECX) is to launch a free SMS and Interactive Voice Recognition (IVR) service this week in collaboration with Ethiopian Telecommunications Corporation (ETC) to enable ECX to communicate information to customers.

The ECX has been creating a new marketplace for farmers, traders, processors, exporters, and consumers since its establishment in April 2008. Recently, it developed a new market system of which the two telecom services form part. IVR technology is designed to computerise communications by retrieving information like bank balances, flight schedules, product details, order status. “The SMS line will provide information to customers by text message,” said Eleni Gabre-Madhin (PhD), chief executive officer (CEO) of the ECX.

The new lines will commence service this week, according to Ahadu Woubshet, Market Information expert for ECX. The free number for the SMS line is 934 and for the IVR line 929, he said.
^^

popa1980

November 14th, 2010, 08:30 PM

300,000 hectares???!!!!

abesha

November 30th, 2010, 03:17 AM

http://www.diretube.com/ethiopian-news/appropriate-technologies-scales-up-production-in-ethiopia-video_86034b75c.html

Use of low-cost technologies for small scale farmers. It's a very new program I think.

Ahadu

December 11th, 2010, 03:11 AM

uwRfGBJdDtE

Ahadu

December 11th, 2010, 03:29 AM

r4_hQ6_pWXg

Ahadu

December 11th, 2010, 03:40 AM

jgfR88rgRfE&feature=channel

FiqrwMp2vFU&feature=channel

Ahadu

December 11th, 2010, 03:55 AM

Unbelievable - This is exactly what that country needs. Dry Farm!!
5m X 5m garden with 10 gallon of water / day!

twG3rCtmObo

abesha

December 15th, 2010, 05:27 PM

New BBC Report - Business Daily: Ethiopia's Land Issue

It's just audio : http://www.bbc.co.uk/iplayer/episode/p00cc3zx/Business_Daily_Ethiopias_Land_Issue/

It's long and includes a long interview. Very interesting and informative.

Apparently, the government DOES require that the domestic market be fulfilled first. I don't know, there's so many contradictory reports that I don't even know what to believe anymore.

popa1980

December 18th, 2010, 01:16 AM

A controversial new farms policy has led to a political clampdown in a remote lowland region of Ethiopia, the BBC has been told.

Opposition activists claim that a number of arrests and the killings of 10 local farmers are as a direct result of the new policy.

"You cannot speak freely about the land issue now," one local man says, speaking on condition of anonymity.

"You can be arrested or even killed for this.

"This is a dark period for all indigenous people living in the south-west of the country."
Massive land lease

The government of Meles Zenawi is pioneering the lease of some three million hectares of land over the next five years, an area the size of Belgium.

The policy is targeting massive lowland areas mostly in the west and south-west of the country.

These are regions populated by smaller minority ethnic groups.

The government denies conducting any repression, and says instead that its policy is aimed at lifting local people out of poverty.

Foreign investors in Gambella include Chinese, Indian and Saudi firms.

The Saudis alone say they are hoping to produce as much as a million tonnes of rice per year, most of it for their own domestic market.
Continue reading the main story
African countries considering land lease

* Ethiopia
* Tanzania
* Mozambique
* Sudan
* Madagascar
* Malawi

Birhani Fasaha, director of the Saudi Star Corporation, says the country's planned investment in Ethiopia, as well as in a range of other African countries, is a response to Saudi Arabian fears about their own domestic food supply, following sharp rises in global food prices two years ago.

"Saudi Arabia was importing all its food from India and Asia," he says, "but the Indians withheld their rice in 2008, so the Saudis want an option."

Ethiopia is just one of a number of African countries that have been targeted by foreign agricultural investors.

Tanzania, Madagascar, Mozambique, Sudan and Mali are among the others that have received considerable interest.

Saudi Star is said to aim to lease as much as 100,000 hectares of Ethiopian land within the next four or five years, and it promises to bring clinics, schools, better roads and electricity supplies to Gambella in return.

The current rental charge for this land is about $10 (£6) per hectare per year.
Ancestral land
Gambellan pastoral farmers Rural communities feel uninformed about how the land lease plans will change their lives

The Ethiopian government stipulates that foreign investors will have to satisfy domestic food needs before they can export.

It also says it is only allocating idle land for investment.

However, local protesters insist that all the land is already in use, mostly by pastoralists.

There are an estimated four million such farmers in Ethiopia, who often cross hundreds of miles a year to find fresh pasture for their cattle.

"They use the land for different purposes - for agriculture, for hunting, sometimes just to gather fruits during famine," one protester says.

"There is no empty land in Gambella without a history.

"Village areas have been cleared and villagers have been bribed to sell their own farm.

"They can't sell the land, it's not theirs. That land is ancestral land."
Development opportunity

Because all land in Ethiopia's quasi-socialist economy is officially government-owned, it has the right to lease it out largely as it sees fit.

While some local farmers are being directly compensated, pastoralist farmers are not.

The government believes that only massive foreign investment can help to transform the country's rural economy, and provide the country with food self-sufficiency.

Some 13 million Ethiopians still depend on some degree of food aid.
Continue reading the main story
“Start Quote

Pastoralism, as it is, is not sustainable. We want to change the environment”

End Quote Abera Deressa Agriculture Minister, Ethiopia

Abera Deressa, the government minister who helped design the latest agricultural development policy, says foreign investors should help boost agricultural output by as much as 40%.

He believes that rural life in these areas must change.

"Pastoralists have enough land for their cattle," Mr Deressa says, "but at the end of the day we are not really appreciating pastoralists remaining as they are.

"We have to improve their livelihood by creating job opportunities. Pastoralism, as it is, is not sustainable. We want to change the environment."

Mr Deressa says he hopes the investors would bring skills and infrastructure to some of the most neglected regions, as well as thousands of jobs for the rural population.

The minister says that opposition to the government is based on ignorance of the government's proposals.
Complex problem

However, concerns about the land policy go beyond the rights of local farmers.

Environmentalists say that many of these proposed farms infringe on Ethiopia's protected game reserves, where an abundance of wildlife could now be at risk.

In Gambella, most farms are being ear-marked for rice and sugar production, two extremely water-intensive crops.

Yet the investors say no limits are being placed on the amount of water they can draw from the rivers, in regions already suffering from declining rainfalls.

The issue of land lease is a complex one and there is much disagreement on the best approach.
Continue reading the main story
“Start Quote
Gambellan pastoral farmers

They can't sell the land, it's not theirs. That land is ancestral land”

End Quote A Gambellan resident, angry about the land lease proposals

According to the World Bank, which commissioned a study into land lease, there is an estimated 45 million hectares of land that is either already under lease or has been requested for lease.

And there are both positive and negative examples to be taken.

The report's author, Klaus Deinigerm, says the initiative has had a considerable success rate in Latin America.

However, in Africa, the picture is less rosy.

"Many of these projects do not perform, and that implies that possibly the arrangements are not optimal," says Mr Deiniger.

"It's very important to make sure that governments as well as civil society have the right tools in place to ensure that the investments do not cause harm and actually improve productivity."

In Ethiopia in particular, Mr Deiniger does not believe that land lease is the best option for rural communities.

"It is an opportunity but it definitely won't be the main development opportunity for its smallholder population... it can draw in some private investment but it needs to be done in a strategic way rather than letting investors determine the government strategy," he says.

Ethiopia and other countries, he says, have ended up with a very fragmented approach to land lease that fails to provide any infrastructure benefits and is in contradiction to smallholder rights.

But back in Gambella, Ethiopia, it's the political and social cost that is most concerning many local farmers.

The ruling party, the EPRDF, is said to govern with an increasingly firm grip.

People in the country's remote south-west fear that their pastoralist traditions, which have been a way of life for generations, could now be forcibly brought to an end.

"There is a fear that there will be no more culture within the pastoralist area," says one man.

"We're going to lose our culture and there will be nothing remaining for the next generation. I'm afraid this life may only be a story that we can tell our children."

abesha

December 18th, 2010, 02:27 AM

FYI, I've posted a detailed audio report from the BBC in the agriculture thread.

Yoniii

December 27th, 2010, 09:19 PM

Tractor's belonging to Al-Amaoudi's Sudi Star..

http://www.addisfortune.com/Vol_10_No_556_Images/tractor_farm.jpg

Hundreds of brandnew earth moving machines, including tractors, excavators, bulldozers, and dump trucks can be seen parked a few metres from a 10,000ht plot of land leased by Saudi Star Agricultural Development Plc in Abobo Town, located 35km from Gambella, on December 18, 2010. Registered with a capital of 500 million Br as an investment company in August 2009, Saudi Star, which is co owned by Mohammed Al-Amoudi, plans to start cultivating rice by the Alwero Dam, which was constructed by the military during the time of the Derg for growing cotton on land that has lain idle for close to two decades, since the regime’s demise. - Addis Fortune

Ahadu

December 27th, 2010, 10:38 PM

^^^^...Just WOW!

African Lion

December 28th, 2010, 07:09 AM

^^^^...Just WOW!

What are you wowing over. All the food and money will be going out the country thanks to your TPLF ethnic NAZI regime. Stop worshiping the Ethiopian flag burners and get into touch with the real world.

Nothing to celebrate her as the Albanian Maoist continue there 36 year old plan to destroy Ethiopia and Ethiopians. Instead of having real capitalism and private property rights we will be giving our land and water away to foreign countries for virtually nothing. Yippie:banana:

Dont forget there are still MILLIONS on the perrenial food aid and starvation. What dignity can our country and countrymen ever have. This pathetic weak, weak, weakness of Ethiopia will continue thanks to evil TPLF.

Hersh

December 30th, 2010, 03:36 AM

yosef

December 31st, 2010, 05:52 PM

Construction of Koga dam finalized

http://img210.imageshack.us/img210/1668/jhx8bc.jpg

Last Updated ( Sunday, 26 December 2010 )
Addis Ababa, December 26 (WIC) – The construction of the main dam for the koga irrigation and watershed management project has been fully completed, the Ministry of Water and Energy said.

Ministry Public Relations and Communication Directorate Director, Bizuneh Tolcha, told WIC today that the dam with 21 meters height and 1.73 km length has the capacity to hold 83.1 million m3 water.

He said the dam has already started storing water.

He further said some 78.4 per cent of implementation of the koga irrigation and watershed management project has been completed so far.

According to Bizuneh, the project is expected to be finalized by the end of this budget year.

He said more than 452 million birr was spent so far out of the 600 million birr required for the project.

Upon completion, the project would benefit 67,550 farmers, he indicated.

Source (http://www.waltainfo.com/index.php?option=com_content&task=view&id=24818&Itemid=134)

this is part of the Koga Irrigation Project around Merawi, south of Lake Tana in the Amhara Region

Here is more info on the project:

http://img6.imageshack.us/img6/3829/94357600.png

found here: http://www.water.mottmac.com/waterprojects/?mode=type&id=291915

yosef

December 31st, 2010, 06:09 PM

Ethiopia plans to take 2.5pc of the world sugar market

Ethiopia's five year development strategy plans to hold 2.5 percent of the world sugar market. The strategic plan aspires eight new sugar factories within the upcoming five years.

Currently the country's three state owned sugar factories have an aggregate annual production capacity of 300,000 tones. This annual production is not sufficient to the local sugar demand forcing the government to annually import 1.5 million quintals from abroad.

To avoid the supply shortage and benefit from the international market the government plans to establish eight new factories within the coming five years, according to the country's sugar development agency's five year strategic plan. These new eight factories will have an aggregate annual production of 2.250 million tones at the start of their first production, according to the strategic plan.

The three state owned sugar factories have an average of 10,000 hectares of land in which they grow sugarcane which is used as an input to produce the sugar. But the new eight factories intended to be established within the coming five years will have a total of 225,000 hectares of land which will be used for growing the sugarcane and each will have an annual crashing capacity of 10,000 tones of sugarcane, according to the strategic plan.

The government offers the priority to private investors interested to engage in sugar production, however the government will be forced to establish the factories by its own, if the private investors are not willing to engage in the investment area, the strategic plan highlighted.

Beside this the government is now undertaking expansion programs on the three state owned factories, namely Fincha, Wonji and Methara which currently have an aggregate annual production capacity of 300,000 tone but the expansion will add an aggregate production of 365,000 tones.

The expansion program is supported by the Indian government loan. Moreover, the Indian government loan will help Ethiopia to fully establish Tendaho Sugar factory in Afar regional state. This factory which will have an annual production capacity of 600,000 tones is expected to be completed at the end of 2011.

