"Many exporters are returning their licenses. We, the remaining ones, are in trouble too. The local price is higher than the international price. Ethiopia's share in the global market share is not more than 3 percent; we cannot influence the international market. The price that we quote is unacceptable to some customers. We are unable to go along with the market fluctuation. ... Previously, when the New York market fluctuated, our prices also fluctuated. But now, this is history. You are expected to buy on the basis of the daily high selling price." - Emebet Taffesse Kidanemariam, vice-president of the Ethiopian Women Exporters Association (EWEA) and the Ethiopian Coffee Exporters Association
On the other hand:
On October 03, 2009, the Ethiopian Grain Trade Enterprise (EGTE) said it plans to purchase 10,000 tons of coffee "for local and foreign markets during the current fiscal year." - Ethiopia News Agency, October 03, 2009
Guna Trading had already announced in July, 2009 its plans to "ship for the first time 10,000 tons of coffee valued at 23 million US dollars to the global market after it stopped the business (coffee export) for five years." - http://www.guna-trading.com/
Whereas:
"Farmers in areas that have access to transport are dropping coffee in favour of khat, which is contributing to reducing the total coffee harvest the country expects Alemayehu Teshome, coffee and tea development team leader at the ministry of Agriculture and rural development, said." - Addis Fortune, Sept 27, 2009
Stay tuned for a report on the recent developments in Ethiopia's coffee sector and the Ethiopia[n] Commodity Exchange (ECX).
--------
We work on putting women in the forefront in their business life
Ethiopian Reporter
October 03, 2009
Emebet Taffesse Kidanemariam is vice-president of the Ethiopian Women Exporters Association (EWEA) and the Ethiopian Coffee Exporters Association. She is also general manager of Zebad General Import and Export Plc. She has worked for about 20 years in different government and private institutions in the fields of finance and management. In EWEA, she heads the coffee exporters section.
Emebet spoke to The Reporter’s Birhanu Fikade on the issues related to women exporters and the coffee export business. Excerpts:
Why was it necessary to found Ethiopian Women Exporters Association (EWEA)? Is it because of male dominance in the sector or…?
In any economic sector, the actors of the economy can form associations depending on their center of interest. This could be on the basis of the gender, profession or something else. EWEA was formed by women who are engaged in the export sector. As we know, the sector requires a great deal of resource and experience. It is full of challenges that require support.
The Ethiopian export sector is not well developed at a country level. On top of that, women’s participation is minimal. Hence, the question is: how should we enhance women’s participation? As women, how should we overcome business challenges when we are faced with them? These were some of the motives behind the establishment of the association.
What are the major challenges women exporters face in this country?
First and foremost is women's educational background. Cultural influences compound the problem, even if women are educated. If you look at rural areas, it is men who [possess] land. Women depend on their husbands' income. This is true in urban areas too. This should change.
Some challenges are related to household matters. Once, in a women's forum meeting in Kenya, there was an issue I remember where some women who were getting successful in their businesses mentioned that their marriage suffered as a result because their husbands were not happy with their success.
If I am not mistaken, statistical data shows 52 percent of the population in Ethiopia are women. This means women are the majority. But when we come to the reality, what most women do and achieve is not positively considered. This association has the job of changing this situation. We have been unable to have our own place to learn and have exposure. But now, the association provides prompt support to businesswomen. We are working with the youth so that they become our associate members in business- related areas. We organize forums and discuss matters that need to be addressed. We work on putting women in the forefront in their business life. We help young newcomers on their entrepreneurial and business ideas. They, at least, should enjoy technical support; the system and culture we had gone through must no more be a challenge for them.
Though EWEA was founded nine years ago it currently has only 36 members. Do you feel you are successful? How do you evaluate yourself?
