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Amhara National Regional State (ANRS)

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................................I
I. HORTICULTURE CROP PRODUCTION ............................................................................................1
1.1 BACKGROUND ......................................................................................................................................1
1.2 OBJECTIVES OF THE STUDY ...................................................................................................................1
1.3 SCOPE OF THE STUDY.............................................................................................................................1
II. OVERVIEW OF FLORICULTURE INDUSTRY WORLD WIDE .................................................2
2.1 MAJOR PRODUCERS IN FLORICULTURE INDUSTRY ............................................................................2
2.2 MAJOR CONSUMERS OF FLORICULTURAL PRODUCE..............................................................................2
2.3 PROSPECTS IN FLORICULTURE INDUSTRY WORLD-WIDE......................................................................3
2.4 FLORICULTURE INDUSTRY IN ETHIOPIA.................................................................................................4
III.

HORTICULTURE OPPORTUNITIES IN AMHARA REGION ...................................................6

3.1 OPPORTUNITIES IN FLORICULTURE INDUSTRY.......................................................................................6


3.1.1 Important Agro Ecological Factors...............................................................................................6
3.1.2 Predetermined Criteria Applied for Potential Area Identification .............................................7
3.1.3 Flowers Potential Areas in Mirab Gojam Zone...........................................................................7
3.1.4 Flowers Potential Areas in Misrak Gojam Zone.........................................................................9
3.1.5 Opportunities and Challenges in Floriculture Industry in the Region: ..................................14
3.1.6 Investment Incentives .................................................................................................................18
3.1.7 The Way Forward to Enhancing Investment in the Region.........................................................19
3.1.8 Recommendations for Enhancing Floriculture Industry ............................................................21
3.2 OVERVIEW OF HORTICULTURE PRODUCTION IN AMHARA REGION....................................................22
3.2.1 The State of Horticulture Development in the Region:...............................................................22
3.2.2 Production of Vegetables and Spices by Zones .........................................................................22
3.2.3 Attributable Factors for Low Horticultural Development .........................................................23
3.2.4 Prospects for Horticulture Development in the Region.............................................................25
3.2.5 Recommendations for Promoting Horticultural Development in the Region............................35
3.2.6 Project Ideas ..............................................................................................................................36
ANNEX I. PRODUCTION AND MARKETING OF FLOWERS..........................................................38
1.1 TECHNICAL KNOW-HOW REQUIRED FOR PRODUCTION OF FLOWERS .................................................38
1.2 MARKETING STRATEGY......................................................................................................................38
1.3 FACTORS INFLUENCING PRODUCER PRICES.........................................................................................40
ANNEX II. POTENTIAL FLOWER SPECIES FOR EXPORT MARKET..........................................42
ANNEX III. LIST OF PEOPLE MET........................................................................................................46
REFERENCES.............................................................................................................................................47

LIST OF TABLES

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LIST OF ANNEXES
ANNEX I. PRODUCTION AND MARKETING OF FLOWERS....ERROR: REFERENCE SOURCE
NOT FOUND
1.1 TECHNICAL KNOW -HOW REQUIRED FOR PRODUCTION OF FLOWERS. .ERROR: REFERENCE SOURCE
NOT FOUND
1.2 MARKETING STRATEGY........................................................ERROR:
1.3 FACTORS INFLUENCING PRODUCER PRICES.......................ERROR:

REFERENCE SOURCE NOT FOUND


REFERENCE SOURCE NOT FOUND

ANNEX II. POTENTIAL FLOWER SPECIES FOR EXPORT MARKET.....ERROR: REFERENCE


SOURCE NOT FOUND
ANNEX III. LIST OF PEOPLE MET.........................ERROR: REFERENCE SOURCE NOT FOUND

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EXECUTIVE SUMMARY
1. Horticultural crops category includes fruits, vegetables, and flowers. Fruits
and vegetables play a significant role in human nutrition, especially as
sources of vitamins, minerals, dietary fibers, and antioxidant. Increased
consumption of a variety of fruits and vegetables on a daily bases is highly
recommended because of associated health benefits which include reduced
risk of some forms of cancer, heart diseases, stroke and other chronic
diseases.
2. Floriculture, which is one of the segments of the horticulture sub-sector, plays
also a significant role in the day-to-day esthetical and psychological wellbeing of human beings. Flowers, which belong to floriculture industry, are
produced in different parts of the world for local consumption and exports,
and most of the developing countries produce flowers for the international
export market.
3. International trade in horticultural products has increased markedly in the past
two decades. Changes in dietary habits stemming from increased health
awareness have accelerated year-round consumption of fresh fruits and
vegetables and the sales of increasing variety of prepared foods in industrial
countries. Some African countries, particularly some Sub-Saharan African
countries, have benefited from the expansion of trade. The value of exports of
fresh vegetables and flowers from the African countries to the EU member
countries is believed to have more than doubled during the last two decades.
4. Thus, the primary objective of the study is to assess the natural resource
potential and opportunities to enhance investment undertakings in horticulture
and floriculture development and production in Amhara National Regional
State. This includes both for export and domestic markets.
5. The scope of the study includes the assessment of natural resources
potential of specific areas for horticulture and floriculture development based
on Geographic Information System (GIS), and reviewed and verified as
necessary. The study also includes identification of major constraints
associated with the production and marketing of horticultural and floricultural
products, and proposals and suggestions to overcome the major constraints,
in order to enhance and promote horticultural and floriculture development
and investment undertakings in the region.
6. Many countries in all regions of the world grow floricultural crops, whose total
area is estimated at 100,000 Ha, with a total value of the annual production
estimated at about 60 billion euros, out of which the shares of China, Europe
and Americas are estimated at 34, 10, and 7 billion euros, respectively.

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7. However, the major producers of cut flowers include the Netherlands, China,
USA, Japan, Italy, France, UK, Ecuador, Colombia, Kenya, Tanzania,
Uganda, Zimbabwe, and Israel. The Netherlands, with about 850 Ha under
cut flower production, in 2003, is a leading cut flower market center in the
world. The other EU member countries, including Italy, France and Germany,
with a total area of about 1780 Ha, in 2003, are also producers of cut flowers.
Ecuador and Colombia have about 1600 Ha., while the Sub-Saharan African
countries, including Kenya, Uganda, Tanzania, and Zimbabwe, together had
about 1300 Ha under cut flower production, in 2003, and Kenya with 1000
Ha , is the leading producer in the group. However, the general trend of cut
flower production is on the decline in developed countries, because of high
production costs.
8. On the other hand, consumption of floricultural products is increasing
worldwide. Western European countries, with a population of nearly 400
million, are one of the major importers and consumers of cut flowers. The
total consumption of these countries was estimated at 14.2 billion euros, out
of 30.0 billion euros of total global consumption of cut flowers in 2003. As a
result, import of cut rose flowers is progressively increasing from year to year,
because of increased per capita incomes of citizens of developed countries.
9. Moreover, the increase of demand for cut flowers, over the last few decades,
has been also attributed to changes in consumption pattern from solely
special occasion uses to regular features in most middle to high-income
households, while production of cut flowers is on the declining trend in
Western European countries, particularly in the Netherlands as well as Israel
and some Latin American countries, due to shrinkage of areas under cut
flower production and increasing costs of production. As the increased
demand could not be met from their own production of cut flowers, developed
countries have increased import of cut flowers to match their growing
demand. Subsequently, this has opened great opportunities to developing
countries, particularly to some Sub-Saharan countries, to undertake and
expand production of cut flowers.
10. Ethiopia is considered as one of the flower potential countries in East Africa. It
has a diversified and suitable agro-ecological condition, including altitudes of
low and high lands, good soils, rich sources and quality of water for irrigation,
and suitable temperatures. However, despite the fact that the country has
favourable agro ecological condition for export production of cut flowers, the
floriculture industry has not developed. The flower production in Ethiopia
started in the eighties, and about 10 different species of flowers used to be
produced and exported to the European market. However, the production was
limited to summer flowers, produced on open fields without controlled growing
environmental conditions.

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11. Consequently, the contribution of the sector to the national economy has
been very small, by comparison with other neighboring East African
Countries. Kenya is the leading flower producer and exporter country in the
region, although Ethiopia has better potential and opportunity to produce high
quality flower than all other Eastern African Countries. Moreover, Ethiopias
proximity to Europe, with lower airfreight costs, puts the country in a more
advantageous position than Kenya and other African countries.
12. Moreover, the Ethiopian highlands, which are similar to the highlands of
Ecuador and Colombia, which produce and export high value big bud roses to
the European market, also provide good opportunity for production of high
quality of cut flowers. In fact, Ethiopia has better advantage over these
countries, because of its close proximity to the European market and lower
cost of production.
13. The recent trend in floriculture industry in Ethiopia has shown a tremendous
growth. There are now 18 companies in the country, engaged in production
and export of flowers, and all of these projects are located in Oromiya region,
due to proximity to Bole International Airport. This has created a good
opportunity for the Oromiya Regional Government to expand the floriculture
industry by allocating more project land, now estimated at 5,100 Ha, for
foreign as well as national investors. As a result of the fast expansion in the
floriculture industry in the region, the value of export earnings has increased
by many folds in a period of three years alone, and has reached more than 11
million USD for the last eleven months. In addition, the projects have provided
job opportunities to the various rural communities, as well as to other skilled
and non-skilled labour force.
14. The Amhara region has also a diversified and suitable agro ecological
condition suitable for development of floriculture industry, under both hightech controlled environment and open field summer flowers. The most
important agro ecological factors for cut flower development include altitudes,
temperatures, topography, rainfalls and source and quality of water for
irrigation, and types of soils and other closely related factors, including
proximity to international airport.
15. Predetermined agro ecological criteria have been applied to identify the
potential areas that would be suitable for production of cut flowers in the
Amhara region. These criteria include, (i) altitude range 1400 2400 a.s.l, (ii)
good drained soils with top soil depth above 35cm, (iii) temperature range 5
30oC, and, (iv) annual rainfall range 800 1400 mm. These predetermined
agro ecological criteria have been investigated further in Geographic
Information System (GIS), where data have already been created in the
computer software. This analysis has resulted in identification of many
potential locations/areas in Mirab Gojam, Misrak Gojam and Awi (Dangila)
Zones , whose total gross area is estimated at 1.2 million Ha (See attached

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map & List of potential Woredas). However, cut flower venture is a highly
capital intensive undertaking that 1000Ha would require about 5 billion Birr in
investment, which could generate about 3 billion Br of foreign exchange
earnings annually. Thus, what is required is a very small fraction of the
available land.
16. Further review of these results has indicated that most potential areas in
Mirab Gojam Zone are classified as mid highlands (1800 1900m.a.s.l.),
being suitable for highland varieties of cut flowers. Similarly, the potential
areas in Misrak Gojam Zone are classified as highlands (2000 2200m
a.s.l.), being suitable for highland varieties of cut flowers. The areas around
Dangila, in Mirab Gojam, are also considered as highlands (2000 2200m
a.s.l.), having similarity with that of Misrak Gojam Zone. The areas in Awi
Zone have even higher altitudes (2400+m a.s.l.) than the areas in Misrak
Gojam Zone, but the distance is a bit farther to Bahir Dar.
17. Apparently, all of the identified areas, as potential for cut flowers, have good
drained soils and rich sources and quality of water for irrigation, including
many tributaries and streams and underground water, which is a most
suitable source of water for cut flower production. These areas have also
moderate topographic features, whose land leveling costs estimate would be
reasonable. The annual rainfalls of the areas, being above 1000mm, are quite
adequate and reliable and, as a result, the temperatures, within the range of
10 25oC, are considered as suitable for cultivation of cut flowers.
18. As far as the agro-ecological factors are concerned, no doubt that Mirab and
Misrak Gojam Zones have very favorable conditions for cultivation of cut
flowers for export market. However, the proximity concern, to Bole
International Airport, would be of great concern; in fact, it would be
detrimental in promoting the floriculture industry in the region. Fortunately, the
potential areas in Mirab Gojam Zone have very good accessibility to Bahir
Dar, as a result of the recently improved asphalt road that connects Addis
Ababa with all major towns, including Gonder, Bahir Dar, and Debre Markos .
19. However, airfreight services, from Bahir Dar to Bole International Air port,
would be of great concern and depend entirely on measures to be taken to
improve the Bahir Dar Airport facilities, including direct cargo services to
international market destinations, provided the volume of production justifies
for full cargo. The availability of reliable airfreight services would even be
more critical at the initial stage of development and production of cut flowers,
as the volume of production may not justify for regular airfreight services.
20. The prevailing agro-ecological conditions in Misrak Gojam are even more
conducive than in Mirab Gojam for growing highland varieties of cut flowers
because of higher altitudes, ranging from 2200 2400m a.s.l. The other
essential factors, including soils, sources and quality of water, topographic