Source (http://www.ethiopiafirst.info/news/index.php?option=com_content&view=article&id=412:ethiopia-plans-to-take-25pc-of-the-world-sugar-market&catid=1:latest-news&Itemid=1)

This could've gone in the sugar development thread (http://www.skyscrapercity.com/showthread.php?t=1197085) also

African Lion

January 1st, 2011, 06:36 AM

^^Try opening up your eyes a bit dude. Don't let some of the evils cloud your view of some of the good.

I think there is plenty to be supportive of, just as there is plenty to condemn. But it helps to be balanced about it.

Your right, we have to move forward but Im so frustrated about the whole "food aid" and 'starvation" issue in a land as gifted as ethiopia. The rulers of Ethiopia have screwed our people over and not we have this "never ending humiliation" take place every year. How weak and pathetic of ALL of ethiopias people, the poor peasents deserve better.

abesha

January 1st, 2011, 03:58 PM

You are absolutely right about that. We are all extremely tired of hearing that.

Good news is we're supposed to have a record harvest this year.

abesha

January 27th, 2011, 08:42 PM

Ethiopia: Mega irrigation project on disputed river planned

Ethiopian Prime Minister Meles Zenawi has announced plans to start an irrigation project on the trans-boundary Omo River. The announcement comes in spite of an unresolved contention raised over the government’s Gibe III Hydropower Project, which is currently underway to generate 1800MW. Analysts argue that Ethiopia should negotiate with countries like Kenya and Egypt before embarking on such projects.

Ethiopian Prime Minister Meles Zenawi who appeared at a ceremony in Jinka, a town in the Southern Nations Nationalities and Peoples Regional State, on January 25 to celebrate the 13 Pastoralists Day announced his government’s plan to embark on a mega irrigation plan using the Omo river’s water.

The project will see the cultivation of sugar cane on 150,000 hectares of land, three times larger than the size of Addis Ababa, Ethiopia’s capital, in the Southern Omo Region on the trans-boundary of the Omo River

According to the Prime Minister, the irrigation project is expected to create 100,000 jobs; A situation that will promote not only a more settled lifestyle for local pastoralists but also harness the area’s water shortage and aid them to undertake more modern systems of animal husbandry.

Gibe

Gibe III Hydropower, another project on the the Omo River, has in recent years been an object of criticism among international NGO’s and pressure groups who have argued that the project will adversely impact the livelihood of surrounding communities.

Critics insist that the dam will minimize the volume of water that enters Lake Turkana, in Kenya, from the Omo River and negatively impact residents of the area.

Pressure, exerted by the environmental activists, eventually resulted in International financial institutions like the World Bank, the African Development Bank and other donors declining to assist Ethiopia financially vis-à-vis the construction of the mega dam project.

Despite the project’s delay, caused by the withdrawal of international financial institutions, Ethiopia remained on its position and eventually gained financial support of close to 500 million US dollars from the Chinese government, covering 36 per cent of the project’s total cost.

Negotiate

Analysts say that Ethiopia’s current relationship with emerging economies such as China and India has served as a bulwark against both pressure groups and influence from Western countries, thus allowing the Horn of Africa country to undertake projects without fear of reprisal.

Others have expressed fears over Ethiopia’s current position, arguing that it could lead to possible conflicts with neighboring countries, including Kenya and Egypt, unless negotiation is set as a prerequisite regarding mutual economic benefits before commencement of any disputable projects.

Prime Minister Meles who in 2009 asserted that Ethiopia will not slowdown its efforts to industrialise for fear of worsening the state of the environment, stating that Africa’s "contribution to global warming is negligible" in comparison with "’industrialised countries", said that the irrigation project which is to be carried out in the next five years will make the area a showcase of fast track development.http://www.afrik-news.com/article18836.html

abesha

January 27th, 2011, 09:08 PM

Coffee Gains Spur Investment, Ethiopia Exchange Chief Says

Surging coffee prices are prompting more farmers in Ethiopia, the world’s sixth-biggest producer, to cultivate the crop and invest in higher yields, the executive director of the Ethiopia Commodity Exchange said.

“Anytime the price goes up like this, it’s a windfall gain, but people really start thinking of longer-term investments,” said Eleni Gabre-Madhin today in an interview in her office in Addis Ababa. Ethiopia’s growers, most of whom farm small plots, currently have yields that are about a fourth of what they could be with improved fertilizers and cultivation practices, she said.

Arabica coffee surged 77 percent in the past year, through yesterday, reaching a 13-year high of $2.445 a pound on Jan. 12, because of lower production in Brazil, the world’s top grower. The March contract fell 0.4 percent to $2.365 at 10:13 a.m. today on ICE Futures U.S. in New York.

Ethiopia is the 10th-largest coffee exporter, according to the United Nations’ Food and Agriculture Organization. The country grows mostly arabica beans, which are brewed in specialty coffee houses including those run by Starbucks Corp. http://www.bloomberg.com/news/2011-01-27/coffee-gains-spur-investment-ethiopia-exchange-chief-says.html

abesha

January 28th, 2011, 05:52 AM

Two locally-owned agro-industry companies under formation or already up and running:
- Timret Agro Industry S.C. http://www.timretagro.com/
- Jacaranda Integrated Agro-Industry - their website is useless :bash:

abesha

January 29th, 2011, 04:32 PM

ANOTHER MASSIVE LAND REQUEST FROM INDIA

Chadha Agro Plc set to receive 100,000 ha land

By Hayal Alemayehu

Chadha Agro Plc, one of India’s giant operators in agro business, is set to get hold of land twice the size of Addis Ababa to invest in what has already become a popular field for foreign investors and a priority area for the government of Ethiopia. The company has requested a 100,000 ha land to invest in sugar development project while the Ministry of Agriculture has provided it with 22,000 ha land in Guji Zone in Oromia Regional State, according to information gathered from the Oromia investment Commission. The company is set to receive the rest 78,000 ha land after its performance on 22,000 ha land availed is evaluated.

Chadha will be engaged in what is projected to become a massive sugar development investment venture on the 22,000 ha land involving a vast area of sugarcane plantation fields and a modern mill.

Registered last June with an investment capital of close to seven billion birr, the company is scheduled to establish a huge sugarcane farm and factory like the government’s Tindaho sugar development project in the making.

There are currently three state-owned sugar factories operating in the country: Metehara, Fincha and Wonji with an annual production of 120,000 tonnes, 100,000 tonnes and 70,000 tonnes respectively. Aside from the three factories, there are other three giant sugar projects in the pipeline: Al Habesha Mills, a Pakistani’s sugar development project set to commence production in a few months, Tindaho and Hiber Sugar, a share company established recently.

With the project covering the whole 100,000 ha land the company requested, Chadha’s investment plan submitted to the government indicates that it will provide permanent and temporary job opportunities for 35,000 people.

The company is scheduled to launch the project on the allotted 22,000 ha land while the government has given it the green light to receive the additional land for expansion projects.

The Ministry of Agriculture provided the company with the 22,000 ha land a few weeks ago while it will oversee the performance of the project to provide the company with the additional plot. (The Oromia Regional State is not mandated to provide land for investors by itself if the request is more than 5,000 ha.)

With the land grab issue in Ethiopia long becoming a bone of contention between policymakers and critics, Chadha will increase the number of companies which received, or are about to secure, vast lands up to 300,000 ha including Karuturi, another Indian firm globally know as world’s giant flower producer and Saudi Star Agricultural Development Plc, Al-Amoud’s recently established company.http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1733:another-massive-land-request-from-india&catid=98:news&Itemid=511

Simfan34

January 29th, 2011, 04:33 PM

Sure, why not.

abesha

January 29th, 2011, 04:39 PM

Ethiopian sesame seed on the floor - An export giant in the new commodity market

By Asrat Seyoum

For someone who has not been to one of the one-hour-long trading activity of sesame at the commodity trading house, it could appear a bit confusing and noisy. Constant outcry of both the green and kaki-gown wearing traders at the cubical trading floor is relatively strange to a newcomer. Ever since sesame joined some of the country’s leading exportable commodities, on the trading floor, both its price and volume destined for the international market are determined by the outcome of this ‘outcry’.

It all happens in an octagonal narrow trading floor located on the second floor of the Ethiopian Commodity Exchange (ECX) headquarters around Lideta.

Sesame seed, a cash crop known for fetching higher export revenue in the past, has joined the likes of coffee and other grains on the small trading floor of the ECX since May last year. Though it is a newcomer on the ECX scene, sesame export in the past was second only to coffee, the veteran cash crop and backbone of the export sector in the economy.

The sesame variant, Humera white, is well recognized in the international markets for its high quality and pleasant aroma, according to the international trade data. Grown in the northern part of the country, the Humera sesame is also exported in greater quantity, while the country managed to keep itself among the world’s foremost sesame producers. India, Myanmar, China occupy the leading position in the world, while neighboring Sudan, Nigeria, Burkina Faso and a few other countries are also prominent producers and exporters. Hence, regardless of Ethiopia’s quality sesame, still a stiff international competition abounds in the market.

However, the Chinese have been and still are the major purchasers of Ethiopia’s sesame production, which, according to some industry players, might go as high as 70 percent. Last year, prior to joining the commodity market, the volume of sesame that was exported to China was up to 150 metric tons. However, sesame in its new home is not performing as it used to do before, said an exporter who requested anonymity.

This is shared by Nigussie Sima, general manager of the Ethiopian Pulses, Oilseeds and Spices Processors and Exporters Association (EPOSPEA). Thus far this year, the volume exported to the international market is not more than 35 thousand metric tons, approximately less than 20 percent of the annual production. Just last year the Chinese bought from 150 to 180 metric tons from Ethiopia alone However, the Chinese demand for sesame cannot be satisfied by Ethiopia’s supply; hence they go shopping for it in other producer countries. The Indians being the biggest producers in the world are another source for the Chinese, not to mention the considerable difference in the cost of freight compared to the eastern African countries, Sudan and Ethiopia. However, unlike Ethiopia’s, Indian sesame entering China is subjected to sharp duty making the former relatively cheaper for Chinese buyers. “The Chinese demand for our sesame is not only about the quality of our products, but is also about the competitive price that we charge,” says the anonymous exporter. However, after sesame entered the trading floor at ECX, the price competitiveness that we enjoyed in the past is being eaten away slowly, he said.

Current price levels in the international market, where sesame is traded, seem to be in agreement with the statement of the exporter above. Average price levels for sesame products in the international market floats in the vicinity of 1350 dollars/ton, while the cost of Humera sesame when it is delivered in the international market is not less than 1400 dollars. According to the industry players various reasons are accountable for this.

Operational issues at ECX

Prior to May, sesame export from Ethiopia was collected largely from disintegrated oilseed marketplaces, most of which were under the strong influence of middlemen and traders. One of the objectives, in fact, was to illuminate this decentralized system and minimized the mediations between the farmer and the export. However, the very reason that necessitated sesame to join the structured commodity market, which is minimizing transaction cost and achieve competitive price in the international market, appears to be a failure, claim industry players.

“It supposed to be the other way around. I expected, once in the trading floor price for the product would decrease,” the exporter told the reporter. He said that after joining the ECX, on average some 150 birr per quintal additional cost was incurred by the country’s sesame product. However, Negussie says that it is a small price to be paid for adapting into a new market system. “Especially, in November, the sesame sector was experiencing some hiccups, but relatively it is better at the moment,” he explains. “We have been discussing with ECX and the Ministry of Trade (MOT) but it is to be expected with a new system,” he added.

The exporter as well seems to be in conformity with this. He says, at present, the problem at the ECX warehouses, where delivery after sales is made, is looking relatively better. “After sales is made on the floor at ECX, the products are delivered at six ECX warehouses at Humera, Metema, Gonder, Bure, Metekel and Gimbi, which apart from suffering from a logistics problem would also pile up on the cost of Sesame due to transportation.”

Naiveté of exporters and buying strategy shift of the Chinese

According to ECX’s, thus far, the some 70 thousand tons of sesame have been traded at the floor. However, not more than 35 thousand tons made it out of the country to the international market. If we assume that this years’ harvest in the north had some 200 thousand tons available for export, more than 100 thousand tons are yet to be traded before next year’s crop came along, says another exporter who opted be anonymous. “Looking at the way things are progressing at the moment, carryover sesame for the next year might be another issue to be worried about,” he says. However, he said that problems at the ECX are not the only ones to blame for uncompetitive prices prevailed at present.

In fact, the exporters’ naïve expectation about future prospect of a higher international price for sesame is also another factor in this regard, he explains. “ECX is a clearing house, where prices were supposed to be determined by a transparent bidding process; hence if the price when the auction is closed at the end of the day in one way or the other reflects the exporter and the suppliers bargain.” Had the exporter correctly anticipated that the local prices were overtaking their international counterparts, then they would push the price down the same way they pushed it up, he added. However, Negussie says that given member exporters’ attitude, whatever sesame stock they are holding, they will get raid off very quickly. “Around February, India’s sesame will arrive and this would have pushed international prices further down, making it hard for us to compete,” he said. Whatever the case, it would be a good time just to sell Ethiopian sesame, since the prospect for it is a bit grim, according to Negussie. He says that usually up to 20 percent of the sesame seed produced in that year is carried over to the next one, but this year this could pick up a little bit.