There is no denying that we have to have many members. On the one hand, EWEA has traveled a long way. It is working with the East African Women Association, the Indian Women Association, the Egyptian Women Association and others. On the domestic front, EWEA has done and is still doing a lot. But one of the reasons why the association has a few members might be fact that the number of women engaged in the export sector is small. We need women to play an active role in the sector. We are aiming to change and deepen our objectives. We are planning to work with women traders as they are the major resource holders.
We have tried to contact women exporters personally to become members. Some of them have a vague understanding of what membership entails. I presume culture prevents women from getting involved in and having the courage to participate in such associations. I personally like my association because I have benefited a lot from it. When I started my business, the association gave me office facilities and communication tools. It offers trainings to members.
One of your association's stated objectives is to promote women exporters in order to influence the policy environment. Would you elaborate this?
We work to promote women’s political, economic and social interests. To achieve this we need resources and facilities. The Addis Ababa Women Traders Association, EWEA and other women's associations are faced with basic problems in this regard. They don’t have their own offices. Ethiopian businesswomen lack a place to get together and display what they have produced. Until recently, we were unable to have our own office. We are working to obtain facilities for our members. The Addis Ababa City Administration, the Mayor's Office, the Ministry of Trade and Industry and other concerned bodies should think about it. In every decision passed, we need to promote the interests of women. But it is not going the way we want it to.
We closely work with the Ministry of Trade and Industry (Women's Affairs Office) and the ILO on the MDGs. But this is not enough. Those working on women's issues must do their level best. The Ministry of Women Affairs is not working with or supporting us as it should. Other governmental bodies are supporting us, though not. If they are not helping us, then I don’t see their relevance. We have asked them to visit us and wrote them letters, but they have not given us an encouraging response. If they fail to encourage and support women entrepreneurs, I doubt whether they can be fruitful. Other countries provide vital courage and support to women. Women there are able to cast their ballots to elect their leaders, to put in office the person whom they are really looking for.
You are involved in coffee exports. What does women’s role in it resemble?
Women do have a vast role in the coffee business. They are extensively present in the overall supply chain process. From cultivating and collecting, to the marketing process, they are involved. They play a significant role in quality control. But in the case of the export business, they are very few, I can even say practically non-existent. If I recall correctly, only two women are members of the Ethiopian Women Traders Association and women coffee exporters probably number not more than 10. This demonstrates that women exporters lack support and strength.
Sometime this year, the government took measures against coffee exporters. Were any women exporters affected?
No woman was affected. The wives of those exporters who were penalized presumably might have been subjected to the penalty, but I am not sure.
A few weeks ago, the export promotion office of the Ministry of Agriculture and Rural Development organized a discussion and training forum with coffee growers and producers. A grower and an exporter lady in SNNP Region raised a problem she encountered in relation to land. She said some people in the area are taking over the land she has obtained through lease. Are your familiar with this case?
There are two forms of associations in the coffee sector. One is the Coffee Growers and Producers Association. The second one is our association. The woman you mentioned is also a coffee exporter. I believe she is facing difficult challenges. But I feel that the growers association is handling the matter. Hence, I can't say much on it.
But in general, investment enhancing policies shouldn't be paper tigers. Such policies should be implemented properly. As a vice-president of the coffee exporters association, I can say that if we thoroughly assess the coffee business, there are many things we lack. The sector is not benefiting the country at its current level. Hence, it is necessary to work together. Associations need to work actively; they need to have facilities and appropriate services.
It amazes me when I see some offices acting as if they are there to say “no.” It seems that they are established to deny services. I feel so sad when I confront this. They tell you the word “no” every time you request their service as if “yes” does not exist in their vocabulary.
It is a reflection of the high prevalence of corruption and a weak human capacity aside to the implementation and rapid change of policies. We need to test even bad polices a bit longer rather than change them overnight. That will give us the experience to formulate a better policy.
What's your take on the claim that the fluctuation in the price of coffee at the local and international markets is a problem for the coffee export business?
