Ethiopia’s lucrative horticulture trade could stumble as exporters transfer rising production and research and development costs to their products, potentially discouraging international buyers, warn experts at the Ministry of Agriculture.
“The cost of horticulture research and production arising from the global energy crisis is making horticulture products expensive. Exporters are transferring these additional prices to end consumers. As a result, international horticulture consumers are being discouraged,” reads the Ministry’s horticulture development and marketing strategy.
Officials plan to expand the use of GMOs in horticulture farms as part of their plans to boost exports and productivity.
Ethiopia has thus far relied on foreign support, such as importing improved avocado seeds from Israel, in a bid to cut down on the extra costs.
The strategy notes that demand for Ethiopian horticultural products such as avocado and strawberry is growing substantially. However, officials see room for improvement.
The Ministry’s strategy includes plans to grow the number of dedicated horticulture export corridors to six in the coming eight years, with ambitions to see horticulture farms and exporters covered by comprehensive insurance policies.
Experts indicate the Bahir Dar, Abay Gorge, and South Gonder corridors can support up to 10,000 hectares of commercial horticulture farmland, with an additional 40,000 hectares for outgrowers. No less than 4,000 hectares have been designated for commercial farms in the Mekelle, Raya, and Alamata corridors to 4,000 hectares of commercial farms, with another 40,000 hectares for outgrowers.
Larger corridors in Awash, Dire Dawa, Harar, and Somali, as well as in Addis Ababa, Sidama and Oromia will raise the amount of land dedicated to commercial horticulture farming to more than 60,000 hectares, with much of it being dedicated to growing flowers.
Although fresh cut flowers generated close to USD 570 million of USD 630 million in horticultural exports last year, space for flower farms remains limited at around 1,200 hectares.
Ministry experts say the regional horticulture corridors were selected based on production suitability, proximity to airports, and the availability of processing facilities. Distance from ports in Djibouti, Sudan, and elsewhere was also considered.
The processing facilities are housed in the Yirgalem, Bure, Baker, and Bulbula agro-industrial parks.
The strategy also mandates the National Bank of Ethiopia (NBE) with adjusting horticulture export retention rates, and providing daily international price updates to farmers. The Ethiopian Electric Utility (EEU) is charged with providing power infrastructure and supply to horticulture investment sites.
The federal government is looking to establish a domestic quality assurance system to maintain horticulture export standards, as well as a new set of laws to enable and regulate the registration, transaction, treatment, usage and disposal of pesticides.
The Ministry will establish a dozen horticulture quarantine facilities across the country in a bid to eliminate or reduce pest infestations.
Officials hope these measures will cut post-harvest losses by half.
The changes are also hoped to raise the number of commercial flower farms in the country, of which there are only 120 which cater to the export trade. On the other hand, there are 2.3 million farmers engaged in small-scale horticulture production, according to Ministry data.
Three-quarters of Ethiopia’s fresh cut flower exports go to markets in Europe. African markets, such as Djibouti, Somalia, South Africa, and Nigeria, account for 95 and 97 percent of fruit and vegetable exports, respectively.
Source
By Ashenafi Endale September 14, 2024
https://www.thereporterethiopia.com/41879/