On the other hand, the strategic shift by the Chinese is also another matter to investigate if the wobbly first few months are to be explained, an industry player says. Usually the Chinese buyers approach our products in a more of individual terms, says the player. However, the change of strategy now is to come through trading houses that would be useful to considerably cut the price of sesame that they are buying from.

The legal framework

According to the legal framework that governs the trading floor at ECX, the commodities to be traded on the floor have to first enter the warehouses and the supplier should bear a formal warehouse receipt that confirms the existence of the commodity. The guidelines posted on the website clearly state that a supplier should bear the warehouse receipt when they appear on the trading floor. The same is true for the buyer/exporter. The exporters should also have full or limited membership while trading on the floor. This is to ensure the rectitude of the process and to avoid default afterwards, the guidelines state.

Currently, the ECX is issuing permanent membership to the traders, which gives them the right to take part in all of the traded commodities. Limited membership, on the other hand, allows participating in limited commodities, while to take part in the other commodities an agent should be contacted. According to both of the above exporters, this is another area where transaction cost at EXC, and hence the price of the final products, rise. Furthermore, the maximum time limit for the supplier to keep a given lot, an official trading unit at the floor (1 lot equals to 50 quintals), of sesame or other grains for that matter, which is 60 days, is also viewed as another problem, according to Negusse. He said that a longer time limit would lead to more of a speculative behavior in search of better price for the commodity.

“We have discussed the matter with ECX. We have come to understand that it should be reduced to 30 days,” Negussie said.

Meanwhile, the Indian harvest coming in February, Negussie and the exporters quoted above appears to be less optimistic about the chances that the export revenue recovering to finish at its previous level, but they agree on the prospect for next harvest. “The exporters, learning on the way, next year would be better,” says Negussie.

However, until then, the usual commotion and noisy trade undertakings on the narrow floor would keep on going, but sesame trade might not be as bumpy as it was in its first few months.

http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1740:ethiopian-sesame-seed-on-the-floor&catid=100:business-and-economy&Itemid=517

abesha

February 5th, 2011, 02:48 PM

Newly-established company secures 128,000 ha land

Ambo Gnemer Agro and Integrated & Industries S. Co., a newly-established company, has secured 128,000 ha of land, the largest one ever given for a single local company in the country. The company secured the land from the Oromia Regional State, thereby joining the rank and file of a few foreign investors waiting to get hold of up to 300,000 ha of arable land, about six times the size of Addis.

The company is established by 90 prominent people mostly from Ambo with a subscribed capital of two million birr and an authorized capital of two billion birr, according to Dereje Dejene, board member of the company.

The company is poised to engage in various projects classified under five categories: agriculture and agricultural products, cement and construction materials, mines, industries and commerce.

The company will develop sugarcane plantation on a vast land and establish a huge sugar factory that can produce up to 1,000 tonnes of sugar a day, produce fruits and vegetables, edible oil, and other agricultural products and supply them both to the local and export market, according to Dereje. It will be engaged in agro-industry activities and raising animals such as ostriches, chicken and fish, and pack its products by itself for the export market, Dereje said.

The company will raise live animals, including goats and sheep, and establish a big slaughterhouse. It will pack animal products for the export market. The company will be engaged in coffee plantation and produce a variety of selected seeds, among other agricultural activities, according to Dereje.

The company will establish various industries, including cement, marble, gypsum, textile and glass factories. It will be engaged in mining and related development activities. It will have trade houses conducting commercial and trade activities, among many other business operations.

According to the plan, the company has started floating shares to the public in a bid to collect up to two billion birr from 50,000 to 100,000 people.

The company plans to launch the full-scale project within the coming two years, according to Dereje.

The 128,000 ha of land the company got hold of is 90 km west of Ambo, with tributaries to the Blue Nile crossing and bordering the region. The company plans to use the Gouder River, one of the major tributaries to the Blue Nile, to irrigate parts of the land.http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1767:newly-established-company-secures-128000-ha-land&catid=98:news&Itemid=511

:applause:

This is what I want to see.

abesha

February 5th, 2011, 02:52 PM

An interview with the founders:

Making citizens become investors

Prominent personalities mostly from Ambo have established a company--Ambo Gnemer Agro & Integrated Industries—which weeks ago secured the vastest arable land (128,000 ha) so far taken by a single local company in the country. This has made the company, whose projects has yet to materialized, join the rank and file of a few foreign investors who are waiting to receive massive arable lands reaching up to 300,000 ha, six times the size of Addis, as is the case for the Indian Conglomerate, Karuturi. The founders of Ambo Gnemer Agro & Integrated S. Co. include Mitiku Tesso (Ph.D.), President of Ambo University, Dr Zewdu Zeleke, board chairman of the company, Athlete Tesfaye Tolla, Dereje Dejene, UNDP Economic Growth and Poverty reduction Head, Gizaw Teklemariam (Eng.), co-founder of Habesha Cement S.Co. and former general manager of Mugher Cement and Abera Bekele (Eng.), board member of the company. Dereje Dejene and Abera Bekele spoke to The Reporter’s Hayal Alemayehu about the projects the company plans to implement on the 128,000 ha land located 90 km west of Ambo and the challenges a head to realize them. Exerpts:

The Reporter: You are poised to be engaged in projects set to be implemented on a vast land, in fact the largest one to be secured by a single local company so far in the country. Could you highlight the projects you will be engaged in?

Dereje: As its name indicates, our company will basically be engaged in agro businesses and integrated industries classified under five major categories: agriculture and agricultural products, cement and construction materials, mines, industries and commerce. To go into some of the details, our company will develop sugarcane plantation on a vast land and establish a huge sugar factory that can produce up to1,000 tonnes of sugar a day. We will produce fruits and vegetables, edible oil, and other agricultural products and supply them both to the local and export market. The company will be engaged in agro industry activities and raising animals such as ostriches, chicken and fish, pack its products by itself for the export market. It will also raise live animals, including goats and sheep and establish a big slaughterhouse. It will pack animal products for the export market. The company will be engaged in coffee plantation and produce a variety of selected seeds. It will be engaged in a bee farm and produce honey both for the local and the export market. It will produce essence for the local and export market.

The company will establish various industries, including cement, marble, gypsum, textile and glass factories. It will be engaged in mining and related development activities. It will have trade houses conducing commercial and trade activities, among many other business operations.

But given the fact that the scale of the projects you are planning to be engaged is so huge, wouldn’t soliciting finance for such an economy of scale venture be a real challenge to realize the project?

Abera: It wouldn’t. The preliminary feasibility study we have conducted more than indicates that the projects we are planning to be engaged in are important and profitable as well. The land we have secured is not only vast but also very fertile especially for the type of agricultural and industrial projects we will be launching. It has an abundant resource of limestone and other raw materials ideal for the cement and marble factories we will establish. The land is fertile for coffee and cotton plantations as well as for other cash crops. And our plan to secure such a vast land is not without purpose. We have enough financial resources [in the country] but the question is how to pool that resource for beneficial investment projects like what ours will be. And we are after that. In fact, the objective of our company is to make citizens become investors. According to our plan, we will collect up to two billion birr from 50,000 to 100,000 prospective shareholders. We will be launching the projects phase by phase.

What have you accomplished so far on your way to realize the projects?

We have already secured the land having an area of 128,000 ha from the Oromia Regional State and got the pertinent investment license, established sale offices in Addis and Ambo, opened bank accounts for the projects, conducted a prefeasibility study and produced project proposals for a number of projects. We are about to commission the detailed feasibility study for the scores of projects we will be engaged in. We have established the company with two million birr subscribed capital from 90 founding members who pioneered the realization of the establishment of Ambo Gnemer Agro & Integrated Industries S. Co. By the way, note should be taken here that all prospective shareholders will be founders of the company. According to our plan, we will collect the two billion birr from prospective shareholders and launch our projects in a full scale within that timeframe.

You said the land you have secured is so vast. Wouldn’t irrigating such a vast land be a challenging task?

Dereje: It will be a real-time challenge, but not without a real-time solution. First of all, note should be taken that we are not going to irrigate all the 128,000 ha land. All the same, we have ample resources to irrigate the farmlands we will develop by employing modern and appropriate irrigation technologies and by using the rivers that cross or borders the region, the major one big Gouder River, one of the major tributaries of Blue Nile. In fact, we might have to irrigate 25,000 to 30,000 ha land and that would not be an easy thing to do technically and financially.

One of the major challenges or drawbacks usually associated with such an economy of scale investment ventures involving vast arable lands is the social impact of it. There are scores of complaints that the livelihood of farmers and communities are being forsaken whenever such investment ventures take place. Wouldn’t your…………

Dereje: … Fortunately, there are not many settlers living in that area as the land is mostly a valley gorge and not that favorable for settlement. And those settlers will be involved in the projects we will launch and make them beneficiaries. Therefore, social impact will not be a challenge or it will only be minimal when it comes to our [yet to materialize] projects although it will involve massive land for implementation. Aside from the social aspect of it, irrigating such a vast land and securing finance for such a scale of economy investment venture will be a challenge. However, we will raise the money required to launch the projects by offering share to the public, as I said ealier. Given the fact that the profitability of the projects we will be engaged in is simply unquestionable, they will surely attract a large number of prospective shareholders. And our objective, as I said earlier, is to “make citizens become investors.” To address the challenge associated with developing such a vast farm productively, we will be employing a modern and appropriate irrigation technology.http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1789:making-citizens-become-investors&catid=105:interview&Itemid=518

Yoniii

February 5th, 2011, 04:01 PM

That's great, I hope this encourages other locals to do the same.

teklu

February 5th, 2011, 04:20 PM

Is a good news I hope this will cultivate other to do their best, but why is always business model a copy cat? all start ups in Ethiopia recently are sugar or cement factory. The nation got a lot to do but few sectors are getting a lot of start ups and creating kind of tough competition. The metal industry, the paper industry, The high tech, the outsourcing, the mining, the medicine and etc sectors also needs start ups and investment.

I guess till 2002 all shares sold was either for banking and insurance then after habesha cement and hibure sugar the attention changed to cement and sugar now everyone need this share. The gov't has a big initiative for the leather and textile industry plus the agowa initiative gives a lot of advantage for the sector, Chinese Turkish and Indians investors are taking advantage of it but no start up company in this sector.

Come on lets diversify the company in the equity market!

Ahadu

February 11th, 2011, 11:07 PM

Sheikh Mohammed Hussein Ali Al Amoudi has spoken...starts @5.20

Watch it!

http://www.diretube.com/ethiopian-news/etv-full-amharic-news-feb-10-2011-video_f2080f316.html

Locals (Gambela brothers) look cool (tractor driver with glasses :lol:)... happy and appreciative.

:applause:

abesha

February 11th, 2011, 11:20 PM

"Wey metew alseru, hagerachin sew endaysera yemikelakelu." Exactly what I've been saying.

Ahadu

February 11th, 2011, 11:32 PM

"Wey metew alseru, hagerachin sew endaysera yemikelalelu." Exactly what I've been saying.

:lol: ....can you imagine Elias Kifle (# 1 enemy of the Sheikh) investing and paying out 5000birr/month for the locals?

When am think of those Diasporas, my blood boils - Where is justice!

Yoniii

February 12th, 2011, 12:25 AM

I agree with the Sheikh and that's a really nice salary for anyone in Ethiopia.

