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MARKET NOTE ON ETHIOPIAN OIL SEEDS AND PULSES

GENERAL

The Ethiopian economy remains heavily dependent on agriculture, which accounts 47% of GDP, 63% of exports and 80% of the labour force.  Within agriculture, crops comprised 30% of GDP. 

Varieties of crops are grown in different parts of the country on a seasonal basis.  Ethiopia has the soil and climate for production of variety of food crops.  146 types of crops are currently grown.  The main crops are cereals, pulses and oil seeds.  It is also noted that Ethiopian oilseeds and pulses are known for their flavour and nutritional value as they are mostly produced organically. The country’s rainfall occurs in two distinct seasons: the ‘small rains (Belg)’ during February and March and the “big rains (Meher)” from June to September.  The harvest season is in the month of September and there is a small intermediary crop in the month of May.  Rapeseed, linseed, groundnut, sunflower, niger seed and cotton seed serve as raw materials for the domestic edible oil industry.  Favorable agro-ecological conditions exist for introducing coconut for the production of palm oil.  Ethiopia also has the potential for producing and processing maize.    Peanut oil could be exported but there is no facilitating agency for export of this product.

 PRODUCTION

The production of oil seeds and pulses has been tabulated as follows:-

Production of Major Crops for 2006 - Main Season (Meher)

Source: Ethiopian Central Statistics Authority

Oil seeds are important agricultural commodities widely grown in Ethiopia.  They are partly used for domestic oil extraction and partly exported to international markets for animal feeds and oil extraction.  The by-product of oil extraction (Oil cake) is sold as animal feed.  The bulk of the oil seeds harvest, especially sesame is exported. 

SESAME SEEDS

Ethiopian sesame seeds are of four types:-

a) Humera type       :           Creamy color, 50-55% oil content

b) Wollega type       :           Whitish color, contain 47-50% oil

c) Gondar type         :           More whitish color with almost equal oil content

                                                With Wollega type

d) Reddish Sesame            :           Oil content is almost the same with Wollega type

The domestic market for oil crops is partly developed and backed up by an oil extracting industry, which additionally used maize and cotton lint as an additional source of oil.  There are approximate 130 registered oil extraction companies of which are registered micro-companies.  The number of big oil extraction companies operating in a large scale is not significant. 

PULSES

Pulses are the second most important element in the national diet and a principal protein source.  They are boiled, roasted or included in a stew-like dish known as wot, which are sometimes a main dish and some times a supplementary food.  Pulses, grown widely at all altitudes from sea level to about 3,000 meters, are more prevalent in the northern and central highlands.

EXPORT

Oil seeds, Pulses and Spices, which were insignificant in generating export revenue in the past have now become the second largest source of Ethiopia's foreign currency earning (the first one being coffee) contributing significantly for the achievement of the country's high economic growth over the last three successive years. Coffee's historical place in the Ethiopian economy is being rivaled by oil seeds, and particularly sesame.  The oilseeds and pulses of Ethiopia are also known for their flavor and nutritional value as they are mostly produced organically.  The major oilseeds and pulses exports include; Sesame seed, Nigger Seeds, Linseeds, Sunflower seeds, Ground nuts, Rape seeds, Castor beans, Haricot beans, Pea-beans, Horse beans, Chick peas, Red Kidney beans, Green Mung beans, Lentils and soya beans.  Ethiopia has exported 109,000 thousand tons of pulses and 263 thousnd tons of pulses in 2005/06.

The Gulf States (Saudi Arabia, Yemen, Israel), European Union, some Asian and neighboring African countries constitute the major markets for Ethiopia’s oil seeds and pulses exports. Ethiopia dominated more than half of the total import of sesame seed to China in 2005/06. Oil seeds, pulses and spices which generated only 122.7 million USD in 2003/04 went up over 173.1 million and 255.4 million in 2004/05 and 2005/06 respectively, increasing by 67 million USD per annum on average.

