Agribusiness and Trade Expansion Program - Fintrac Inc.
Agribusiness and Trade Expansion Program - Fintrac Inc.
Agribusiness and Trade Expansion Program - Fintrac Inc.
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Monthly update – February 2008<br />
<strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
“<strong>Inc</strong>reasing Rural <strong>Inc</strong>omes <strong>and</strong> Employment”<br />
NOTE FROM<br />
THE PROJECT DIRECTOR<br />
A lot happened this month in the coffee sector.<br />
The second group of Q graders graduated, most<br />
of these cuppers are from the government’s<br />
Central Liquoring Units (CLU) in Addis Ababa <strong>and</strong><br />
Dire Dawa. This is a tremendous boost to the<br />
coffee industry <strong>and</strong> Ethiopia now has more Q<br />
graders than any other African country. We also<br />
held the 9 th Coffee Forum, <strong>and</strong> the second Coffee<br />
Round Table Conference in Jimma, which<br />
attracted new international buyers from the US,<br />
Canada <strong>and</strong> the Netherl<strong>and</strong>s.<br />
Training <strong>and</strong> technical assistance in agronomy<br />
continues for our clients in the horticulture <strong>and</strong><br />
oilseed/pulse sectors. The hides, skins <strong>and</strong><br />
leather (HSL) team covered many kilometers<br />
doing training-of-trainers work on ectoparasite<br />
control <strong>and</strong> improved methods of skinning <strong>and</strong><br />
flaying.<br />
At the end of the February, we were delighted<br />
to welcome <strong>Fintrac</strong> President Claire Starkey<br />
back to USAID-ATEP. She attended our<br />
quarterly staff meeting <strong>and</strong> visited clients in<br />
the Rift Valley.<br />
Steve Humphreys, Chief of Party,<br />
Ethiopia <strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong><br />
<strong>Program</strong><br />
Photos by <strong>Fintrac</strong> <strong>Inc</strong>.<br />
Women h<strong>and</strong> pick black haricot beans in Ziway at<br />
warehouse of ATEP client Dawit Kidane, for export to Italy<br />
USAID <strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
“<strong>Inc</strong>reasing Rural <strong>Inc</strong>omes <strong>and</strong> Employment”<br />
This project is implemented by <strong>Fintrac</strong> <strong>Inc</strong>., a US agribusiness<br />
consulting firm. Consortium members include Boot Coffee Consulting &<br />
Training, the Economic Competitiveness Group, Manchester <strong>Trade</strong> <strong>and</strong><br />
the Rainforest Alliance. It covers four agricultural production sectors in<br />
four regions of Ethiopia. There is also a <strong>Trade</strong> <strong>and</strong> Investment activity<br />
on the program. For more information, contact USAID-ATEP at:<br />
Ki-Ab Building, 4th Floor Alex<strong>and</strong>er Pushkin Street | [Opposite South<br />
African Embassy] | PO Box 70696 | Kirkos Subcity | Kebele 23, House<br />
#1123 | Addis Ababa, Ethiopia<br />
Tel: 251-11-3720060 | Fax: 251-11-3720102<br />
atep@fintrac.com<br />
HORTICULTURE<br />
The main focus throughout February was technical training on Good Agricultural Practices (GAPs). Follow-up visits<br />
were made to leading grape growers by USAID-ATEP consultant, Emil van Wyk from South Africa. The field trainings<br />
covered grape trellising, pruning <strong>and</strong> nutrition. The farm visits included Luna Farm, Almeta Farm, Elfora <strong>and</strong> Negatu<br />
Farm. A half-day workshop on grape agronomy at the Genesis Farm training facility rounded up the successful field<br />
visits.<br />
A second consultancy visit was made to leading strawberry growers including Almeta Farm <strong>and</strong> Wonchi Farm by Bob<br />
Rouse, a strawberry production expert from Maryl<strong>and</strong>. It concentrated on field practices for fruit production, nutrition<br />
<strong>and</strong> water quality issues. A half-day workshop on strawberry agronomy provided valuable training to strawberry<br />
growers.<br />
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Seminis East Africa continued its partnership<br />
with USAID-ATEP for hybrid tomato<br />
production for the local market. Seminis’<br />
regional agronomist, Peter R<strong>and</strong>a, visited<br />
Teppo Farm, Ethio-Flora Farm, Luna Farm,<br />
