Tag: EHPEA Training Center

According to Floriday, digitization is changing the way we work in the floriculture industry. This requires collaboration from both growers and buyers. Floriday spoke to Henk de Jong, commercial manager at The Orchid Growers about it. Why do they consider digitization important? How are they digitizing their processes? And what results have been achieved so far?

As of 1 January 2022, Ter Laak Orchids and Orchios have merged their sales and marketing activities into one new platform: The Orchid Growers. Every year, they sell some 11 million Phalaenopsis orchids. Henk de Jong is the commercial manager at the company and responsible for commercial policy. Digitizing trading processes is one of the spearheads in this.

Why digitize?
Henk sees the opportunities that digitization offers the company: ‘Previously, orders came to us through Florecom, email, WhatsApp and phone. By digitizing our sales processes, all orders now come in through one channel which saves us a huge amount of time. The order process is faster and the extra time we now have can be invested in customer relations or other things like data processing and optimizing presentations in Floriday, for example. Additionally, digitization provides us with more focus and peace of mind in the order process.”

Together for an efficient order process
At the start of The Orchid Growers, a project team was launched to work on digitization on a daily basis. Henk: “Our team also saw the need to digitize and was fully committed to making this way of working the standard. The project team had many conversations with customers, as it is important to know how they work and what they need to take this step. For example, we looked at what systems (ERP) they work on. You rely on each other. It is also up to us to encourage buyers as much as possible to get the most out of Floriday. We do this, by, for example, working with weekly lists, offers, contracts, and purchasing tips.”

What will digitization bring The Orchid Growers?
Henk: “In very concrete terms, we save two hours per day per employee because our order process is now digital. In our case, we save about 40 hours a week in total. This gives sales staff more time to have an alternative conversation with the customer. It also gives us more time to take a break from the hustle and bustle of the day and think about what the customer really needs. An appropriate supply on Floriday is one such point. It helps the buyer and again saves both of us time.”

Future for the sector
Floriday asks Henk what advice he has for buyers and fellow growers. Henk: “Digitisation will become increasingly crucial in the future. Not only for individual companies but also for us as an industry. My advice is to embrace digitization in your business and connect with fellow growers and buyers. Support your customers in getting ready for further digitization. When we act together as an industry, we achieve the best result by working as efficiently as possible. Of course, this sometimes requires you to step out of your comfort zone and make choices. But it pays off!

We now work fully with Floriday, are active members of Plantform, and are constantly working on developments in the industry. I believe many more things are possible, and I hope we can embrace this as an industry and that everyone starts to see and experience the added value.”

For more information:
Floriday
www.Floriday.ioPublication date: Thu 22 Aug 2024
https://www.floraldaily.com/article/9651895/the-orchid-growers-digitization-improves-order-process-and-strengthens-customer-relationships/?utm_medium=email

The recent directive from the National Bank of Ethiopia (NBE) mandating that exporters convert half their foreign exchange earnings into Birr within a month has triggered discontent within the flower industry and broader horticulture sector. The regulation, part of a sweeping overhaul of foreign exchange rules effective July 29, 2024, is seen by many in the industry as an impediment, given the logistical complexities and extended timelines involved in importing essential inputs.

Exporters are particularly distressed by the tight timeframe, which they argue is incompatible with the realities of their business operations. According to Tewodros Zewdie, president of the Ethiopian Horticulture Producers & Exporters Association (EHPEA), the 30-day limit is insufficient, especially for businesses dealing with extended import processes.

“The time is not enough,” he said.

The Association represents 126 members, all of whom are wrestling with the directive’s implications on their ability to maintain a steady flow of imports, crucial for sustaining their operations. Despite acknowledging the directive’s potential benefits, such as improved revenue optimisation and access to investment financing, Tewodros expressed hope that ongoing discussions with NBE officials would lead to a revision of the policy. He stressed the importance of these engagements, noting that they cover various export sectors, including oilseeds, pulses, coffee, and horticulture.

“We’re hopeful it will be addressed soon,” he told Fortune.

