It is proved that Ethiopia has a suitable environment to produce pulses and oil seeds which have preferable tests and high demand in the world market.
However, due to the recently broke out war in the northern part of the country where most crops are produced, has adversely impacted the competencies in the world market and the spread of COVID-19 poses problem on the effectiveness of the exporting of the products to the foreign market.
Edawo Abdi is the president of the association of the Ethiopian pulses, oil seeds, and spices exporters. He recently made a stay with local Media. As to him, in the last ten years his association in order to upgrade the qualities of the exporting products conducted various symposiums with the stakeholders and to some-how enabled to improve the quality of the products. He further said that due to the outbreak of COVID-19 and other reasons, the invited guests to attend the 10th international conference from all over the world unable to come here. As the result, his association was forced to conduct its 10th conference virtually and attendees from 102 countries could participate in the conference.
Countries which have a dominant role in setting the price of the mentioned commodities in the world market such as Israel, Turkey, India, United Arab Emirates and Chain were participated and forwarded valuable information to the conference.
As to him, the 10th international conference was conducted under the motto “let us conduct the export trade based on information” the motto that indicates the Ethiopian pulses and oil seeds exporting association is resolute to create awareness to the participants with regard to international standard, production and marketing, the cargo activities, setting price, drought phenomenon which put pressure on the world economy and COVID pandemic. In addition to these, the conference could create opportunities to introduce the world that based on the current situation what Ethiopia has produced and what does it have.
The Ethiopian agricultural products by their nature are organic which are friendly to the consumer’s health. The products in addition to bringing hard currency to the nation, they play their own role in image building of the country.
The government inorder to raise the income drawn from the products and develop the sector status formulate directives and introduced laws. Recently, draft law is prepared with regard to export strategy and to that end it utilizes some ideas forwarded by the association as inputs before implementing the laws.
As to Edawo, to make the economy viable, the role of state and none state actors is immense. In this regard, the Ministry of Trade and the Ministry of Trade play crucial role. In addition local none governmental institutions and private sector play their own part. The association has good relation with all stake holders.
However, there were some problems with the Ministry of Trade before the establishment of the new cabinet.
They were misreading each other with regard to understanding the sector problems. “In related to the products quality, in the value chains, there was immense systematic problems in the part of Ethiopian Commodity Exchange, shortage of supply, poor quality of the products, the pervasive extended value chain. These all critically affects the export sector and crippled it.
Such a situation hampers the association efforts to supply goods to the market. It limits its capacity to supply products to the market, cripples normal movements of products, creates havoc not to enforce the contract by all parties and these constraints negatively affects the association competency in the world market. There paying attention to improve the situation is essential,” the director said.
After the establishment of the new government good collaboration is being obtained from the Ministry of Trade and Regional Integration. They began to give attention to the association, and take comments as inputs provided by the association. The association participates in crafting projects and such developments are encouraging.
The State Minister of Trade and Regional Integration Hassan Mohamed attended the international conference and appreciated the association effort and vowed to resolve the problems witnessed in the export sector.
The association also discussed with the institute of the Agricultural Research Institute to work together.
Ethiopia has immense agricultural products that could meet the demand in the international market. However, out of all the produced only 10 percent of it is exported. Only oil seeds cover 20 to 30 percent of the export and most of the products are consumed locally.
Half of the oil seeds products find its way to the neighboring countries by illegal trade, part of it is spoiled due to the improper storing. The spraying of pesticides and mishandling of the products made it out of use.
Therefore, providing training to farmers with regard to post harvest management of crops so that, keeping the product quality is possible. Currently, only Nigger product obtains more than 300 million Dollar in the world market. However, the nation has the capacity to obtain more than 700 million Dollar from the product. Red and white sesame have similar market value. Therefore, establishing strategic committee to boost export is vital.
Previously, Ethiopia has no export strategy but currently the Ministry of Trade and Regional Integration prepared a draft law by taking the association comments as input and the law is seeing its endorsement. Such practice is more encouraging. Next time the association exerts its efforts for the establishment of its council engage in coordinating the exporting of coffee, pulses and oil seeds. Paying attention to the pulses and oil-seeds enables to boost export earnings. The draft strategy indicates the shortcomings in increasing the number of export destiny countries emphasizes on searching new destinies and underlined that depending on very few countries is not viable in this regard the AGOA affairs in this regard can be cited as evidence.
As to Edawo, in Ethiopia, many assume that export is a means only to earn Dollar rather than a professional business.
Countries such as Brazil and Vietnam which joined the middle income status have only 200 strong business men engaged in export business. As the result, these countries export contributes a lot for their economy. When coming to Ethiopia anybody who wants to import plastic bag or medicines congest the banks door to obtain Dollar. Such practice should be halted. In other countries export is given special attention and the sector is given to only business men engaged in export investment and industry owners. To boost the sector there must be traders who should do their work in line with protecting the value chain principle and purchase products of the farmers without harming them by setting lower price and show willingness to improve their living.
Such kind of traders and companies should be encouraged. Exporters should work to support importers. In Ethiopia Exporter’s work for importers but importers work for making profit. Such business men should be banned from such practice. Exporters should not serve importers.
Special attention should be paid to business men who have interest to support farmers, have sufficient knowledge on industry, obtains updated information with regard to the international market and have interest to engage in export. In such a way, an exporter can able to build the nation image and increase the number of export destine countries.
For example, sesame has high demand in chines market but the amount of the product exported to that country is declining from time to time because of delay on loading the product on ship. In addition, due to the bureaucratic hurdle prevailed in ECX, contracts are cancelled and the opportunity to sell Ethiopian products in Chines market is missing.
As a result, the Ethiopian market in China is begun to be occupied by Nigeria, Togo, Benin and Mozambique.
Not only Chines market, Ethiopia also loosing other destined countries market and the trade volume of the Ethio-Turkish is declined and 96 percent of the oil seeds and pulses is now over taken by other countries.
BY ABEBE WOLDEGIORGIS
THE ETHIOPIAN HERALD THURSDAY 10 MARCH 2022
