All ACP Agricultural Commodities Programme

Spice Sub-Sector

A STRATEGY for ETHIOPIA

Final Draft

Submitted to the Government of Ethiopia

by the Spice Sector Strategy Cooridnating Committee

February 2010

1
Table of Contents

Note to the Readers 3

Statement Ministry of Agriculture 4
Statement Ministry of Trade 5
Statement from Ministry of Industry 6
Message from EPOSPEA 7
Message from Coordinating Committee 8
Message from ITC 9

The STRATEGY
1. Introduction and Brief background 10
2. The current Spice sector situation 13
3. Institutional and Government support 22
4. Value Chain Dynamics and Challenges 25
5. The future for the spice sub-sector 32
5.1: Priority Target Markets 32
5.2: Main Strategy Objectives 33
5.3: Anticipated Outputs 35
5.4: Resources Needed 35
5.5: Implementing Framework 36
Annex 1: List of Participants

2
Note to the Readers

In response to a request from the Government of Ethiopia, the EU funded All ACP Agricultural
Commodities programme initiated the development of a stakeholder driven Spice sector strategy in
Ethiopia.
The overall objective of the programme is to improve incomes and livelihoods for ACP producers of
agricultural commodities and reduce vulnerability at both producer and macro levels. The present
strategy document represents the first attempt to set development and market priorities in the spice
sector through a participatory process that has involved all relevant value chain stakeholders. In doing so,
the strategy development process has established common understanding between private sector actors
in the Spice Value Chain and different Government agencies with the shared goal of improving livelihoods
of the farmer and business population.
The sector strategy development was led and co-ordinated by a working committee composed of value
chain representatives and endorsed by Government in May 2010. In less than 12 months, the
coordinating committee succe eded in ensuring the active participation of more than 100 sector
stakeholders from all regions in Ethiopia as well as in engaging key actors in government, farmer
associations and business community.
The strategy contains an evaluation of present and future market potential, current sector performance
and response activities. The strategy also represents the way forward and the decisions taken by sector
stakeholders representing the whole value chain.
Towards implementation, It is anticipated that the coordinating committee will also continue to
represent the strategy priorities and beneficiary interests acting as a central point between sector
stakeholders, government and implementing partners and donor agencies.

A special vote of thanks goes to the Coordinating Committee members who have given up their own time
in pursuit of the development of the present strategy and in order to ensure stakeholder interest
representation as well as overall quality and customization of the strategy.

Coordinating Committee Members:

Solomon Dagne, Ministry of Agriculture

Feleke Sibhatu, Ethiopian Spice extraction Factory
Zergaw Feleke, Ministry of Industry
Bereket Meseret, Ministry of Trade
Negussie Simie, Epospea
Abdalla Yahia, Exporter YSO
Asnake Addisu, Exporter
To be Nominated, Farmer representative

Technical support by International Trade Centre:

Mr. Antony Sandana, (Senior Commodity Officer)
Mr. Willem Van Noort (International Sector Specialist)
Mr. Hernan Manson (Associate Adviser for Value Chain Development)

Mr. Tewodros Yilma ( National Consultant and Coordinating Committee support)

3
Statement from Ministry of Agriculture

Ethiopia launched and commenced implementing earnestly its new Growth and Transformation Plan
(GTP) this year. The GTP is designed with the view to maintain, continue, accelerate and upscale fast
growth recorded in the last five years monotonically and hence kick start the transformation process of
the agriculture dominated Ethiopian economy.

GTP envisages the Agricultural Development Led Industrialization-ADLI strategy to continue with the bid
to transform Ethiopian economy from Agriculture domination and using Agriculture itself as a stepping
board. This would pave the way for the industrial sector to play an increased role in the economy and
hence gradually take the leading role in the Economy. ADLI gives due emphasis to commercialization of
Agriculture and exporting spice is among its target commodities.

The Ethiopian varied agro ecology supports growing of a wide variety of crops in general and spice crops
in particular. As a result the country hosts several indigenous common and exotic spice crops, which are
cultivated widely since the time immemorial . Spice crops are produced in various regions of the country
and predominantly by small farmers as a cash crop traded primarily in domestic markets, but with
increasing success also entering foreign markets. The spice sub-sector has an immense potential for
economic development and poverty reduction through creation and expansion of employment
opportunities and distribution of income and foreign exchange earnings.

