Written by Sossina Tafari - Horizon Ethiopia Staff Writer
Friday, 18 September 2009
Mention Ethiopia in a conversation about agriculture and our globally appreciated coffee beans are most likely the only yield that most will be aware off. With ten confirmed climatic regions, Ethiopia is a country graced with the potential of growing just about anything edible. With virgin soils marking most territories, and 80% or so of the population committed to the farming business, Ethiopian products should hold their own in the global market. But one need look no further than the reports generated by credible trade organizations for indications that our agricultural exports are next to nothing in comparison to neighboring countries. Despite Ethiopia’s enormous potential for producing naturally grown, tasty products of all kinds, supplying the global market that wants these products remains a challenge due to numerous obstacles that the country has yet to overcome. Accessing the international market is easier said than done.
Always identified as being the birthplace of coffee, Ethiopia has enjoyed a rich history of making its soil produce. But cyclical drought and chronic food insecurity in the country have distanced potential buyers from Ethiopia. The idea of Ethiopia producing enough to export doesn’t appear front and central for many. Although name recognition and success stories in coffee and (recently) floriculture, are beginning to put Ethiopia on the map, other products equally as important are emerging and need to have avenues of introduction to the global marketplace.
Leveraging Ethiopia’s natural agricultural potential as a cornerstone for growing our export markets while simultaneously driving development in the country is the right strategy to follow. But competing credibly on the international marketplace calls for a concerted effort by producers, facilitators and the government to develop a brand image for Ethiopia that is conducive to the mission at hand.
Slow Movement Forward
The last few years have seen an increasing quantity and variety of Ethiopian products slowly penetrating the global marketplace. Most of them end up in Europe with wholesalers who reap the profits by redirecting the purchased products to other countries or presenting the products for local consumption. In some cases, joint ventures and long term agreements have given producers committed buyers who will commit to a long term sourcing arrangement from a single vendor. These types of agreements are ideal because they help producers focus on increasing quality and yield rather than searching for buyers.
To maximize returns on the products that are grown in Ethiopia, local producers need to step up the effort of showcasing them to international buyers. Demystifying this process has begun, but will take years to perfect. Both public (non profit) and private organizations have assigned resources to aid the developing world penetrate the global marketplace. Included in their efforts are providing human resources, ensuring that Ethiopian producers can package, label and present high quality, in demand products to the marketplace.
Steps For Success
So what should a producer do once a product is ready to be exported? Assuming that the products are in need, many buyers in foreign countries look for information aggregators to learn about products that are grown and processed. Their first stop is usually the Internet (Google is a powerful tool) in search of information. Websites allow potential buyers to do their initial research, so an updated website with relevant information is a must. Besides tradeshows, producers could join trade missions, speak with distributors in potential destinations, search for product aggregators and contact companies that work in this space to link buyers with producers. Having samples of the product that present detailed information about the product including how it was produced, nutritional content, shelf life and other relevant information are key to selling the product.
Membership or involvement with organizations that promote international trade linkages is another place that buyers may talk to for information on legitimate, high quality products. Examples of such establishments in Ethiopia include VEGA’s AGOA+ project as well as the American Chamber of Commerce in Ethiopia (AmCham Ethiopia) that try and help Ethiopian producers connect with American buyers.
Another sizable challenge faced by prospective exporters is the satisfactory fulfillment of the often stringent sanitary and phytosanitary requirements of the receiving country. The certification of products to such specifications is in many cases a prerequisite to their importation across the borders of the importing country in addition to accurate, standardized labeling, nutritional content information and so forth.
Ethiopian producers need to be more knowledgeable in indentifying products that are needed in the global marketplace. For instance, Ethiopia is the 10th largest producer of honey in the world. However, very little is exported. In recent years, a shortage of honey in North America due to the destruction of the honey bee population caused by the mysterious Colony Collapse Disorder has increased imports of honey from near and far. Ethiopia, with its natural honey, is an ideal country that should compete strongly in the international market to present honey. While prices for Ethiopian honey may seem a bit pricey in comparison to honey from China, it is also a reflection of the inherent quality of the product which increased production should help to lower selling prices on.
Understanding supply and demand on the global marketplace is another challenge that faces Ethiopia’s export prospects. Such information and related requests for products are not readily available or disseminated and requires active trade linkage companies to disseminate as well as acting as catalysts to enable trade. Where there is a shortage, cooperatives and product aggregators which can consolidate such products without compromising quality can be key to ensuring that demand is met.
A line of Burt's Bees products at an American grocery store; many of them contain beeswax imported from Ethiopia
Challenges certainly do exist that hinder the growth of exports in Ethiopia. However, as telecommunication, transportation, experienced human resources and programs that encourage trade continue to strengthen in Ethiopia, exports will increase. The natural potential and production is here but must be matched with the increased confidence and consistency in delivery that the international marketplace demands. Indeed much needs to be done to achieve the status enjoyed by other African countries such as South Africa, or even tiny Lesotho which currently exports hundreds of millions of dollars in textiles to the US yearly. But it is the author’s belief that Ethiopia will continue to reach higher standards and in short order, have products competing on international markets as the “natural”, “healthy” and “tasty” yields of its fertile highlands and valleys.