ETHIOPIA BUSINESS DAYS WORKSHOP: OILSEEDS 5 TH NOVEMBER

Transcription

1 ETHIOPIA BUSINESS DAYS WORKSHOP: OILSEEDS 5 TH NOVEMBER

2 Workshop Agenda Welcome Introduction to CBI in Ethiopia Exercise: Perceptions & Expectations CBI: Oilseeds opportunities in Ethiopia Tradin Organic: Success in Ethiopia 2. Berhan Oils: An Ethiopian investor Investment Discussion Close

3 CBI s programme on Export Market Readiness: Oilseeds Ethiopia 5 November, 2015 CBI - Ministry of Foreign Affairs

4 CBI s Programme on Export Market Readiness 1. About the CBI 2. Background 3. Video Natural Ingredients 4. Concept Export Market Readiness 5. What is needed? 6. Integrated Value Chain Approach 7. Core Product: Export Coaching 8. Oilseeds Ethiopia Project CBI - Ministry of Foreign Affairs

5 About the Centre for the Promotion of Imports (CBI) Founded 40 years ago The Expert in Export Development and Export Promotion to the European market Budget from the Netherlands Ministry of Foreign Affairs Successfully supported exporters from developing countries to the EU Export increase for exporters to the EU Developed products and services for BSOs (sector associations, chambers of commerce) Market Information available for free at on potential export sectors in the EU CBI - Ministry of Foreign Affairs

6 Background CBI (1/2) CBI - Ministry of Foreign Affairs

7 Background CBI (2/2) Agricultural Industrial Consumer Services Fresh fruit and vegetables Timber and timber products Wine Etc. Automotive Castings and forgings Medical equipment Etc. Office and school supplies Home textiles Garments Etc. Tourism Business Process Outsourcing IT Outsourcing Etc CBI - Ministry of Foreign Affairs

8 8 CBI - Ministry of Foreign Affairs

9 Concept Export Market Readiness Exporting companies need to have: 1. Market Proposition / Export Marketing Plan 2. A product that is ready for the market 3. Processes in order to be able to deliver the product CBI - Ministry of Foreign Affairs

10 What is Needed? Dedicated stakeholders: actors, supporters, influencers, importers Market demand Supply potential Market information on destination markets Sector Export Marketing Plan Coaching individual exporters Market linkages BSO support on services, informationand market promotion CBI - Ministry of Foreign Affairs

11 Integrated Value Chain Approach Supporters Financial Institutions Private consultants NGOs Certifying agencies Trade promotion Inst. Chambers of commerce Sector associations Customs Supply side: Developing countries Production Chain Demand side: Europe WTO Ministries of Trade European Union Lobbyists Employer cooperations Trade Union Local Authorities xxx Influencers CBI - Ministry of Foreign Affairs

12 Core Product: Export Coaching for Exporters Application procedure Selection Company Audit Business Management Skills Export Capacity Building Certification Market Entry to the EU Action Plan Skills on management, HR, finance, logistics, etc. Coaching, training, Export Marketing Plan, Export Readiness Coaching, Certification Trade Fairs EU, contacts with Buyers CBI - Ministry of Foreign Affairs

13 Oilseeds Ethiopia Project 3 stages: Export auditing (diagnosis) Coaching Market entry 12 exporters 1 BSO (EPOSPEA) CBI - Ministry of Foreign Affairs

14 3 Groups of Companies Value added companies which already have experience exporting processed products to other markets and want to build their export to Europe or companies which have recently installed top class value addition facilities and want to access the European market. Early adaptors companies which have expertise and marketing capacity which needs focus and application provided by CBI to enter the European market. Step by step companies which have the product and product knowledge but are being coached by CBI to develop the necessary expertise and marketing capacity to enter the EU market CBI - Ministry of Foreign Affairs

15 More Information? Centre for the Promotion of Imports from developing countries P.O.Box AC The Hague The Netherlands Tel: +31 (0) Oilseeds sector specific information: James Fitzpatrick: CBI - Ministry of Foreign Affairs