However despite all the potentials and opportunities of having such a long history and variety of them
with a diversified conducive agro-ecology base, the spice sub-sector potential remained unexploited. The
sub-sector is still not organized, low in productivity and inefficient. The production of all the different
types of spices, especially the technique employed by smallholders is mainly based on traditional ancient
knowledge that has been inherited and transferred from generations to generations. Producers seldom
use modern technologies such as farming tools and new techniques and inputs like pesticide, fertilizer
and improved seeds. Moreover, the production system is based on rain-fed agriculture; therefore the
supply of spices is unsustainable because of the vulnerability of the crops to possible droughts. In most
cases mixed unplanned cropping is performed and normally smallholder farmers do not allocate enough
land for the production of spices.

Addressing these constraints perfectly fit into the Agriculture sector policy direction of GTP which focuses
on enabling small holding farmers to access and use appropriate improved modern technology, thereby
enhancing production and productivity of the sector and encouraging the domestic and international
private business’s role in Agricultural development. It is in full recognition of these that the MoA has
initiated and championed the development of the National Spice Subsector Development Package which
will serve as the Strategic guidance in our efforts to unleash the potential of the subsector. The strategy
development was coordinated by Committee members drawn from key sector Ministries and enriched by
concerned stakeholders’ during the national consultative workshop held on 14-15, July 2010. The UN-
International Trade Centre (UN-ITC) facilitated it under the auspices of the All ACP Agricultural
Commodities Programme with the financial assistance of EU.

The Ministry of Agriculture would like to cease this opportunity to thank all who contributed relentlessly
to the development of this package and/or the strategy. The MOA also would like to request all
concerned stakeholders for their unreserved support in the implementation of this well prepared
packages so that the strategy would impact the sustainable development of the subsector and the
national economy at large.

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Message from Ministry of Trade

Spice trade is a commercial activity since antiquity and is perhaps among the very few pioneer
commodities traded internationally. The contribution of spice trade in the world civilization is well
recognized and document and Ethiopia was among the beneficiaries. During the ancient Ethiopia
Kingdoms notably Axum, Ethiopia was very much involved in spice trade and spice was perhaps among
the top few pioneer export commodities Ethiopia traded internationally by then.

Despite Ethiopia’s a long history in Spice trade and its conducive agro-ecology which supports the
production of variety of them, the contribution of spice trade remained minimal and low.

MoT is charged with the responsibility of creating conducive and enabling policy, legal and regulatory
environment in support of trade particularly that of export trade with the view to facilitate a more
diversified export trade. Given the potential of spice crop for an expanded export trade, it is definitely
among the priority crops that the Ministry consider for the support.

Thus the MoT was represented in the Coordinating Committee that coordinated the Strategy
development process and participated actively at different stages of the development including the
stakeholders workshop held mid July 2010.

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Message from Ministry of Industry

The new Growth and Transformation Plan (GTP) of Ethiopia kick started this year gives a major emphasis
on the Industrial sector with the view to achieve the vision of industrial prosperous Ethiopia. Hence the
industry is envisaged to play an increasing role in the Economy though the promotion of industries based
on the resource endowments of the country to generate employment opportunities to the ever growing
raw, semi skilled and skilled labor force.

To this effect, generating, adopting and expeditious transfer and use of appropriate technology is among
the core of the elements of the strategy. To this effect, the industry strategy underscore on the use of the
locally available and agricultural inputs and promotion of agro-processing which is among the eight
priority sub sector of the Industry.

Promotion of import substituting and export diversifying industries with a net effect of increasing the
foreign exchange reserve of the country is another area emphasized in the strategy.

Spice processing activity is supported in the various elements of the industry strategy notably promotion
of Agro-processing, use of locally available agricultural inputs technology within the rich of the available
semi and skilled labor and export diversification.

MoI believe that the Spice Strategy complements the industrial strategy and serves as an important tool
in promoting value addition to this important commodity and unleashing the potential of the sub sector.
Therefore the Ministry call up on concerned stakeholders for their usual support in its implementation.