This is one of the fundamental and biggest problem in the business. We Ethiopians are big coffee consumers. This has its own benefit as we don’t import coffee for consumption purpose. But the problems outnumber the benefits. Illegal coffee trade is one such problem that causes price variation. If the price of coffee in cross-border trade price is higher than on the central market, the supply will be directed to there. The other big challenge is the international price. Our coffee is expensive on the global market due to the high cost of production. We need to enhance our productivity and scale up our economy. That way we can do better off in the global coffee trade.
But what I notice here is that when exporters are not able to enjoy a fair benefit, they shift their businesses to some other area. If you look at coffee importers, there are only few countries or large companies that purchase it. We need to promote our organic coffee widely in the global market.
Unnecessary market channels should be cut off if we are to reduce cost and maximize earnings. Growers and exporters can perform better than before thanks to the existence of the Ethiopia Commodity Exchange (ECX).
Here, the exporter needs support as the coffee business is volatile. What you have in stock today might have a lower price tomorrow on the global market. The international market [frequently] fluctuates and is unpredictable.
In order to play a active role in the export business, financial clout unquestionably is indispensable. Accessibility to financing is a tough challenge that hinders the smooth flow of the business process.
Furthermore, it's a curse for exporters when they are saddled with low quality coffee.
Many exporters are returning their licenses. We, the remaining ones, are in trouble too. The local price is higher than the international price. Ethiopia's share in the global market share is not more than 3 percent; we cannot influence the international market. The price that we quote is unacceptable to some customers. We are unable to go along with the market fluctuation.
It is a harvest season now and more coffee is coming to the market. So, there must be an encouraging environment for the private sector.
Are you saying that the Ethiopia Commodity Exchange (ECX) market has no value in exporters’ business? Or …?
What I am saying is the market channel should be limited in order to minimize cost. The mediators have very little or no value added to the market.
ECX is playing a great role in the market. I am of those who strongly appreciate the importance of such a market. But as a newly emerging party, as a beginner, problems are bound to occur. The commodity market lacks some things as it introduces a new modern market to the country. It is new for the actors of the market. Anyhow, we are discussing on the different aspects and issues that we feel are shortcomings of the business.
There are reporters that the number of international coffee buyers is decreasing from time to time and that the volume the likes of Starbucks purchase is declining, following the establishment of ECX. Do you agree with this?
When we say the number of buyers is declining, it means our export volume is plummeting.
Why did the export volume decline? As I said earlier, the price of our coffee is high. The ECX, in its trading floor, indicates the global price of coffee at one side and the local price on another. The price at which we offer to buy coffee from suppliers is based on the lower and upper range.
What I have noticed in the market is that there prevails a problem of timeliness in delivery and even unavailability of coffee. The suppliers are not willing to provide us until the last range is announced. Consequently, we can’t get coffee and we don’t know what amount to purchase. That affects our export commitment. Export deals and commitments must be fulfilled within two months. But I can’t know definitely whether the amount of coffee I need is in stock.
We have repeatedly entreated the commodity market to make the information on stock information easily accessible. Suppliers have 90 days to keep coffee in stock. As an exporter, I have to discharge my obligations based on internationally binding agreements with my customers. Unfortunately, here, I can’t get it at the exact time which is suitable for shipment.
As a business dealer, it limits my speculation of the market. The price I paid might be way off the future global price due to delay.
Previously, when the New York market fluctuated, our prices also fluctuated. But now, this is history. You are expected to buy on the basis of the daily high selling price.
What I would like to stress here is that there is a shortage in coffee supply. I will be very sad if there appears a stock carry over. There is a market, there is demand for it. Getting and supplying it on time is crucial. Otherwise, the cost could be unbearable.
If coffee is not exported due to high prices, customers will shift to other competitors who offer a competitive price. Globally, there are 57 countries which sell coffee. Last year’s local price of coffee has almost doubled but the international market is not witnessing a significant hike in price.