Ahadu

February 12th, 2011, 12:47 AM

In the name of organic....cat poop coffee! Oh dear...:lol:

KgyRJu67AXo

Ahadu

February 12th, 2011, 01:12 AM

t626_nkM8ho

AM2

February 12th, 2011, 11:38 PM

In the name of organic....cat poop coffee! Oh dear...:lol:

KgyRJu67AXo
Gross! They have this EXACT civet coffee in Indonesia, called Kopi Luwak. That's the coffee Jack Nicholson drinks in 'The Bucket List'.
http://en.wikipedia.org/wiki/Kopi_Luwak

AM2

February 12th, 2011, 11:39 PM

abnet

February 15th, 2011, 02:59 AM

Karuturi farm in gambela.

https://lh5.googleusercontent.com/_KZNkLJf9p7M/TOunfkBLlaI/AAAAAAAAbSQ/guxTROAkuMg/s640/IMG_1078.JPG

https://lh4.googleusercontent.com/_KZNkLJf9p7M/TOunjcO3b_I/AAAAAAAAbSs/6ZBpIuPKTxo/s640/IMG_1081.JPG

https://lh4.googleusercontent.com/_KZNkLJf9p7M/TOunmf7fxQI/AAAAAAAAbS0/kreiI4GbYgk/s640/IMG_1082.JPG

https://lh5.googleusercontent.com/_KZNkLJf9p7M/TOunnhmbxDI/AAAAAAAAbS8/O4m_I2Jode8/s640/IMG_1083.JPG

https://lh3.googleusercontent.com/_KZNkLJf9p7M/TOunpTquPbI/AAAAAAAAbTI/XhXW89iW9Ys/s640/IMG_1086.JPG

https://lh4.googleusercontent.com/_KZNkLJf9p7M/TOunqc8XvEI/AAAAAAAAbTQ/g71jaS8cLSY/s640/IMG_1087.JPG

https://lh6.googleusercontent.com/_KZNkLJf9p7M/TOunrazNatI/AAAAAAAAbTY/O5Wz8i6PLcI/s640/IMG_1088.JPG

https://lh4.googleusercontent.com/_KZNkLJf9p7M/TOunshsmCRI/AAAAAAAAbTg/rPrlN6RJTJ4/s640/IMG_1089.JPG

https://lh4.googleusercontent.com/_KZNkLJf9p7M/TOuntQuHQRI/AAAAAAAAbTo/_pMD-OMsuyE/s640/IMG_1090.JPG

all pic. picassaweb courtesy of vish narain.

abesha

February 15th, 2011, 05:30 AM

Great pics.

The soil is so dark and rich looking.

Simfan34

February 16th, 2011, 01:56 AM

^^A revolution waiting to happen! :)

Gross! They have this EXACT civet coffee in Indonesia, called Kopi Luwak. That's the coffee Jack Nicholson drinks in 'The Bucket List'.
http://en.wikipedia.org/wiki/Kopi_Luwak

Exactly what came to mind, the Indonesian coffee that is. Hopefully it can become all expensive and stuff! :lol: :cheers: The Fela Kuti was nice touch.

yosef

February 16th, 2011, 02:04 AM

Fresh meat New countries buy Ethiopian

By Muluken Yewondwossen
Monday, 14 February 2011 12:14

The country’s meat products are expanding into unexplored territory as new countries are buying Ethiopian. According to information obtained from the Meat and Dairy Development Institution under the Ministry of Agriculture, Iran has agreed to buy 10,000 tons of cattle, sheep and goat meat from Ethiopia. Iran has not imported Ethiopian meat before.

Gedey Gebre Medhin, director of the institute, said that Iran’s demand is almost above the country’s total exports from last year.
The growing industry is closely followed by the Export Coordinator Committee, chaired by PM Meles Zenawi, and is also attracting markets from other countries as well as investors who want to buy and be part of the investment in the country.

Gedey told Capital that Lebanon is another new import destiny for Ethiopian meat. He said that the Lebanon delegation will arrive in Addis Ababa this week to sign the final arrangement to start the export. According to the agreement the country will import the largest amount to Iran.

The director explained that Lebanese will not only supply the product to the Lebanon market but for other marketplaces like Iraq, Jordan and Syria.
When Ethiopia commences the export for the two countries it will be one of the largest meat exporter countries which previously was dominated by Pakistan, Australia and Latin American countries.

Turkey will become another buyer of Ethiopian meat. Currently Turkish importers have been in discussions with Ethiopia on getting a final deal.
Ethiopian abattoirs and other hygienic and veterinary services standards improvement are the main reason for the attraction of new international markets, the experts explained.

Ethiopia mainly exports sheep and goat meat, for the Gulf countries. Saudi Arabia, United Arab Emirates, Qatar, Yemen and Bahrain are the major importers.

In the first half of the budget year Ethiopia exported close to 8100 tons of meat. Only 7 percent came from cattle. According to the head, the country is attentively working to expand cattle meat exports that cover 80 percent of global demand.About seven local companies are exporting meat, while most of them are focused on sheep and goat meat exporting.

Currently, only Abergele, an abattoir under EFFORT:ohno: that is based in Mekele, has fully undertaken cattle meat processing and Ashrafe, formed at Bahir Dar, is in the final stage to commence cattle slaughtering and export.:yes: “We are supporting the rest to enhance their capacity and begin exporting cattle meat,” Gedey said.

According to the expert, the sector investment has shown more rapid growth than previously. “Currently new abattoirs are erecting or on the process to start their production,” he explained.

A Canadian and Ethiopia joint venture investment that demanded to enter in the abattoir and meat export has started its investment activity in Jijiga, capital of Somali regional state, which is one of the potential livestock production areas in the country, while it is major line for contraband in the sector. And the popular Indian firm Alana is in process to be part of the investment export from Ethiopia.

http://www.capitalethiopia.com/index.php?view=article&id=14136%3Afresh-meat-new-countries-buy-ethiopian&option=com_content&Itemid=4

Good to see alot of foreign investors getting involved and alot of new abattoirs coming up, hopefully some Ethio natives jump into the sector as well so that some of our own people can benefit more from it.

yosef

February 16th, 2011, 02:08 AM

Dutch investors eye poultry, meat sectors

By Betelhem Assefa
Monday, 14 February 2011 12:22

‘Poultry and Meat Ethiopia’ Seminar took place on Wednesday February 9, at the Hilton Hotel, opened by the Dutch Ambassador Hans Blankenberg. The event was organized by the Netherlands - African business council in collaboration with the royal Netherlands embassy and the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA).

A Dutch trade delegation consisting of sixteen members arrived here last Sunday and visited various diary, poultry and meat processing agro industries and farms owned by Dutch and Ethiopians in and around Addis. The delegation also held discussions with the Ethiopian private sector. The purpose of the seminar was to explore more intensified cooperation in the poultry and meat sector in Ethiopia. Investment opportunities for commercial livestock breeding, production and processing of meat, milk and eggs, and establishing useful business contact are of highest importance for the visiting companies.

http://www.capitalethiopia.com/index.php?view=article&id=14144%3Adutch-investors-eye-poultry-meat-sectors&option=com_content&Itemid=4

abesha

February 16th, 2011, 06:09 AM

Fresh meat New countries buy Ethiopian

Good to see alot of foreign investors getting involved and alot of new abattoirs coming up, hopefully some Ethio natives jump into the sector as well so that some of our own people can benefit more from it.

I agree. The big mouths like Nomadic Warrior should go back and invest in the Somali region's large potential.

Ahadu

February 16th, 2011, 09:54 AM

Produce Food!

Who the heck is this guy?.....Really like him. I feel like he is reading my mind.:lol:

bGQmrYNoA2s&feature=player_embedded#at=1127

Yoniii

February 16th, 2011, 10:13 AM

^^ These new deals will probably double the exports, very impressive! I agree with abesha, the Somali region has huge potential in this sector.

Produce Food!
Who the heck is this guy?.....Really like him. I feel like he is reading my mind.:lol:

I don't know, I've watched the first 10min so far and it seems interesting. :)

Edit: That was a great presentation, very motivational. There is obviously so much to do in the country, it's time for us to wake up.

abesha

February 16th, 2011, 05:55 PM

Very good presentation, thanks for sharing.

I definitely believe agriculture is a goldmine waiting to be exploited. I'd love to invest in it in the future.

Ahadu

February 27th, 2011, 09:22 AM

Simple but so effective. $20,000 Birr / year profit. Not bad at all. I really like Mr. Hussein’s smartness. Gobez Mr Hussein....I bow Lerso Bicha :bow:... YES for fresh Atakilt. :lol:

Watch it @ 9:56...

3nMpA6o5o2A

yosef

March 12th, 2011, 07:25 PM

that presentation by Daniel Gad was really good, I hope he put his ideas into practice with success

yosef

March 12th, 2011, 07:31 PM

Quarter billion USD for agriculture in five years

By Muluken Yewondwossen

Tuesday, 08 March 2011 12:18

A quarter billion dollar project, Agricultural Growth Program (AGP), part of the five year Growth and Transformation Plan (GTP), is expected to be launched officially within a month.

The project is part of the government’s main target to double the country’s production by the end of the plan year in 2015. It is focusing on four regions and over 80 selected areas that are expected to meet the government’s new growth target.

The total 258.3 million dollars expected from the World Bank through the International Development Agency (IDA) and other donor partners will be dispersed in the coming five year agricultural growth activities in the selected 83 woredas in Amhara, Oromia, Tigray and Southern Nations Nationalities and People’s (SNNP) Regions. It will also go to administrational costs.

More details about the plan: from Capital (http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=14296:quarter-billion-usd-for-agriculture-in-five-years-&catid=12:local-news&Itemid=4)

Tomatoes in two thirds the time with new greenhouse

By Muluken Yewondwossen

Monday, 07 March 2011 13:26

The first low cost greenhouse has been implemented to help cultivate vegetables, with the support of USAID-ATEP at Tefki Farm, located at Tulu Bolo town 80km west of Addis Ababa. The cost effective greenhouse has been setup to cultivate tomatoes on 500 square meters of land.

Melaku Tedla, senior Agronomist at USAID-ATEP, who worked on the design and construction of the greenhouse, told Capital that even though the technique is new; the low cost greenhouse technology works well in countries like Ethiopia. “For instance in Kenya a lot of households are using the low cost greenhouse farming on their small lands and generate a huge amount of income from the sector,” the agronomist explained.

According to Melaku, the current 500 square meter low cost greenhouse implemented at Tefki tomato farm has expended 32,000 birr with all necessary materials including tanker and drip irrigation, but the income that will be collected from the production is estimated to be about three times the investment cost.

The green-house which is erected on the wood structure, has a capacity to last for four years. According to experts if the cost of plastic, which is the major item for greenhouse set up and consumes the largest part of the investment, is reduced or is produced locally, the investment for cost effective greenhouse erection will be decrease from the current amount.
Melaku added that, the low cost greenhouse is more effective for small scale farming and urban based farming as it is more advantageous for collecting high yields from small areas of plantation. “Any households and farmers who have a small plot on their compound are able to implement this technology,” the senior agronomist added.

Capital (http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=14259%3Atomatoesintwothirdsthetimewithnewgreenhouse&Itemid=4)

The Nomadic Warrior

March 21st, 2011, 06:29 PM

http://www.guardian.co.uk/global-development/video/2011/mar/21/ethiopia-land-rush

Thought provoking video,

Thoughts?

musa90

March 21st, 2011, 07:26 PM

Gambella is one of the most fertile yet least populated areas of Ethiopia. So perhaps the government thinks the few people who live there won't make a big fuss out of it. I don't think they could pull off something like that in the heart of the country with much higher population densities.

Yoniii

March 21st, 2011, 11:37 PM

It would had been impossible to relocate the people in central ethiopia. I hope they use the income from these land "sales" to develop and improve local farmers.

Yoniii

March 23rd, 2011, 04:19 PM

A very interesting and objective report, really worth reading.

Ethiopian Agriculture Takes New Track
Tuna Geda, 30 is busy in his onion farm located near Lake Zway in eastern Shoa province of Oromia Regional State of Ethiopia. Like tens of young farmers who are now working for him, he is also a son of poor farmers who rely on rain fed agriculture farming on a quarter of a hectare plot.

In order to support his family, Tuna began working for other farmers as daily laborer when he was 15. Including the half hectares of land he got from his family after his father died few years ago, he now produces fruits and vegetables on 25 hectares and cereals on another 12 hectares.

“I decided to quit school at sixth grade after I began working for a very hardworking rich farmer in our neighborhood, named Gobenna Holla,” he says. “Then I say to my self ‘one day I will have tractor like him and become a reach farmer’. When my father died, I realized that it is time for me to act.”

Young Tuna then began using ground water renting a water pump for growing vegetables on his family’s plot. After he bought one water pump, which now reached 12, Tuna began renting idle plots from the neighborhood for expanding his agriculture.

He used both oxen and the labor of youngsters in the village to develop the land. Now he has made an advance payment of 230,000 birr to buy a large Brazilian tractor for 1.2 million birr. “I make up to one million birr every four month only from my onion and tomato farm,” says Tuna, who created job for some 50 youths in the area.

A few kilometers away from Tuna’s farm, Simbiro Dadi, 26, is also engaged in farming of fruits. He has been producing mango and papaya on four hectares for the past few years.

“I completed tenth grade and moved to agriculture borrowing water pump from other farmers like Tuna. My role model is Koricho Gragn, who became successful farmer in our neighborhood by producing fruits after studying Accounting in Asmara University four three years,” he says.

Now, Simbiro is building a hotel on 1,000 square meters of plot in Meki, a nearby town in Easter Shoa zone of Oromia where he also built a villa on 600 square meters of land.