16 Perceptions Exercise 10 Minutes & Discussion For Dutch participants 1.What comes to mind when you think about Ethiopia? 2.What are your experiences or expectations of business in Ethiopia? For Ethiopian participants 1.What do you think European buyers or investors want? 2.What are the challenges of doing business in Netherlands or E.U.? 16

17 Ethiopia Oilseeds Snapshot The World Oilseeds Market Ethiopian Value/Supply Chain Oilseeds Opportunity in Ethiopia Centre for the Promotion of Imports from Developing Countries 17

18 Summary of conclusions and opportunities Ethiopia produces: High value Oilseeds Suitable for export markets Potential for high value export markets Suitable for specialty & niche markets Potential for value addition Potential for value chain investment Major market share opportunities in Sesame,Linseed, Niger Niche market opportunities in Soya beans, organic products, oils and primary processed products.

19 Ethiopian Oilseeds Diversity of growing conditions Smallholder Agriculture 3 million farmers Low Yields Low use of inputs & chemicals Oilseeds 2 nd export after coffee Centre for the Promotion of Imports from Developing Countries

20 Ethiopian Oilseed Production 900, , , , , , , , , / / / /12 Oilseed cultivated land (ha) Oilseed Production in Tons

21 What oilseeds are we talking about? 1. Sesame 2. Rape 3. Groundnut 4. Linseed (Flax) 5. Noug or Niger Seed 6. Sunflower/Safflower Oil crops 1. Cotton 2. Soya Beans 3. Castor 4. Pumpkin 5. Palm Centre for the Promotion of Imports from Developing Countries

22 THE MARKETS WORLD TRENDS PRODUCT TRENDS EUROPEAN TRENDS

23 Trends OECD & FAO OECD & FAO project higher oilseed and oil prices to 2020 Growth in usage slowing Growth dominated by developing countries Production growth slowing

24 Trends in trade structure and channels balance of supply/demand, food security food safety traceability healthy foods the power of the supermarket Market trends changing the structure of the sector 24

25 Product Market Trends Health & Wellness Lower fat ; higher quality High Oleic Non GMO Replacement of Palm Oil, hard fats, heavy oils Market Segmentation ethnic, high quality oils, certified oils Bio Diesel usage Sustainability Food security Environment Product Identity preservation 25

26 European Oil-seeds Market World Oilseeds Imports by share 3% 2% 7% China Rest of Asia 15% Europe Europe is the 2 nd most important destination market after Asia Europe accounts for: 15% of World Imports 11% of World Production 18% 55% South America Africa North America Europe has no production of Groundnuts, Sesame Seed or Palm kernels Europe Million tonnes Production Imports Exports Trend European imports have been steady in the last couple of years recovering from a dip during the period Source FAO 26

27 EU Market Imports growing Highlights Imports recover to 5.3m tonnes Sesame up 15% 2014 vs 2012 Linseed up 6% +53k tonnes Groundnut up 13.5% Suns up 14% 2012 vs % annual growth in consumption Developing countries Sesame 80% 122,000 tonnes GNK 55% 450,000 tonnes Linseed 26% 232,000 tonnes

28 European Buyers Requirements 28

29 Ethiopia in the World Market Sesame seed Linseed Niger Seed Centre for the Promotion of Imports from developing countries 29

30 Sesame Seed: 4 th Largest producer Sources: FAO, Trade, EPOSPEA,CBI Centre for the Promotion of Imports from developing countries 30

31 Linseed: 6 th Producer in the World Centre for the Promotion of Imports from Developing Countries 31

32 Niger Seed: Largest producer Centre for the Promotion of Imports from Developing Countries 32

33 Sesame Seed Chain Sesame is primarily an export product High quality whitish seed suitable for direct food use - Humera High oil content mixed seed suitable for crushing Wollega, Gondar Traded via the ECX

