ADDIS ABABA – Ethiopian Cut-flower Producers and Exporters Association said that the government’s support to save the cut-flower industry from business fallout caused by the global pandemic is commendable.
Association Director General, Tewodros Zewde told The Ethiopian Herald that the government has responded to the cut-flower producers’ claim to obtain financial supports in order to overcome coronavirus- induced economic impact.
Accordingly, the government’s response to the claims is encouraging as it will enable the companies to have some more time of paying previous credits and facilitating new ones, Tewodros disclosed.
Following the spread of coronavirus worldwide, the sector has faced marketing problems. As to him, more than 80 percent of Ethiopian cut-flower product importing countries are Europeans where most of them are currently under partial and full lockdown which has made trading very difficult.
According to the director general, the association has called on the government to subsidize cut-flower producing companies that are facing challenges with the spoiling of their product due to absence of market.
Responding to the claims of the companies, the government has facilitated the loan for operation, said Tewodros adding that by doing so, the government has enabled the companies to secure the needed agricultural inputs and continue working without laying-off workers.
The government has allowed the companies to stop paying previous credits to resist business fallout. It has also ceased cutting 3.06 USD per kilo from each exportable cut-flower product, he indicated.
Producing on estimated land of 1,700 hectare land, the cut-flower industry enables the nation to secure about 300 million USD per annum, as to him.
The cut-flower industry has been subsidizing the national economy for more than a decade through securing foreign currency and job creation, he noted.
Supporting by the suitable cut-flower investment opportunity, the country has become the second producer in the continent, he said.
As to him, the country has favorable weather and environment for cut-flower production and it has also suitable geographic location to the world markets.
Moreover, the fastest modem of air transport provided by the Ethiopian Airlines enables the Ethiopian cut-flower industry to export fresh products to customers across the globe.
The Ethiopian Herald April 21/2020
BY YOHANES JEMANEH