All Eyes on Agriculture?

Agriculture in Ethiopia is being considered as one of the most backward field, which gives almost no return. Farmers teach their children to save them from being a farmer in the future. Those who cannot afford to teach their children, have no other option that pushing their children to exile to urban areas and support themselves and their family. Millions of young children of Ethiopian farmers engaged in different businesses in major cities like Addis Ababa.

Other than sending money to their parents and visiting them during major holidays like Meskel, these children have never thought of making productive their families agricultural land. As a result, Ethiopia has been recipient of foreign food aid to feed several millions of its poor farmers, which only harvest once in a year using rainwater with traditional farming technique.

To change the situation Ethiopian governments have been teaching the farmers on how to use ground water and a nearby river for irrigation to produce cash crops twice or three times a year. With main objective of introducing modern farming techniques and irrigation to small-scale farmers, technical supports through agriculture extension workers and loans for fertilizers with pesticides have been provided to the farmers.

Meanwhile, the results were not as expected, as many farmers did not act accordingly due to various reasons. Still millions of Ethiopians, including the urban people, believe that Ethiopian agriculture is hopeless and being a small-hold farmer is being poor forever.

Resistant of the farmers to new way of doing things, lack of human and financial capital at small-hold farm level, absence of role models in agriculture and the like are among the reasons for the poor performance of Ethiopian agriculture for several decades.

Paradigm Shift

The struggle the country makes to liberate itself from being recipient of foreign food aid continued and major actions began to take place by the government. Government’s policy of allowing foreign investors to be engaged in mechanized farming in Ethiopia has come at the right time of ‘global food crises’ a few years ago.

Speaking to local journalists last week, Prime Minister Meles indicated that his government has recently distributed a total of 300,000 hectares of agricultural land for both local and foreign inventors. He also noted that about 2.7 million hectares of farm land in different parts of the country is also waiting for investors after being identified and secured in the central land bank.

As tens of foreign investors, including the Indian Karaturi Global and Saudi Star of the Ethiopian born-Sheik Mohammed Al Amoudi began securing several thousands of hectares for agriculture, Ethiopians both inside and out of the country began opening their eyes.

Wrestling with their century-old attitude towards Ethiopian agriculture many people began to change gradually. While some Ethiopians who reside abroad joined the western ‘anti land grabbing’ campaign, other Ethiopian diaspora began returning home and sharing the land to be engaged in commercial farming.

On the other hand the children of Ethiopian farmers, such as Tuna have also began realizing that they can be farmers like Indians by using technology and become reach.

“It is not a rocket science. Improving Ethiopian agriculture performance is all about using the appropriate technology such as water pumps, improved seeds, fertilizers, pesticides and the like,” says Tarekegn Tsige, Communication Director at the Ministry of Agriculture.

Government’s award to successful small-hold farmers, which are televised, live on state TV, has also forced many people to reconsider their previous perception about Ethiopian agriculture while others took it as government propaganda.

“Be a teacher or a student or a listener and never be the fourth one. The fourth one is useless,” said Mishamo Lombebo, former solder of the previous regime, who became a successful farmer in Hadya Zone of Southern Region.

“I never think of anything else than expanding agriculture when ever I make money. Our families have inherited us the land. If we use water and listened to the teachings of agriculture extension workers, we can create wealth,” says Mishamo, who is making hundreds of thousands of birr annually from husbandry, coffee and horticulture farm of four hectares.

Water – A crude Oil for Ethiopian Farmers

Even though the country is making progress in reducing the number of its poor farmers, still above two million Ethiopians are receiving food aid from abroad. Primarily the intervention of the government was focused on provision of fertilizers, pesticides and improved seeds to some extent. The new approach now targets on creating successful model small-hold farmers by supporting them all the way using agriculture extension workers.

http://newbusinessethiopia.com/images/stories/a-water%20pond.jpg

The support ranges from helping the farmers on how they can get ground water and river water for irrigation using motor pumps to which specific improved seed the farmer has to grow and facilitating market access.

In addition, some regions such as Oromia Regional State and Dire Dawa Administration have also realized the need for additional investment by the government where getting ground water or river for irrigation is difficult.

In a bold move of investing on a huge project that brings water close to the farmers, Oromia Regional State spent over 150 million birr on diverting a fraction of Awash River to the farmers who previously cannot have access to the water otherwise.

The money, the regional administration used for the project was meant to be distributed to farmers through safety net either in terms of food aid. Tibila Integrated Irrigation Project began three years ago. It splits the mountains that hindered Awash River to reach farmers living in the Eastern Shoa parts of Oromia Region.

Now the water has reached some 16 kilometers allowing the farmers in the area to harvest two and three times in one year. When it will be completed the water is expected to travel a total of 32 kilometers between the mountains benefiting 16,000 households who were semi-pastoralists and diverts the water into 7,000 hectares of agricultural land.

Now, the semi-pastoralists in the area have been harvesting vegetables every four month either by renting their land to others including awakened civil servants and other urban dwellers or partnering with young farmers from other parts of the country on the basis of sharing the profit.

Aragaw Gonche, 20, is a young farmer originally from Selale, couple hundreds kilometers far from where is now working. He is now farming land of a semi-pastoralist around Fentalle area using the water provided by Oromia Region.

During the previous harvest season he made 5,000 birr after planting onion on a quarter of a hectare and protecting it until it reaches for harvest. He works on sharing the revenue basis with Semi-pastoralists. The owner of the land provide him food worth 300 birr every month and shelter.

“The fact that I get 5,000 birr by working on a quarter of a hectare encouraged me to increase the land size. And now I and my friend are working on one and half hectares for semi-pastoralists,” says Aragaw hoping that they will get around 40,000 birr at the end if the current market of onion continues.

Replicating Tibila, Oromia region has also started a new project on Lake Zway. But this time there was no need to dismantle mountains as the land is flat. The Derara-Dalecha Project aims to pump into two big ponds and distribute it to 12,000 hectares of land located near Meki town.

“Since two rivers namely, Ketar and Meki are flowing to the lake continuously to the lake, we do not worry about drying the lake,” says Beriso Bekele, Dugda Wereda Deputy Administrator and Head of Agriculture. “In fact Lake Zway has been causing damages to the farms in the area several times by overflowing.”

Dire Dawa Administration, which lost lives of 500 people five years ago due to flood, is also engaged in building sediment storage dams. The dams will enable the water coming between the mountains to sink and recharge the ground water to be used for irrigation and protect the harvest bellow the mountain from being washed away.

Engaging the farmers who receive food aid under safety net program, the administration has build 16 dams so far each with 35,000 meter cube water storing capacity. “We plan to build at least seven sediment storage dams every year,” says Ibrahim Ousman Farah, Dire Dawa Agriculture, water and Energy Bureau Head.

Unlike the previous time, the fact that Deputy Administrator poison is given to individuals at the Ministry of Agriculture at most wereda (grassroots) level is also facilitating the implementation of programs that target in changing the lives of poor small-hold farmers.

"Development Army" Training

Model farmer Koricho Gragn who turned to agriculture after graduating in Accounting from Asmara University
Most of the success stories achieved in agriculture are obtained by the new generation sons and daughters of the farmers such as Tuna, Simbirro to whom the government has been awarding trophies and tractors recognizing their success.

Relying mainly on this new generation and the model farmers, the country has now set an ambitious plan of doubling the production of its agriculture output in five years and end the acute food shortage once and for all.

Expanding the new approaches of creating model successful farmers, Ethiopian government has now launched an expansion strategy of the success. The model farmers, which are awarded by Prime Minister Meles Zenawi, are now assigned to train five farmers each (development army) in their neighborhoods.

Writer's Comment

The realities on the ground, visited by both private and state media for the past two weeks can be considered as a spring board for the country to achieve its target of doubling the production and began channeling the surplus into envisioned domestic agro-processing companies.

Meanwhile still regions like Oromia needs to make sure that what is being done to change the lives of poor small-hold farmers is fully benefiting. Otherwise there will be a risk making the farmers rent seekers who will be under the mercy of the so-called awakened urban dwellers.

Newbusinessethiopia.com would like to thank the Ministry of Agriculture and by the Office Government Communication Affairs for facilitating the field visit. In the future we also hope to that the media will get the chance to visit commercial farms to see how farmers in the area are benefiting from and show the reality to the world.
Source (http://newbusinessethiopia.com/index.php?option=com_content&view=article&id=457:ethiopian-agriculture-on-new-track-&catid=34:agri-business&Itemid=11)

yosef

March 24th, 2011, 02:10 AM

^^ very nice article Yoniii

http://www.guardian.co.uk/global-development/video/2011/mar/21/ethiopia-land-rush

Thought provoking video,

Thoughts?

thats a nice video, gives a good look at the overall issue. thanks for posting.

yosef

March 24th, 2011, 02:13 AM

New Edible Oil Refineries to be Inaugurated

Sudanese company has completed construction on two large manufacturing compounds in Bahir Dar

Ashraf Agricultural Industrial Complex plc, a Sudanese company, has completed construction on two edible oil refineries in Bahir Dar, which have the capacity to produce 50tn of edible oil per day.
They will be inaugurated on April 4, 2011, in the presence of high ranking officials from both countries. The company was established by Ashraf Seed Ahmed Al-Cardinal (PhD), a Sudanese investor, in 2005 at a total cost of one billion Br.

The company has two compounds in Bahir Dar, of which one is located on 37,000 sqm of land that the company received from the Investment Bureau of Amhara Regional State.

The other compound, which occupies 137,000 sqm, was acquired through the Privatization and Puplic Enterprise s Supervision Agency (PPESA) in April, 2008, from Bahir Dar Edible Oil Share Holding Company in which Ashraf is the major shareholder.

The company is currently developing the production of edible oil, an export abattoir, a rendering plant, and an ice factory in the first compound under the name of Ashraf Agricultural Industrial Complex Plc, in which Ashraf, his wife and children are the shareholders.

Ashraf Edible Oil Factory, which rests in the first compound and has the capacity to produce 16,500tn per annum, will produce four kinds of oil from ground nuts, niger seed, rapeseed, and sesame, with the brand name of Bahir Dar Cooking Oil. It will be packed starting from 0.5 litre PET bottles.

The factory was built by an Indian construction company whose name and management was not disclosed by Ashraf.

At the same time, they are developing agricultural farming, water and juice production, a plastics factory, an animal feed factory, and a sunflower oil factory in the second compound; where by Bahir Dar Edible Oil SC has been only producing oil. They will produce the sunflower oil under the brand name Safi.

Addis Fortune (http://www.addisfortune.com/New%20Edible%20Oil%20Refineries%20to%20be%20Inaugurated.htm)

cyberManHere

March 24th, 2011, 12:26 PM

Saudi Billionaire's Company Will Invest $2.5 Billion in Ethiopia Rice Farm

Saudi Star Agricultural Development Plc, a food company owned by billionaire Sheikh Mohammed al- Amoudi, said it plans to invest $2.5 billion by 2020 developing a rice-farming project in Ethiopia.

The company, based in Addis Ababa, leased 10,000 hectares (24,711 acres) in Ethiopia’s western Gambella region for 60 years at a cost of 158 birr ($9.42) per hectare annually, Chief Executive Officer Haile Assegide said in an interview on March 18. It plans to rent an additional 290,000 hectares from the government, he said.

The project forms part of the Horn of Africa nation’s plan to lease 3 million hectares, an area about the size of Belgium, to private investors over the next 2 ½ years. Critics including GRAIN, the Barcelona-based advocacy group, have argued that domestic farmers are being dispossessed and the country shouldn’t rent land cheaply to foreign investors to grow cash crops when about 13 percent of its approximately 80 million people still rely on food aid.

“There is lots of land in Ethiopia, especially in the lowland areas,” Haile said. “So, if you develop this lowland area and make Ethiopia self-sufficient in food, I see no problem.”

Karuturi Global Ltd. (KARG), an Indian food processor, plans to produce commodities including palm oil, sugar and rice on 312,000 hectares of rented land in Ethiopia.
‘Villagization’

The Agriculture Ministry announced in November it plans to relocate 45,000 households, or about three-quarters of the population of Gambella, by mid-2013. Almost half of the region’s population is made up of the semi-nomadic Lou Nuer people, according to the 2007 Population and Housing Census.

The government says the so-called villagization program is aimed at improving public-service delivery and is not linked to investments in land.

“Where we have leased, there is no settler,” Haile said. “In the future, there might be some resettlement.”

When previous projects of Saudi Star’s parent company, Midroc Ethiopia Plc, have displaced people, it has compensated people, resettled them and provided public services including schools, health clinics and loans, according to Haile.