Ethiopian Export of Oil seeds and Pulses

                                                                                                Value in million USD

Source: Ethiopian Customs Authority

Ethiopian Export of Major Crops

                                                                                                            Value in 000's USD

Source: Ethiopian Customs Authority

INDIA’S IMPORT

                                                            VALUE IN LAKH RUPEES

Source: Directorate General of Commercial Intelligence & Statistics, Kolkata

CURRENT PRICES

• White Pea Beans    - US$510 - 542 per ton / FOB Djibouti
• Red Kidney B1eans  - US$480 - 495 per ton / FOB Djibouti
• Green Mung Beans – US$690 - 740 per ton / FOB  Djibouti (Subjective price)
• Chick Peas – US$550 - 600/FOB Djibouti (Subjective price)
• Soya Bean – US$600 per MT/FOB Djibouti
• Sesame seed Humera – US$985 per MT FOB Djibouti
• Sesame seed Welega – US$885 per MT FOB Djibouti

Rapeseed, linseed, groundnut, sunflower, niger seed and cotton seed serve as raw materials for the domestic edible oil industry.  Favorable agro-ecological conditions exist for introducing coconut for the production of palm oil.  Ethiopia also has the potential for producing and processing maize.    Peanut oil could be exported but there is no facilitating agency for export of this product.

CONSTRAINTS

According to the Edible Oil Producers Association, the industry suffers from shortage of raw materials, production and market.  Oil seeds like sesame are in high demand in the world market and get exported instead of being processed here at cheaper labor cost.  Back ward technology of filtering and extracting residuals and inferior packaging are contributing against local oil extractors.  At processors levels companies complain about high levels of competition with oil coming into the country through food aid and others. 

COMMENTS AND MARKET SITUATION

1. Opportunities exist for Indian companies, particularly suppliers of equipment and machinery and inputs in the sector.

2. The Ethiopian market also needs manpower training, quality control and market research services

3. The Ethiopian government offers substantial incentives to investors in Agriculture sector, including tax holidays of up to eight years.  It also facilitates the acquisition of land for investors in this field at very reasonable lease rates. 