Upper Awash Agro enterprise <strong>and</strong> Robani<br />
Agricultural Enterprise. In addition, a brief visit<br />
from Dick Visser, of Pop Vriend Seeds, in<br />
conjunction with its local agent, General<br />
Chemicals, identified new opportunities for<br />
pear <strong>and</strong> bean trials in the coming season.<br />
Dr. Clive Kaiser of Oregon State University<br />
provided technical training on fruit tree crops<br />
funded through the Farmer to Farmer<br />
Volunteer <strong>Program</strong>. His expertise in grapes,<br />
cherries, mangoes <strong>and</strong> avocados identified<br />
new opportunities for clients going forward.<br />
Technical assistance was also carried out by<br />
USAID-ATEP agronomists Eskinder Kebede<br />
<strong>and</strong> Hiwot Menbere for smallholder farmers in<br />
Harerghe. This activity is part of a partnership<br />
program with Harerge Catholic Service (HCS)<br />
to improve crop production <strong>and</strong> income for<br />
smallholders growing vegetables for the local<br />
market.<br />
The field training for GAPs was<br />
complemented when the Ethiopian<br />
Horticulture Producers <strong>and</strong> Exporters<br />
Association (EHPEA) <strong>and</strong> USAID-ATEP<br />
received a draft of the GLOBALGAP protocol<br />
in Amharic.<br />
SPECIALTY COFFEE<br />
Thirteen cuppers graduated <strong>and</strong> are now<br />
qualified as ‘Q’ graders, the internationallyrecognized<br />
cupping st<strong>and</strong>ard incorporating<br />
st<strong>and</strong>ards set by the Specialty Coffee<br />
Association of America (SCAA). The trainees<br />
were from Addis Ababa Coffee Liquoring Unit<br />
(CLU), Dire Dawa CLU, Oromiya, SNNPR<br />
Agricultural Bureaus <strong>and</strong> private exporters.<br />
So far, 25 Q graders have been trained in<br />
Ethiopia by USAID-ATEP in partnership with<br />
Boot Coffee Consulting, CQI, <strong>and</strong> the<br />
Ethiopian Coffee Exporters Association<br />
(ECEA). Currently, Ethiopia has more Q<br />
graders than any other coffee producing<br />
country in Africa.<br />
Monthly Update – February 2008<br />
<strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
USAID-ATEP Agronomist Semret Kifleyesus <strong>and</strong> grape<br />
consultant Emil Van Wyk provide table grape training for<br />
Luna Fruit Farm Manager Genenew Mekonnen.<br />
USAID-ATEP horticulture agronomists <strong>and</strong> fruit consultant<br />
Clive Kaiser visit smallholder farmers in the outskirts of<br />
Nazret, Oromia.<br />
In addition to Q grader training, USAID-ATEP <strong>and</strong> its partners organized the 9 th Coffee Stakeholders <strong>and</strong> Coffee<br />
Buyer Forum. The forum was aimed at promoting the concept of Q-graded coffee in Ethiopia <strong>and</strong> assisted the actual<br />
start of Q coffee trade in Ethiopia.<br />
At the end of February, the second Roundtable Coffee Conference was held in Jimma, Oromiya Region. There were<br />
55 participants including researchers, producers, processors, exporters, coffee buyers <strong>and</strong> roasters (from the US,<br />
Canada <strong>and</strong> Europe). The conference was organized as a forum to exchange ideas <strong>and</strong> information concerning the<br />
requirements of the international (specialty) coffee markets. Field visits created the opportunity to establish new<br />
market linkages among coffee buyers <strong>and</strong> exporters in a relatively informal atmosphere. Conference participants have<br />
www.ethiopiaag.org | www.fintrac.com 2
visited Jimma Coffee Research<br />
Center, state farms, large<br />
private <strong>and</strong> smallholder coffee<br />
farms <strong>and</strong> processing mills. A<br />
coffee cupping session was held<br />
in the Jimma research<br />
laboratory, <strong>and</strong> 29 coffee<br />
samples were cupped by local<br />
<strong>and</strong> international Q graders. The<br />
cupping result was encouraging,<br />
especially for coffee coming<br />
from our lead client at Teppi<br />
Union. This shows that the mini<br />
cupping lab we installed there is<br />
providing growers the<br />
opportunity to check quality at<br />
the source.<br />
Major field activities such as<br />
pruning <strong>and</strong> stumping have<br />
been conducted on beneficiary<br />
