ethiopia business days workshop: oilseeds · european oil-seeds market 26 • europe is the 2nd...

ETHIOPIA BUSINESS DAYS

WORKSHOP: OILSEEDS

5TH NOVEMBER 2015

13.00-15.30

Workshop Agenda

13.00 Welcome

Introduction to CBI in Ethiopia

13.15 Exercise: Perceptions & Expectations

13.40 CBI: Oilseeds opportunities in Ethiopia

14.15 1. Tradin Organic: Success in Ethiopia

2. Berhan Oils: An Ethiopian investor

15.00 Investment Discussion

15.30 Close

CBI - Ministry of Foreign Affairs

CBI’s programme onExport Market Readiness:

Oilseeds Ethiopia

5 November, 2015

CBI’s Programme on Export Market Readiness

1. About the CBI

2. Background

3. Video Natural Ingredients

4. Concept Export Market Readiness

5. What is needed?

6. Integrated Value Chain Approach

7. Core Product: Export Coaching

8. Oilseeds Ethiopia Project

19-11-2015 CBI - Ministry of Foreign Affairs4

About the Centre for the Promotion of Imports (CBI)

Founded 40 years ago

The Expert in Export Development and Export Promotion to the European market

Budget from the Netherlands Ministry of Foreign Affairs

Successfully supported exporters from developing countries to the EU

Export increase for exporters to the EU

Developed products and services for BSOs (sector associations, chambers of commerce)

Market Information available for free at www.cbi.eu/marketintel on potential export sectors in the EU


http://www.cbi.eu/marketintel


Background CBI (1/2)


Agricultural Industrial Consumer Services

Fresh fruit and vegetables

Timber and timber products

Wine

Etc.

Automotive

Castings and forgings

Medical equipment

Etc.

Office and school supplies

Home textiles

Garments

Etc.

Tourism

Business Process Outsourcing

IT Outsourcing

Etc.

Background CBI (2/2)

CBI - Ministry of Foreign Affairs8

Concept Export Market Readiness

Exporting companies need to have:

1. Market Proposition / Export Marketing Plan

2. A product that is ready for the market

3. Processes in order to be able to deliver the product


What is Needed?

Dedicated stakeholders: actors, supporters, influencers, importers

Market demand

Supply potential

Market information on destination markets

Sector Export Marketing Plan

Coaching individual exporters

Market linkages

BSO support on services, informationand market promotion



Financial Institutions Private consultants NGOs Certifying agencies

Trade promotion Inst. Chambers of commerce Sector associations Customs

Supporters

WTO Ministries of Trade European Union Lobbyists

Employer cooperations Trade Union Local Authorities xxx

Influencers

Production Chain

Supply side: Developing countries

Demand side: Europe

Integrated Value Chain Approach

Core Product: Export Coaching for Exporters


Company Audit

Application procedure

Business Management Skills

Export Capacity Building

Certification

Market Entry to the EU

Selection

Coaching, training, Export Marketing Plan, Export Readiness

Skills on management, HR, finance, logistics, etc.

Action Plan

Coaching, Certification

Trade Fairs EU, contacts with Buyers

Oilseeds Ethiopia Project

3 stages:

Export auditing (diagnosis)

Coaching

Market entry

12 exporters

1 BSO (EPOSPEA)


3 Groups of Companies

“Value added” – companies which already have experience exporting processed products to other markets and want to build their export to Europe or companies which have recently installed top class value addition facilities and want to access the European market.

“Early adaptors” – companies which have expertise and marketing capacity which needs focus and application provided by CBI to enter the European market.

“Step by step” – companies which have the product and product knowledge but are being coached by CBI to develop the necessary expertise and marketing capacity to enter the EU market.


More Information?

Centre for the Promotion of Imports from developing countries

P.O.Box 93144

2509 AC The HagueThe Netherlands

Tel: +31 (0)88 60 24300

www.cbi.eu

Email: [email protected]

Oilseeds sector specific information:James Fitzpatrick: [email protected]


http://www.cbi.eu/

mailto:[email protected]

16

Perceptions Exercise 10 Minutes & Discussion

For Dutch participants1.What comes to mind when you think about Ethiopia?2.What are your experiences or expectations of business in Ethiopia?