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features and rainfalls and temperatures are very favorable to grow highland
varieties of cut flowers. However, the proximity to Bole International Airport is
a serious concern, although Debre Markos is much closer to Addis Ababa. In
this regard, both air and land transport should be considered as transport
possibilities. However, these need to be further investigated, including
measures to be taken to improve the existing small airport at Debre Markos
and the road between Debre Markos and Goha Tsion need to be substantially
improved.
21. There are, however, opportunities, as well as challenges to exploit the huge
potential available in both zones of Mirab Gojam and Misrak Gojam for
production of high quality of cut flowers for export. This suggests for the
creation of a conducive investment environment, including: (i) ensuring
efficient processing of licenses and permits to prospective investors, (ii)
identifying and earmarking suitable potential areas for flower projects, and
making the same readily availability for prospective investors, (iii) ensure the
availability of necessary infrastructures, rural roads, power, telephone lines in
the project areas, (iv) making arrangements with the Ethiopian Airlines for
reliable and sustainable airfreight services, (v) creating a functioning Liaison
Office in Addis Ababa, and (vi) formation of an organization, say, Abbay Agro
Industrial Enterprise, S.C., substantially supported with venture fund from the
Regional State, aimed at promoting and developing the horticultural sector,
including the floriculture industry.
22. The region has also a diversified and favorable agro ecological condition for
cultivation of a wide range of horticultural crops. At present, various
horticultural crops, including coffee, vegetables, fruits, spices, root and tuber
crops are widely grown in different parts of the region. The main types of
vegetables and spices grown in the region include shallot & onion, garlic,
potatoes and sweet potatoes, cabbage, carrot, tomatoes, hot peeper,
fenugreek, black cumin and ginger and others. According to data provided by
Bureau of Agriculture and Rural Development of the region, the total area,
under various types of vegetables and spices, is estimated at 84,398 Ha.
However, most of the cultivation is carried out by small land holding peasant
farmers, who predominantly use traditional farming practices. Thus, most of
the horticultural produce, except coffee and some spices, is produced for
local markets as cash crops. As a result, the revenue generated from the
horticultural sector is not significant.
23. According to CSA Sample Survey, 2002, the share of the region, in terms of
area and production of vegetables and spices, is estimated to be 0.62% and
3.3%, respectively, of the national estimates. This is a clear indication that
vegetables production in the region is at a very low level. The major factors
attributable to low development of the horticulture sector (vegetables) include
(i) inaccessibility and long distance from major domestic markets, (ii) lack of

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research and adequate extension services, (iii) limited market outlets, and (iv)
socio-economic and other related factors
24. However, the region, given its diversified and suitable agro ecological
features, including altitudes, rainfalls, rich sources of water for irrigation,
temperatures and soils, has huge potential and opportunities for a wide range
of horticultural crops to be grown. The Koga Irrigation Project, in Mirab Gojam
Zone, which is very close to Bahir Dar, has huge potential. The project,
located at an average altitude of 1800m a.s.l., is envisaged to irrigate about
7000 Ha. The area has well drained soils siutable for growing a wide range of
horticultural crops, including mid-high land fruits, such as avocado, mango,
papaya, and pineapple. The project should also be exploited for high value
export crops, including french beans, straw berries, passion fruits, papya
(solo types), baby corn, sweet corn and many others.
25. The project would also provide good opportunities for the establishment of
agroprocessing industries of various fruit juices and tomato paste for
domestic and export markets. The farmers, under the project, should be
encouraged and guided to supply raw materials, as outgrowers, for the agro
processing industries. Furthermore, the establishment of the agro industrries
in the area would also benefit farmers outside the project, as well as in
Fogera area, as these farmwers could be encouraged to produce and supply
raw agricultural products to the agro-processing industries.
26. High value export horticultural crops, such as mangetout peas, sugar snap
peas and runner beans, all of which require cool conditions of daytime
maximum temperatures of less than 24 o C, may do well around Dangila and
at highlands of Misrak Gojam Zone, and Awi Zone, which is also considerd
suitable for some high land fruits, such as apple. However, it must be
stressed that none of these export crops is easy to grow and any attempt at
commercial production, will only be successful with the right infrastructure and
management in place, including reliable cargo flight services, possibly direct
flights to international market destination.
27. The highlands of Semen Shewa should also be investigated for some
highland fruits, such as apples and others. However, of great interest in
Semen Shewa and beyond is the vast valley that extends from Shewa Robit
and further. This is a vast area siutable for a wide range of lowland
vegetables and fruits. Currently, a wide range of vegetables, including onions,
tomatoes and others are produced for Addis Ababa market. However, the
exploitation of the potential of the areas would require a substantial
investment in water conservation and water harvesting schemes, as well as
improvement in the condition of the road between Shewa Robit and Addis
Ababa.

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28. At present, a large portion of the horticultural production in the region,


especially production of vegetables, is cultivated by homestead growers,
whose costs of production and yields are low. However, the horticultural
sector, in general, vegetable production, in particular, would bring a lot of
benefits to the region as well as to the country if certain measures are taken
to realize the potential that exists in the region.
29. Thus, further measures need to be taken to identify potential areas suitable
for production of major horticultural crops, supported by intensive research
activities, as to enable the small growers as well as the prospective investors
to make investments in the region. It would also be important to take
measures to improve infrastructures, including road accessibility, power and
communications and airport facilities for export market.

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I. HORTICULTURE CROP PRODUCTION


1.1 Background
Horticultural crops category includes fruits, vegetables, and flowers. Fruits and
vegetables play a significant role in human nutrition; especially as sources of
vitamins, minerals, dietary fibers, and antioxidant. Increased consumption of a
variety of fruits and vegetables on a daily basis is highly recommended because
of associated health benefits which include reduced risk of some forms of cancer,
heart diseases, stroke and other chronic diseases.
Floriculture, which is one of the segments of the horticulture sub-sector, plays
also a significant role in the day-to-day esthetical and psychological well being of
human beings. Flowers, which belong to floriculture industry, are produced in
different parts of the world for local consumption and exports, and most of the
developing countries are producing flowers for the international export market.
International trade in horticultural products has increased markedly in the past
two decades. Changes in dietary habits stemming from increased health
awareness have accelerated year-round consumption of fresh fruit and
vegetables and the sales of an increasing variety of prepared foods in industrial
countries. Some African countries, particularly some Sub-Saharan African
countries, have been able to benefit from the trade. The value of exports of fresh
vegetables and flowers from the African countries to the EU member countries is
believed to have more than doubled during the last two decades.

1.2 Objectives of the Study


The primary objectives of the study are to assess the natural resource potential
and opportunities to enhance investment undertakings in horticulture and
floriculture development and production in Amhara National Regional State, both
for export and domestic markets.

1.3 Scope of the Study


The scope of the study includes the assessment of natural resources potential of
specific areas for horticulture and floriculture development based on Geographic
Information System (GIS) which was of course reviewed and verified as
necessary. The study also includes identification of major constraints, associated
with the production and marketing of horticultural and floricultural products, and
proposals and suggestions to overcome the major constraints, in order to
enhance and promote horticultural and floriculture development and investment
undertakings in the region.

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II. OVERVIEW OF FLORICULTURE INDUSTRY WORLD


WIDE
2.1 Major Producers in Floriculture Industry
Many countries in all regions of the world grow floricultural crops, whose
total area is estimated at 100,000 Ha, and the total value of the annual
production of flowers and plants is estimated at about 60 billion euros in
the world, out of which the shares of China, Europe and Americas are
estimated at 34, 10, and 7 billion euros, respectively (Source: International
Flora Seminar at Addis Ababa Hilton from Aug. 4--5, 2004) .

However, the major producers of cut flowers include the Netherlands, China,
USA, Japan, Italy, France, UK, Ecuador, Colombia, Kenya, Tanzania,
Uganda, Zimbabwe, and Israel. In 2003, the Netherlands, with about 850Ha
under production, and as a major market center, was leading the cut flower
market in the world.. The other EU member countries, which include Italy, France
and Germany, each had 1030, 500, and 250 ha under cut flower production,
respectively, while Ecuador and Colombia have together about 1600 ha under
cut flower cultivation, The Sub-Saharan African countries of Kenya, Uganda,
Tanzania, and Zimbabwe, each had 1000, 110, 80 and 100 Ha, respectively,
under cut flower production in 2003.
However, the areas under cut flower production are fluctuating year to year
because of increasing production costs, particularly in developed countries. The
Netherlands, for instance, has reduced the area under production of cut flowers
from 1000 to 850 Ha, in 2003, and Israel, similarly, has reduced from 80 to 50 Ha
by the year 2003. Furthermore, the trend appears to be towards reduction of
areas covered under cut flower production in developed countries, while, on the
other hand, investment in cut flower production is on the increase in developing
countries, particularly in the Sub-Saharan countries with the exception of
Zimbabwe, whose area is reduced from 300 to almost 100 Ha by the year 2003.
The cut flower production in Kenya, at 1000Ha, has been stable, while the trend
in Uganda is on increase by an average of 25 Ha per year. On the other hand,
Ethiopia, which is a new comer, is rapidly increasing cut flower production year to
year. Currently, the total area under cut flower production in Ethiopia is believed
to be more than 300 Ha.

2.2 Major Consumers of Floricultural Produce


Consumption of floricultural products is increasing worldwide. Western European
countries, with a population of nearly 400 million, are one of the major importers
and consumers of cut flowers. The total consumption of these countries was

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estimated at 14.2 billion euros, out of 30.0 billion euros of total global
consumption of cut flowers in 2003. As a result, import of cut rose flowers is
progressively increasing from year to year. Most of the globally traded flowers
also include Roses, Chrysanthemum, Tulip, Carnation and Gerbera, among
which Roses stand highest among the major varieties in the European market.
Table 2. 1: Consumption of Cut flowers by EU Member Countries from 1996
- 2003 (in million eur).
Countries
1996
1997
1998
1999
2003
Germany
3,983
3,478
3,494
3,343
3,492
Italy
2,025
2,001
2,101
2,162
2,557
France
2,127
1,930
2,027
1,939
2,350
England
1,439
1,628
1,803
1,908
2,197
Spain
746
667
732
1,187
936
Holland
670
551
561
543
561
Others
2,234
2,007
2,007
2,053
1,565
Total EU
13,224
12,262
12,771
12,637 14,192
Source: International Flora Seminar at Addis Ababa Hilton from Aug. 4--5,
2004.
As indicated in Table 2.2 above, average annual consumption increase during
the period between 1999 and 2003 is noted to be 2.2%, or 311 million EUR. The
increase in consumption trend is expected to continue as incomes of and
population increase in EU members countries

2.3 Prospects in Floriculture Industry World-Wide


Studies conducted on consumption of floricultural products confirm that the level
of income of countries, including the GDP of each country and per capita of its
citizens, is an important factor in determining the level of consumption. As a
result, developed countries, with high per capita income, are major consumers of
floricultural products, and the trend indicates that, as the per capita income of
developed nations increases, the demand for floricultural products would also
increase.
Moreover, the demand for cut flowers, over the last few decades, has increased
considerably due to changes in consumption pattern from solely special occasion
uses to regular features in most middle to high-income households. On the other
hand, production of cut flowers is on a declining trend in Western European
countries, particularly in the Netherlands as well as Israel and some Latin
American countries, due to shrinkage of areas under cut flower production and
increasing costs of production. As the increased demand could not be met from
their own production of cut flowers, developed countries have increased the
import of cut flowers to match their growing demand.

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Subsequently, this has opened more opportunity to developing countries,


particularly to some Sub-Saharan countries, to undertake and expand production
of cut flowers. As data show about 30% of the flowers imported into Western
European markets come from non-EU member countries, including Colombia,
Ecuador, Kenya, Uganda, Tanzania and Zimbabwe. Moreover, available data
indicate that the share of the developing countries is increasing significantly, as
most of the flower production in European countries occurs during the summer
months (June October). So, this is another opportunity for developing countries
to export flowers during the European winter months (November February),
because most of the developing countries are found in tropical regions. As a
result of increased demand for cut flowers and reduction trend in areas under cut
flower farms in developed countries, the floriculture industry is expanding and
becoming one of the major sources of income and employment for developing
countries in Africa and Latin America.
However, the competition among the developing countries for export market of
cut flowers is getting intense. To be competitive in the market, countries are
required to have consistent quality standards and continuity of supplies
throughout the export seasons, and pre-cooling and cold chain distribution
capabilities. The countries engaged in floriculture export market should also be
able to cop up with the increasing production and airfreight costs.