farmers of clients IPS <strong>and</strong> DTC.<br />
Nearly 205 coffee trees have<br />
been stumped for demonstration<br />
purposes. Technical advice was<br />
provided to clients on sucker<br />
Monthly Update – February 2008<br />
<strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
One of the hides <strong>and</strong> skins collection centers that has started operations<br />
in Addis Ababa, Megenagna area.<br />
growth thinning as well. Two training events were held on coffee production <strong>and</strong> processing for 167 beneficiary<br />
farmers of SA Bagerish at Kochere wet mill area. The trainings are important to enhance coffee quality in the area.<br />
HIV/AIDS awareness training was also conducted in partnership with Pathfinder for beneficiary farmers.<br />
Coffee Sector Manager Ato Abayneh Alemu attended the East African Fine Coffee Association Conference <strong>and</strong><br />
Exhibition (EAFCA) in Kampala, Ug<strong>and</strong>a. Ethiopian coffee samples got some of the top cupping quality ranks at the<br />
cupping completion. Lead client Wzo Asnaketch Thomas of Amaro Gayo’s sample received one of the top ranks.<br />
More than 400 participants attended the event.<br />
HIDES, SKINS AND LEATHER<br />
For hides <strong>and</strong> skins collection centers in Tigray, we agreed on basic principles with The Relief Society of Tigray<br />
(REST) to advance microfinance support from Dedebit Institution. A needs assessment will be conducted in the region<br />
during the 2 nd week of March. The establishment of region-wide collection centers is estimated to result in raw material<br />
value increases of 8.6 million birr, creating direct employment opportunities for 340 individuals who run the centers<br />
<strong>and</strong> indirectly improve the sales of thous<strong>and</strong>s of small farmer suppliers.<br />
As per the request of the SNNPR region, more than 367 technicians <strong>and</strong> trainers of trainers (TOTs) received training<br />
in postharvest management. Of the trainees 101 were from the regional Bureau of Agriculture <strong>and</strong> Rural Development<br />
(BoARD). This <strong>and</strong> previous trainings reached the entire staff of BoARD. In addition, 187 hides <strong>and</strong> skins traders<br />
were trained in proper curing <strong>and</strong> logistics for h<strong>and</strong>ling raw stock, <strong>and</strong> 79 abattoir workers in proper flaying techniques.<br />
There is a need to train more traders <strong>and</strong> flayers in the private sector.<br />
USAID-ATEP continued follow-up <strong>and</strong> facilitation activities to support the sector by soliciting the USAID loan<br />
guarantee scheme. Loan applications for project finance of Jonzo Leather, Wondi Leather <strong>and</strong> Cro Leather were<br />
submitted to their respective banks. Total investment in the three projects is about 6.7 million birr <strong>and</strong> is expected to<br />
generate direct employment for about 450 individuals.<br />
USAID-ATEP supported TAYTU’s participation in the New York <strong>Trade</strong> Fair in February to showcase its fall 2008<br />
collection <strong>and</strong> secure additional market opportunities to complement its summer collection. USAID-ATEP is also<br />
working with Pittards Limited UK to retail TAYTU products in their global outlets.<br />
One of the new action initiatives identified in CWG (Cluster Working Group) V was designing an effective<br />
university/industry linkage. A training needs assessment for the industry is structured <strong>and</strong> agreed upon for action in<br />
March.<br />
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OILSEEDS AND PULSES<br />
To facilitate USAID-ATEP’s activities <strong>and</strong><br />
further our assistance to sesame growers in<br />
Tigray, meetings were held with members of<br />
Tigray Agricultural Marketing Promotion<br />
Agency (TAMPA) <strong>and</strong> Setit Humera Farmers<br />
Cooperative Union. An agreement was made<br />
to organize a field visit <strong>and</strong> conduct “training of<br />
trainers” for all stakeholders in Mekele <strong>and</strong><br />
Humera areas in the coming months. We have<br />
continued training 45 extension agents <strong>and</strong><br />