Over the past 15 months, Saudi Star spent $140 million buying equipment, clearing part of the land in Gambella and developing a 25-hectare trial plot, he said. Another 130,000 hectares has been allocated and there are plans to lease a further 160,000, Haile said. Ethiopia, Africa’s second-most populous nation with about 83 million people, bars private land ownership.
Saudi Exports

Other crops including sunflowers and corn will be grown in areas not suitable for rice, Haile said.

Two-thirds of the food produced will be exported by Saudi Star, with Saudi Arabia likely to be a “very dominant” market, while the rest will be sold domestically, according to Haile. This month, the Ethiopian Foreign Ministry said the agreement with Saudi Star required the company to sell 40 percent domestically, while 60 percent could be shipped offshore.

“There is no government policy to my knowledge,” Haile said.

Saudi Star’s farm will eventually produce as much as 1.5 million metric tons of rice a year and directly employ 250,000 people, in part because of a strategy to reduce mechanization.

“We don’t want to make it capital intensive,” he said. “We want to make it a mix of labor and capital”.

Rough rice for May delivery fell less than 0.1 percent to $13.85 per 100 pounds on the Chicago Board of Trade at 8:58 a.m. Nairobi time.

Saudi Arabian businesses invested more than any other country in Ethiopia over the past five years, the Ethiopian News Agency reported in December. Ethiopia plans to attract foreign and domestic investment of 703 billion birr over the next five years, according to the agency.

Al-Amoudi, 66, is the world’s 63rd richest person and the second-wealthiest in Saudi Arabia with assets worth $12.3 billion, according to Forbes magazine’s annual global ranking of billionaires.

source (http://www.bloomberg.com/news/2011-03-23/saudi-billionaire-s-company-will-invest-2-5-billion-in-ethiopia-rice-farm.html)

abnet

March 29th, 2011, 09:14 PM

Good news for flower and fruit investors in ethiopia.

Reporter - Amharic Version

Tuesday, Mar 29th

ለአበባ አትክልትና ፍራፍሬ የሚሆኑ ተጨማሪ ቦታዎች እየተዘጋጁ ነው

- የብድር ማራዘሚያ ዕድሉ 30 ኩባንያዎችን ከመሸጥ እንዳዳናቸው ተገለጸ

በዳዊት ታዬ

ከአበባ፣ ከአትክልትና ፍራፍሬ ምርት የሚገኘውን የውጭ ምንዛሪ ለማሳደግ የሚያስችል ተጨማሪ የመሬት ዝግጅት እየተደረገ መሆኑ ተገለጸ፡፡

‹‹ሆርቲ ፍሎራ ኢትዮጵያ 2011›› በሚል መሪ ቃል የተዘጋጀውን ዓለም አቀፍ የንግድ ትርዒት አስመልክቶ የኢትዮጵያ አበባ አትክልትና ፍራፍሬ አምራቾችና ላኪዎች ሊቀመንበር አቶ ፀጋዬ አበበ እንደገለጹት፣ መንግሥት ከአምስት እስከ ሰባት ሺሕ ሔክታር የሚሆን መሬት ይዘጋጃል ተብሎ ይጠበቃል፡፡

በአሁኑ ወቅት በሁሉም ክልሎች ለአበባ አትክልትና ፍራፍሬ ሊሆኑ የሚችሉ ቦታዎች ተመርጠው ወደ መሬት ባንክ እየገቡ መሆናቸውን የገለጹት አቶ ፀጋዬ፣ ተጨማሪ ቦታዎች ማዘጋጀት በዘርፉ የሚገኘውን የውጭ ምንዛሪ ለማሳደግ ትልቅ ጠቀሜታ አለው፡፡

በአሁኑ ወቅት በአበባ እርሻ የተሸፈነው መሬት ከ1,600 ሔክታር የማይበልጥ መሆኑን የጠቀሱት አቶ ፀጋዬ፣ በቀጣይ ዓመታት ይህ ከእጥፍ በላይ ያድጋል፡፡

ለውጭ ገበያ የሚቀርበው የአትክልትና ፍራፍሬ የሚመረትበትም የመሬት ይዞታ ከአንድ ሺሕ ሔክታር መሬት በታች በመሆኑ ተጨማሪ ቦታዎችን ማዘጋጀቱ የአትክልት ፍራፍሬ ምርት እንዲያድግ እንደሚያደርግም ጠቅሰዋል፡፡

እስካሁን ባለው መረጃም በአበባ አትክልትና ፍራፍሬ ልማት ላይ ያሉ ኩባንያዎች በተረከቡበት ቦታ ላይ ሙሉ ለሙሉ እያለሙ ከሆነ ተጨማሪ ቦታ የማግኘት ዕድል እንዳላቸውም ጠቁመዋል፡፡

የአበባ የአትክልትና ፍራፍሬ ምርት እያስገኘ ያለው ጠቀሜታ ከጊዜ ወደ ጊዜ እያደገ በመምጣቱ በየዓመቱ ከ25 እስከ 30 በመቶ ዕድገት እያሳየም ነው ተብሏል፡፡ ባሳለፍነው ረቡዕ በጠቅላይ ሚኒስትር መለስ ዜናዊ በይፋ የተከፈተው የንግድ ትርዒት ላይ እንደተገለጸውም፣ መንግሥት በዘርፉ ለተሰማሩ ባለሀብቶች የሰጠውን ብድር የመክፈያ ጊዜ ማራዘሙ ከ30 የሚያንሱ የአበባ እርሻዎች ከሽያጭ እንዲድኑ አድርጓል፡፡ የአበባ እርሻዎቹ የብድር ጊዜን ማራዘሚያ ማግኘታቸው ደግሞ የበለጠ እንዲሠሩ አበረታቷቸዋል፡፡

ከአበባ የወጪ ንግድ በዓመት እየተገኘ ያለው ገቢ ወደ 160 ሚሊዮን ዶላር ደርሷል፡፡ ከአትክልትና ፍራፍሬ የወጪ ንግድ ደግሞ በአሁኑ ወቅት እየተገኘ ያለው ዓመታዊ ገቢ ከ40 ሚሊዮን ዶላር ያልበለጠ ነው፡፡ በተያዘው በጀት ዓመት ማጠቃለያ ላይም ከአበባ 190 ሚሊዮን ዶላር ገቢ ይገኛል ተብሎ ይጠበቃል፡፡

እንደ አቶ ፀጋዬ ገለጻ፣ ከአትክልትና ፍራፍሬ የሚገኘውን ገቢ ለማሳደግ የሚያስችል ስትራቴጂ ተነድፏል፡፡ ከአትክልትና ፍራፍሬ የሚገኘውን የውጭ ምንዛሪ ከእጥፍ በላይ ማሳደግ የሚቻልበት የአየር ንብረት፣ የሰው ኃይል የማልሚያ ቦታዎችና ለምርቱ ዕድገት ጠቃሚ ግብዓቶችን በቀላሉ ማግኘት የሚችል በመሆኑ በቀጣይ ዓመታት ከአትክልትና ፍራፍሬ የሚገኘው ገቢ እንደሚጨምርም ገልጸዋል፡፡

አበባም ሆነ አትክልትና ፍራፍሬን አሁን ከሚያስገኘው የውጭ ምንዛሪ ከእጥፍ በላይ ለማሳደግም ወደ ውጭ የሚላከውን ምርት በአውሮፕላን ብቻ በመላክ እንደማይሆን ጠቁመዋል፡፡

ምርቶቻችንን በአውሮፕላን በመላክ ብቻ ተወዳዳሪ መሆን አንችልም ያሉት አቶ ፀጋዬ፣ የኢትዮጵያ አበባ፣ አትክልትና ፍራፍሬ ምርት በባሕር ትራንስፖርት ጭምር መላክ ይኖርበታል፡፡ አትክልትና ፍራፍሬ በመላክ የሚታወቁ እንደ ሞሮኮ፣ ግብፅ የመሳሰሉ አገሮች በዚህ ተጠቃሚ እየሆኑ መሆኑንም ጠቅሰዋል፡፡ በአበባ አምራችነቷ ከአፍሪካ ቀዳሚ የሆነችው ኬንያ እንኳን በአየር ትራንስፖርት ከምትልከው ምርቷ ያልተናነሰ በመርከብ ትልካለች፡፡

በኢትዮጵያ ውስጥ ግን እንዲህ ዓይነት አገልግሎት ባለመጀመሩ ተወዳዳሪነት ላይ ተጽዕኖ አሳርፏል፡፡ ስለዚህ መንግሥት በጉዳዩ ላይ ትኩረት እንዲሰጥበትም ማሳሰቢያ ተሰጥቷል፡፡

ባሳለፍነው ረቡዕ በተከፈተው ኤግዚቢሽን ላይ ከ24 አገሮች የተውጣጡ 120 የሚሆኑ ኩባንያዎች የተሳተፉ ሲሆን፣ 41 የሚሆኑ በዓለም አቀፍ ደረጃ የሚታወቁ የአትክልትና ፍራፍሬ ገዢዎችም ተሳታፊ ሆነዋል፡፡

ኤግዚቢሽኑን የከፈቱት ጠቅላይ ሚኒስትር መለስ ከሁለት ሰዓታት በላይ ጊዜ ወስደው በንግድ ትርዒቱ ላይ ተሳታፊ የሆኑ ኩባንያዎችን ስታንድ እየተዘዋወሩ ጎብኝተዋል፡፡

ሆርቲካልቸርን በሚመለከት የመንግሥት መረጃ እንደሚያመለክተው፣ በደጋው አካባቢና ለዋና ዋና ከተሞች ቅርብ በሆኑ አካባቢዎች የሚካሄደው የግል ኢንቨስትመንት ትኩረት በውስን መሬት ላይ ሰፊ ጉልበት በመጠቀም ከፍተኛ ዋጋ ያላቸውን የሆርቲካልቸር ምርቶች ማምረት የሚቻል መሆኑን ነው፡፡

ይህ ዓይነቱ የግል ባለሀብት የግብርና ልማት ከፍተኛ የመሠረተ ልማትና ጉልበት አቅርቦት የሚጠይቅ ነው፡፡ የግብርና ልማቱ ከአርሶ አደሩ ግብርና ጋር እየተቀናጀ ሊካሄድ የሚችል በተነፃፃሪ መለስተኛ ካፒታል የሚጠይቅ በመሆኑ የአገር ውስጥ ባለሀብቶች በስፋት ሊሳተፉበት የሚችልና እንዲሳተፉም የሚበረታታበት እንደሆነ ይጠቀሳል፡፡

የሆርቲካልቸር ልማት ግቦች የሚሆኑት የሆርቲካልቸር ምርትና ምርታማነትን በማሳደግ በተፋጠነና ቀጣይነት ባለው መልኩ ልማቱ እንዲስፋፋ ማድረግና በሒደት የኢትዮጵያ ባለሀብት ተሳትፎ የጎላ እንዲሆን ማስቻል መሆኑንም እቅዱ ያሳያል፡፡ ከዚህም ሌላ የጥራት ደረጃቸው የተጠበቀና ዓለም አቀፍ የደህንነት መስፈርቶችን ያሟሉ ተወዳዳሪዎች የሆርቲካልቸር ምርቶች በብዛትና በጥራት እንዲሁም በዓይነት ለውጭ ገበያ እንዲቀርቡ ማመቻቸትና ለሆርቲካልቸር ኢንዱስትሪ ልማት ድጋፍ ሰጪ አገልግሎቶችና ኢንዱስትሪዎች የሚስፋፉበት ሁኔታ ማመቻቸት ይሆናል፡፡

በሆርቲካልቸር ኤክስፖርት ልማት ኢንቨስትመንት በማፍሰስ ዙርያ ሊቀርቡ የሚችሉ የመሬት አቅርቦትን በተመለከተም ልማቱ እንዲስፋፋና እንዲፋጠን በተመረጡ አካባቢዎች የተጀመረውን የእርሻዎች ስብስብን ማጠናከርና አዳዲስ ስብስብን ለመፍጠር የሚያስችል መሬት ተለይቶ በመሬት ባንክ መልክ መያዝ አንዱ መፍትሔ ተደርጎ ተወስዷል፡፡ በአዲስ አበባ ዙርያ የተፈጠረውን የእርሻ ስብስብ የማስፋፋትና የማጠናከር ሥራ እንደተጠበቀ ሆኖ በሌሎች ዋና ዋና ከተሞች ዙርያም እንደአመቺነቱ ተመሳሳይ ስብስቦች እንዲፈጠሩ እርስ በራሳቸው እንዲደጋገፉና እንዲመጋገቡ የማድረግ ሥራ ይሠራል፡፡ ለዘርፉ የሚሆን የሠለጠነ የሰው ኃይል ለማዘጋጀት የሚያስችለውን የሆርቲካልቸር ተግባራዊ ማሰልጠኛ ማዕከላት የተለያዩ ሥነ ምህዳሮችን ሊወክሉ በሚችሉ ቦታዎች የማደራጀት፣ ለሆርቲካልቸር የኤከስፖርት ልማት የሚፈለገውን የኢንቨስትመንት ወጪ ለመቀነስ የሚያስችሉ ሥራዎች ይሠራሉ የሚል እቅድ ተጠቃሾች ናቸው፡፡

