It was in 2017 that Ethiopia and China signed an agreement in animal product export especially in accessing wide market for meat products. According to Ethiopian Meat and Dairy Industry Development Institute (EMDIDI), the agreement lies up on exporting millions of tons of meat product to China per year. This would have helped Ethiopia to earn billions from meat export.
However, absences of diseases free zone, humanly animal handling and traceability banned the country from earning the worthy cash, said Mekonnen Gashu, a Marketing Research Director at the EMDIDI. “China has planned to join Ethiopia’s meat market to its wideranging demand in the area, but Ethiopia is not capable to fulfill the requirements. Nonetheless, China’s market is still open for Ethiopia if the country achieves product quality in a short period of time before other competing countries took the chance.
There are many countries that want us to improve the sphere productivity. In the future, Ethiopia needs to set disease free zone and advance its traceability in the industry,” he stated adding that, “absence of free trade zone highly affects products quality as it triggers the supply of unfit animals to the industries. Today, the country has a strong commitment to achieve this but it needs serious study and worthy budget.” The EMDIDI endeavors to capacitate raw material providers on the schemes of offering quality input.
To this end, the institute organizes various awareness raising programs including workshops to upgrade the industries in which they can draw experience from partners to improve input quality and curb shortages. PAGE 5 THE ETHIOPIAN HERALD TUESDAY 19 MARCH 2019 Export trade in fledgling stage Therefore, it is exerting efforts to curb trade barriers through clarifying conditions. It conveys the requirements of partner nations on the quality of products they are looking for.
In this regard, the institute is working with industries to draw lessons from international partners on the ways of improving quality of products by organizing various programs including trade fair showcases. On the international trade fairs the industries would pay their cumulative costs but the institute covers additional costs. Mentioning the Dubai trade fair for instance, the Director noted that the institute covers some boost costs to the industries. Over the past six months, the institute has earned 48.1 million USD from animal product export in which meat product covers 97 percent.
On the other hand, UAE and KSA are the main importers of Ethiopian meat product constituting about 86.6 percent of the export. Next to meat, dairy products, honey, wax and fish export cumulatively contributed some three percent of the export. The plan was to secure 92.5 million but the result indicates only 52 percent achievement. Shortage of inputs was the main cause behind the low achievement.
Temporary market fluctuation and instability are the additional factors that reduce the income. Moreover, the country’s traditional animal handling was another big challenge behind Ethiopia’s meat and dairy market. Industry projects delay to be completed and operational mainly due to long period of time to get investment license, infrastructural procedures, shortage of loan and absence of one window services, working culture of the people among others.
Today the industries are exercising under their 50 percent production capacity mainly due to lack of volume, cost and quality of inputs. For example, among the meat processing industries that the nation rely on was Allana, an Indian meat processing company located in Adami Tulu, Oromia State. It did not be operational based on the plan and even it does not producing in its full capacity due to various factors and mainly lack of quality input and political instability. It has the capacity to produce more than the total product of [200,000 tons] meat by the general industries per annum.
Over the past six months, the industry was secured some 5.3 million USD from the planned 20.3 million USD. Therefore, Ethiopia needs to undertake resource mobilization and allocation activities to establish disease free zone that would possibly answers to the concerns of partners about quality of products and animal handling system thereby the industries would be productive and make the country capable of utilizing its abundant animal resource.
The disease free zone requires free area that has been equipped with the necessary infrastructure and trained human resource. Therefore, the country ought to plan a big project to this end, as to Mekonnen. Currently, the EMDIDI is conducting marketing research. As forward linkage the institute is endeavoring to strengthen international market opportunity by working together with stakeholders. The institute has been working to strengthen the already existing market relations and to expand new ones with various countries.
Since Ethiopia is one of agricultural dependent country, the activities in the sector directly affect the life of the people and the development of the country, Agriculture Minister Oumer Hussein recently said in a consultation meeting with stakeholders on the evaluation of agricultural activities undertaken by the Ministry of Agriculture over the past six months. However, shortage of animal vaccinations and feed was among the shortcomings indicated in the meeting as hindrances that directly or indirectly affect the agricultural productivity.
The problems are emphasized to be addressed in a short and long term schemes as they have strong impact on livestock production, agricultural marketing system, and food security among others. In general, the country ought to give strong attention to the development of diseases free zone and proper animal handling way besides providing quality inputs so as to advance the productivity of the sector.
Similarly, the comprehensive effort should continue to enhance the under-construction meat processing industries so that they can get operational shortly. In addition, animal husbandry should be improved as the industries would require numerous livestock that fit to their production capacity.
Now, the market expansion efforts of the EMDIDI would help to get new destinations to the volume of products both from the agro-processing industrial parks and private meat processing industries of the country. Therefore, the cumulative outcome of this would enable the nation to benefit from its abundant animal resources.
The Ethiopian Herald, March 19/2019
BY YOHANES JEMANEH