agricultural experts in Kafta Humera, Welkayit<br />
– Tsedgede <strong>and</strong> Tahitay Adiabo woredas in<br />
the region. The training is focused on Good<br />
Agricultural Practices (GAPs), pest <strong>and</strong><br />
disease management, <strong>and</strong> quality control. The<br />
trainers are expected to train nearly 2,250<br />
farmers in turn.<br />
Monthly Update – February 2008<br />
<strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
USAID-ATEP prepared a webworm control<br />
Willem Boot, David Roche of CQI, USAID-ATEP agronomist<br />
bulletin. Webworm is the major sesame pest.<br />
Getachew Zeleke discuss coffee pruning methods at ATEP<br />
The bulletin will be distributed for training<br />
client Ato Gidey's farm in Limu, Western Ethiopia<br />
purposes after being translated to Amharic <strong>and</strong><br />
Tigregna. USAID-ATEP has been providing<br />
trainings <strong>and</strong> technical assistance to counter<br />
the problem in collaboration with the Woreda Agriculture <strong>and</strong> Rural Development Office.<br />
Technical assistance was given to potential lead client, Oral Agro Industry, which owns a farm of about 1,080 hectares<br />
in Mizan Teferi, SNNPR. Currently the farm has grown sesame seed on a trial, <strong>and</strong> has planned to supply the export<br />
market in the future. In addition, we have continued providing technical assistance to Agro Prom International, which<br />
produces safflower for the European market. The company has planned to export edible safflower oil, which is in high<br />
dem<strong>and</strong> <strong>and</strong> earns a premium. The company has forwarded its business plan <strong>and</strong> comments were given for<br />
technology fund assistance.<br />
A field visit <strong>and</strong> evaluation was held to promote haricot bean production <strong>and</strong> business development for farmers in<br />
Eastern Harerghe. The extension agents assigned in the three woredas (Meta, Kersa <strong>and</strong> Gorogutu) are working with<br />
seven small farmer associations, 43 villages, 104 contract farmers <strong>and</strong> more than 2,000 households. We will continue<br />
our assistance to farmers to access good quality haricot bean seeds.<br />
We have met with the Ethiopian Pulses, Oilseeds, Spices Processors <strong>and</strong> Exporters Association (EPOSPEA). The<br />
discussion was aimed at identifying areas for assistance to the association <strong>and</strong> agreement was reached to help with<br />
the organization’s current re-organization, upgrade its website, <strong>and</strong> provide staff training.<br />
TRADE AND INVESTMENT<br />
The preparation of gross margin analyses for 10 varieties of field flowers have been finalized <strong>and</strong> provided to our lead<br />
client, Yalkone Flowers. It will be available for new potential clients that are interested in summer flower production.<br />
The cost margin analyses facilitate decision-making <strong>and</strong> make known specific issues <strong>and</strong> challenges. We have also<br />
assisted a new potential client, Demaag Flower Farm, which is establishing a summer flower <strong>and</strong> fruit <strong>and</strong> vegetable<br />
farm. The farm is planning to allocate 40 hectares of l<strong>and</strong> to summer flowers <strong>and</strong> 13.5 hectares for fruit <strong>and</strong><br />
vegetables. The project team visited the farm site <strong>and</strong> organized a field visit for the owner <strong>and</strong> farm manager to<br />
Yalkone Flowers <strong>and</strong> Magical Flower Farms to help get them started. Besides giving feedback on their business plan,<br />
valuable advice was given on l<strong>and</strong> preparation <strong>and</strong> water drilling.<br />
Discussions were held with Ted Barber, a consultant from KfW Bank. The bank is setting up a new fund of €4 million<br />
to finance agricultural investments, environmentally friendly <strong>and</strong> energy efficient equipment, <strong>and</strong> BDS support. We<br />
reached an agreement with this new source of funding to link our clients from every sector of the project.<br />
A Technology Fund award for US $15,000 has been prepared for lead client DFT <strong>and</strong> is awaiting approval. DFT<br />