Central bank officials defend the directive, arguing that it ensures idle foreign currency earnings are surrendered to commercial banks within a month, injecting much-needed liquidity into the forex market. Abebayehu Dufera, NBE’s deputy director of foreign currency monitoring and reserve management, acknowledged the exporters’ concerns as valid but disclosed that the measure is temporary. The directive is intended to control export revenues and strengthen the interbank foreign exchange market.

“It’ll only stay in effect until there is enough inflow into the banks,” he told Fortune.

Yirga Tesfaye, an economic researcher, praised the central bank’s strategy, which cautiously liberalises foreign currency retentions for exporters while managing foreign currency risks.

“It’s a wise move,” he said.

However, Yirga warned that exporters face a consequential market shock in the new, volatile domestic market. He argued that building hedging and derivative strategies addresses risks and reduces the impact of exchange rate fluctuations on earnings.

“Business is not as usual for exporters anymore,” he told Fortune.

The central bank recently launched a “special foreign exchange auction,” attaining price discovery at a weighted average rate of 107.9 Br for a dollar. Officials are optimistic that this trend will continue, supporting import activities and enhancing foreign exchange liquidity.

Worqu Lemma, a senior banker, attributed the foreign currency crunch faced by most commercial banks to the retention limit. He believes that more dollars within the system will grant liquidity to commercial banks, contribute to price stability, and improve foreign exchange access for other importers.

“The forex revenue cannot stick in one place,” he said.

However, Worqu conceded that the time limit is unrealistic for businesses that require extended periods to complete imports. He acknowledged the liquidity issues facing commercial banks, partly due to the bonds they are required to purchase.

A business lobby, the European Chamber of Commerce in Ethiopia, also raised issues last week, pointing out drawbacks in the new directive that its leaders fear stifles business operations and investment.

The EU Chamber has commended the federal government for introducing a market-based exchange rate as part of the new macroeconomic reform. However, its leaders also called for pending issues that have been overlooked, noting that while the reform may improve transparency and predictability for businesses and increase forex availability for manufacturers, long-standing macroeconomic imbalances have caused financial struggles for exporting manufacturers. Some have been forced to sell at a loss to sustain their import businesses, while others have compensated for losses by selling imported goods at high margins.

According to Bahiru Temesgen, director general of the Chamber representing 180 businesses, delays during imports could impede timely operations. He cited challenges such as freight issues, the security crisis on the Red Sea corridor, and payment delays in international transactions.

“It’ll be burdensome for the exporters,” he said.

One exporter particularly affected by the directive is Joytech Plc, which operates a 100hct farm in Bishoftu (Debre Zeit), in Oromia Regional State. Its General Manager, Bisrat Haileselassie, disclosed that the company has suspended importing materials due to the risks involved, stating that the import process can take up to 60 days.

“It’ll be impossible to import this way,” he told Fortune.

VegCrop Plc, a Kenyan-owned flower company operating in Ethiopia for over 12 years, has encountered difficulties due to the new forex rule. According to Mehandira Patel, its general manager,  the time required for imports, from proforma invoices to the arrival of goods, can take up to two months. He criticised the absence of one-stop windows for different institutions, such as NBE and the Ministry of Agriculture, as well as the long bureaucratic processes that unnecessarily extend the timeline. The bureaucratic and logistical issues caused problems for the company, which imports fertilisers, chemicals, and packaging materials.

The problems facing Ethiopia’s horticulture industry are particularly acute this year.

Despite its promising potential, horticulture exports have seen an alarming 22pc decline, dropping to 535 million dollars, the first drop in over a decade. Flowers continue to claim a substantial share of export proceeds, accounting for 86pc of the nearly four billion dollars earned last fiscal year, while vegetables and fruits lag. The Ministry of Agriculture has introduced a 10-year strategy to promote the sector, appropriating 24.5 billion dollars in investment over the next decade. The strategy sets ambitious goals, including increasing the horticulture sector’s contribution to GDP to 12pc, from the current 4.5pc, and reducing post-harvest losses to 20pc.

PUBLISHED ON Aug 18,2024 [ VOL 25 , NO 1268]
https://addisfortune.news/horti-exporters-face-forex-squeeze-as-new-directive-sparks-outcry/

A National Agricultural Investment Forum, hosted by the Ministry of Agriculture (MoA), at Millennium Hall in Addis Ababa. The event aimed to spotlight Ethiopia’s agricultural investment potential and a linkage for business development. The event brought together government officials, investors, and industry stakeholders to explore and capitalize on Ethiopia’s vast agricultural potential.