2.4 Floriculture Industry in Ethiopia


Ethiopia is considered as one of the flower potential countries in East Africa. It
has diversified and suitable agro-ecological conditions, including altitudes of low
and high lands, good soils, rich sources and quality of water for irrigation, and
suitable temperatures. However, despite the fact that the country has favourable
agro ecological conditions for commercial production of cut flowers, until recently
the level of the development of the industry has been very low. The flower
production in Ethiopia started in the eighties, and about 10 different species of
flowers used to be produced and exported to the European market. The products
were characterized as summer flowers produced on open fields without
controlled growing environment conditions. Besides, the production areas have
been, until recently, concentrated on the lower altitudes of the country, ranging
from 1200-1650 meters above sea level in the Rift Valley.
Consequently, the contribution of the sector to the national economy has been
very small, by comparison with other neighboring East African countries. Kenya
is the leading flower producer and exporter country in the region. However,
Ethiopia has better potential and opportunity to produce high quality flower than
all other Eastern African countries, and to become a leading producer and
exporter in the region. Moreover, Ethiopias proximity to Europe and its lower
airfreight costs are some of the main advantages it has over that of Kenya and
other African countries.

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The Ethiopian highlands also provide good opportunity for production of high
quality of cut flowers. Ethiopia, which has a similar agro-ecological climate as
that of the highlands of Ecuador and Colombia, which produce and export high
value big bud roses to the European market, could be very competitive in export
market. In fact, Ethiopia has many advantages over these countries due to its
proximity to the European market, and low cost of production. The advantages
attributed to Ethiopia are summarized below:

Highland Ethiopia has better macro-climatic conditions more suitable to


rose production than anywhere in Asia and Africa. This leads to quality
equivalent to Holland, Ecuador and Colombia.
Geographical proximity to Europe and the Middle East means that freight
cost, which is the largest cost component, is lower for Ethiopia than any
other African, Asian or South American countries. For example, airfreight
costs to Europe from: (i) South America USD$2.00/Kg, (ii) East Africa
USSD $1.70/Kg., (iii) Ethiopia $USD 1.35/Kg.
The Ethiopian climatic conditions allow for year round production, while
production during European winter (in Holland, UK, Italy) is more
expensive; as a result the European winter is the high season for
floricultural products from Africa, Asia and Latin American countries.
As European demand is shifting from sweetheart to T-hybrid (better
quality),
many Dutch growers are moving out of Holland to Africa.
Ethiopia has also the opportunity to diversify the production into other
summer flowers, including Hypericum, Gypsophila, Static, Carnation
(standard), and other potential summer flowers.

The recent trend in floriculture industry in Ethiopia has shown a tremendous


growth. In less than half a decade there are now 18 companies in the country,
engaged in production and export of flowers. All of these projects are in Oromiya
Region, concentring around Addis Ababa because of the proximity to Bole
International Airport, Hence, the Oromiya Regional Government has taken
advantage of the availed opportunities by allocating a large area of land to more
prospective investors, foreign as well as national investors. According to recent
data, the Oromiya Regional Government has allocated land to 27 foreign
companies, with a total area of 1091 ha, and to 20 local and 5 joint-venture
companies, out of 5100Ha of land earmarked for prospective investors in
floriculture industry. Most of the companies are making good progress in their
project undertakings. As a result of the fast expansion of floriculture industry in
the country, the gain in export earnings has increased by many folds in a period
of three years, the value reaching more than 11 million USD for the last eleven
months alone. In addition to the export earning benefit, the projects have also
provided job opportunities to the respective rural communities, as well as to
other skilled and non skilled labour force in the region.

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III.

HORTICULTURE OPPORTUNITIES IN AMHARA REGION

3.1 Opportunities in Floriculture Industry


3.1.1 Important Agro Ecological Factors
The Amhara region has also a diversified and suitable agro ecological condition
to develop the floriculture industry, under both high-tech controlled environment
and open field summer flowers. The most important agro ecological factors to
select a particular area for cut flower development include altitudes,
temperatures, topography, rainfalls and source and quality of water for irrigation,
types and structure of soils, and other closely related factors including proximity
to international airport. These factors are briefly discussed as follows.

(a) Altitudes
The lower altitude is suitable for species sensitive to cold and frost, while the
higher altitude is suitable for production of high quality roses and other species of
flowers such as carnation, hypericum, gypsophila, etc.
Altitudes ranging from 1200-1900 meters above sea level are considered to be
lowlands suitable to produce small budded and short stem flowers with high
production capability.
Altitudes ranging from 1900-2500 meters above sea level are considered to be
highlands suitable for high quality long stem and big budded flowers, but the
production capacity of highlands is lower than the once grown in the lowlands.

(b) Temperatures
Temperatures are closely associated with altitudes, i.e, (i) high temperatures are
associated with low altitudes and shorter cultivation time, and, (ii) low
temperatures are associated with high altitudes and longer cultivation time.
Moreover, as cut roses are produced under controlled environment
(greenhouses) and also influenced by other associated factors, such as light and
air, it is difficult to make a binding statement on the temperature. However, an
extreme situation of temperatures would have an adverse effect on the
development of the plants and should be avoided.

(c) Soils
Types of soils, including structure and texture, depth and PH level, are important
factors in determining potential locations for flower projects. Although poor soils
could to some extent be treated, the additional cost required would, however,
increase the investment cost.
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(d) Topography
Topography could be one of the important factors in identifying potential areas.
The nature of the topography, together with soil type, would determine the nature
of drainage. Rugged nature of topography could require high investment cost for
land leveling.

(e) Water Sources and Quality


Source and quality of water is a determining factor in selection of a particular
location for production of flowers. The sources of water for irrigation could be
ground water, rivers and springs or ponds. However, adequate and sustained
supply and quality of water is crucial for production of flowers. Ground water is
normally preferred to other sources, provided the supply for irrigation is adequate
and reliable throughout the growing period.
3.1.2 Predetermined Criteria Applied for Potential Area Identification
Predetermined agro ecological criteria were applied to identify the potential areas
that would be suitable for production of cut flowers in the Amhara Region. These
criteria are summarized as follows:
Table 3. 1: Predetermined Criteria Applied for Potential Area Identification

Agro Ecological Criteria


Altitudes
Altitude
Temperatures
Rainfalls
Soils (top soil)

Predetermined
parameters
1400 1900m a.s.l.
1900 - 2400m a.s.l.
5 - 300 C
800 - 1400mm
35cm

Remarks
Low to medium high lands
High lands
For low and high lands
For low and high lands
Good
drainage
characteristic

The predetermined agro ecological criteria have been investigated in the GIS
data already created in the computer software. This analysis has resulted in
identification of many potential locations/areas in Mirab Gojam, Misrak Gojam
and Awi (around Dangila) Zones, having a gross total area of 1,277,371 Ha (See
attached map). The agro ecological conditions of the identified areas in the
Zones are further discussed and verified below.
3.1.3 Flowers Potential Areas in Mirab Gojam Zone
Areas identified for flower production in Mirab Gojam stretch about 120 km from
Bahir Dar to Dangila. This is a vast land area with gross total area about 838,267
Ha, with altitudes ranging from 1800 to 1900m a.s.l., characterized by moderately

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flat topographic features (See attached Map and Woreda list). However, most of
the areas located in Mirab Gojam, including Koga Irrigation Project, which is
about 35 km from Bahir Dar, are generally regarded as mid highlands. On the
other hand, the area around Dangila (Awi Zone), which is about 85km from Bahir
Dar, has an average altitude of about 2100m a.s.l, and is considered to be
highland.
Most of the soil of the areas are classified as haplic luvisols and eutric regosols.
These types of soils are considered to be good workable soils, with good
drainage conditions. They are suitable for a wide range of crops including cut
flowers.
The sub-region is also endowed with various sources of water, including rivers,
streams and underground water. Information obtained from the Regional Bureau
of Water Resources confirms that there is plenty of underground water in many
locations of the area. Underground water is preferred to other sources of water
for production of high quality of cut flowers (Table 3.2 Annual Rainfall Data).
Thus, having suitable altitudes (1800 1900m a.s.l.), moderately flat topographic
features, reliable sources and quality of water for irrigation, suitable soils and
drainage, adequate rainfalls and suitable temperatures, the agro ecological
conditions in Mirab Gojam are considered to be very favorable for production of
low and mid varieties of cut flowers. However, the areas around Dangila (Awi
Zone) would be suitable for highland varieties of cut flowers.
The Proximity Concern: The proximity to international market is a critical factor
in floriculture industry. Evidently, the areas discussed above are very accessible
to Bahir Dar by road, which is a newly improved asphalt road. However, the
proximity concern here should be the means of transporting the flowers from
Bahir Bar to Bole International Airport, where cargo services to international
market are readily available. In this respect, prospective investors would need to
critically analyze at least three different possible means or options of transport
before committing any investment in flower projects in the region.
The first option would be to use the normal daily flights between Addis Ababa
and Bahir Dar. It is true that Ethiopian Airlines has two or three passenger daily
flights from Addis Ababa to Bahir Dar and vice versa. However, these flights are
serviced by small planes which have neither adequate capacity nor the facilities
for transporting cut flowers. Besides, such passenger flights would not be reliable
and efficient to transport cut flowers which would be easily exposed to damage
and quality deterioration, due to poor handling and inefficient transportation.
Thus, unless larger passenger flights, with partial cargo facilities, are provided at
initial development phase, the present available passenger flights do not appear
to ensure prospective investors to commit resources for floriculture undertakings
in the region.

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The second option would be to arrange chartered freighters to transport the


flowers from Bahir Dar to Bole International Airport, and then to use international
cargo freighters to prospective international markets. This appears to be a
workable option that could be considered positively by prospective investors.
However, this option could involve higher cost of air transport particularly at initial
phase of development, due to low volume of production. However, as volume of
production increase, the use of regular cargo services, or chartered freighters
would reduce. The transport cost rate. The detail of such proposal needs to be
worked out during specific project preparation.
The third option would be to use direct cargo flights from Bahir Dar to prospective
international market destinations. This would appear most workable option
provided: (i) Bahir Dar airport is improved to handle required cargo freighters, (ii)
all required Federal Custom regulations and banking services are put in place in
Bahir Dar, (iii) level of flower production would be justifiable for utilization of full
cargo capacity and (iv) sustainable and reliable cargo service schedule is
secured. For full cargo capacity, production for export of other high value
horticultural (vegetable) produce should be considered. This would be more
apparent upon completion and full implementation of Koga Irrigation Project of
7,000 Ha, which would be suitable for growing a wide range of high value of
horticultural produce for export.
3.1.4 Flowers Potential Areas in Misrak Gojam Zone
Most of the western part of Misrak Gojam, including areas around Debre Markos,
have been identified as highlands, having altitudes ranging from 2200 2400
m.a.s.l. Based on GIS estimate, the gross total area of potential land is about
325,171 Ha, having moderately flat topographic features (see attached Map &
List of Woredas).
The soils of the identified potential areas are classified as haplic alisols, having
predominantly clay to sandy loam soils, which are considered to be well drained
soils. These types of soils are considered to be very suitable for cut flowers, as
they are associated with good drainage conditions.
Misrak Gojam, as Mirab Gojam, is also endowed with plenty of water, including
streams, rivers and clean underground water that can be utilized to irrigate a vast
area of land. According to available meteorological data, the average total
annual rainfall in the area is about 1200mm, and annual temperatures range from
10 to 23oC.
All available data and information strongly confirm that there are excellent natural
conditions, including very favorable agro climatic conditions, high altitudes, plain
topographic features, good and well drained soils, plenty of good quality water for
irrigation, and adequate rainfalls and very favorable temperatures, to grow high
quality of high land varieties of cut roses in the sub-region.

