2014

Ethiopia Sesame Outlook

Topics

Country Profile Sesame Production Sesame Marketing Opportunities in Ethiopia Sesame Challenges in Ethiopia Sesame Way Forward Why African Edible Oil Alliance (AEOA)?

Country Profile

Key Facts• Capital: Addis Ababa

• Population: approximately 90 million (2013)

• Land area: 1.13 mil sq km (437,794 sq m)

•Major religions: Christianity, Islam

•Monetary unit: Birr

• Exchange rate: 1 USD = 19.95 ETB

•Major exports: Coffee, oilseed, Gold, Pulses,

Flower, Textiles & Garments,

Leather & Leather Products etc…

Country Profile …

• Economy (2013/14 est.) :-

• agriculture: 40%,

• industry: 14%,

• services: 46 %,

Country Profile …

ETHIOPIA’S ECONOMIC POLICIES Pro-Market Pro-Private Sector Pro- Liberalization Growth and Transformation Plan - (GTP) as a

central plank of its 5 years development

Programme

6

Oilseed Profile of the Country

• Oilseed is the 3rd largest crop in area coverage and production after cereals and

pulses;

• The 2nd largest export earning after coffee ; 2013/14 18.97% & 22.05% share

respectively from the country foreign currency earning.

• The 4th largest sesame seed producing country in the world;

• Engages about 3 million small, medium and large scale farmers;

• Government priority commodities to transform to commercial farming.;

• Contributes significant role to achieve national household food security in the

country;

7

Oilseeds Production Trend

Hectar Quintal Hectar Quintal Hectar Quintal Hectar Quintal Hectar Quintal2009/10 2010/11 2011/12 2012/13 2013/14

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Linseed(Flax)NeugSesameGround NutsSufflowerRapeseed

8

The Importance 0f Sesame Seed :

1 Edible oil. The oil is almost odorless with a distinctive nutty sweet flavor. Roasted sesame oil resists rancidity due to the antioxidants formed during seed roasting. Sesame oil is especially important in the Far Eastern cuisine, mainly Japan and China.

2 Confectionary, biscuit and bakery industry. Most hulled clear white sesame is required for bakery products. Hulled sesame sticks to the bread or roll, while maintaining the white colour after baking. Roasted sesame has a nutty taste.

3. Tahini industry. Tahini, a traditional Middle Eastern paste, is made from hulled sesame seed and is rich in protein

4. Halva industry. Halva is a sweet made of 50% tahini, boiled sugar and some other ingredients.

5. Pharmaceutical ingredients.

2002 y 2003y 2004y 2005y 2006y 2007y 2008y 2009y 2010y 2011y 2012y -

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

3,500,000.00

4,000,000.00

4,500,000.00

5,000,000.00

2,841,406.00

3,210,464.00

3,487,560.00 3,491,391.00 3,680,549.00 3,758,173.00 3,830,181.00

3,931,208.00

4,352,957.00

4,775,978.00

4,167,150.00

706,831.00 745,532.00 775,747.00

1,019,925.00 1,038,060.00 1,030,590.00 957,479.00

1,224,133.00 1,302,890.00 1,377,076.00 1,356,120.00

The world Sesame seed Production export Trend in tones

World Sesame Production and Export

Sesame is produced from 76 countries in the world

The production is mostly dominated by Asian and African countries

The total sesame seed production increased from 2.8 million to 4.2 million

tons with annual growth rate of 3.75 percent

Export from 708 thousand to 1.3 million tones with annual growth rate of

6.1 percent

The demand of sesame seed increasing faster than supply

Major Sesame Growing areas in Ethiopia

W. Wolloga/ Oromia  

Humerra/Tigray and Metema/Amhara

SNNP

12

Sesame Cultivation Season

DESCRIPTION MONTHS

Field Preparation April/May

Plaughing / Disking April/May

Sawing May/June/July

Weeding June/July/August

Harvesting October/November

13

Sesame Seed Production Trend

Hectar Quintal Hectar Quintal Hectar Quintal Hectar Quintal Hectar Quintal2009/10 2010/11 2011/12 2012/13 2013/14

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Sesame Production in Hectar & Tone

= Tigray – 130,000 = Amhara – 229,038 = Oromia – 114,000 = B. Gumuz – 71,496 = SNNPR – 50,210 = Gambela – 3,220 NB. Source RBOA

(About 3 million SHF are beneficiaries)

2014/15 Sesame Production Plan in Tone

Myanmar

IndiaChina

Tanzan

ia

Ethiopia

Uganda

Sudan

(form

er)

Nigeria

Mozambique

Burkina F

aso Niger

Somali

a

Thail

and

Paragu

ayEg

ypt

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

900,000.00

620,000.00 610,000.00 600,000.00

456,000.00

244,783.00

188,740.00 187,000.00 158,000.00

117,000.00 91,000.00 90,000.00 78,000.00

50,000.00 48,500.00 45,000.00

2002 y 2012y

Ethiopia’s Position in World Sesame Production

Sesame seeds Characteristics

Appreciated for its aroma and

sweet taste;

Whitish color;

larger seeds size;

Good uniform seeds;

48 – 50% oil content;

Used for bakery products, Tahinia

confectionary;

HUMERA TYPE

16

Gonder Type

• White and whitish

• Good uniformity of seed

• Used for oil crushing and bakery

Wellega Type

• White seeds, with a white to golden colour, are mainly

used in raw form because of their aesthetic value and are

mostly priced higher than mixed seeds (yellow to dark

brown) which are generally crushed into oil

• Mainly Small seeds with High oil content 49 -56%17

Sesame seeds Characteristics …

DOMESTIC SESAME MARKETING

Primary Level Transaction

Centres

Quality is monitored by extension

workers

With common service (data board,

loading and unloading platform, dry

waste burning and Toilet )