High-level government officials outlined their respective offices’ investment facilitation and incentives to encourage private sector participation. The forum served as a platform for local investors to connect with potential partners and expand their businesses. 

Over 130 exhibitors, including representatives from urban agriculture development, livestock, horticulture, and large-scale farming, showcased their products and services.

As a strategic partner of the MoA, the Ethiopian Horticulture Producer Exporters Association (EHPEA) played a pivotal role in organizing the event and highlighting the services offered for  its member farms.

The COMESA EAC Horticulture Accelerator Ethiopia National Chapter has officially been launched today, Tuesday, August 13, 2024! This significant step marks the beginning of a journey to unlock the immense potential within Ethiopia’s horticulture sub-sector, with a special emphasis on Potatoes, Onions, and Avocados.

Industry stakeholders from Ethiopia’s Horticulture sector gathered in Addis Ababa to witness this landmark event, joined by leaders from the Ministry of Agriculture and the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA-COMESA).

We were also honored to have the support and presence of development partners from the Bill and Melinda Gates Foundation (BMGF), Foreign, Commonwealth & Development Office (FCDO), Alliance for a Green Revolution in Africa (AGRA), and the Ethiopian Horticulture Producer Exporters Association (EHPEA), all of whom have pledged their commitment to ensuring the success of this transformative program.

Together, we’re paving the way for a brighter, more prosperous future in Ethiopian horticulture!

The Ethiopian Horticulture Producer Exporters Association (EHPEA) has initiated a comprehensive training program to equip EAA inspectors with the knowledge and skills necessary to effectively manage the False Codling Moth (FCM).

FCM poses a significant threat to Ethiopia’s horticulture industry, particularly with the implementation of new EU regulations. This training adopts a systems approach to address the complex challenges associated with FCM, emphasizing the importance of collaboration and joint efforts.

The training covers in-depth information on FCM biology, identification, and management strategies. Practical field visits are an integral part of the program, providing participants with hands-on experience.

EHPEA is committed to supporting the horticulture sector in overcoming challenges like FCM and ensuring the continued growth and success of the industry.

Addressing Import Challenges; The Ethiopian Horticulture Producer Exporters Association (EHPEA) recently convened a meeting to address pressing issues facing its members. Key topics included the challenges posed by the new approval process for duty-free import of inputs and goods, as well as concerns related to the doing business challenges of the horticulrure issue.

Through robust discussions and advocacy, EHPEA secured a significant victory for its members: the reinstatement of the online duty-free approval system. This positive outcome underscores the association’s commitment to representing its members’ interests and improving the business climate.

With a membership of 126 businesses engaged in producing and exporting cut flowers, cuttings, ornamental plants, fruits, vegetables, herbs, and vegetable seeds, EHPEA is a leading force in Ethiopia’s horticulture industry. The association represents the interests of its members both domestically and internationally.

Since its inception, EHPEA has been instrumental in supporting members to adopt sustainable practices, enhance competitiveness in the global market, and uplift surrounding communities. Through advocacy, training, and capacity building, the association has contributed to the growth and development of the horticulture sector.

Ethiopia’s horticulture industry is thriving, with over 120 international and local investors operating in the country. Major export destinations include the Netherlands, Germany, the UK, Saudi Arabia, Norway, Belgium, the UAE, France, Japan, Italy, and the United States.

EHPEA is proud to collaborate with international institutions to elevate Ethiopia’s horticulture sector to new heights. By working together, we can create a sustainable and prosperous future for the industry and its stakeholders.

In an unprecedented shift in economic policy, Ethiopia has announced the liberalisation of its
foreign exchange market, a move set to take effect on Monday, July 29, 2024. For the first time
in over half a century, the exchange rate of the Birr will be determined by market forces, a
landmark decision that could reshape the country’s economic landscape.

Prime Minister Abiy Ahmed (PhD), made the announcement today, justifying the decision as a
necessary measure to address deep-seated economic structural issues, including foreign exchange distortions and macroeconomic imbalances.