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Thus, the identified areas in the Misrak Gojam may be considered to be more
suitable potential areas in the region for growing highland varsities of cut roses
for export. Although the areas around Debre Birhan have higher altitudes, with
average altitude of 2700m a.s.l, with better proximity to Addis ababa than Debre
Markos, however, the low temperatures, associated with frosts, the black soil
types (vertisols), associated with poor drainage, and other agro ecological
features, could adversely put Debre Birhan as less favorable than Misrak Gojam.
The Proximity Concern: Proximity to international airport is a critical factor for
cut flowers. This has been discussed for Mirab Gojam in the previous section. In
a similar manner, the various options available to transport the flowers grown in
Misrak Gojam would be discussed under four options below.
The first option would be to transport the flowers from Misrak Gojam to Bahir Dar
airport by road which would be about 250 km depending on the location of a
particular farm in Misrak Gojam, then transporting the flowers by air from Bahir
Dar to Bole International Airport. Consequently, this would involve a substantial
transport cost. Besides, such a prolonged option of transporting the flowers
would expose the flowers to damage and deterioration in quality. Thus, this
option of transporting the flowers by road from Misrak to Bahir Dar and then by
air to Bole International Airport would not appear to be a workable proposal.
The second option would be to transport the flowers grown in Misrak Gojam
directly by air (chartered cargo) from Debre Markos to Bole International Airport.
However, this option requires further investigation and assessment of the
condition of the existing small airport at Debre Markos, or evaluation of the
required investment costs to improve the the existing airport at Debre Markos, in
order to handle cargo flights. The feasibility of such proposal would also depend
largely on the volume of cut flower production in Misrak Gojam to justify the
additional investment cost for improving and upgrading the existing airport at
Debre Markos. However, given the availability of suitable natural conditions,
including high altitudes, moderately flat land features, rich sources and quality of
water, good soils, and temperatures, cut flower production could flourish once
prospective investors realize the huge potential available in the sub-region.
The third option would be to transport the cut flowers by road directly to Bole
International Airport from Debre Markos in well-equipped refrigerator vans, in
order to avoid any damage to the quality of the produce. As the condition of the
road is more important than the distance, the existing state of the road from
Goha Tsion to Debre Markos, particularly the Abbay Gorge, needs to be
substantially improved and maintained in good condition. Fortunately, flowers
grown at high altitudes, such as areas identified in Misrak Gojam, are more
tolerant to long distance shipment than low land cut flower varieties

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The fourth option would be to consider transporting the flowers from Misrak
Gojam to Bahir Dar airport by road then by direct cargo flight to international
market destination, provided that direct cargo services would be available from
Bahir Dar to international market destination. In fact, this option would be most
plausible because the distance between Debre Markos and Bahir Dar, which is
about 250 km, is much shorter compared to 335 km from Debre Markos to Addis
Ababa. Moreover, the travel time required by road from Debre Markos to Bahir
Dar would also be much shorter than from Debre Markos to Addis Ababa
because of the moderately flat landscape.
However, it would be unlikely for Bahir Dar Airport to be improved soon to
provide direct cargo flight to international market destination in a relatively short
time. Therefore, the third option as discussed above would remain to be the most
workable scenario for promoting floriculture in Misrak Gojam, provided the road
condition between Goha Tsion and Debre Markos is improved sooner than later.
Table 3. 2: Annual Rainfall Data for Selected Stations in Mirab and Misrak Gojam

No
1
2
3
4
5
6
7
8
9

STATIONS
Bahir Dar
Gimjabet
Meshenti
Dangila
Elias
Dembecha
Feresbet
Dre Markos
Lumame

1994
1077
1915
1271
1316
1475
1440
1647
1201
1264

1995

1996

1997

1998

1999

2000

2001

2002

2003

1186
1787
1059
1183
1349

1372
2356
1517
1683
2493

1208
2022
1229
1698
2739

1421
1884
1368
1563
2434

1474
1815
1573
1959
2415

1570
2107
1540
1895
1438

1542
2166
1404
1406
2504

1500
1630
1191
1350
1116

1645
2334
1468
1365
2340

1292

1558

1399

1479

1550

1396

1428

1093

1320

1657
1250
1191

1974
1590
1267

2154
1518
1451

1974
1202
1404

2146
1344
1415

2099
1393
1412

2045
1374
1418

1780
1306
847

1780
1121
620

Source: Draft Report of Meteorology Study, Amhara National Regional State Potential
Assessment Survey

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Table 3. 3: Flower Potential Areas in Amhara Region

No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Name Of Woredas
JANAMORA
DEMBIYA
KEMKEM
ALEFA
SUB-TOTAL
DERA
BAHIR DAR ZURIA
ACHEFER
MERAWI
ADET
QUARIT
SEKELA
DEGA DAMOT
JABI TEHINAN
BURE WENBERIMA
DEMBECHA
SUB-TOTAL
DANGILA
FAGTA LAKOMA
GWANGWA
ANKASHA
BANJA
SUB-TOTAL
HULET IJ INESE
BIBUN
INARJI INAWGA
DEBAY TILATIGIN
MACHKEL
INEMAY
GUZAMEN
SHEBEL BERENTA
AWBEL
DEJEN
BASO LIBEN
MAFUD MEZEZONA MIGENA
SUB-TOTAL
ANTSOKIA GUMUZ
KEWET
LAY BETNA TACH BET
SUB-TOTAL
DESIE ZURIA

Area In Ha
1,180.7
3,542.0
2,951.6
7,083.9
14,758.2
590.3
168,243.7
207,205.4
109,210.8
98,584.9
15,938..9
6,493.6
31,287.4
51,358.6
95,633.2
54,310.2
838,266.7
113,933.4
33,058.4
185,363.2
87,368.6
21,251.8
440,975.4
4,132.3
4,132.3
2,951.6
2,851.6
116,294.7
10,035.6
77,923.4
14,758.2
31,877.7
18,890.5
38,961.7
2,361.3
325,170.9
2,361.3
11,806.6
1,180.7
15,348.6
1,180.7

Name Of Zone
SEMEN GONDER
----------------------------------------------------------DEBUB GONDER
MIRAB GOJAM
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------AWI
-----------------------------------------------------------------------------MISRAK GOJAM
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------SEMEN SHEWA
---------------------------------------DEBUB WELLO

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No.
Name Of Woredas
37 WERE ILU
38 KELELA
39 JAMA
SUB-TOTAL
40 CHEFE GODANA
DEWEREHIMEDO
41 BUGNA
42 MEKIT
43 HABRU
SUB-TOTAL
GRAND TOTAL

Area In Ha
2,951.6
8,264.6
4,132.3
16,529.2
4,132.3

Name Of Zone
------------------------------------------------------------

5,313.0
590.3
3,542.0
9,445.3
1,665,217

SEMEN WELLO
----------------------------------------

OROMIYA

3.1.5 Opportunities and Challenges in Floriculture Industry in the Region:


(a) Opportunities for Production of Cut Flowers
The region has huge potential and ample opportunities for attracting prospective
investors to invest in floriculture industry in the region, particularly in Mirab Gojam
and Misrak Gojam Zones. Some of the major favorable conditions attributable to
these areas include:

Availability of vast land area suitable for cultivation of a wide


range of flowers
Geographic proximity to international markets (both to Europe and
Middle East)
Favourable agro ecological conditions, micro climatic conditions,
soils
Availability of rich and quality water for irrigation
Abundant supply and low cost of labor force
Lower cost of production compared to other neighbouring
countries
Quality of products (cut flowers), as a result of the favourable agro
ecological factors

As indicated earlier, the total gross land area, identified as potential, is about
1,277,371 Ha, consisting of 338,000 Ha (Mirab Gojam), 113,933 Ha, (Dangila),
and 325, 171 Ha (Misrak Gojam). Based on altitude criteria, the areas in Mirab
Gojam are suitable for mid land cut flower varieties, while the areas in Awi
(Dangila) and Misrak Gojam are for high land flower varieties.
However, as cut flower project is a highly capital-intensive venture, the land
requirement would be a very small fraction of the total area identified above. If,
for instance, 10% of the total gross area of 1,277,000 Ha is earmarked for flower
projects, it would be about 12,770 Ha. This is a huge area by any standard, as

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there is no country in the world that has such size of land area under cut flower
cultivation. If this is further reduced to one-tenth of one - per cent of the gross
total area indicated above, it would be about 1,277 Ha, say, 1000 Ha. This would
be a very large venture under cut flower cultivation, and would require about 5
billion Birr in investment, (@ 5 million Br/Ha), and this could also have the
capacity to generate about 3 billion Br foreign exchange earnings annually
(investment cost and revenue estimates are based on some Flower project
proposals submitted to the Development Bank of Ethiopia).
These above rough estimates give an overall view of the potential of the region in
floriculture industry.
(b) Challenges
As there are opportunities there could also be some critical challenges and
constraints in promoting and facilitating investments in general and foreign
investments in particular. Some of these are discussed briefly below:
(i) Provision of Efficient Services to Investors
Speed and predictability of decisions are thought to be critical elements in
attracting investments, particularly foreign investments. The process of
registration and issuance of investment licenses and permits should be
conducted in an efficient manner possible. This would be more critical to
prospective investors who want to invest in Amhara region, as they have to travel
to Bahir Dar and stay in hotels. Therefore, the administrative capacity needs to
be created, in order to provide efficient services, or to avoid prolonged process to
register and secure investment licenses and permits. This might even suggest for
the creation of some kind of one-stop shop approach. Thus, there is no better
incentive to prospective investors than efficient services and reinforcement of
contracts.
(ii) Readily Availability of Land for Prospective Investors
The granting of land for projects should be handled in tandem with issuance of
.licenses and permits, as readily availability of land will facilitate timely
implementation of projects. Facilitating the provision of land would be more
important than the amount of fees charged for leased land.
However, it would be very difficult for prospective investors, foreigners in
particular, to directly negotiate with numerous small holders for acquisition of
land, because the process of the negotiation would be potentially cumbersome
and time taking exercise.
Therefore, it would be very important to earmark
suitable land and make it readily available to prospective investors.

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This is not, however, to suggest that farmers, who give up their plots of land,
should not necessary be paid fair compensations. To the contrary, the farmers
should be generously compensated for their plots of land. The farmers, whose
plots of land are selected for projects, should also see it as an opportunity for
improving their living conditions by investing the proceeds of the compensation in
a more capital intensive and productive ventures, such as dairy, beehives,
horticulture, weaving and other cottage industries. However, the farmers need to
be assisted and guided by the regional government to use the proceeds properly
as suggested. If possible, the farmers should also be given some plots of land
near project areas, so that these farmers and their family members should also
benefit by working at the projects. If such incentive mechanism is established for
acquisition of land for envisaged projects, there would not be any major
obstacles to negotiate with farmers. In fact, once the first batch of farmers are
settled and well established, most likely more requests would follow from other
farmers who would be willing to give their plots of land for similar arrangements.
On the other hand, the prospective investors should be charged reasonable fees,
but sufficient amount to recoup the proceeds of the compensation paid to the
farmers, as well as for use of other land resources. Generally, the fees paid for
land lease are not major costs for flower projects. For instance, a land fee of
2000 Br per hectare annually would be a small fraction, say, one-tenth of one
percent (0.01%) of the cost of production of one hectare of flower cultivation,
assuming 2 million Br of production cost per hectare, including airfreight costs.
(iii) Importance of Necessary Infrastructures
Accessibility to identified potential areas is critical to promote investment. Once
potential areas are identified and earmarked for prospective investors, power and
telephone services should be readily available for immediate project
undertakings.
(iv) The State of Roads
When flower projects are undertaken, the needs for transporting required
logistics, including construction materials, machinery and equipment, agricultural
inputs and other supplies, would be crucial. Taking into account that the
prospective project areas in the region would be far from Addis Ababa, the
condition of the roads would be an important factor to save time and transport
costs. Thus, improving the roads and maintaining them in good condition would
be quite important and a challenge too. Fortunately, the main highway from Addis
Ababa to Bahir Dar and beyond has been substantially improved, and from Goha
Tsion to Dejen is soon to be improved.
(v) Availability of Post harvest Facilities

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Horticultural products are basically characterized as highly perishable items.


Flowers are used for their ecstatic value, therefore in the supply chain; the cold
chain of the product has to be maintained in order to deliver the product as fresh
as possible. Post harvest handling on the farms and all the way to the last
destination is crucial. While it would be the responsibility of respective projects at
farm level, the responsibility for provision of cold storage facilities at the airports
would, however, be the concern of the relevant government organization or
authority. Therefore, a critical advance planning and preparation would be
required to put the handling and cold storage facilities in place in good time.
(vi) Availability of Airfreight
With respect to transport of produce, several available options have been
discussed in the previous sections. The transport options considered for flowers
produced in Mirab Gojam zone are different from transport options considered for
flowers produced in Misrak Gojam zone. However, Bahir Dar Airport would be
crucially important for flowers produced in areas of Mirab Gojam. At initial
development stage, the strategy must remain to be to transport the products from
Bahir Dar Airport to the last destination via Bole International Airport. However,
as developments progress well and productions reach a certain required volume,
the option of direct airfreight from Bahir Dar to international market destination
should also be considered.
One of the competitive advantages of Ethiopia is its proximity to the European
market in general, more so of Bahir Dar, which is even closer to the European
market than Bole International Air port. In order to promote the flower industry in
the region, the Bahir Dar Airport facilities need to be substantially improved to
handle cargo flights. This requires, however, the concerted efforts of both the
Regional and Federal Governments to improve the Bahir Dar Airport to have all
required facilities, in order to promote and expand the flower industry, in
particular, and the horticulture sector in general
(vii) Need for Efficient Banking Services
One of the incentives provided by the Federal Government to investors is the
provision of long term loans through the Development Bank of Ethiopia.
Prospective investors, engaged in production of export products, get special
incentives, including long-term loans by pledging the projects as collateral and
readily availability of foreign exchanges for importing machinery and equipment
and other required materials and supplies. Moreover, the Bank has been
providing long-term credit up to 70% of the project costs, including permanent
working capital. Because of such generous facilities, almost all projects, engaged
in export undertakings, are submitted to the Bank for financial assistance. As a
result, the Bank appears to be overcrowded in processing loan applications and
approval of loans in a reasonable timeframe.