34 Niger, Linseed Oilseed Chain Mainly domestic Export to Europe and USA Industrial, food and pet food.

35 Value Chain Successes & Evidence of success in the sector Government & NGO support Increasing production of quality raw materials Diverse soils and growing conditions Availability of labour Availability of land Economic growth Growing domestic market Opportunity in regional markets. Constraints Access to finance for growers and cooperatives Limited infrastructure Low inputs access Poor post harvest handling Unreliable contracting Low levels of value addition linking export to import needs. Difficulty traceability & trade through ECX Risk of high dependence on China market. 35

36 ETHIOPIAN OILSEEDS OPPORTUNITY IN PRODUCTION, VALUE ADDITION AND INPUTS

37 A World of Market Opportunities

38 1. Sesame 2. Groundnut 3. Linseed (Flax) 4. Noug or Niger Seed Product opportunities Potential for Value Addition Sesame natural cleaned Linseed natural cleaned Noug or Niger Seed Groundnut production Soya Beans (Non GMO & Organic) Castor Value added products Hulled, cleaned Specialist Oils for export Bulk oils for domestic Prepared e.g. Tahini / Halva Oilseed cake for animal feed Niche Markets Organic/Ethical GMO Free Centre for the Promotion of Imports from Developing Countries

39 Value Chain Opportunities Farmers & Cooperatives Improving yields & post harvest practices Contract farming Irrigation Organic farming Cultivation of new land Centre for the Promotion of Imports from Developing Countries

40 Value Chain Opportunities Processing Oilseed cleaning, sterilisation and hulling Oil milling & refining Oilseed export Processing for food e.g. tahini Centre for the Promotion of Imports from Developing Countries

41 Value Chain Opportunities Agri business Supply of fertiliser & pest controls Improved planting seeds Farmer training Farm equipment Cooperative business development Centre for the Promotion of Imports from Developing Countries

42 Value Chain Opportunities Services Credit facilities for farmers Technology transfer Market information services Warehouse and infrastructure development Centre for the Promotion of Imports from Developing Countries

43 Value Chain Opportunities Farmers & Cooperatives Improving yields & post harvest practices Contract farming Irrigation Organic farming Cultivation of new land Processing Oilseed cleaning, sterilisation and hulling Oil milling & refining Oilseed export Processing for food e.g. tahini Agri business Supply of fertiliser & pest controls Improved planting seeds Farmer training Farm equipment Cooperative business development Services Credit facilities for farmers Technology transfer Market information services Warehouse and infrastructure development Centre for the Promotion of Imports from Developing Countries

44 Investment incentives Capital equipment customs duty exemption for new enterprise or upgrade of existing. Packing & raw materials for re-export customs duty exemption. Profits tax exemption 2-8 years for agro investment. Processors can source directly from farmers and cooperatives.

45 Government Policy - Oilseeds Establishment of a Project Management Unit at ATA Promotion of value addition Sesame is a priority crop in the Agricultural Growth Program

46 Oilseed Value Chain Initiatives 1. Sesame Business Network Innovation and knowledge building network working with business clusters - Netherlands Embassy and agencies 2. Netherlands Embassy Agribusiness Support Facility initiative, SBN, Aid through Trade 3. Ethiopian Government New warehouse facilities & direct links for from growers for processor

47 Oilseed Value Chain Initiatives 4. SNV Pilot programme training cooperatives Co- operatives for Change - Gates Foundation 5. NABC creating business linkages 6. CBI exporter training programme. 7. ECX Traceability and quality improvement initiatives

48 Success Stories Ambasel Trading House PLC Dipasa Agro PLC Selet Hulling PLC Trading Organic Berhan Oil Mills

49 Summary of conclusions and opportunities Ethiopian Value Chain High value Oilseeds ; increasing production Suitable for high value export markets Suitable for value addition Government and International support Investment Potential Value chain investment Processing investment Social impact

50 Thank you 50

51 Friday 6 th November Factory Visit Intersnack the largest snack manufacturer of nut and seed based snacks in Europe 1. Bus leaves from Brood Fabriek at 8 a.m. 2. Visit 10 am 1.30 p..m. 3. Dutch Lunch afterwards 4. Expect to be back here circa 4.30 pm