በዚህ ለእድገትና ትራንስፎርሜሽን እቅድ መሠረት በቀጣይ አምስት ዓመት በአበባ የሚሸፈን መሬት አሁን ካለበት 1,586 ሔክታር ወደ 3,000 ሔክታር እንዲያድግ ይሆናል፡፡ የአበባ ምርት አሁን ካለበት 2.74 ቢሊዮን ዘንግ ወደ 5.86 ቢሊዮን ዘንግ ያድጋል፡፡ በአትክልት፣ ፍራፍሬና ኸርብስ አሁን ተሸፍኖ ከሚገኘው 2,472 ሔክታር ወደ 33,000 ሔክታር እንዲያድግ ይደረጋል፡፡ በምርት ረገድ አሁን ከሚገኝበት 58,400 ቶን ወደ 979,600 ቶን እንዲያድግ ይደረጋል የሚል ነው፡፡

በአሁኑ ወቅት ኢትዮጵያ ከ90 በላይ በአበባ፣ አትክልትና ፍራፍሬ ልማት ላይ የተሰማሩ ሲሆን፣ ከእነዚህ ውስጥ ከግማሽ በላዩ የውጭ ኩባንያዎች ናቸው፡፡ ከአሥር ዓመት በፊት በዘርፉ የተሰማሩ ኩባንያዎች ከአሥር አይበልጡም ነበር፡፡

abnet

April 5th, 2011, 10:03 PM

Ethiopia flowers may takeover kenyan growers.

Nairobi Star (Nairobi)
Kenya: Ethiopia Flowers May Wipe Out Local Growers

Winfred Kagwe

4 April 2011

Insufficient tax incentives and high cost of transportation is seeing Kenya's flower industry lose out to Ethiopia as the region's leading exporter of the commodity.

While there have been very few changes for the sector in Kenya, in the neighboring country, tax benefits like income tax holidays for five years and duty free imports have seen aggressive growth in the sector.

A decline of the sector would not only see Kenya lose one of its top foreign exchange earners but could also lead to more than 100,000 employees lose their jobs.

Even though the Kenya Flower Council is downplaying Ethiopia's threat to the industry, it says such incentives would be welcome."Ethiopia is doing very good at the moment, this is not a threat to Kenya but it would serve to market the whole region as the preferred flower producer," says Jane Ngige, the CEO of KFC.

Ethiopia flowers export value has been increasing at a fast rate; in 2009-2010 seasons (2002 according to the Ethiopian calendar year) it was $ 160m (Sh 12.8b). The target is to increase by 15-30 per cent in the 2010-2011 season and to hit over $500 m (40bn) in five years.:cheers:

The local flower industry made an estimated Sh30 billion in 2010 which was a drop from Sh36 billion in the previous year. Even though the drop was attributed to natural calamities in the European market,the government did nothing to cushion the sector from losses. This year KFC has projected a rise back to Sh36bn."The first quater was favorable, because of Valentines and so far we are on track for the annual target," says Ngige.

Just like the local industry, the main markets for Ethiopian flowers are the Holland, UK and Germany but the northern neighbor is also giving Kenya a run for its money in new markets like Japan, and Russia.

Local players say transportation of the perishable commodity is too expensive eroding the competitive pricing of Kenyan flower. This is in addition to losing out the huge North American market due to lack of direct flights.

In Ethiopia, while air freight capacity was not always sufficient in the past, the problem was solved by the national carrier, Ethiopian Airlines, which now operates more flights at a cheaper cost, in addition to other passenger flights from other airlines.

Due to the better investment climate, some farmers are moving from Kenya to Ethiopia in search of higher returns. "There are many investors who now have farms in both countries, "says Ngige "Ethiopia is coming up very fast."

Copyright © 2011 Nairobi Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).

abnet

April 26th, 2011, 05:38 PM

Similar news like the above.
Reuters Africa
Ethiopia flower earnings may surge by 2016-growers
Tue Apr 26, 2011 7:43am GMT

ADDIS ABABA (Reuters) - Ethiopia's income from horticulture exports is expected to more than triple to $550 million in five years due to rising investment, the head of a growers' association said on Monday.

More than 90 companies, including foreign firms, have set up in the sector, where investors have taken up 1,600 hectares for flower production, and 1,200 for vegetables.

Tsegaye Abebe, head of the Ethiopian Horticultural Producers and Exporters Association said land leases are likely to double for flower production and expand by ten-fold for fruits and vegetables.

"With the current rate of requests, revenue from the export of horticultural products will reach $550 million by that (five years) time," Tsegaye told Reuters.

The Horn of Africa nation earned $110 million from flower exports and $45 million from vegetables in 2010, and it projects that the earnings will rise to $195 million and $60 million respectively in 2011.

"Every year there is a progress of 25 to 30 percent (in export earnings)," Tsegaye said.

"From 2012 onwards, our forecast is more than 35 percent. Flower farms are expected to expand and new projects opened in different parts of the country."

Government officials have identified the sector as key to diversification in an economy long dependent on coffee exports, which usually account for 60 percent of total earnings.

Tsegaye said investors are attracted by incentives from the government which include a five-year tax break, scrapping of import duties and access to financing from banks.:cheers:

© Thomson Reuters 2011 All rights reserved

af.reuters.com:

Simfan34

April 28th, 2011, 05:05 AM

Tata Intl plans tannery, leather goods unit in Ethiopia

CHENNAI, APRIL 24:
Tata International Ltd, the global trading arm of Tata Group with business interests in leather, chemicals and engineering goods, is planning to set up tannery and leather goods manufacturing facilities in Ethiopia, “as the country has a good number of livestock”.

The company, which currently has leather processing and manufacturing facilities in Madhya Pradesh and Tamil Nadu, intends to make Ethiopia its first processing and manufacturing hub outside India, said Mr O.K. Kaul, Executive Director, Tata International.

CAPACITY EXPANSION

Besides, Tata International is also on the verge of completing capacity expansion projects, involving Rs 56 crore, at its units in Madhya Pradesh and Tamil Nadu in the next few months. This will take its total finished leather production, including upholstery products, to six million sq.ft a month from the current four million sq.ft.

Talking to Business Line on the sidelines of Central Leather Research Institute's (CLRI) Foundation Day ceremony held here on Sunday, Mr Kaul said, “The company will continue to invest in similar capacity expansion projects this year too, and has earmarked $3 million for the purpose.”

FOOTWEAR GROWTH

Following the acquisition of 76 per cent stake each in Tamil Nadu-based Bachi Group and Euro Shoe Components Pvt Ltd, late last year, the company forayed into children's footwear and also augmented its overall footwear manufacturing capacity to over five million pairs a year. The company's core business is export of finished leather, footwear and other accessories to various international brands in the US and Europe.

As the company views footwear as a significant business opportunity in the domestic market too, it launched its first retail outlet in Delhi under the brand Tashi in October last year. “Currently we have six stores in Delhi, Mumbai and Chandigarh. We are planning to take the total to at least 250-300 stores across the country in the next few years,” said Mr Kaul. Footwear retail is a Rs 16,000-crore market and is growing at 15 per cent year-on-year.

The company has a supply chain network in countries such as Bangladesh, China Ethiopia, Zambia, Indonesia, Australia, Russia, Saudi Arabia and in the EU. Its global turnover stands at Rs 3,000 crore with equal contribution from

Found this.

Hersh

April 29th, 2011, 01:05 AM

Ethiopian Government Starts Agricultural Agency to Double Crop Production
Ethiopia started an agricultural agency that plans to help double production in the economy’s biggest industry over the next five years, said Wonderad Mandefro, minister of state for agriculture.

The Ethiopian Agricultural Transformation Agency, or EATA, is modelled on economic development organizations in South Korea and Taiwan and will be overseen by a council chaired by Prime Minister Meles Zenawi, Wonderad said in an interview in Addis Ababa, the Ethiopian capital, yesterday.

“In the past five years, the country has made significant progress in sustaining agricultural production,” Wonderad said. “Compared to the potential, it’s still the tip of the iceberg.”

Ethiopia, Africa’s second-most populous nation, is the continent’s biggest coffee grower. A five-year government plan to wean the Horn of Africa country off foreign aid aims to boost agricultural production by 14.9 percent annually. The industry accounts for 45 percent of economic output and employs about 80 percent of the population, according to Wonderad.

The agency was created after the Bill and Melinda Gates Foundation was asked by Meles in 2008 to assess an Ethiopian program that provides support and equipment for farmers using so-called extension workers, Wonderad said. In partnership with international donors and agricultural-research organizations, the foundation was subsequently asked to assess other aspects of the industry, including irrigation, soil fertility and marketing. These will now be key areas of focus for EATA.

The Seattle-based non-profit organization is providing technical expertise to EATA and may support the agency financially, said Roy Steiner, deputy director of its agricultural development program.
‘Tremendous Potential’

“Ethiopia has tremendous agricultural potential and it’s doing a lot of the right things,” he said in a phone interview from Seattle yesterday. “It’s investing in agriculture in a way that other African countries are not.”

A “critical issue” that needs to be addressed in Ethiopia is better training and support for the 60,000 extension workers, according to Steiner. Yields may also be boosted by increasing the number and efficiency of small-scale irrigation works using groundwater or pumps, he said.

“It’s a small thing, but boy it can make a difference if your pump lasts 10 years rather than one year,” Steiner said.

Ethiopia has the potential to be self-sufficient in grain production and for export development in livestock, flowers, oilseeds, sugar, vegetables and fruit, according to the U.S. State Department’s website.
Staple Food

Crops being targeted by the EATA include the most-widely grown teff, a cereal used to make Ethiopia’s flatbread staple known as injera, which is currently grown on about 2.5 million hectares (6.2 million acres) of land. The government wants to increase yields to as much as 60 quintals (13,228 pounds) per hectare from 10 quintals currently, Wonderad said.

A small improvement in the productivity of teff would “automatically transform” the agriculture industry, he said.

About 3 million of Ethiopia’s 80 million people are in need of emergency food assistance, the government said on April 12. Another 7.8 million people receive food or cash under an aid program, World Food Programme spokesman Susannah Nicol said in a phone interview yesterday from Addis Ababa.

http://www.bloomberg.com/news/2011-04-28/ethiopian-government-starts-agricultural-agency-to-double-crop-production.html

abnet

May 5th, 2011, 09:12 PM

A very good interview with mr. birhan agricultural machinery technical support advisory manager about changing the countries agriculture to mechanized farming.
Reporter - Amharic Edition
ከኋላቀር ግብርና ወደሜካናይዜሽን

Wednesday, 04 May 2011 06:45

አቶ ብርሃን አወቀ ከአዲስ አበባ ዩኒቨርሲቲ በማኔጅመንት የመጀመሪያ ዲግሪ አላቸው፡፡ በቅርቡ ከደቡብ አፍሪካ (UNISA) ዩኒቨርሲቲ በቢዝነስ አድሚኒስትሬሽን ሁለተኛ ዲግሪያቸውን አግኝተዋል፡፡
አቶ ብርሃን የእርሻ መሣርያዎች የቴክኒክ አገልግሎት ኢንተርፕራይዝ ሰፕላይ ዲፓርትመንት ኃላፊ ሲሆኑ፣ በአሁኑ ወቅት ደግሞ የዋና ሥራ አስኪያጁ ተወካይ ሆነው እየሠሩ ነው፡፡

በአሁኑ ጊዜ በተለያዩ ደረጃዎች የአገሪቱ የግብርና ክፍለ ኢኮኖሚው ወደ ሜካናይዜሽን የሚለወጥበት ስትራቴጂ በመዘርጋት ላይ መሆኑን ተከትሎ፣ የእዚህ ኢንተርፕራይዝ አስተዋፅኦ በግብርናው ዘርፍ ምን ሊሆን ይችላል የሚለውን በተመለከተ ውድነህ ዘነበ አቶ ብርሃንን አነጋግሯቸዋል፡፡

ሪፖርተር፡- የእርሻ መሣርያዎችና የቴክኒክ አገልግሎት ኢንተርፕራይዝ የተመሠረተበት ዓላማ ምንድነው?