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In fact, until now almost all flower projects have been coming to the Bank from
the Oromiya areas, very close to Addis Ababa, where the Head Office of the
bank is located. Because of proximity, the processing of loans by the Bank has
been relatively manageable. However, it would be a serious concern in the future
to cop up with increasing number of projects coming from the Amhara region, as
well as from other regions.
Therefore, the regional government should be aware of possible constraints
associated with timely processing of loan applications and be prepared to
discuss major issues in advance with the Bank. This would be crucially important
for prospective investors, as timely processing of loan applications would be
one of the main incentives to prospective investors. It would also save time and
cost, and facilitate project implementation.
Equally important would be the financial capacity of the Development Bank to
provide the prospective investors with the required amount as per the Banks
policy. The existing credit policy permits prospective investors to borrow up to
70% of the investment costs of the project. If, for example, the region provides
1000 Ha to prospective investors for flower projects, the total investment cost
would be about 5 billion Br, out of which 3.5 billion Br could be requested as
long-term bank loans from the Bank. Thus, the financial capacity of the Bank
should be adequate to readily financing the increasing number of projects.
3.1.6 Investment Incentives
Ethiopia has enacted a liberal investment code. This encourages both domestic
and foreign investors to play a prominent role in the economic development of
the country. The code provides a wide range of incentives including tax holidays,
duty exemptions, and free remittance of funds and retention of foreign exchange
earning, and also provides guarantees to investors.
The major guarantees provided to foreign investors include:
(a) Repatriation of Capital and Profits
Any foreign investor has the right to repatriate the following:

Profit and dividends accruing from an investment.


Principal and interest payments on external loans.
Payments related to technology transfer or management agreements.
Proceeds from sale or liquidation of an enterprise.
Proceeds from the sale of transfer of shares or assets
Compensation paid to a foreign investor.

(b) Guarantees Against Expropriation

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The constitution of the Federal Democratic Republic of Ethiopia protects private


property. The investment proclamation also provides investment guarantees
against measures of expropriation and nationalization that only may occur with
the requirements of the law. Where such expropriations are made, the
government guarantees to provide adequate compensation corresponding to the
prevailing market value of property and such payment shall be effected,
promptly.
(c) Other Guarantees
Ethiopia is a member of the World Bank-affiliated Multilateral Investment
Guarantee Agency (MIGA), which issues guarantees against non-commercial
risks to enterprises, which invest in signatory countries. Ethiopia is at any time
ready to conclude bilateral investment promotion and protection treaties with any
country and is in fact currently concluding such agreements with a number of
developed countries. Ethiopia has also signed the World Bank Treaty, The
convention on settlement of investment disputes between states and nationals of
other states (ICSID) Hence, Investors are protected against expropriation and
nationalization. Ethiopia has also ratified the convention establishing the
Multilateral Investment Guarantee Agency (MIGA) and signed bilateral
investment promotion and protection agreements with a number of OECD
countries.
3.1.7 The Way Forward to Enhancing Investment in the Region
The discussions in the above sections tried to demonstrate the opportunities and
challenges associated with cut flower venture undertakings. It is shown that the
region has immense opportunities in floriculture industry. However, these
opportunities are equally associated with challenges, some of which could be
serious ones, including (i) the regional administrative and expertise capacity to
provide efficient services demanded by prospective investors, (ii) Putting the
necessary infrastructures in place, (iii) Readily availability of project land, (iv)
Timely processing of loan applications and approval of bank credit, and (v)
Availability of reliable and sustainable airfreight services and other necessary
airport facilities.
These are some of the challenges that call for sound strategic planning and
advance preparations, in order to exploit the existing huge potential of the region.
Accordingly, at this point in time, two proposals appear to be in order to be
considered.
(a) Need for creating a Liaison Office in Addis Ababa
The main function of the office would be to provide information and make general
briefings to prospective investors. This is of paramount importance to prospective
investors, because they would get a general overview of the region and enable

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them to get prepared for traveling to Bahir Dar on pre-arranged schedules for
further discussions with various respective bureaus.
The office will also be a frequent point of contact for prospective investors after
their discussions with various bureaus in Bahir Dar. It will also monitor the
progress and the commitment of investors. Thus, the role of the office would be
significant in promoting and facilitating the private investments for the region.
(b) Need for Establishing a Horticulture Development Enterprise
Once the potential of areas have been realized, it would be prudent to plan and
undertake project activities, as time should not be wasted waiting for prospective
investors. Prospective investors may need more time to decide before
undertaking projects in the region, may be due to proximity concern, or any other
reasons. So, there is need for the formation of an organization, say, Abbay Agro
Industrial Enterprise, S.C., substantially supported with venture fund from the
Regional State.
Some of the main objectives and responsibilities of the Enterprise include:
Enhance and promote floriculture and horticulture investments in the
region by making project proposals available for prospective investors.
Establish a partnership with prospective investors through equity
participation
Undertake negotiations with the farmers to acquire project land for the
Enterprise as well as to be leased to prospective investors.
Make available project land to prospective investors on lease basis or
equity.
Initiate and participate in undertaking infrastructure works in the project
areas.
Initiate and advise for the establishment of necessary facilities in
project areas.
Establish and manage acommercially oriented horticultural
projects/ventures.
Own machinery and equipment and make services available to other
investors. in the sector, including all size of equipped van for
transporting produce
Seek and mobilize investment capital from foreign sources.
Create conducive investment environment for formation of joint
ventures.
Thus, the formation of such an enterprise would enhance and promote the
development of the horticulture sector, including floriculture industry, in the
region. In fact, prospective investors, particularly foreign investors, may be
interested to form joint venture with the proposed enterprise, as the enterprise
would be in a better situation to facilitate project implementation.

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3.1.8 Recommendations for Enhancing Floriculture Industry


The following recommendations are for consideration by the Regional
Government to promote floriculture investment:
a) Ensure efficient processing of licenses and permits to prospective
investors
b) Identify and earmark suitable potential areas for flower projects,
particularly highland areas in Misrak Gojam Zone for highland cut flower
varieties.
c) Ensure and enhance readily availability of project land to prospective
investors in identified potential areas.
d) Ensure the availability of necessary infrastructures, rural roads, power,
telephone lines in potential areas.
e) Initiate and ensure improved Airport capacity and facilities at Bahir Dar to
handle cargo flights to International Bole Airport and, later when volume
justifies, to European and Middle East countries.
f) Initiate for ensuring improved cold storage facilities, federal government
custom services and regulations, bank permits and certificates.
g) Initiate for making arrangements with Ethiopian Airlines for reliable and
sustainable airfreights as required by prospective investors.
(h) Establish a Liaison Office in Addis Ababa aimed at facilitating and
enhancing provision of information and data to prospective investors about
the region.
(i) Seriously consider to establish a horticultural development enterprise, say,
Abbay Agro-Industry Enterprise (S.C.), having a substantial capital base,
whose objective would be to establish and operate horticultural and
floricultural projects, and agro processing industries, with equity participation,
or joint venture with prospective investors.
(j) Initiate discussions with banks, particularly with the Development Bank of
Ethiopia, to ensure timely processing of loan applications and approval of
bank loans..
(k) Initiate and take all necessary measures to create a conducive investment
environment for prospective investors in the region.

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3.2 Overview of Horticulture Production in Amhara Region


3.2.1 The State of Horticulture Development in the Region:
The Amhara region has a diversified and favorable agro ecological condition for
cultivation of a wide range of horticultural crops. At present, various horticultural
crops, including coffee, vegetables, fruits, spices, root and tuber crops, are
widely grown in different parts of the region. The main types of vegetables and
spices grown in the region include shallot & onion, garlic, potatoes and sweet
potatoes, cabbage, carrot, tomatoes, hot pepper, fenugreek, black cumin and
ginger and others. According to data obtained from the Post harvest Evaluation
Survey of 1997 (EC), Bureau of Agriculture and Rural Development of the
region, the total area, under various vegetables and spices, is estimated at
91,320Ha. Most of the cultivation is carried out by small land holding peasant
farmers, who predominantly use traditional farming practices. Thus, most of the
horticultural produce, except coffee and some spices, is produced for local
markets as cash crops. As a result, the revenue generated from the horticultural
sector is not significant. The Table below presents the type of horticultural crops
and area under cultivation
Table 3. 4: Production of Vegetables and Spices in ANRS for 1997 (E.C.)

Type of crops

Area (ha)

Production
(qt.)

1. Vegetables
Cabbage
17
1,190
Carrot
166
19,920
Garlic
8,559
513,540
Potatoes
36,461
5,469,150
Sweet potatoes
403
80,600
Onion and shallot
9,306
744,480
Sub-Total
54,912
6,828,880
2. Spices
Fenugreek
7,725
54,075
Red pepper
22,255
267,060
Black cumin
3,142
25,136
White cumin
2,906
43,590
Ginger
380
76,000
Sub-Total
36,912
465,861
Total
91,320
Source: Post Harvest Evaluation Report of 1997 (E.C), Bureau of Agriculture
and Rural Development, ANRS
3.2.2 Production of Vegetables and Spices by Zones

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The different zones in the region grow a wide rage of vegetables and spices,
including onions; shallot, potatoes, tomatoes, carrots, cabbage, garlic, and leeks.
Most of them, except onion, and some times cabbage, are grown at homestead
garden. Pumpkins, spinaches and cauliflowers and other vegetables are also
grown but are relatively rare and area specific. However, melons, watermelons,
okra, and broccolis are not known in the region. Major spices grown include chili,
onion, garlic, turmeric and ginger. In this respect, the production and share of
the different zones in the region are shown in the table below.
Table 3. 5: Area and Production of Vegetables by Zonal Distribution
Zones in
ANRS
Area (Ha)
North Gonder
4,376.66
South Gonder 6,926.64
North Wello
1,179.6
South Wello
1,543.23
North Shewa
2,136.62
East Gojjam
3,970.83
West Gojjam
7,718.05
Waghamera
8.5
Awi
4,441.24
Oromiya
56.93
Total
32,358.3

Share of
Zones (%)
13.5
21.4
3.6
4.8
6.6
12.3
23.9
--13.7
0.02
100

Prod.
Production share
Quintals
(%)
208,304.09
10.1
459,065.36
22.2
97,186.02
4.7
136,958.31
6.6
220,379.76
10.7
285,638.72
13.8
272,924.35
13.2
1,011.02
0.01
381,921.23
18.5
1,467.21
0.01
2,064,856.07
100

Ranking
production vs area
6 --- 4
1 ----2
8 --- 8
7--- 7
5 --- 6
3 --- 5
4 --- 1
10 -- 10
2 --- 3
9 ---- 9

Source: CSA Agricultural Sample survey 1994 E.C


According to CSA Sample Survey, the total area under vegetable production and
spice cultivation is estimated at 32,358 Ha, while the estimate of the Post harvest
Evaluation Survey of 1997 (EC), puts the area under production at about 91,320
Ha. According to CSA Sample Survey, the share of the region, in terms of area
and production of vegetables and spices, is estimated to be 0.62% and 3.3%,
respectively, of the national estimates. This is a clear indication that vegetables
production in the region is at a very low level, having a very small share of the
national production.
However, South Gonder, Awi and East Gojam zones stand first, second, and
third, respectively, by importance of production, followed by West Gojam, North
Shewa, North Gonder, South Wello and North Wello zones, while Oromiya and
Waghamer zones stand least in production of vegetables.
3.2.3 Attributable Factors for Low Horticultural Development
Vegetable production is essentially a small-farm venture that benefits thousands
of families in urban, pre-urban and rural communities. Growing vegetables
provides self-employment to families who are engaged in all aspects of the
business. However, the involvement of the people of the region is minimal in

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vegetable production and consumption. The major factors attributable to low


development of the horticulture (vegetables) sector include (i) inaccessibility and
long distance from major domestic markets, (ii) lack of research and adequate
extension services, (iii) limited market outlets, and (iv) socio-economic and other
factors.
(a) Geographic Accessibility
Generally, most horticultural products, particularly vegetables, are easily
perishable products, and they need to be delivered to market as fresh as
possible. But most of the potential areas in Amhara region have accessibility
problems to major markets such as Addis Ababa. Besides transport cost is
extremely prohibitive to transport vegetables long distances without the risk of
deterioration in quality, or sometimes rejection by the market. Thus, lack of good
accessibility has been a deterrent factor against the development of the
horticulture sector in the region.
(b) Need for Research and Adequate Agricultural Extension Services
Lack of result-oriented and sustainable research works in the horticultural sector
has also been an important factor for low level of the horticultural development
and production in the region. The few research works conducted in the region
have not been supported by strong and sustainable agricultural extension
services, including availability of technical know-how, provision of seeds and
other inputs, bank credit and marketing services to small land holding farmers.
The provision of locally tested improved varieties for farmers is limited; as a
result farmers depend on unselected planting materials, and imported varieties
that do not always perform well under local condition. Thus, farmers are exposed
to risks, and consequently are discouraged to continue to involve in the
production of horticultural crops.
(c) Adverse Climatic Conditions
Adverse climatic conditions, including erratic rainfalls, prolonged droughts and
rainfalls, and incidence of frosts also cause severe damages to horticultural
crops. As a result, growers are cautious to go into horticultural activities.
Normally, the cultivation of most horticultural crops need to be supported with
supplementary irrigation. In the absence of irrigation practices very little
development takes place in the horticultural sector. Thus, basic technical knowhow in small scale irrigation and water harvesting schemes need to be
substantially introduced and expanded in order to bring any meaningful
development in the horticultural sector in the region.