For Ethiopian participants1.What do you think European buyers or investors want?2.What are the challenges of doing business in Netherlands or E.U. ?

Centre for the Promotion of Imports from Developing Countries 17

• Ethiopia Oilseeds Snapshot

• The World Oilseeds Market

• Ethiopian Value/Supply Chain

• Oilseeds Opportunity in Ethiopia

Summary of conclusions and opportunities

Ethiopia produces: • High value Oilseeds• Suitable for export markets• Potential for high value export markets• Suitable for specialty & niche markets• Potential for value addition• Potential for value chain investment

Major market share opportunities in Sesame ,Linseed, Niger

Niche market opportunities in Soya beans, organic products, oils and primary processed products.

Ethiopian Oilseeds

Centre for the Promotion of Imports from Developing Countries

• Diversity of growing

conditions

• Smallholder Agriculture

• 3 million farmers

• Low Yields

• Low use of inputs &

chemicals

• Oilseeds 2nd export after coffee

Ethiopian Oilseed Production

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2000/01 2004/05 2008/09 2011/12

Oilseed cultivated land (ha) Oilseed Production in Tons

What oilseeds are we talking about ?


1. Sesame2. Rape3. Groundnut4. Linseed (Flax)5. Noug or Niger Seed6. Sunflower/Safflower

Oil crops1. Cotton2. Soya Beans3. Castor4. Pumpkin5. Palm

THE MARKETS

WORLD TRENDS

PRODUCT TRENDS

EUROPEAN TRENDS

Trends – OECD & FAO

OECD & FAO project higher oilseed and oil prices to 2020• Growth in usage slowing

• Growth dominated by developing countries

• Production growth slowing

24

Trends in trade structure and channels

•balance of supply/demand,

• food security

• food safety

• traceability

•healthy foods

• the power of the supermarket

Market trends changing the structure of the sector

25

Product Market Trends

Health & Wellness

• Lower fat ; higher quality

• High Oleic

• Non GMO

Replacement of Palm Oil, hard fats, heavy oils

Market Segmentation – ethnic, high quality oils, certified oils

Bio Diesel usage

Sustainability

• Food security

• Environment

• Product Identity preservation

European Oil-seeds Market

26

• Europe is the 2nd most important destination market after Asia

• Europe accounts for:

• 15% of World Imports

• 11% of World Production

• Europe has no production of Groundnuts, Sesame Seed or Palm kernels

Trend

• European imports have been steady in the last couple of years recovering from a dip during the 2008-2010 period

55%18%

15%

7%

3% 2%

World Oilseeds Imports by share

China

Rest of Asia

Europe

South America

Africa

North America

0

5

10

15

20

25

30

35

40

Production Imports Exports

Europe Million tonnes

Source FAO

EU Market – Imports growingHighlights

Imports recover to 5.3m tonnes• Sesame up 15% 2014 vs 2012

• Linseed up 6% +53k tonnes

• Groundnut up 13.5%

• Suns up 14% 2012 vs 2014

• 6% annual growth in consumption 2010-2014

Developing countriesSesame – 80% 122,000 tonnesGNK – 55% 450,000 tonnesLinseed – 26% 232,000 tonnes

28

European Buyers’ Requirements

Centre for the Promotion of Imports from developing countries

29

Ethiopia in the World Market Sesame seedLinseedNiger Seed

Sesame Seed: 4th Largest producer

Centre for the Promotion of Imports from developing countries 30

Sources: FAO, Trade, EPOSPEA,CBI. 2013

Linseed: 6th Producer in the World


Niger Seed: Largest producer


Sesame Seed Chain

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

Niger, Linseed Oilseed Chain

• Mainly domestic• Export to Europe and USA• Industrial , food and pet food.