አቶ ብርሃን፡- ኢንተርፕራይዙ የተቋቋመው በ1970 ዓ.ም. ነው፡፡ ዋነኛው የተቋቋመበት ዓላማ የግብርናውን ክፍለ ኢኮኖሚ ወደ ሜካናይዜሽን እንዲለውጥ ለማድረግ ነው፡፡ ከዚህ አንፃር የተለያዩ ሥራዎችን በሦስት ከፍሎ ይሠራል፡፡ የመጀመሪያው የመሬት ዝግጅት ነው፡፡ ሁለተኛው ለእርሻ መሣርያዎች የቴክኒክ አገልግሎት መስጠት ነው፡፡
በተለይ የእርሻ መሣርያዎችንና የኮንስትራክሽን መሣርያዎች የጥገና አገልግሎት ይሰጣል፡፡ ሦስተኛው የንግድ ሥራ መሥራት ነው፡፡ የእርሻው ክፍለ ኢኮኖሚ የሚፈልጋቸውን ኬሚካሎች ያቀርባል፡፡ ለመሣርያዎች መለዋወጫ ያስመጣል፤ ያከፋፍላል፡፡ የመርጫ መሣርያዎችንና ጎማዎችን ያስመጣል ያከፋፍላል፡፡ ከተለያዩ ዓለም አቀፍ ኩባንያዎች የብቸኛ አከፋፋይነት መብት በመውሰድም ይሠራል፡፡

ሪፖርተር፡- ባለፈው የምርት ዘመን የስንዴ ቢጫዋግ ተከስቶ ነበር፡፡ በሽታውን በማጥፋት በኩል የነበራችሁ ድርሻ ምን ነበር?

አቶ ብርሃን፡- ባለፈው የምርት ዘመን በተለያዩ ስንዴ አብቃይ አካባቢዎች የስንዴ ቢጫዋግ መከሰቱ ይታወሳል፡፡ ይህን በሚመለከት ከግብርና ሚኒስቴር ጋር ግንኑነት በማድረግ ሙሉውን የኬሚካል አቅርቦቱን የሠራው የእኛ ኢንተርፕራይዝ ነው፡፡ ሌት ተቀን ተሯሩጠን 50 ሚሊዮን ብር የሚያወጣ ኬሚካል ነው ያቀረብነው፡፡ ወረርሽኙም በቁጥጥር ስር ውሏል፡፡ ወረርሽኙ በአማራ፣ በደቡብ፣ በኦሮሚያ ክልል ነበር የተከሰተው፡፡ ርጭቱም ተካሂዶ ወረርሽኙ በቁጥጥር ሥር ውሏል፡፡ ኬሚካሉን ያስገባነው ጀርመን አገር ከሚገኘው ባየር ክሮፕ ሳይንስ ነው፡፡ የዚህ ኩባንያ የኢትዮጵያ ብቸኛ ወኪል እኛ ነን፡፡

ሪፖርተር፡- በቅርቡ የአበባ ኬሚካል ወደ አገር ውስጥ ማስገባት ጀምራችኋል? ብዙ ኩባንያዎች ይህንን ኬሚካል ያስገባሉ፡፡ ውድድሩ አይጠነከርባችሁም?

አቶ ብርሃን፡- ከቅርብ ዓመታት ወዲህ በአገሪቱ የአበባ ልማት እየተስፋፋ መጥቷል፡፡ በዚህ በኩል ራሱን የቻለ ፍላጎት በመፍጠሩ የአበባ ኬሚካሎችን ማስመጣትና ማከፋፈል ጀምረናል፡፡ እኛ የምናቀርበው በተመጣጣኝ ዋጋ በመሆኑ አልሚዎች ምክንያታዊ እንደሆንን እየነገሩን ነው፡፡

ሪፖርተር፡- የብዙ አልሚዎችን መሬት ለእርሻ እንደሚመች እያዘጋጃችሁ ነው በእስካሁኑ ሒደት ምን ያህል አልሚዎችን መሬት አዘጋጅታችኋል?

አቶ ብርሃን፡- ከቅርብ ጊዜ ወዲህ የእርሻው ክፍለ ኢኮኖሚ በመስፋፋት ላይ ነው፡፡ በርካታ ኢንቬስተሮች ወደ ዘርፉ በመግባት ላይ ናቸው፡፡ በመንግሥትም የሚካሄድ ሥራ አለ፡፡ ከዚህ አንጻር በእስካሁኑ ሂደት የመሬት ዝግጅት የሠራንላቸው ተቋማት አሉ፡፡ ሳዑዲ አስተር ግብርና ልማት ኩባንያ በጋምቤላ የወሰደውን መሬት አዘጋጅተንለታል፡፡ የኩባንያውን ሰባት ሺሕ ሔክታር መሬት አዘጋጅተናል፡፡

ሪፖርተር፡- መሬቱ የተሸፈነው በምንድን ነበር? የሥራው ባሕሪስ እንዴት ነው?

አቶ ብርሃን፡- እያንዳንዱ ሥራ የራሱ ባህሪና የራሱ ባለሙያ ይፈልጋል፡፡ አንዳንድ ኩባንያዎች በርካሽ አገኘን ይሉና ወደ ሌሎች ተቋማት ይሄዳሉ፡፡ ግን ተመልሰው ወደኛ ይመጣሉ፡፡ የመሬት ዝግጅት ሲካሄድ አስቸጋሪ ጉቶ ይኖራል፡፡ ያ ከሥሩ ካልተነቀለ እርሻውን የሚያርሠው ትራክተር ኋላ ላይ ከጥቅም ውጪ ይሆናል፡፡ ስለዚህ ልምድ ከሌለ ጥፋት ነው፡፡ ቦታው በዛፎች፣ በቁጥቋጦዎች የተሸፈነ ስለነበር ተመንጥሮ ለእርሻ እንዲመች ተደርጎ ተዘጋጅቷል፡፡

በፕራይቬታይዜሽንና የመንግሥት የልማት ድርጅቶች ተቆጣጣሪ ኤጀንሲ በደቡብ ክልል በበቃ አካባቢ የጐማ ዛፍ ልማት ያካሂዳል፡፡ ለዚህ ልማት የሚሆነውን አንድ ሺሕ ሔክታር መሬት አዘጋጅተናል፡፡ በአማራ ክልል አዊ ዞን ቻግኒ አካባቢ ለምርጥ ዘር ማብቀያ የሚሆን አንድ ሺሕ ሔክታር መሬት አዘጋጅተናል፡፡ የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን ፊንጫ አካባቢ ከሚያካሂደው የኤሌክትሪክ ኃይል ግንባታ ቦታ ላይ ለሚነሱ ሰዎች የሚሆን ሁለት ሺሕ ሔክታር መሬት ለማዘጋጀት ሥራውን ተረክበን እየሠራን ነው፡፡ ይህ ቦታ የሚዘጋጀው ለሚነሱ ገበሬዎች የሚሆን ተለዋጭ መሬት ለማቅረብ ነው፡፡

በደቡብ ክልል ገማድሮ አካባቢ አንድ ሺሕ ሔክታር ለማዘጋጀት ወስደናል፡፡ ቦታው የሚዘጋጀው ለሻይ ቅጠል ልማት ነው፡፡ ከቅርብ ጊዜ ወዲህ የእርሻው ክፍለ ኢኮኖሚ በመስፋፋት ላይ በመሆኑ የኛም ሥራ እንዲሁ ይስፋፋል፡፡ መንግሥት በቅርቡ እንዳስታወቀው ከሦስት ሚሊዮን ሔክታር መሬት በላይ ለአልሚዎች ዝግጁ ነው፡፡ ስለዚህ ይህ ለእኛ ትልቅ አጋጣሚ ነው፡፡ የአንበሳውን ድርሻ የሚያካሂደው የእኛ መሥርያ ቤት ነው፡፡

ሪፖርተር፡- የዓባይ ኃይል ማመንጫ ግድብ (የህዳሴ) ሥራ ተጀምሯል በመሬት ዝግጅት በኩል ምን ድርሻ አላችሁ?

አቶ ብርሃን፡- የዓባይ ግድብ ለእኛ በረከት ነው፡፡ በኢትዮጵያዊነት የሚያመጣውን ለውጥ ትተህ እንደኛ ድርጅት ስትመለከተው የእኛ ድርጅት ብዙ ሥራ ያገኛል፡፡ ትልቅ ዝግጅት እንድናደርግ የሚያደርገን ነው፡፡ የሚያነቃቃን ነው፡፡ እንዲህ ዓይነት የመሬት ዝግጅቶችን የማዘጋጀት ሥራ በአብዛኛው የእኛ ነው፡፡ ልምዱም፣ አቅሙም አለን፡፡

አንደኛ መንግሥት ያሉንን መሳሪያዎች በአዳዲስ እንድንተካ ከፍተኛ ኢንቬስትመንት እየፈቀደልን ነው፡፡ ዶዘሮች እየገዛን ነው፡፡ እንደሚታወቀው አንዱ ዶዘር ዋጋው ቀላል አይደለም፡፡ በየዓመቱ ከ20 እስከ 30 ዶዘር እያስገባን ነው፡፡ የጠየቅነው በጀትም እየተፈቀደ ነው፡፡:cheers:

ሪፖርተር፡- የተለየ አገልግሎት ትሰጣላችሁ?

አቶ ብርሃን፡- በዚህ ዘርፍ የእርሻና የኮንስትራክሽን እንዲሁም ቀላልና ከባድ መኪኖችን ጥገና እንሰጣለን፡፡ በዚህ ላይ ልምዱም አቅሙም አለን፡፡ የመንግሥት ድርጅቶች መኪኖቻቸውን እኛ ጋ ያስጠግናሉ፡፡

ሪፖርተር፡- መሥርያ ቤታችሁ ትርፋማ ነው ማለት ይቻላል?

አቶ ብርሃን፡- በኪሳራ ሲንቀሳቀስ ነበር፡፡ እንዲያውም በደርግ ጊዜ ብቸኛው አከፋፋይ ኮርፖሬሽን ነበር፡፡ ሁሉም የእርሻ ኢንተርፕራይዞች በግዳጅ ስለሚገዙ አብዛኛው ጊዜውን ያሳለፈው በኪሳራ ነው፡፡ ነፃ ገበያ ሲታወጅ ኢንተርፕራይዞቹ ከፈለጉበት ቦታ መግዛት ሲጀምሩ የእኛ ኢንተርፕራይዝ ለመንቃት ችሏል፡፡ ነገሮችን ተቋቁሞ መቀጠል ስላለበት ራሱን በሚገባ አደራጅቶ በዓመት ከ20 ሚሊዮን ብር በላይ ማትረፍ ችሏል፡፡

ሪፖርተር፡- የሠራተኛ አያያዛችሁ ምን ይመስላል?

አቶ ብርሃን፡- ኢንተርፕራይዙ 480 ሠራተኞች አሉት፡፡ አንድ መሥርያ ቤት ውጤታማ የሚሆነው በውጫዊ ብቻ ሳይሆን በውስጣዊ ሁኔታው ጭምር ነው፡፡ትጉ ሠራተኞችም አሉን፡፡ ቦርዱም ጥሩ ክትትል ያደርጋል፡፡ በተለይ ሠራተኛው የሥራ ተነሣሽነቱ በየጊዜው እየጨመረ ነው፡፡ ጥቅማ ጥቅምም እንዲሁ ቦነስ ጭምር እየሰጠን ነው፡፡ የሁለት ወር ደመወዝ ቦነስ ሰጥተናል፡፡ ይህንን ያገኘው ሠራተኛው ተግቶ በመሥራቱ ነው፡፡ ይህንንም ማጣት አይፈልግም፡፡ ሥራ በዋነኛነት ለራስ ጠቀሜታ ነው፡፡ በሚታይ መልኩም ሠራተኛው ራሱ የሥራውን ፍሬ እያየው በመሆኑ መነቃቃቱ ይጨምራል፡፡

ሪፖርተር፡- መገጣጠሚያ ፋብሪካ የመገንባት ዕቅድ አላችሁ?

አቶ ብርሃን፡- መሥርያ ቤታችን ባካሄደው የመሠረታዊ የሥራ ሒደት ለውጥ ጥናት መሣርያዎችን እንዳለ ከማስመጣት እዚሁ ማገጣጠሙ እንደሚሻል ያሰምርበታል፡፡ እዚሁ ቢገጣጠም ከኢኮኖሚው አንፃር አዋጭ ነው፡፡ ሸማቹም ዋጋ ይቀንስለታል፡፡ ትራክተሩን ብቻ ሳይሆን የእርሻ መሣርያዎችን እዚሁ ለማገጣጠም ዕቅድ አለን፡፡:banana:

Reporter
Copyright © 2011 - Media & Communications Center