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(d) Limited Market Outlets


Production of vegetables is a highly risky business, particularly if it is intended for
commercial market as cash crop. Small or big growers would refrain from
production of vegetables if the market outlets are limited or non available,
particularly for fresh vegetables. Moreover, lack or absence of agro-processing
industries in rural areas and towns has adversely affected the development of the
horticultural sector.
Low prices paid to farmers are mostly influenced as a result of the limited market
outlets. Prices paid to farmers often bear no resemblance to retail prices paid by
consumers. Seasonal oversupply often leads to very low prices, and shortage of
supply, due to mainly a disaster incidence in another production district in the
region, could result in very high prices. Thus, such unpredictable and unstable
market and price situations highly expose farmers to high risk.
(e) Socio-Economic Factors
Vegetables are important supplementary sources of food and nutrition, and they
enrich the local diet with essential nutrients such as vitamins and minerals. Due
to their wide adaptability and availability, vegetables can fit into a cropping
system under diverse agro-ecological conditions. However, due to lack of
awareness and socio-economic conditions, the rural communities do not
normally grow and make vegetables a major part of their stable food. The urban
communities have not either established the habit of vegetables as part of their
stable food, due to lack of awareness and socio-economic factors.
3.2.4 Prospects for Horticulture Development in the Region
Given the availability of diversified and suitable agro ecological features,
including altitudes, rainfalls, availability of water for irrigation, temperatures and
soils, the region has immense potential and opportunities for horticultural
development. The horticultural sector, unlike the floriculture industry, which is
entirely export oriented, encompasses wider activities, including domestic food
supplies, agro industries, and exports.
3.2.4.1 Important Agro-Ecological Fectors

The important agro-ecological factors, attributable to suitable horticultural crop


development, are briefly discussed as follows.
(a) Soils
Drainage is the most important soil factor for horticultural crop production. Soils
must be capable of free drainage, especially when a significant rainfall event
immediately follows an irrigation. Shallow soils (impervious subsoils within

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800mm of the surface) compacted soils (natural clay bars or machinery


compaction) and uneven fields will allow waterlogging to occur. The yields and
quality of most vegetable crops would significantly be reduced under
waterlogging conditions.
Levelling and the use of raised beds will assist in reducing these effects. They
will not be, however, eliminated for poorly drained soils. Lighter soils allow for
more timely operations such as cultivation, planting and ground rig spraying after
rain. Heavy black cracking clays cause delays in these operations following rain.
Timeliness of operations is critical in vegetable production. The planting date will
significantly influence the harvest date. Pest and disease monitoring, spraying
(when necessary) on a timely basis and harvesting according to specifications
are operations which require careful planning. In many instances one day early
or late will result in crop loss and/or quality downgrading. Access to the field
when ground based equipment is required for these operations is directly
influenced by the drainage capabilities of the soil and the field layout.
Fertile soils are often an advantage, but nutrition management in vegetables is
relatively well understood, allowing soils of low fertility to be very successfully
used particularly where all other factors are advantageous.
(b) Water Resources for Irrigation
Up to 5 ML of water will be required for each ha of vegetable productions.
Efficient application and scheduling systems can reduce this to 3 or 4 ML. This
can be significantly reduced by effective rainfall. Trickle irrigation systems can
reduce the irrigation water requirement to as low as 2 ML for some crops, where
significant additional capital costs and management expertise are applied; thus,
the region has abundant water resources for the sector to develop and must also
provide techinal backstopping to potential Investors .
(c) Temperatures
The effects of temperatures on plant establishment, growth and product quality
are significant, and need to be carefully considered when selecting crops and
production sites. The following Table provides some information on the
temperature requirements, and the likely limitations on plant growth and
performance, for a range of vegetable crops production

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Table 3. 6: Temperature Requirements and Limitations for a Range of Vegetable Crops

Crop

Frost
Specific Frost
Sensitivity
Sensitive
Stage
Asparagus Very
Dormant in
tolerant
Winter
Beans
Very
All stages
sensitive affected by cool
temperatures
Beetroot
Tolerant
Emergence
Broccoli

Tolerant

Cabbage

Moderate
tolerance
Very
sensitive

Capsicum

Carrots

Tolerant

Cauliflower Moderate
tolerance
Celery
Moderate
tolerance
Chinese
Moderate
Cabbage
tolerance
Cucumber Very
sensitive
Eggfruit

Very
sensitive

Garlic

Tolerant

Leek

Tolerant

Lettuce

Low
tolerance
Tolerant

Onion
Potatoes

Low
tolerance

Emergence 8
wks
Emergence 8
wks
All stages
affected by cool
temperatures
Emergence 8
wks
Emergence 8
wks
Emergence 8
wks
Emergence 8
wks
All stages
affected by cool
temperatures
All stages
affected by cool
temperatures
Emergence10
wks
Emergence10
wks
All stages

High Temp.
Sensitivity
Tolerant

Effects of Prolonged
Hot Weather *
Tolerant

Warm season Pollination problems


crop only
Moderate
Poor root quality
tolerance
Very sensitive Very poor quality heads
Moderate
Loose, light heads
tolerance
Warm season Sunburn on fruit
crop only
Tolerant

Reduced yields & poor


root color
Very sensitive Very poor quality curd
Sensitive

Poor quality stems

Moderate
Loose, light heads
tolerance
Warm season Lack of pollination
crop only
Warm season Sunburn on fruit
crop only
Sensitive

Cool season crop only

Sensitive

Cool season crop only

Sensitive

Bolting & small light


heads
Moderate tolerance

Emergence 10 Moderate
wks
tolerance
Emergence 8 Tolerant
wks

Poor tuber set

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Crop

Frost
Specific Frost High Temp. Effects of Prolonged
Sensitivity
Sensitive
Sensitivity
Hot Weather *
Stage
Pumpkins Very
All stages
Warm season Poor fruit set
sensitive affected by cool crop only
temperatures
Radish
Tolerant
Emergence
Tolerant
Poor root quality
Shallot
Tolerant
Emergence 10 Tolerant
Tolerant
wks
Sweet Corn Very
All stages
Warm season Pollination problems
sensitive affected by cool crop only
temperatures
Sweet
Sensitive All stages
Tolerant
Tolerant
potatoes
affected by cool
temperatures
Tomato
Very
All stages
Warm season Tolerant
sensitive affected by cool crop only
temperatures
Watermelon Very
All stages
Warm season Sunburn
sensitive affected by cool crop only
temperatures
Zucchini & Very
All stages
Warm season Poor pollination
Button
sensitive affected by cool crop only
Squash
temperatures
* Where rain coincides with hot conditions, the adverse effects listed are
complicated by increased pest and disease incidence and worsening
pollination problems for some crops.
Frost Sensitive: Where frosts occur, their number, duration and severity will
significantly influence plant growth and product quality. Eg. Broccoli plants at
early establishment can withstand a "few" -2 oC frosts, but growth and
development are stopped by a -6oC frost. Light frosts (-2oC) will not significantly
affect broccoli head quality, but anything colder than -6 oC will reduce head quality
significantly if they occur just prior to harvest. Lettuce heads will be affected by
light frosts, particularly if they occur on consecutive days
Low temperatures: Crops are also adversely affected by periods of low
temperatures. These conditions can be associated with low night temperatures
and warm days. Under these conditions low soil and air temperatures are
produced, resulting in much reduced growth of crops such as sweet corn and
most cucumbers. Low temperatures can also adversely affect flowering and fruit
set in crops such as beans, tomatoes and most cucumbers.
High temperatures: High tempratures particularly associated with rain, produce
ideal conditions for diseases and a range of pests. Production costs and plant
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losses are usually higher under these circumstances, and in most instances yield
and quality are also reduced. Broccoli is a typical example where spring and
summer temperatures can significantly affect yield and quality and produce ideal
conditions for pests and diseases to occur. Where night time temperatures
remain high after high daytime temperatures, the adverse effects on product
quality are also increased.
Table 3. 7: Temperature influences on selected vegetable crops

Crop

Frost Sensitivity

Broccoli
Carrots
Cauliflower
Cabbage
Lettuce
Sweet Corn
Celery
Onions
Potato
Capsicum
Beans
Tomato
Pumpkin

Young
Plants

Established
Crops

K/H
K/H
K/H
K/H
K/H
K/L
K/H
K/H
L
K/L
K/L
K/L
K/L

H+
H+
H
H+
H
K/L
H
H
L
K/L
K/L
K/L
K/L

Effects of Low Effects of High Temps


Temps (0-5oC)
on Product Quality

Reduced Growth
Reduced Growth
Reduced Growth
Reduced Growth
Reduced Growth
No
Growth
Reduced Growth
Reduced Growth
Reduced Growth
No Growth + (X)
No Growth + (X)
No Growth + (X)
No Growth + (X)

Short
Periods

Heat Waves

(X)
O
(X)
O
(X)
O
(X)
O
O
(X)
(X)
(X)
O

XX
(X)
XX
(X)
XX
(X)
XX
(X)
(X)
XX
XX
XX
(X)

K/H = Killed or severely damaged by heavy frosts (-6oC and below)


H+ = Succession of severe frosts can have adverse effects on plant growth
and/or product quality
K/L = Killed or severely affected by light frosts (-1oC)
H A = severe frost (-6oC) can affect quality of produce
L
= Able to withstand a few very light frosts without severe damage
O
= No effect or only limited damage
(X) = Reduced production or marketability of product
XX = Severe effects on growth, production, pollination and/or marketability
Prolonged wet weather will adversely affect pollination of sweet corn and
cucumbers, and will increase disease incidence in most crops. Wet weather
harvesting can result in soil compaction from harvesting machinery, particularly
on heavy clay soils. Mechanical harvesting of root crops are difficult or
impossible, depending on types of soils and crops, during wet weather.
(d) Rainfalls

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A significant amount of rainfall occurs in the summer (Meher Season in ANRS)


with smaller amounts falling over the rest of the year (Belg Season - covering a
small portion of the region). The "driest" period occurs from November to
February, and vegetable production should be scheduled to take place during
the dry season under irrigation.
3.2.4.2 Horticulture Potential Areas in the Region

Given varying ago-ecological factors of the region, there is ample opportunity to


grow a wide range of horticultural crops, including fruits, spices and various types
of vegetables. Some suggested types of fruits, roots, tubers, and vegetables
include, apple, plum, peach, pears, mango, avocado, grapes, banana, citrus,
potato, onion, tomato, and various types of vegetables and spices (Horticultural
Crops Research, Agricultural Research Master Plan, Bureau of Agriculture,
ANRS, December 1999). However, some potential areas, based on proximity,
are indicated below.
(a) Mirab Gojam Zone
Mirab Gojam has a huge potential for production of a wide range of horticultural
crops, both for domestic and export markets.
The Koga Irrigation Project, which is envisaged to irrigate about 7000 Ha of land,
should be of great interest to investors. At an average altitude of 1800m a.s.l., it
has well drained soils suitable for growing a wide range of horticultural crops,
including mid-high land fruits such as avocado, mango, papaya, and pineapple,
and a wide range of high value crops for export such as high value French
beans, strawberries, passion fruits, papaya (solo types), baby corn, sweet corn
and many others. Other high value export crops, such as mangetout peas, sugar
snap peas and runner beans, all of which require cool conditions of daytime
maximum temperatures of less than 24o C, may do well around Dangila and part
of Awi Zone, which is also suitable for some high land fruits such as apple.
However, it must be stressed that none of these export crops is easy to grow and
any attempt at commercial production, will only be successful with the right
infrastructure and management in place, including reliable cargo flight services,
possibly direct flights to international market destinations.
The Koga Irrigation Project should also be of great interest for prospective agroindustries such as various fruit juices and tomato paste, both for domestic and
export. In fact, the condition for supply of raw materials to these prospective agro
industries appear to be reliable, as outgrower farmers under the project would be
involved and encouraged to grow the right types of products needed by the agro
industries. The agro industries may also be supplemented for additional supplies
by outgrowers outside the project area such as Fogera, particularly for tomatoes
during the dry season.