This is a new harvest season, a new crop year. We have to solve these critical bottlenecks. We have to balance the supply and demand side of the market. Failure to do so might cost us a lot. Its national impact can be very high. Therefore, we have to address and promptly act on the bottlenecks and unhealthy activities.
On the other hand:
On October 03, 2009, the Ethiopian Grain Trade Enterprise (EGTE) said it plans to purchase 10,000 tons of coffee "for local and foreign markets during the current fiscal year." - Ethiopia News Agency, October 03, 2009
Guna Trading had already announced in July, 2009 its plans to "ship for the first time 10,000 tons of coffee valued at 23 million US dollars to the global market after it stopped the business (coffee export) for five years." - http://www.guna-trading.com/
Whereas:
"Farmers in areas that have access to transport are dropping coffee in favour of khat, which is contributing to reducing the total coffee harvest the country expects Alemayehu Teshome, coffee and tea development team leader at the ministry of Agriculture and rural development, said." - Addis Fortune, Sept 27, 2009
Stay tuned for a report on the recent developments in Ethiopia's coffee sector and the Ethiopia[n] Commodity Exchange (ECX).
--------
We work on putting women in the forefront in their business life
Ethiopian Reporter
October 03, 2009
Emebet Taffesse Kidanemariam is vice-president of the Ethiopian Women Exporters Association (EWEA) and the Ethiopian Coffee Exporters Association. She is also general manager of Zebad General Import and Export Plc. She has worked for about 20 years in different government and private institutions in the fields of finance and management. In EWEA, she heads the coffee exporters section.
Emebet spoke to The Reporter’s Birhanu Fikade on the issues related to women exporters and the coffee export business. Excerpts:
Why was it necessary to found Ethiopian Women Exporters Association (EWEA)? Is it because of male dominance in the sector or…?
In any economic sector, the actors of the economy can form associations depending on their center of interest. This could be on the basis of the gender, profession or something else. EWEA was formed by women who are engaged in the export sector. As we know, the sector requires a great deal of resource and experience. It is full of challenges that require support.
The Ethiopian export sector is not well developed at a country level. On top of that, women’s participation is minimal. Hence, the question is: how should we enhance women’s participation? As women, how should we overcome business challenges when we are faced with them? These were some of the motives behind the establishment of the association.
What are the major challenges women exporters face in this country?
First and foremost is women's educational background. Cultural influences compound the problem, even if women are educated. If you look at rural areas, it is men who [possess] land. Women depend on their husbands' income. This is true in urban areas too. This should change.
Some challenges are related to household matters. Once, in a women's forum meeting in Kenya, there was an issue I remember where some women who were getting successful in their businesses mentioned that their marriage suffered as a result because their husbands were not happy with their success.
If I am not mistaken, statistical data shows 52 percent of the population in Ethiopia are women. This means women are the majority. But when we come to the reality, what most women do and achieve is not positively considered. This association has the job of changing this situation. We have been unable to have our own place to learn and have exposure. But now, the association provides prompt support to businesswomen. We are working with the youth so that they become our associate members in business- related areas. We organize forums and discuss matters that need to be addressed. We work on putting women in the forefront in their business life. We help young newcomers on their entrepreneurial and business ideas. They, at least, should enjoy technical support; the system and culture we had gone through must no more be a challenge for them.
Though EWEA was founded nine years ago it currently has only 36 members. Do you feel you are successful? How do you evaluate yourself?
There is no denying that we have to have many members. On the one hand, EWEA has traveled a long way. It is working with the East African Women Association, the Indian Women Association, the Egyptian Women Association and others. On the domestic front, EWEA has done and is still doing a lot. But one of the reasons why the association has a few members might be fact that the number of women engaged in the export sector is small. We need women to play an active role in the sector. We are aiming to change and deepen our objectives. We are planning to work with women traders as they are the major resource holders.