produces cardboard boxes for packing export horticulture products. The fund will be used to co-finance the purchase<br />
of machinery to fabricate corrugated packing materials.<br />
www.ethiopiaag.org | www.fintrac.com 4
Monthly Update – February 2008<br />
<strong>Agribusiness</strong> <strong>and</strong> <strong>Trade</strong> <strong>Expansion</strong> <strong>Program</strong><br />
WAREHOUSE RECEIPTS SYSTEM<br />
USAID-ATEP continues to provide technical assistance to the Ethiopian Commodity Exchange (ECX). This includes:<br />
• Short-listing applicants, interviewing <strong>and</strong> selecting those with potential <strong>and</strong> relevant work experience for EGTE<br />
warehouse staff (warehouse manager, quality <strong>and</strong> inventory technicians).<br />
• Assisting the preparation of training topics <strong>and</strong> training materials.<br />
• Providing training on grades <strong>and</strong> st<strong>and</strong>ards <strong>and</strong> procedures on receiving commodities for 84 signed up<br />
members of the exchange.<br />
• Visiting <strong>and</strong> holding discussions with Ethiopian Insurance Corporation, Niala <strong>and</strong> United insurance companies<br />
on their policies <strong>and</strong> premiums for grain insurance.<br />
• Conducting field visits to EGTE Nazareth warehouse to check the status of the maintenance <strong>and</strong> sampling of<br />
pulses <strong>and</strong> oilseeds for demonstrations of the training plan.<br />
• Reconciling the received laboratory equipment from the inventory import list.<br />
• Participating in demonstrating IT systems showing different receipts <strong>and</strong> formats <strong>and</strong> providing comments <strong>and</strong><br />
suggestions.<br />
Main office<br />
Steve Humphreys, Chief of Party<br />
shumphreys@fintrac.com<br />
Atsede Yohannes, Project Accountant<br />
atsede@fintrac.com<br />
Meheret Mersia, Sector Activity Coordinator<br />
meheret@fintrac.com<br />
Tirsit Sisay, Office Manager<br />
tirsit@fintrac.com<br />
Liliana Murillo, M&E <strong>and</strong> Partner Fund Coordinator<br />
liliana@fintrac.com<br />
Asmare Melesse, M&E Specialist<br />
asmare@fintrac.com<br />
Tehetena Gezahegn, Cluster & Consortium<br />
Partners Coordinator<br />
tehetena@fintrac.com<br />
Hiwote Tadesse, Accounting Assistant<br />
hiwote@fintrac.com<br />
Meseret Agenehu, Receptionist<br />
meseret@fintrac.com<br />
Semere Dargie, IT Specialist<br />
semere@fintrac.com<br />
Zelalem Mengistu, Logistics Coordinator/Driver<br />
zelalem@fintrac.com<br />
USAID-ATEP STAFF LIST<br />
Horticulture sector<br />
Ian Chesterman, Horticulture Manager<br />
ichesterman@fintrac.com<br />
Gebre Michael Habte, <strong>Trade</strong> <strong>and</strong> Investment<br />
Assistant<br />
gebremichael@fintrac.com<br />
Melaku Tedla, Horticulture Field Adviser<br />
melaku@fintrac.com<br />
Semret Kifleyesus, Horticulture Agronomist<br />
semret@fintrac.com<br />
Eskinder Kebede, Horticulture Agronomist<br />
eskinder@fintrac.com<br />
Sinishaw Belay, Horticulture Agronomist<br />
sinishaw@fintrac.com<br />
Petros Kelbeso, Horticulture Agronomist<br />
petros@fintrac.com<br />
Coffee sector<br />
Abayneh Alemu, Coffee Manager<br />
abayneh@fintrac.com<br />
Tesfaye Negash, Coffee Agronomist, Awassa<br />
tesfaye@fintrac.com<br />
Getachew Zeleke, Coffee Agronomist, Jimma<br />
getachew@fintrac.com<br />
Hides, Skins <strong>and</strong> Leather (HSL) Sector<br />
Teshome Kebede, HSL Manager<br />
teshome@fintrac.com<br />
Dr. Kassa Bayou, HSL Veterinarian<br />
kassa@fintrac.com<br />
Alemayehu Tafesse, HSL Technician<br />
alemayehu@fintrac.com<br />
Oilseeds/Pulses Sector<br />
Teka Redaa, Oilseeds/Pulses Manager<br />
teka@fintrac.com<br />
Yitbarek Liben, Oilseeds/Pulses Agronomist<br />
yitbarek@fintrac.com<br />
<strong>Trade</strong> <strong>and</strong> Investment Sector<br />
Ian Sherry, International Investment Manager<br />
isherry@fintrac.com<br />
Bruck Fikru, Markets <strong>and</strong> Investment Advisor<br />
bruck@fintrac.com<br />
Beamlak Tesfaye, Communications Specialist<br />
beamlak@fintrac.com<br />
Etagene Geremew, Warehouse Receipts Specialist<br />
<strong>and</strong> Ministry Liaison (Seconded to ECX)<br />
etagene@fintrac.com<br />
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