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Message from EPOSPEA

Ethiopian Pulse, Oil Seed and Spice Producers and Exporters Association (EPOSPEA) is among the most
active and model private sector association representing the private business involved in the production
and trade notably export trade of Pulse, Oil Seed and Spices products.

At the very outset, EPOSPEA would like to seize this opportunity to present its compliments and sincere
appreciation to all partners who have made this timely deliberation of an indispensable imitative a
reality.

As it us well Known, the Government of Ethiopia (GOE) has embarked on an ambitious; but possibly
attainable; growth and transformation plan since July 2010. In line with this plan, accelerating the scale
of agricultural products in quantity, quality and variety has been considered as key strategic priority.
Among which, diversifying the export of spices is pursued as the major areas of focus, whereby special
attention needs to be given accordingly. The plan has targeted the export revenue earned from spices of
grow towards USD 50 million within the coming five years. Likewise, the planned exportable amount to
be increased by 100% which is envisaged to grow to 30.000 tons at the end of the five years planning
period, coming from the 2009 performance of 15,000 tons. World market prices for spice are expected to
remain firm.

As a matter of fact, this target requires a big commitment from the members of the Association,
especially from those members who have been actively engaged in the sub-sector. In the light of this, we
are very much pleased for the timely presentation of this strategic plan which is aimed at addressing the
critical challenges of the sub-sector at this juncture . It is also more imperative to underline that having a
sound strategic plan is not an end by its virtue; rather it is the beginning of a programme . We are faced
with a wide gap to breach in order to reach our goals, which undoubtedly require appropriate actions in
translating what has been packaged in to the planning frame work in a timely manner.

EPOSPEA as the member of the Spice Strategy Development Coordinating Committee hosted all the
meetings of the committee while preparing the strategy document. It has played a key role in mobilizing
the private business and gathering of relevant information for the strategy directly from key operators of
spice trade who are members of the association.

Thus, EPOSPEA would like to reaffirm again its commitment towards the realization of the pertinent
interventions laid down in the plan by exerting its whole efforts to its level best. Last but not least,
EPOSPEA has also taken the privilege to extend its call for concrete action to all pertinent stakeholders;
including public and private sectors, individual and organized business entities as well as development
partners; to come together with strong collaborative synergy as to attain break –through results.

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Message from Coordinating Committee
A working committee has been established in may 2010 by the Ministry of Agriculture to coordinate
and develop the much needed strategy for the spice sector.

The committee is composed of volunteers from the sector including business owners, managers , and
government representatives from MOA, MOI, MOT and EPOSPEA.

Next to Coffee, Spices are economically and socially important since they are a source of income for
smallholders; they can attract foreign currency and can provide ample opportunities for employment
should the industry develop.

Spice growers enjoy more benefit than any other agricultural commodity. For example, in the year
2001 in only 3 regions (Southern Ethiopia, Amahara and Oromia) almost 1 million tons of spices have
been produced. In addition, in 2006/2007 total land coverage of red chilies alone was almost 80,000
hectares. In that same year about 1.1 million households equivalent to approximately 5.5 million
smallholders were engaged in the production of red chilies, and earned over 1.25 billion ETB (average
farm gate price of 20 ETB per KG).

It is clear for the coordinating committee that he spice industry will be able to contribute significantly
to Ethiopia’s social and economic development. It is in light of this belief which is backed by our
tradition in spice and by strong international and regional market demand that the committee has
embarked in the development of the way forward.

Last but not least, the coordinating committee wishes to thank the Government Authorities for all the
support provided as well as the more than 100 sector stakeholders that participated in the process.

The challenge forward is now for coordinated implementation, taking into account the sector
stakeholder priorities as well as the market potential. The committee wishes to ensure its full
engagement to advise and support Government so that impact can be achieved.

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Message from ITC
The International Trade Centre has been enjoying a long standing collaboration with Ethiopia in particular
in providing technical assistance in improving export performance of important sectors such as coffee
and leather.

Now within the framework of a large ACP Programme funded by the EC , ITC has the opportunity to assist
the spice sector to design a national strategy . The methodology used consists of a full participation of all
the stakeholders in the value-chain representing private-public partnership. The conclusions and
recommendations made as a result of a series of consultations and participatory workshops enabled the
sector to prepare an action plan and an implementation framework.