We have tried to contact women exporters personally to become members. Some of them have a vague understanding of what membership entails. I presume culture prevents women from getting involved in and having the courage to participate in such associations. I personally like my association because I have benefited a lot from it. When I started my business, the association gave me office facilities and communication tools. It offers trainings to members.
One of your association's stated objectives is to promote women exporters in order to influence the policy environment. Would you elaborate this?
We work to promote women’s political, economic and social interests. To achieve this we need resources and facilities. The Addis Ababa Women Traders Association, EWEA and other women's associations are faced with basic problems in this regard. They don’t have their own offices. Ethiopian businesswomen lack a place to get together and display what they have produced. Until recently, we were unable to have our own office. We are working to obtain facilities for our members. The Addis Ababa City Administration, the Mayor's Office, the Ministry of Trade and Industry and other concerned bodies should think about it. In every decision passed, we need to promote the interests of women. But it is not going the way we want it to.
We closely work with the Ministry of Trade and Industry (Women's Affairs Office) and the ILO on the MDGs. But this is not enough. Those working on women's issues must do their level best. The Ministry of Women Affairs is not working with or supporting us as it should. Other governmental bodies are supporting us, though not. If they are not helping us, then I don’t see their relevance. We have asked them to visit us and wrote them letters, but they have not given us an encouraging response. If they fail to encourage and support women entrepreneurs, I doubt whether they can be fruitful. Other countries provide vital courage and support to women. Women there are able to cast their ballots to elect their leaders, to put in office the person whom they are really looking for.
You are involved in coffee exports. What does women’s role in it resemble?
Women do have a vast role in the coffee business. They are extensively present in the overall supply chain process. From cultivating and collecting, to the marketing process, they are involved. They play a significant role in quality control. But in the case of the export business, they are very few, I can even say practically non-existent. If I recall correctly, only two women are members of the Ethiopian Women Traders Association and women coffee exporters probably number not more than 10. This demonstrates that women exporters lack support and strength.
Sometime this year, the government took measures against coffee exporters. Were any women exporters affected?
No woman was affected. The wives of those exporters who were penalized presumably might have been subjected to the penalty, but I am not sure.
A few weeks ago, the export promotion office of the Ministry of Agriculture and Rural Development organized a discussion and training forum with coffee growers and producers. A grower and an exporter lady in SNNP Region raised a problem she encountered in relation to land. She said some people in the area are taking over the land she has obtained through lease. Are your familiar with this case?
There are two forms of associations in the coffee sector. One is the Coffee Growers and Producers Association. The second one is our association. The woman you mentioned is also a coffee exporter. I believe she is facing difficult challenges. But I feel that the growers association is handling the matter. Hence, I can't say much on it.
But in general, investment enhancing policies shouldn't be paper tigers. Such policies should be implemented properly. As a vice-president of the coffee exporters association, I can say that if we thoroughly assess the coffee business, there are many things we lack. The sector is not benefiting the country at its current level. Hence, it is necessary to work together. Associations need to work actively; they need to have facilities and appropriate services.
It amazes me when I see some offices acting as if they are there to say “no.” It seems that they are established to deny services. I feel so sad when I confront this. They tell you the word “no” every time you request their service as if “yes” does not exist in their vocabulary.
It is a reflection of the high prevalence of corruption and a weak human capacity aside to the implementation and rapid change of policies. We need to test even bad polices a bit longer rather than change them overnight. That will give us the experience to formulate a better policy.
What's your take on the claim that the fluctuation in the price of coffee at the local and international markets is a problem for the coffee export business?
This is one of the fundamental and biggest problem in the business. We Ethiopians are big coffee consumers. This has its own benefit as we don’t import coffee for consumption purpose. But the problems outnumber the benefits. Illegal coffee trade is one such problem that causes price variation. If the price of coffee in cross-border trade price is higher than on the central market, the supply will be directed to there. The other big challenge is the international price. Our coffee is expensive on the global market due to the high cost of production. We need to enhance our productivity and scale up our economy. That way we can do better off in the global coffee trade.
