Horticultural investor bullish about Ethiopian sector's prospects

By Melaku Demissie

One of the growing sectors in the Ethiopian economy is horticulture,with the number of current projects estimated at more than 70. The excellent climatic conditions and the relatively low labor costs are some of the country's attractive features for investors. The most recent data from the Ministry of Trade and Industry indicates that Ethiopia's export of flowers has reached USD eight million per month and is expected to reach $70 million per annum by the end of the current Ethiopian fiscal year.

However, environmentalists and some politicians argue that even while the sector is benefiting the country in securing hard currency, the chemicals used by the companies are becoming concerns affecting the health of employees and polluting the environment.

Anat Harari Degani, managing director of Jericho Flower Plc and Jordan River Herbs Plc, says that her farm, located in the West Shoa Zone of Oromia State, is planning the use of modern methods of pesticide control that reduce the use of chemicals to the minimum. "The technologies are enabling us to reach maximum control over the growth by controlling the climate, fertilization and other needs by computer," she said. This is done by reaching an industrial level of production and control of yields and quality on one hand and meeting all the environmental friendliness conditions on the other.

Speaking more generally about her commitment to worker and community welfare, Degani said, "As the standard of living rises, the conscience of individuals for their health rises with the demand for nutritious food, for good health and a high quality of life. Due to this, the project in the near future plans to start organic food production in the country for the first time," she said.

According to Degani, the company had 42 ha of land in October 2004 and was engaged in activities with a paid up capital of $6 million. "Growing flowers in Ethiopia is enabling us to get the same quality of flowers as in Ecuador at lower costs than that of growing in Kenya." Due to its location near the equator and its high altitude, Ethiopia has an excellent climate for growing fresh horticultural products.

"Ecuador has a similar climatic conditions and is well-known for producing the best quality flowers in the world. Kenya, the largest flower producer in Africa, has less favorable climatic conditions and higher labor and airfreight costs than Ethiopia," she noted. "Ethiopia is the perfect place to grow flowers and fresh herbs. It has the potential to be the horticulture export empire of Africa."

Jordan River Herbs Plc was the first in Ethiopia to grow and export fresh herbs and the first to get EurepeGap certification, she said. She said they were now in the last stage of the process for the Highest International Food Standard (BRC) certification.

"All our activities are recorded for enabling the traceability from day one for each activity in each plot," Degani said.

The companies are currently exporting products only to direct clients in Europe and the Middle East. They employ about 350 workers, 70 percent of them working on a permanent basis, the rest as casual workers.

A couple of weeks ago, the Ethiopian Horticulture Producer Exporters Association launched a code of practice for sustainable flower production in Ethiopia. It is the result of an initiative to introduce a system of continuous professional and technical development, monitoring and self-regulation in the sector.

Ethiopian Reporter