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(b) Dega Damot and Birr Valley


These areas, according to Land and Water Resources of the Blue Nile Basin
Ethiopia, United States, Department of the Interior, Bureau of Reclamation, have
good opportunities for a wide range of fruits and sugar canes and vegetables.
However, further studies would be required to determine the most profitable
crops and types of agro-industries, and the investment costs for infrastructure
including irrigation.
(c) Potential Areas in Misrak Gojam Zone
The potential areas for cut flower production in the zone have been discussed
earlier under floriculture section. The areas surrounding and west of Debre
Markos may be of great potential for high value export crops, including
mangetout peas, sugar snap peas and runner beans, all of which require cool
conditions of daytime maximum temperatures of less than 24 o C, as discussed
above. Debre Markos has a temperature range from 10.3 22.5o C (CSA, 2002).
As these crops have huge markets in Western European countries, it would be of
great benefit to investigate further possibilities for development and commercial
undertaking. In fact, it would be a good opportunity to make further studies to
take advantage of the development of theses crops and cut flowers together. If
both ventures are taken in this area, the revenues to be generated, in foreign
earnings, would justify the investment costs in infrastructures and facilities.
(d) Potential Areas in Semen Shewa
The highlands of Semen Shewa may be suitable for highland fruits, such as
apples and others. However, of great interest in Semen Shewa and beyond is a
vast valley that extends from Shewa Robit and further. This is a vast area
suitable for a wide range of low land vegetables and fruits. Currently, a wide
range of vegetables, including onions, tomatoes and other vegetables are
produced and delivered to Addis Ababa market.
However, the exploitation of the potential of this area would largely depend on
two major factors, including the magnitude of the investment in water
conservation and harvesting schemes, and improvement of the road condition to
and from Addis Ababa, which is about 220km. According to ERA sources, the
distance between Addis Ababa and Debre Berhan would be substantially
reduced based on the revised design. The road from Tarma Ber to Kombelcha is
currently under construction and completion.
Thus, improved road condition will reduce transport time and cost from the
production area to Addis Ababa. As a result, the investment and production,
including export crops, would be enhanced in the valley. However, the
exploitation of the area and further expansion in horticultural crop production

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would, in turn, depend on further investment in water conservation and


harvesting schemes for irrigation.
(e) Other potential Areas in the Region
The identification of potential areas in the region, as discussed above, is not
exhaustive at all. There could be many other potential areas, for instance, in
Semen and Debub Gonder Zones, for a wide range of horticultural crops,
including fruits, vegetables and spices under small holder farmers. However,
potential areas, under the context of the discussions above, have been mainly
referred to areas suitable for commercial ventures, and locations easily
accessible to major domestic markets, as well as export market.
3.2.4.3 Important Non-Agro-Ecological Factors in Horticulture Venture

(a) Requirements of Labour and Mechanization


Most cultivations of commercial horticultural crops have high labour
requirements, and these may require supplemeentary mechanical operations at
certain stages of production. There is no horticultural crop cultivation that can be
completely mechanically harvested and transported, as grain and cotton
operations. However, mechanical use of harvesting has not necessarily reduced
the labour requirements for operations of horticultural cultivation, but has made
labour more efficient and productive, and reduced handling damages during
harvesting, and would also provide the opportunity to use longer and more
flexible working hours.
Table 3. 8: Comparison of Labour Requirements Vs Mechanisation Application for
Selected Vegetable Crops

Crop

Method of
Establishment
Seed

Labor vs. Mechanizations

Transplants

Growth to
Harvest *

Harvest **

Labor Mechanical Labor Mechanical


Aids
Aids
Broccoli
Carrots
Cauliflower
Cabbage
Lettuce
Sweet
Corn
Celery
Onions

##
####
#
#
##
####
####
####

##
###
###
##
####
-

##
#
##
##
##
#
##
###
#

##
###
##
##
##
###
##
#
###

##
#
##
##
##
#
###
##
#

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###
##
##
##
###
#
##
###

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Crop

Method of
Establishment
Seed

Labor vs. Mechanizations

Transplants

Growth to
Harvest *

Harvest **

Labor Mechanical Labor Mechanical


Aids
Aids
Potato
Capsicum
Beans
Tomato
Pumpkin

##
####
#
###

##
###
#

##
#
##
##

##
###
##
##

##
#
####
##

##
###
#
#

# = more #s indicate the importance of this technique for production


* = Takes into account operations such as weed control, irrigation and fertilizer
application, and pest and disease control.
** = Field harvesting (not including packaging, unless normally done in the field,
eg. lettuce, cabbage and pumpkin).
(b) Markets
Domestic Market: Availability of domestic market for horticulture produce is
important. Urban towns that are not adequately supplied with horticultural
produce could be potential market outlets.
Export market: A variety of agro-climatic conditions and fertile soils permit the
production of a wide variety of vegetables of good quality in the region. The
major types of vegetables grown on a commercial scale include cabbages,
carrots, cauliflowers, capsicums, eggplants, tomatoes, okra, beans and
cucumbers. Past experience has clearly shown that there is export potential for
production of a few special varieties of vegetables on a commercial scale in the
region.
The export markets for vegetables include the Middle East (Arab countries),
Djibouti and European countries. Although Israel is one of the major producers
and suppliers in the region, Ethiopia, having geographic proximity and a wide
variation of climatic conditions, has the production potential and capability of
supplying horticultural produce to these countries throughout the year. Because
of such opportunities, the Amhara region and other regions of the country are
well placed to supply a wide range of vegetable varieties to these countries.
Therefore, to be successful in export market on sustainable basis, certain
conditions or requirements need to be fulfilled. These are described as follows:

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The produce is grown and packed as per market SPECIFICATION, as


each export market has specific requirements in relation to product size,
shape, colour and packaging. The best prices are paid for product which
conforms to these specifications. Any product that does not meet market
specifications would run the risk of rejection. The products are of
consistent QUALITY. In some instances the quality required is higher than
that demanded by our domestic market.

Sufficient Quantity: Another important market requirement is that the


product is grown and supplied in sufficient QUANTITY, as most of the
markets are quite large and exporters require reasonable quantities to
take advantage of competitive freight rates. However, such requirement
could be fulfilled or met if growers are organized into cooperatives and
aspects of the market function is well coordinated.

Sustainable Supply: The product needs to be grown and supplied on


sustainable basis, i.,e, the product needs to be available over an extended
period of time. Export markets are not dumping grounds for surplus
production, and supply commitments must be honoured regardless of
domestic prices.

3.2.4.4 Value Added Processing

(a) Essentials of Oil Extraction


As a result of varied agro-climatic conditions, the region is also rich in medicinal
and aromatic plant species. The collection of such plants from wild sources is not
practiced in the country as a whole. The region can produce a large variety of
species such as ginger, large cardamom, turmeric, medicinal spicy herbs, garlic
and a variety of chilies. Most of the spices cater to domestic demand and some
items like chili, garlic, and ginger can be exported to other markets in a raw form.
Moreover, there are ample opportunities in setting up of spice processing
industries. Further processing of vegetables and spices, including dehydration,
cleaning and packing, substantially increase the value of export products.
However, foreign collaboration is required to get access to technical know-how in
processing and packaging in order to secure market outlets.
(b) Production of Vegetable Seeds
The agro-climatic variations in the region, mainly tropical to temperate climates,
provide opportunities for producing a wide range of varieties of vegetable seeds.
Thus, the existing varied climatic conditions and availability of labor force, would
provide the region a comparative advantage to produce vegetable seeds at low
cost. However, commercial production and export of vegetable seeds require
maintenance of high technical standards and good supervision. This, therefore,

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suggests the employment of foreign expertise or formation of joint venture with


foreign companies in agro-business. .
3.2.4.5 Aspects of Risks in Vegetable Production

The risks associated with vegetable ventures include markets, unpredictable


weather conditions (such as frost, hails, droughts). The risks associated with
transport include lack of reliable transport services (land and air freight transport
services, temperature management in containers etc). There are also marketing
(delayed payment for product supplied) and competition (from other countries
etc) risks. Moreover, it is extremely difficult to get access to European markets
for fresh vegetables because of high requirement of health condition in a
particular exporting country. Thus, a lot of work is required for improving
conditions and quality of products in order to get access to export market,
including provision of incentive mechanisms, such as longer period of tax
holidays, import and export tariffs, custom and banking services.
3.2.4.6 Vegetables as Food Security

The horticultural sector could play a crucial role in food security programme. It
can be employed as a strategic engagement, particulary by small holder farmers,
to minize the adverse effects from vagaries of nature. Horticultural crops, such as
potatoes, sweet potatoes, pumpkins, and onions, can be produced in areas
having shallow soil depth, degraded hills etc., and can also be stored even under
normal conidtion for longer period. Fast growing vegetables like kale and lettuce
can ensure a stable and yearround supply of food. Thus, seeds of such fast
growing vegetables should be distributed to small growers to enable them
promote home gardening schemes. Such schemes would also contribute
towards a sustainable supply of vegetables to maintain a balanced diet, and also
has a positive impact in reducing the need for emergence food assistance.
3.2.5 Recommendations for Promoting Horticultural Development in the
Region
At present, a large portion of the horticultural production in the country /region,
especially production of vegetables, is cultivated by homestead growers, whose
investments, yields and production are very low, characterized by poor quality of
produce. However, the horticulture sector, in general, vegetable production, in
particular, would bring a lot of benefits to the region as well as to the country if
certain measures are taken to realize the potentials that exist in the region. Thus,
the following set of recommendations are outlined aimed at promoting and
commercilizing the sector:
(a) Steps need to be taken to identify potential areas in the region for
production of major horticultural crops, intended for domestic and export
markets as well as an augmentation to food security.
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(b) Measures need to be undertaken and intensified in order to promote


agricultural research activities related to potential horticultural crops, so
that results obtained would enable small growers as well as prospective
investors to make further investments in the sector.
(c) Identify niche domestic markets, or highly profitable export opportunities.,
and
assist and encourage the production of high value products,
paricularly for export markets, supported through provision of technical
and financial asistance, especially to small growers and cooperatives.
(d) Initiate necessary measures to improve infrastructures, including road
accessibility to potentil areas, availability of power, communications and
airport and storage facilities.
(e) Encourage investment in the region by making project land readily
avaialable to prospective investors.
(f) Encourage and assist the establishment of agro industries, in oreder to
open further expansion opportunities in the horticultural sector in the
region.
(g) Special attention and incentives should be provided for prospective
growers and investors to encourage high value vegetable production for
export and medicinal herbs.
Many of the recommendations listed under floriculture are also valid for
promoting horticultural development in the region. Thus, it is suggested to
revisit and review the relevant recommendations outlined under the
floriculture section.
3.2.6 Project Ideas
Potential areas for horticultural crops, including vegetables and fruits, have been
identified in Mirab Gojam (Koga Irrigation Project), Misrak Gojam (including Birr
Valley), Awi, Semen and Debub Gonder, and Semen Shewa (including Shewa
Robit valley). However, the term potential area should always be associated
with commercial production and proximity to major markets, both domestic and
export markets. Thus, based on this understanding, some possible project ideas
may include the following:

Tomato paste processing (agro-industry)


Sugar cane processing (agro-industry)
Fruit plantation and juice processing, such as mango, (particularly under
irrigation at Koga Project )
Onion production & dehydration plant

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Production of high value crops such as Mangetout Peas, Sugar Snap


Peas & Runner Beans for export (suitable for highland areas in Misrak
Gojam)
Production of vegetable seeds
Cultivation and processing of various herbal plants
Castor seeds production and processing: There is high prospect and
opportunity for castor seeds production and extraction of oil, which is of
high value and demand as industrial product used for aviation and
pharmaceutical purposes. The production can be undertaken by smallholding outgrower farmers, particularly within Koga Project area, as well
as in different areas in the region.
Vernonia plant should also be of great interest for smallholding farmers
and large scale cultivators as well in low rainfall areas (such as
DebubWello). The extracted oil of vernonia is gaining a wide range of
application for manufacturing paints and coatings.

However, the viability of each project idea further requires preparation of


project profile and subsequent interest of prospective investors.