But what I notice here is that when exporters are not able to enjoy a fair benefit, they shift their businesses to some other area. If you look at coffee importers, there are only few countries or large companies that purchase it. We need to promote our organic coffee widely in the global market.
Unnecessary market channels should be cut off if we are to reduce cost and maximize earnings. Growers and exporters can perform better than before thanks to the existence of the Ethiopia Commodity Exchange (ECX).
Here, the exporter needs support as the coffee business is volatile. What you have in stock today might have a lower price tomorrow on the global market. The international market [frequently] fluctuates and is unpredictable.
In order to play a active role in the export business, financial clout unquestionably is indispensable. Accessibility to financing is a tough challenge that hinders the smooth flow of the business process.
Furthermore, it's a curse for exporters when they are saddled with low quality coffee.
Many exporters are returning their licenses. We, the remaining ones, are in trouble too. The local price is higher than the international price. Ethiopia's share in the global market share is not more than 3 percent; we cannot influence the international market. The price that we quote is unacceptable to some customers. We are unable to go along with the market fluctuation.
It is a harvest season now and more coffee is coming to the market. So, there must be an encouraging environment for the private sector.
Are you saying that the Ethiopia Commodity Exchange (ECX) market has no value in exporters’ business? Or …?
What I am saying is the market channel should be limited in order to minimize cost. The mediators have very little or no value added to the market.
ECX is playing a great role in the market. I am of those who strongly appreciate the importance of such a market. But as a newly emerging party, as a beginner, problems are bound to occur. The commodity market lacks some things as it introduces a new modern market to the country. It is new for the actors of the market. Anyhow, we are discussing on the different aspects and issues that we feel are shortcomings of the business.
There are reporters that the number of international coffee buyers is decreasing from time to time and that the volume the likes of Starbucks purchase is declining, following the establishment of ECX. Do you agree with this?
When we say the number of buyers is declining, it means our export volume is plummeting.
Why did the export volume decline? As I said earlier, the price of our coffee is high. The ECX, in its trading floor, indicates the global price of coffee at one side and the local price on another. The price at which we offer to buy coffee from suppliers is based on the lower and upper range.
What I have noticed in the market is that there prevails a problem of timeliness in delivery and even unavailability of coffee. The suppliers are not willing to provide us until the last range is announced. Consequently, we can’t get coffee and we don’t know what amount to purchase. That affects our export commitment. Export deals and commitments must be fulfilled within two months. But I can’t know definitely whether the amount of coffee I need is in stock.
We have repeatedly entreated the commodity market to make the information on stock information easily accessible. Suppliers have 90 days to keep coffee in stock. As an exporter, I have to discharge my obligations based on internationally binding agreements with my customers. Unfortunately, here, I can’t get it at the exact time which is suitable for shipment.
As a business dealer, it limits my speculation of the market. The price I paid might be way off the future global price due to delay.
Previously, when the New York market fluctuated, our prices also fluctuated. But now, this is history. You are expected to buy on the basis of the daily high selling price.
What I would like to stress here is that there is a shortage in coffee supply. I will be very sad if there appears a stock carry over. There is a market, there is demand for it. Getting and supplying it on time is crucial. Otherwise, the cost could be unbearable.
If coffee is not exported due to high prices, customers will shift to other competitors who offer a competitive price. Globally, there are 57 countries which sell coffee. Last year’s local price of coffee has almost doubled but the international market is not witnessing a significant hike in price.
This is a new harvest season, a new crop year. We have to solve these critical bottlenecks. We have to balance the supply and demand side of the market. Failure to do so might cost us a lot. Its national impact can be very high. Therefore, we have to address and promptly act on the bottlenecks and unhealthy activities.
There you have the proof! Eleni's exchange is nothing more than EFFORT's collaborator. Guna is a member of EFFORT which is owned by Meles and the gangsters. What does Eleni have to say now? So much for the free market crap. Shame on her.
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