It is well recognized that thousands and millions of farmers in Ethiopia have been involved in oilseeds cultivation and the total oilseeds production in the country is rising. Besides, virgin lowland areas in the North West and South West offer opportunities for expanding production.
Cognizant of the fact that oilseeds can contribute a lot to the economic progress, The Ethiopian Herald approached Samrawit Debebe, an agro-economist graduated from Addis Ababa University.
She said, “Ethiopia’s oilseed sector plays an important role in generating foreign exchange earnings. The three major oilseed crops like sesame, soybean, and Niger seed contribute a lot to Ethiopia’s total agricultural export earnings next to coffee, of course. Yes, exports of sesame, Niger seed, and soybeans have helped the nation generate a great deal of export earnings. In addition, the oilseed sector provides income to millions of growers and others market actors along the value chain.”
As to her, there are a couple of new large-scale edible oil manufacturing plants in the pipeline. This expansion in the agro-processing industry is projected to drive up demand for oilseeds. Recently, soybeans and Niger seed were added to the list of agricultural commodities traded on the ECX modern trading platform. This initiative is expected to create better market incentives for producers to increase local productions. Moreover, the modern exchange platform is vital to control illicit trade and improve exports.
Desert locust invasions and ill-timed rains occurred in the country during and after the main harvest collection period. Unless prices rebound, farmers in major production areas may reduce sesame seed plantings next year and switch to alternative crops such as cotton and sorghum. Sesame seed is one of the most widely produced oilseed crop, accounting for 30 percent of total oilseed production in the country. Production is mainly concentrated in the northern and northwestern Ethiopia bordering Sudan and Eritrea, she opined.
She further elucidated that even though Ethiopia is one of the major global producers and exporters of sesame seed, the country faces increasing challenges related to both supply and demand side constraints. Some of the major supply side constraints are diminishing productivity levels, pests and diseases, and poor access to modern technology. On the demand side, perversely higher domestic price, easy entry of inexperienced traders and market distortion, and contractual non-performance of export sales.
Unless farmers, traders and government address these challenges strategically, the country could lose its competiveness in the global sesame seed market in the near future.
According to Samrawit, in the future, consumption is expected to rise due to local and international market demand. Domestic demand for sesame especially in local food processing industry is projected to grow, as there is integrated agro-industrial parks under-construction that would begin operations in the short-term.
She said traders allude that international price volatility, currency fluctuations, excessive speculations, illicit trade, squeezed productivity levels, and local market price distortions are the main reasons for the deteriorating export trade performance. This trend has to be reversed for the country to grow.
Almost all of Ethiopia’s sesame seed exports are unprocessed, leaving a potential opportunity for value addition prior to exports. The local production of edible oil has tremendous growth potential and is expected to expand rapidly in the coming years as the population grows and as consumer income rises, she added.
With increasing demand, limited domestic production and the country’s heavy reliance on imported oil, there are frequent supply shortages especially in urban areas. In addition, as some consumers become increasingly diet conscious, they are looking for healthier alternatives to palm oil. There is an increasing preference towards alternative edible oils containing saturated oils and fats. Most Ethiopian consumers prefer sunflower, Niger seed, and soybean oils as healthier. Due to these changes in consumer preferences, consumption of sunflower oil has almost tripled over the last couple of years.
Nine oilseeds namely noug, gomenzer, linseed, soybean, sunflower, castor, sesame, ground nut and cotton are important in Ethiopia for edible oil consumption. In addition, soybean can be cultivated as a source of raw material for food and feed industries, she said.
According to Samrawit, oilseeds are also the traditional source of foreign exchange earnings since imperial era. Ethiopia is the second exporter of sesame globally next to Myanmar. Although sesame is cultivated in all lowlands, the product from Humera and Metema has prime quality.
The traditional noug growing areas are being replaced by high yielding hybrid maize, rice and bread wheat. Nevertheless, the area coverage and productivity of sesame and soybean are increasing in an exponential order due to their demand in the world market. The national vegetable oil demands have shown a severe shortfall during the last decade causing a severe foreign currency expense.
The demand of raw materials for the local industries is enormous as compared to the national production of oilseeds. Of these, sunflower, soybean and castor are adapted from mid lands such as West Gojam and Hawassa to low lands as low as Omo. Linseed and gomenzer are adapted in the highlands with altitudes ranging from 2300 to 3000 meters above sea level what is commonly known as Central Ethiopian highlands.
Ground nuts and sesame are adapted in three ecologies namely high rainfall such as Assosa, Gambela, Metema, Humera and Pawe, Western Lowlands and, irrigated such as Omo and Awash valleys, Gode and Arba Minch. Sesame and ground nuts are also adapted in low moisture stressed areas such as Babile, Bisidemo and Kobo.
Oilseeds research should focus on productivity, oil content and quality. Although, the contribution of genetics to productivity on oilseeds is immense, crop and water management ranging from tillage to harvesting have equal influence on productivity and oil content, she said.
The current improved varieties of oilseeds have been developed either from selection of introduced or indigenous germplasm. In order to achieve the desired goal, the future variety development should be based on genetic gain or crossing followed by selection, seed multiplication and multi-environment testing both under irrigation and rain fed.
Currently, oilseeds are cultivated using farm saved seed and traditional farming practices. Oilseeds are usually sown on less fertile land and require minimum care such as weeding. Farmers tend to earn more from cereals than inherently low yielding oilseeds. Hence the production volume of highland oilseeds is not expected to increase or at least contribute significantly to the national pool. Among the lowland oilseeds sesame is an important export commodity next to coffee and will continue to contribute significantly for foreign exchange earnings.
“Oilseeds cultivation was using traditional cultivation methods and farm saved seed. Oilseed marketing consists of assemblers, whole sellers, possessors and exporters. Marketing was also as a result of government grain marketing corporations that gathers produce from farmers and either deliver for processors or export. It was suggested that the market was not efficient and both the producers and consumers were dissatisfied,” she added.
Export market for any of the oilseeds particularly sesame and soybean is higher to the extent that the local industry may not afford it. However, the revenue from sesame can be used to import palm oil easing the burden of foreign exchange. The export value of annual oilseeds such as sesame is higher than their possible local value and the value of the oil will be beyond the reach of average Ethiopian.
Ethiopian oil seeds production and the sector play an important role in generating foreign exchange earnings and supporting the livelihoods of market actors across the value chain.
Oilseed crops are the third largest foreign exchange earners, next to coffee and cut flowers, contributing nearly 17 percent of Ethiopia’s agricultural exports, she added.
A better understanding of specific factors that influence farmers’ choices is crucial in order to effectively prepare policies, development strategies, programs and models aimed at supporting and enhancing the agricultural productivity of oilseeds.
An insight into the determining variables that guide smallholder farmers’ production decisions will enable policymakers to enhance and develop policies and strategies that could help smallholder farmers to choose more appropriate crops for production, increase crop yield as well as cope and adapt to issues of climate variability. A deeper understanding of smallholder farmers’ crop production investment decisions would enhance the development strategies and interventions necessary to ensure a successful production.
Oilseed crops have attracted much attention as potential renewable sources of raw material for substitutes to liquid fuel. With the rising focus on renewable energy sources, oilseed crops are good candidates as sources of biodiesel. Soybean, sunflower, and groundnut oils are amongst the seed oils available in Ethiopia and the government should undertake initiatives that would attract more farmers to produce oilseed crops; for instance, by offering funding that is specifically earmarked for farming oilseed crops.
BY MENGESHA AMARE
THE ETHIOPIAN HERALD WEDNESDAY 13 SEPTEMBER 2023