“The liberalisation is expected to enhance the competitiveness and inclusiveness of the financial
sector, ultimately promoting a more resilient and sustainable economic environment,” he stated.
The Prime Minister’s administration is banking on these reforms to control inflation, improve
public investment efficiency, and bolster the banking industry’s soundness. The announcement
has sent ripples through the financial sector, with Central Bank Governor Mamo Mehirtu
convening an urgent meeting with senior executives of commercial banks late in the
afternoontoday. The National Bank of Ethiopia (NBE) has issued a directive to enforce the
decision, which forms a critical part of the second edition of the Home-Grown Economic Reform
Program (HGERP). The directive outlines the framework within which banks will operate in the
new, liberalised environment, requiring major adjustments as they adapt to market-determined
exchange rates.

For decades, Ethiopia’s economy has struggled under the weight of foreign exchange distortions
that stifled growth and fostered inefficiencies. The official exchange rate currently stands at 58.6
Br against the Dollar, while the parallel market sees rates of 115 Br or more. The disparity has
fueled a robust parallel market, complicating economic planning and fuelling inflation. The
government hopes that by allowing market forces to set the exchange rate, these distortions will
diminish, creating a more favorable balance of payments and attracting foreign direct investment.

Governor Mamo’s briefing focused on the urgency and importance of preparing the financial
sector for the upcoming changes. Prime Minister Abiy has committed to maintaining transparent
communication with all stakeholders during this period of transition.

“We’re dedicated to continuously reviewing and evaluating the impact of these reforms,” he
asserted.

The anticipated rise in the value of the Birr against the Dollar, as the market takes over, could
lead to consequential economic shifts. With the official rate at 58.6 Br against the Dollar and the
parallel market at more than double that rate, the alignment of these two rates under market
forces is expected to streamline economic activities and reduce black market incentives.

Prime Minister Abiy has also pledged measures to protect the most vulnerable members of
society. Social safety net programs and wage subsidies for low-income public service employees
are part of the broader strategy to cushion the potential short-term impacts of the liberalization.

Source
https://addisfortune.news/breaking-news/ethiopia-unleashes-market-forces-in-historic-forex-liberalization/
Jul 28 , 2024

The European Union has introduced stricter phytosanitary requirements for cut roses imported from Africa, including Ethiopia, to combat the spread of the False Codling Moth (FCM). These new rules will take effect on April 26, 2025.

The EU Official Journal of the European Union, announced that the Commission Implementing Regulation (EU) 2024/2004 of 23 July 2024 has been published on 26 July 2024, amending Implementing Regulation (EU) 2019/2072 as regards the listing of pests and rules on the introduction into, and movement within, the Union territory of plants, plant products and other objects THE EUROPEAN COMMISSION. 

To safeguard Ethiopia’s thriving rose export industry, the Ethiopian Horticulture Producer Exporters Association (EHPEA), in partnership with the Ethiopian Agricultural Authority (EAA), has taken proactive steps. Over 20,000 flower farm workers have been trained to identify and manage FCM infestations. Additionally, inspection capabilities at Bole Airport have been enhanced to meet stringent international standards. Through awareness campaigns and knowledge sharing, EHPEA is empowering rose farms to sustain their businesses while protecting Ethiopia’s reputation as a leading flower exporter.

EHPEA remains committed to supporting the industry by further training extension workers and inspectors, ensuring Ethiopia’s continued success in the global flower market.

Source for the Commission Implementing Regulation;

https://eur-lex.europa.eu/eli/reg_impl/2024/2004/oj

We are thrilled to announce that the Association has received the prestigious Gold Level Industrial Higher Honor Award. This accolade highlights our exceptional performance in areas such as longevity, innovation, branding, corporate social responsibility and digitalization.

The award was presented by His Excellency Dr. Mulatu Teshome and His Excellency Dr. Girma Amente, Minister for the Ministry of Agriculture. Their recognition is a testament to our unwavering commitment to elevating Ethiopia’s position as a global horticulture leader.

This recognition is a testament to our commitment to growing Ethiopia’s economy through horticulture. Together, we’re making waves in the industry!