ADDIS ABABA (Ethiopia): February 2008

A SSOCIATION

Ethiopian Pulses, Oilseeds and Spice Processors

Exporters’ Association

P.O. Box 8686, Addis Ababa

Telephone No.00251-11-5507795/5509392/5519636

Fax No.00251-11-5534740

E-mail: epospea.association@ethionet.et

Website: www.epospea.com

List of Major Exporters of Oils seeds and Pulses in Ethiopia

1. M/S. Amal Trading PLC,

P.O. Box 1486, Addis Ababa

Telephone No.00251-11-1552512/091-11204170

Fax No.00251-11-1550958

E-mail: amalco@ethionet.et

Contact person: Mr. Mohammed Bahajri

2. M/S. Alpha Trading Partners PLC,

P.O. Box 1533 code 1250, Addis Ababa

Telephone No.00251-11-5528084/091-11209450

Fax No.00251-11-5528085

E-mail: alphatrp@ethionet.et.et

Website: www.alphatrading-eth.com

Contact person: Mr. Tewodros Yilma

3. M/S. Antypas & Brothers Ltd.,

P.O. Box 1606, Addis Ababa

Telephone No.00251-11-1551316/1563810        

Fax No.00251-11-1550657

E-mail: antypasaddis@ethionet.et

Contact person: Mr. Panayotis Antypas

4. M/S. Bajiba PLC,

P.O. Box 758, Addis Ababa

Telephone No.00251-11-1552512/091-11204170

Fax No.00251-11-1550958

E-mail: amalco@ethionet.et

Contact person: Mr. Mohammed Bahajri

5. M/S. Crown Trading PLC,

P.O. Box 25741, Addis Ababa

Telephone No.00251-11-2763157/2771161         

Fax No.00251-11-2763158

E-mail: crown@ethionet.et

Website: www.crowntradingplc.com

Contact person: Mr. Samuel Tadesse

6. M/S. Dina Trading PLC,                 

P.O. Box 9277, Addis Ababa

Telephone No.00251-11-2776958/0911-212134

Fax No.00251-11-2777579

E-mail: dinat@ethionet.et

Contact person: Mr. Abdurahman Abdi Adem

7. M/S. Camels Trading Enterprise,

P.O. Box 1148, Addis Ababa

Telephone No.00251-11-2754881/0911-205374     

Fax No.00251-11-2762623

E-mail: camels@ethionet.et

Contact person: Mr. Legesse Feyissa

8. M/S. Ethiopian Grain Trade Enterprise,

P.O. Box 3321, Addis Ababa

Telephone No.00251-11-4652436/4650234         

Fax No.00251-11-4655428/4652792

E-mail: egte@ethionet.et

Website: www.egtemis.com

Contact person: Mr. Fekadu Terfa

9. M/S. Guna Trading PLC,

P.O. Box 80316, Addis Ababa

Telephone No.00251-11-4652288/0911-208595     

Fax No.00251-11-4654633

E-mail: guna.trading@ethionet.et

Website: www.ethiomarket.com/guna

Contact person: Mr. Haile Berehea

10. M/S. Hawas Agri Business PLC,

P.O. Box 5723, Addis Ababa

Telephone No.00251-11-4431596-97/0911-207356

Fax No.00251-11-4431594

E-mail: hawas_agri@ethionet.et

Website: www.hawasagribusiness.com

Contact person: Mr. Bulbulla Tulle

11. M/S. J.J. Kothari & Co. (Eth.) Ltd.,

P.O. Box 171, Addis Ababa

Telephone No.00251-11-4661155/0911-211024     

Fax No.00251-11-4661122/4661113

E-mail: j.j.kothari@ethionet.et

Contact person: Mr. Mesthet Seyoum

12. M/S. Oda Share Company,

P.O. Box 34369, Addis Ababa

Telephone No.00251-11-1566952-54/0911-235473  

Fax No.00251-11-1552474

E-mail: oda@ethionet.et

Website: www.odashco.com

Contact person: Mr. Billisa

13. M/S. Warka Trading PLC,

P.O. Box 19639, Addis Ababa

Telephone No.00251-11-1558121/1559634                        

Fax No.00251-11-2763158

E-mail: crown@ethionet.et

Website: www.crowntradingplc.com

Contact person: Mr. Samuel Tadesse

14. M/S. Al-Impex Company,

P.O. Box 7185, Addis Ababa

Telephone No.00251-11-6634400/0911-225366                   

Fax No.00251-11-6630451/5513681

E-mail: alulag.michael@al-impex.com

Website: www.al-impex.com

Contact person: Mr. Alula G/Michael

15. M/S. Ambassel Trading House,

P.O. Box 12617, Addis Ababa

Telephone No.00251-11-5525695/0911202475            

Fax No.00251-11-5505840/5515312

E-mail: ambaseltrading@ethionet.et

Contact person: Mr. Solomon Tekebe

16. M/S. Nazreth International Trading Co.,

P.O. Box 62402, Addis Ababa

Telephone No.00251-11-6614093/0911200295                    

Fax No.00251-11-6624683/6611679

E-mail: nazreth.int.@ethionet.et

Contact person: Mr. Tadesse Kassa

17. M/S. Taye Belay General Im/Ex,

P.O. Box 6907, Addis Ababa

Telephone No.00251-11-2779630-31/0911-204014                

Fax No.00251-11-2779632

E-mail: inter-axxes@ethionet.et

Contact person: Mr. Taye Belay    

18. M/S. Malima PLC,           

P.O. Box 13130, Addis Ababa

Telephone No.00251-11-1571998/0911-200080                   

Fax No.00251-11-1572005/2772399

E-mail: mallima@ethionet.et

Website: www.mallima.com

Contact person: Mr. Geresu        

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