World Sesame Outlook and Ethiopia’s position in the world market
C4C
Sesame Stakeholders Network Meeting
(April 20-21, 2015) Mekelle, Ethiopia, organized by
SBN & C4C/SNV, Agriterra/
World Sesame Production and ExportDescription Figure No producing countries 76Dominant countries Asia &AfricaProduction growth (2002-2012) 3.75 %Export growth (2002-2012) 6.10 %Share of export over production 25%-30%
World demand Increasing fast(>SS)
C4C
2008/09 2009/10 2010/11 2011/12 2012/13 2013/140
100000
200000
300000
400000
500000
600000
700000
Volume(MT) fob value ('000USD)
Ethiopia's Sesame traded volume and FOB value(2008/09-2013/14)
NO HUMERA TYPE WELLEGA TYPE1 Appreciated for its aroma and
sweet taste mainly used in raw form because of
their aesthetic value
2 Whitish color White seeds, with a white to golden colour
3 larger seeds size; Small seeds
4 Good uniform seeds
5 48 – 50% oil content High oil content 49 -56%
6 Used for bakery products, Tahinia confectionary
Seeds crushed into oil
Ethiopia’s Sesame seeds Characteristics
C4CCurrent sesame market dynamics
2. The prices of sesame seeds has been dropped
compared to 2014
Global From 2200 USD to 1200 USD/MT
Ethiopia From 2600 USD to <1400 USD/MT
2-Jan-14
25-Jan-14
17-Feb-14
12-Mar-1
4
4-Apr-1
4
27-Apr-1
4
20-May-1
4
12-Jun-14
5-Jul-1
4
28-Jul-1
4
20-Aug-14
12-Sep-14
5-Oct-
14
28-Oct-
14
20-Nov-1
4
13-Dec-1
4
5-Jan-15
28-Jan-15
20-Feb-15
15-Mar-1
51000
1200
1400
1600
1800 Price in USD per MT
Ethiopia’s FOB price trend from Jan/2014 to March/2015
C4C2005-2015 Ethiopia Whitish Sesame CNF Price Trend in China
Sesame Price Trend Comparison for Domestic and Imported Sesame 2006-2015
C4CWhy Low Price??
2014/15 global Sesame production volume is beyond the expectation and the information from the consuming side could hardly make people optimistic
b. High & unexpected growth in production happened in most of the African countries:1. ETHIOPIA : 260-290 ; SUDAN : 60-1802. TANZANIA: 120-140; UGANDA :20-30;
MOZAMBIQUE 30-403. NIGERIA : 200-240; OTHER W.A :130-160
High Sesame Seed Price
Low demand and surplus for Low demand and surplus for Maize/Corn, Sugar, Cotton,
Soya etc.
a. Good Harvest in India & this resulted not to import from Africa
C4CWhy Low Price COND----??
2. a month of delays in the harvest & marketing of India sesame,
together with the concentrated harvest and marketing of sesame in
East and West African
3. Poor quality of Ethiopia’s
Sesame compared to
previous years
4. Sesame seeds with 50-54% Oil
at price of $1200/MTs is still in better position
C4CWill the Low Price Continue in China??
after the Spring Festival, prices continue to "decline on the slide", market remain
be weak in the short term
In china in April , 2015, the phenomenon of supply exceeds demand will be the same as
before. However, the overseas sesame price has reached an extremely cheap level after four months of
sharp decline
Purchase or Continue to Wait & See.Rhythm
Lack of market confidence, keep sliding
more sesame shipments coming from Ethiopia, India, Togo, Sudan and Nigeria
most Chinese processors and millers have supplied their sesame STOCKS after Spring Festival,
processors are buying on current demand traders need to maintain the free flow of cash,
C4CHow Ethiopia responded to the Low Price??
Optimistic feeling persist
(high price)>140,000MT
in stock
Loose buyers, stock; loss; competitiveness
Domestic sesame buying price continue upward( higher than
world price):
e.g. On march 31/2015ECX Average price: 1267 USD/MT (and If you export 1500 USD/MT)
HoweverActual FOB Average price : 1374 USD/MT
High pressure on the International selling price will continue in thecoming months on contrary if the Indian and Tanzanian crop fails the
outcome will be the opposite
C4COPPORTUNITIES FOR ALL
Substitution effect.
End user consumption has been increased
keep the trade active & continued demand of sesame seed
.
-
JapanChina
C4COPPORTUNITIES FOR ETHIOPIA
presence of adequate land and inexpensive
labour
Well established brand :
quality sesame producer;
.
-
C4C
PRICE
QUALITY(world brand)
DELIVERY
COMPETITIVENESS OF ETHIOPIA ??
VOLUME( high)
Competitiveness
High
Varies with exporters
Poor Export Management
Limited long-term
contract
Individual quality defect result in bad
image on country’s market
B2B
Limited profiling & communication
100% comply with contractual arrangements
Trade is all about creating relationships & trust
Not speculate; high cost
Processors: big size, uniform &white
Unions have not utilized efficiently the ‘traceability’ & the direct export advantage over
common traders. Business arrangement
Bargain P
High cost of Production
Low productivity
CostProductivity
Info:world prod &marketing
Global sesame FOB price (March/2015)
Country Product Fob priceUSD/MT
CNF priceUSD/MT
remark
Ethiopia First-grade sesame (2014-2015) from direct suppliers
1470
Shipment date in
Apr.
Second-grade sesame (2014-2015) from direct suppliers
1370
Sudan White sesame (2014-2015 seasons 1430
India New white sesame (2014-2015) 1500 Nigeria Nigeria oilseed (2014-2015) 1240 Mali Mixed sesame (2014-2015) 1230 Burkina Faso Mixed sesame (2014-2015) 1240
White sesame (2014-2015) 1270
Price
2013/14 Top Ethiopian Sesame Destination Countries
61%15%
6%
4%
3%2%
2%2%1%1% 4%
% Share
ChinaIsraelTurkeyJordanSaudi ArabiaGreeceKorea, RepublicJapanLebanonEgyptOthers
83%
DiversificationChina???
India export to:Far East 41% and EU 20%
Far east(Korea PR29%, Vietnam 25% and chaina 4%)
C4CWORK FOR COUNTRY’S
COMPETITIVENESS
.
-Every Body should
work for the country's
competitiveness
How the SV
C
actors
can
generat
e
susta
inable
benefit??
1. How can Ethiopia position itself better in the world market? Including market diversification to EU?
2. How cooperatives/unions become efficient & effective Market player?
3. Up to what level quality of sesame improved? How?
C4CISSUES FOR DISCUSSION
የመወያያ ጥያቄዋችችግር(issues) ምን
(what ?) ማን
(Who?)መቸ(when?)
1. ኢትዮÉ ያ በአለም የሰሊጥ ገበያ
ላይ ጥሩ ተፎካካሪ እንድትሆን ምን
መደረግ ይሮርበታል ? የወጭ ንግድ
መዳረሻ ሀገሮችን ወደ አዉሮፓ ሀገሮች
ለማበራከት እንዴት ይቻላል?
2. ህብረት ስራ ማህበራትና ዮኔኖች
በሰሊጥ ግብይቱ ብቁና ዉጤታማ
ተወናዋይ እንዲሆኑ ምን መሆን
አለበት
3. የሰሊጥን ጥራት በምን መልኩና
በምን ደረጃ ማሻሻል ይቻላል?
C4C
አ
ሰመ
ግ ና
ሁለ
THANK YOU