With weighing scale certified by MOT

owned by each supplier

392 PLCTCs

Ethiopian Commodity Exchange (ECX):

The 2nd level:-

Receive sesame seed form Suppliers,

Producers, and Cooperatives;

Under take, grading, & warehouse

services,;

Under take sesame exchange between

suppliers and Exporters

Submission of sold sesame to exporters

SEASAM SEED NIGER SEED CASTOR SEED LINSEED PUMPKINSEED GROUND NUT RAPESEED SUNFLOWER0

100000

200000

300000

400000

500000

600000

700000

268,841

17,019 8,832 3,340 613 546 1,324 204

617,221

12,789 6,786 2,359 1,450 535 423 126

NET WEIGHT in TONFOB VALUE in(000) USD

2013/14 Ethiopia Oilseeds Export in Volume and Value

Ethiopian Sesame Export Trend

2009/10 2010/11 2011/12 2012/13 2013/14 0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

320,983300,656

436,914

390,652

618,268

Value, 000/USD Budget year

Volume/mt

2009/10 238,832

2010/11 218,247

2011/12 331,584

2012/13 222,705

2013/14 269,221

372,615.66 96,371.43

38,036.53

23,447.9

7

16,909.1

7

13,426.0

5

11,479.2

4

10,511.8

5 5,118.92 5,074.80 24,229.19

USD ''000''

ChinaIsraelTurkeyJordanSaudi ArabiaGreeceKorea, Republic ofJapanLebanonEgyptOthers

2013/14 Top Ethiopian Sesame Destination Countries

Buying Countries

Volume in

Tone % Share

China 164,084 61.03

Israel 41,634 15.49

Turkey 16,259 6.05

Jordan 10,180 3.79

Saudi Arabia 7,228 2.69

Greece 5,738 2.13

Korea, Republic 4,627 1.72

Japan 4,332 1.61

Lebanon 2,090 0.78

Egypt 2,083 0.77

Others 10,586 3.94

Grand Total 268,841 100.00

66,625.59

32,619.64

27,145.02

25,069.02

20,713.58

19,222.70

17,796.85

17,761.01

15,403.30

15,299.25

359,564.85

RIZHAO RUNY SHANDONG, CHINAAGRE COMMODITES & FINANCE FZERUSHDI FOOD IND.OLAM INERNATIONAL LIM-ITEDCHINA SADIC INTER-NATIONAL TRADE CO,HAMAMA MEIR TRADINGCHINA LIGHT CERERAL MERCHANDISEQINGDAO KERRY PEANUTAHCOF IDUSTRIAL DE-VELOPMENT CO.LTDTIANJIN HUACHEN TRADE CO.LTD.Others (188)

Buyers Volume in TonRIZHAO RUNY SHANDONG, CHINA 29,317.00 AGRE COMMODITES & FINANCE FZE 13,946.00

RUSHDI FOOD IND. 11,856.00 OLAM INERNATIONAL LIMITED 10,749.00

CHINA SADIC INTERNATIONAL TRADE CO, 9,266.10

HAMAMA MEIR TRADING 8,268.47

CHINA LIGHT CERERAL MERCHANDISE 7,687.00

QINGDAO KERRY PEANUT 8,018.00

AHCOF IDUSTRIAL DEVELOPMENT CO.LTD 6,536.00 TIANJIN HUACHEN TRADE CO.LTD. 6,782.00 Others (188) 156,415.17 Grand Total 268,840.74

USD ''000''

Top Ethiopian Sesame Buyers

India

Ethiopia

Nigeria

Sudan

(form

er)

United

Burkina F

aso

Paragu

ay

Myanmar

ChinaMali

Mozambique

Guatemala

Uganda

Pakist

an

Venezu

ela

0

50000

100000

150000

200000

250000

300000

350000

400000

450000408687

254127

124700102600

7601758650

36900 36500 33201 28553 25871 17977 14763 14440 13683

2002 2011

Ethiopia’s Position in World Sesame Export

Major Efforts

• Research Support• Extension support• Quality Improvement

• Modernizing the Domestic

Market• Market Support• Supply Side, • Logistics & • Promotion & Linkage

• Close Coordination

• National Export support Committee,

• Regional Supply support Committee,

• Business Economy National

Integrated Forum,

• Sect oral Ministries)

Challenges of Sesame Production and Marketing

Lack of synergy between Stakeholders;

Weak research and extension linkage;

weak improved seed and modern technology

utilization capacity;

post harvest loses;

Weak market infrastructure;

Low market surplus;

Weak logistics service/Transport

Luck of advanced value addition technologies

Low level of information networking and

processing

Low Negotiation capacity;

Price fluctuation /Price volatility

Construct default (both sides- exporter

and buyer)

High transaction cost

Opportunities in Ethiopia’s Sesame

High Government’s commitment;

Favourable policy environment;

Diverse agro-ecology and climatic conditions;

Well established brand - Positive image of the country as quality sesame

producer;

The variety of sesame types;

Potential for volume and quality expansion due to presence of adequate land

and inexpensive labour,

Way Forward

Strengthen research and extension linkage;

Improve modern technology utilization

capacity;

Improve market infrastructure;

Branding & Promotion by Strengthening

Business Diplomacy Capacity;

Capacity Building;

Establishing strong Information

system;

Collaboration in establishment of

Sustainable financing system;

Collaborate in creation of efficient

trade logistic;

Strengthening Public Private

Partnership;;

Improve global competitiveness;

* Value Competitiveness* Policy Advocacy* Market promotion* Social Responsibility * Cross Cutting Issues* Environmental Responsibility

African Edible Oil Alliance (AEOA)

END