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Annex I. Production and Marketing of Flowers


1.1 Technical know-how Required for Production of Flowers
The harvesting of roses takes place three times a day and in Ethiopia 365 days a
year. In countries like India, monsoon weather conditions prevent production
from July to September. In Holland expensive winter production prevents
production from October to March. In the Ethiopian condition Production
interruption can be caused from pest or disease infestation, lack of water or
electricity, lack of packaging material, lack of experience, poor infrastructure or
inefficient planning.
The yield and the quality of production are dependent on two factors. The first is
plant variety. The second is the ability of the management to provide the right pre
& post harvest conditions. Pre harvest conditions include the correct fertigation
(fertilizer and irrigation required), the appropriate crop protection programmes
and the correct growing and harvesting techniques.
These require correct infrastructure in terms of human resources as well as
capital investment, raw materials, etc.; roses flush 6-8 times a year depending on
the area of production and losing one flush or part thereof is the equivalent of
reducing turnover by up to 16%per annum.
The other element of linkage between marketing, logistics and production is the
demand cycle and demand trends within the cycle in the market. Roses are used
during special occasions. Once the occasion is over specific demand is lost, and
only general demand is sustained. Marketing must know when these special high
demand occasions exist. Production must be able to play with Production to
maximize output to coincide with this and yet not disturb constant supply
requirement. Logistics must ensure all the elements of packaging, transport,
documentation us ready constantly.

1.2 Marketing Strategy


In order to be of any interest to an importer a minimum or 1/2 ha must be planted
per variety if the intended market is direct buyer. If the product is intended for the
auction it is advisable that minimum production area be 1ha per variety.
Once production is underway different growing techniques will be used, based on
specific selling days such as Valentine s Day or Mothers day; marketing must
advise production to maximize production to coincide with high demand periods.
Sequencing is another process used by production for marketing purposes. This
system ensures that production does not peak and thaw but is even
throughout the year.

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Marketing also requires post harvest production to produce the correct cut stage
for the roses depending on their export destination.
The auction offers security:
a) Will take all the production the farm can produce
b) Will pay 14 days from date of auction.
The auction, however, offers no security regarding price and this creates great
uncertainty of returns. In addition irrespective of the sales price on the clock the
auction house charges fees for the provision of unpacking, trolleys, buckets and
auctioning. Fees total approximately 16-25% of the clock price.
The advantage of direct sales is that the price is known and cash flow is better
managed. Price should be higher as middleman i.e. the auction is avoided. The
disadvantage is that direct buyer may not consume all the volumes produced and
payments are not assured.
Farmers do, however have to assure direct buyers of consistent quality, constant
quantity and good information and communication. By communication what is
meant is that the direct buyer must know what production levels are expected.
They can then plan their sales.
There is an annual and once every two-year fair where participants in various
sectors of the floricultural/horticultural sector meet. These are not really intended
to promote interaction between buyers and rose farmers but of course they may
find contacts at such occasions.
It is becoming clear that Ethiopia is beginning to establish itself as a high-end
quality producer of roses. Marketing and management must ensure that this
trend is developed. Quality of product, packaging, service and information are
essential to ensure, wherever the product is sold, that the highest standards of
performance are attained and maintained to ensure premium values and
sustained demand.

Management efficiently and coordination is a key factor. Decisions


related to operations and management need to be made instantly.

Markets exist through the auction or direct buyers.

To maximize quality and price requires management experience,


expertise, planning and reporting system, and a human resource base
that is committed.

Global competitive advantages to growing roses in highland Ethiopia. Given


the extent to which the companys performance is drawn to management

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efficiency and given the markets ability to absorb any output with price based
quality.

1.3 Factors Influencing Producer Prices


Seasonality
Color and quantity of leaf
Size of buds
Freedom from pests and diseases
Stage of bud opening
Packaging
Uniformity of bud opening stage
Overall appearances
Color brightness
Temperature of flowers on arrival
Bud damage
Vase life
Uniformity of stem length/bunch
Regularity of consignments
Uniformity of buds/bunch
Buyers experience of suppliers
Freedom from chemical deposits & water marking
Consistency with / between consignments
Average prices show a definite decline in the summer period when EU domestic
production is at its peak. Therefore, the highest prices are generally paid from
November through February.
The infrastructures required are:
Green houses

Packing hall
General store, including box storage and lockable chemical store
Cool Store
Canteen or staff room
Office
Secure hard standing for loading and unloading trucks and for holding
machinery
Stand-by generator and housing
Fertigation plant
Farm road to transport the flowers from the green houses or from the field
to the pack shade

The growing environment for roses has to be controlled and greenhouses


designed according to the climate conditions and crop need.
Logistic
As indicated, the interrelations between the various components that result in a
successful operation require coordination by management to ensure effective
logistics. Logistics needs accurate information to ensure the timely arrival of the
product; once harvested, has to reach the buyer within 72 hours. Logistics has to
ensure packaging is available, as needed, cargo space confirmed, that export
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documents are ready and that the cold chain is maintained so that the flowers
are as fresh as possible when they reach the buyer. Any delay means the
destruction of the product. If any of the above fails to occur, the buyer will stop
using a farm because the farm will have failed to meet its commitments.

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Annex II. Potential Flower Species for Export Market


In the floriculture industry there are a lot of flower species coming up; even new
products are introduced. Some of the products are produced and marketed for
their berries, which are becoming more and more popular in the bouquet
preparation and flower arrangements.
HYPERICUM
Hypericum is a product produced for the berries; the color and size of the berries
are the quality parameters of the product.
The new product development, breeding, is led by few breeders; as the berries'
size is one of the quality parameters, the crop does improve with altitude, for
better berry size and intense color, and a good quality hypericum is grown in
South America.
Hypericum is relatively easy to grow; one of the important constraints to mention
is the extensive period of light requirement, which involves high investment and
operation cost. From the production point of view, the main problem in the longterm is nematode infestations in the soil. With modern bans on Methyl bromide, it
means that growers have had to move towards cheap hydroponics systems.
Growers and breeders are very much interested to invest in Ethiopia, to grow
hypericum, considering the quality that can be achieved on the high altitude,
which gives an opportunity to the Amhara Region to develop a high quality
product with less in investment cost.
CARNATIONS, (SPRAY & STANDARD)
The main growers in Kenya are the big flower growers like: Oserian, Finlay, and
Homegrown; they are well organized big farms, that supply mainly the UK
market. To reduce the disease infestation they produce under tunnels or shades;
the investments on these tunnels is by far less than on the green house
structures required for the roses.
Spray carnations seem to have taken over from southern Spain as the main
producer. The margins are not fantastic as it is a real commodity product, but
necessary.
Big farms like Finlay Flowers grow standard carnations. The market didnt show
a growing tendency in the last few years, but there are niche markets for a good
quality product. Again altitude seems to make a big difference; the South
American quality still has a good market share.

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LIMONIUM (STATICE)
Limonium (standard) and Statice latifolia are both easy crops to grow on the
open field with less investment than the other flowers that require greenhouses
and other technologies and equipment; the production of the above species was
started in Ethiopia long ago, but the product is prone to botrytis and this really
affects the price.
The market is very volume sensitive and if there is a slight oversupply the price
drops significantly. There are several growers in East Africa, mainly in Kenya, the
main one being Oserian who still have about 20-30 ha, produced under small
temporary tunnels.
The quality of the produce is determined at the starting stage, and depends on
the quality planting materials; big and organized farms use plants from tissue
culture. Limonium also improves quality at high altitude.
ZANTEDESCIA
The market tendency of Zantedescia is declining; it is a crop grown from tubers
which requires additional treatment to improve the flowering capacity. It takes
about 14 weeks to come into flower from planting, and then the tubers bulk up for
about another 15 weeks.
Pest and disease are no major problems to the growing crop, barring a few
aphids. The main problem is the bacterial infection of the tuber (Erwinia and
other soft rots fungal and bacterial), which enters through wounds from lifting of
tuber dehydration from lifting too early before the skin has cured. This is the
major challenge for the crop, and various techniques using sawdust etc. The
other key matter is to keep soil temperatures cool (another reason for mulching
with sawdust), which automatically lends them to higher altitudes.
Generally the crop has to be grown under shade netting.
Marketing is generally done on the auction.
Tubers will, if well kept, last two to three years, but will eventually succumb to
virus. Zantedescia has a huge potential in Ethiopia in terms of crop improvement
because of the wide genetic base of the species, which of course is the base to
improve on quality, quantity (productivity) and resistance or tolerance of pests.
ASIATIC AND ORIENTAL LILIES
These are lilies grown from true bulbs. The Asiatic tend to have bright colors
(yellow, orange, red, white, pink) and are smaller. The oriental are larger, tend to

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be pink and white, possibly with some pale yellow in the flower too. They are
generally strongly scented. The main variety on the market is Stargazer. There
are a lot of other varieties in the market, which are great for the direct market.
Growing is simple, growing in beds with support netting. It is crucial that the
planting depth is kept even so that the crop all emerges at the same time and
grows like a table. During growth fertilizer is required in the early stages, but if
you have deficiency symptoms it is generally too late. You get one stem per bulb
and so it is crucial that you try to harvest and export one stem per bulb. With the
loss of a stem due to deficiency or whatever you have no income on the outlay of
the bulb!
Experience in Kenya is that viability of lily crops would be so much better if some
one could re-cycle the bulbs.
Quality at high altitude is excellent, and the Japanese will pay well for them, but
pest and disease tolerance in that market is minimal.
The main growers in Kenya generally grow them for the UK supermarkets.
ERYNGIUM
Eryngium loves cooler climates but cannot tolerate frost. The higher the altitude,
by all accounts, the deeper the colour and the better the prices that can be
fetched.
CARTHAMUS AND MOLLUCELLA
The above mentioned crops were produced and marketed from Ethiopia in the
late 80s and early 90s; the market is volatile highly affected by the volume.
Carthamus can have a potential with some quality improvement in Ethiopia with a
very wide production area, quantity monitoring
Carthamus is grown extensively in Kenya and sold on auction from time to time,
and the growers seem to do fairly well. In the main it is ranched to be sold in
high volumes with low margins.
GYPSOPHILA
Gypsophila paniculata is one of the popular species of open field summer
flowers; the species has become popular since the 1960s and has become
popular in the supermarkets, Gypsophila weak apical dominance. When the plant
is stimulated by long days, the stem elongates and terminates in blooming.
According to the growth pattern, Gypsophila is defined as an obligatory and
qualitative long-day plant, that long-day conditions will enable the plant to
proceed from the vegetative stage to the flowering stage

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PROTEA
Protea is a crop that loves altitude. The planting material is quite expensive and
slow growing; however once established the crop has very little in the way of
inputs (fertilizer or sprays) and from then on it simply needs to be harvested. The
only major requirement is an acid soil.
ROSES
Roses are the dominant species in the recent floriculture development in
Ethiopia; the production area concentrates in the central part of the country. The
types are classified in to three categories:
Sweet heart:
Sweet hearts are the type of roses suitable for low altitude, with short stem and
small bud size, considerably high yielder, the production of sweethearts ranges
from 200-400 stems per m2 depending on the altitude, production system and
variety. In the earlier years these types of roses were dominant on the market.
Intermediates:
Bigger bud sized roses than the sweethearts, with longer stem, the productivity of
the intermediates ranges between 180-250, depending on the variety, growing
condition or environment. The demand of European market is transferring from
the sweethearts to the intermediates, the high lands of Ethiopia in general and
the Amhara Region highlands in particular.
T-high breeds:
They are the high-end type of roses produced mainly in the highlands of Ecuador
and Colombia, in the high-tech farms of Holland and other European countries in
artificial media, with additional artificial light and high input requirements.

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Annex III. List of People Met


Name

Title and Organization

Ato Habtamu tsegaye


Ato Tefera Derebew

Ato Betew Melese


Ato Mehari Zeru
Ato Sintayehou Misker
Dr. Getachew Alemayehou
Ato Andargie Yetbarek
Resources
Ato Bantigegne Mengistu
Project
Ato Aynalem Belete
Ato Dejene Sahelu
Ato Tesfaye Hibru

Head, Bureau of Investment


Head, Bureau of Agriculture & Rural
Development
Head, Crop Development
Team Leader, Horticulture
Expert, Vegetable and Fruit
Head, Regional Agricultural Research
Head (Hydrogeologist), Waters
Senior

Agronomist,

Koga

Irrigation

PR Head, Trade & Industry


Head, Regional Meteorology
Head, Data Management, Regional
Meteorology

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References
1.

Federal Democratic Republic of Ethiopia, Central agricultural census


commission, Ethiopian Agricultural Sample Enumeration, 2001/2002
(1994 E.C.) results for Amhara Region

2. FAO, 1992. Selected indictors of food and agriculture in the AsiaPacific region 1983-93 Bangkok
3. FAO, 1995. Vegetable research with special reference to hybrid
technology in the Asia-Pacific region, Bangkok
4. FAO, 1998. Selected indictors of food and agriculture in the AsiaPacific region 1987-97, Bangkok
5. AMHARA NATIONAL STATE, BUREAU OF AGRICULTURE,
AGRICULTURAL RESEARCH MASTER PLAN, Horticultural Crops
Research, Volume III Part 5, Bahir Dar, December 1999.
6. Land Water Resources of the Blue Nile Basin Ethiopia, Prepared by
the United States department of the Interior, Bureau of Reclamation,
1960

Development Studies Associates (DSA) & Shawel Consult International (SCI)

47