35

Value Chain Successes &

Constraints Evidence of success in the sector Government & NGO support Increasing production of quality

raw materials Diverse soils and growing

conditions Availability of labour Availability of land Economic growth Growing domestic market Opportunity in regional markets.

Access to finance for growers and cooperatives

Limited infrastructure Low inputs access Poor post harvest handling Unreliable contracting Low levels of value addition

linking export to import needs.

Difficulty traceability & trade through ECX

Risk of high dependence on China market.

ETHIOPIAN OILSEEDS

OPPORTUNITY IN

PRODUCTION, VALUE

ADDITION AND INPUTS

A World of Market

Opportunities

Product opportunities


1. Sesame2. Groundnut3. Linseed (Flax)4. Noug or Niger Seed

Potential for Value Addition • Sesame natural cleaned• Linseed natural cleaned• Noug or Niger Seed• Groundnut production • Soya Beans (Non GMO & Organic)• Castor

Value added products Hulled, cleaned Specialist Oils for export Bulk oils for domestic Prepared e.g. Tahini / Halva Oilseed cake for animal feed

Niche Markets Organic/Ethical GMO Free

Value Chain Opportunities


Farmers & Cooperatives• Improving yields & post harvest

practices• Contract farming• Irrigation• Organic farming• Cultivation of new land



Processing• Oilseed cleaning, sterilisation and

hulling• Oil milling & refining• Oilseed export• Processing for food e.g. tahini



Agri business• Supply of fertiliser & pest controls• Improved planting seeds• Farmer training• Farm equipment• Cooperative business development



Services• Credit facilities for farmers• Technology transfer• Market information services• Warehouse and infrastructure

development



Farmers & Cooperatives• Improving yields & post harvest

practices• Contract farming• Irrigation• Organic farming• Cultivation of new land

Agri business• Supply of fertiliser & pest controls• Improved planting seeds• Farmer training• Farm equipment• Cooperative business development

Processing• Oilseed cleaning, sterilisation and

hulling• Oil milling & refining• Oilseed export• Processing for food e.g. tahini

Services• Credit facilities for farmers• Technology transfer• Market information services• Warehouse and infrastructure

development

Investment incentives

• Capital equipment customs duty exemption for new enterprise or upgrade of existing.

• Packing & raw materials for re-export customs duty exemption.

• Profits tax exemption 2-8 years for agro investment.

• Processors can source directly from farmers and cooperatives.

Government Policy - Oilseeds

• Establishment of a Project Management

Unit at ATA

• Promotion of value addition

• Sesame is a priority crop in the Agricultural

Growth Program

Oilseed Value Chain Initiatives1. Sesame Business Network – Innovation and

knowledge building network working with business clusters - Netherlands Embassy and agencies

2. Netherlands Embassy – Agribusiness Support Facility initiative, SBN, Aid through Trade

3. Ethiopian Government – New warehouse facilities & direct links for from growers for processor

Oilseed Value Chain Initiatives

4. SNV – Pilot programme training cooperatives Co- operatives for Change -Gates Foundation

5. NABC – creating business linkages

6. CBI – exporter training programme.

7. ECX – Traceability and quality improvement initiatives

Success Stories

Ambasel Trading House PLC

Dipasa Agro PLC

Selet Hulling PLC – Trading

Organic

Berhan Oil Mills

Summary of conclusions and opportunities

Ethiopian Value Chain• High value Oilseeds ; increasing production• Suitable for high value export markets• Suitable for value addition• Government and International support

Investment Potential• Value chain investment• Processing investment• Social impact

50

Thank you

[email protected]

[email protected]



Friday 6th November Factory Visit

Intersnack – the largest snack manufacturer of nut and seed based snacks in Europe

1. Bus leaves from Brood Fabriek at 8 a.m.

2. Visit 10 am – 1.30 p..m.

3. Dutch Lunch afterwards

4. Expect to be back here circa 4.30 pm

ethiopia business days workshop: oilseeds · european oil-seeds market 26 • europe is the 2nd...

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