The spice strategy is now fully owned by its stakeholders and ITC is fully confident that the spice sector in
Ethiopia is entirely committed to achieve its objectives and is well prepared to face the challenges. The
immediate challenge is to better organise the sector by way of forming a national body or association
with specific tasks and guaranteed resources to make it sustainable.

The world market for spices is growing rapidly and the opportunity for Ethiopia to tap the market
potential is huge . The implementation of the strategy in its entirety would no doubt improve the
economic benefit to the whole sector in particular by increasing the export revenue to Ethiopia and by
guaranteeing a regular employment and increased income to the farmers, processors and exporters.

ITC takes this opportunity to congratulate all the stakeholders in the spice sector to the contribution
made in finalising the strategy and encourages all the donor communities and NGO’s to consider all
assistance as appropriate to support the sector which is rural based and to a large extent employs women
at different stages of the value-chain.

Mrs.Patricia Francis, Executi ve Director, ITC

“Export Impact for Good”

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1. Introduction and brief background

Ethiopia, with a population today of nearly 80 million people, was on the ancient spice trail from India
and was visited by Arabian and Persian spice traders who left their mark on the cuisine. Ethiopia has
become one of the largest consumers of spices in Africa. People use spices to flavor bread, butter, meat,
soups, and vegetables. And they use them to make medicines and perfumes1.

Similar to India, the majority of spices produced in Ethiopia (80%+) are absorbed domestically. But at the
same time, export of spices is developing and brings increased foreign exchange . In 2009, spice exports
reached 15.000 Mts, equaling a value of USD 11 million as per the table below.

Ethiopian Export
Agrosector 2008-2009
Crop tons USD 000 USD/ton
coffee 134.000 $376.000 $2.806
oilseeds & pulses 425.000 $445.000 $1.047
sugar 27.000 $15.549 $576
flowers na $130.697 na
fruits 37.161 $11.912 $321
spices 15.000 $11.100 $740
cotton 4.411 $4.900 $1.111
Other 40.000 $18.000 $450
Total Agri 682.572 $1.013.158

Ethiopia is geographically better located towards EU than India or Indonesia; which will support its export
ambitions, provided exportable volumes are available.

Ethiopia is a homeland for many spices, such as korarima (Aframonum Korarima), long redpepper, Black
cumin, white cumin /Bishops weed (‘Nech azmud’)/, coriander, fenugreek, turmeric, sage, cinnamon, and
ginger.

As plant species spices have a wide possibility of being cultivated in different agro ecological zones of the
country. Except pepper (capsicum annum) spice cultivation is traditional, no improved seed or planting
material and not market oriented. However, there is a limited business activity in production, processing
and marketing of spices and spice products. The cultivation practice and technique are highly based on
knowledge that passed from generation to generation, and the production level is low. Spices are used as
flavouring material, source of essential oil, source of color and cash crop of many smallholders. The
cultivation practice in smallholders’ farm is fragmented and planted as mixed crop within their main crop
land and rain fed.

So far Ethiopia has not established itself as significant supplier of spices and the focus has been towards
the extraction of oleoresin for export. Since the country’s image is linked to berbere and spice production

1
See Ethiopian Agriculture Portal (MinAgriculture)

10
is widely known in the country, this might be a good starting point for further development and
improvement.
The contribution of spice to the national economy is not significant. However in the past four years its
exports have grown significantly from 3.7 million USD to 6.8 USD thereby confirming an encouraging
progress and potential. The history of spice use in Ethiopia is an ancient one and spices have always been
and remain as basic food items in the diet of the Ethiopian people.

Among the main constraints hampering the development of the spice sector is the difficulty faced by the
spice farmers to enter in to the world market which is dictated by global competition. The production of
quality spices based on the needs of the international market is the necessary condition for export. Then
these spices must be channeled to the international market through promotion and creation of market
links. These are demanding tasks which call for concerted efforts by all stakeholders at different stages of
the value chain.

Addressing these constraints requires the existence of an effective and efficient spice value chain service
delivery mechanism. Crucial in this respect are extension services to build the capacity of the value chain
players. We must disseminate technologies and research services to ensure continuous generation of
technologies. Regulatory support by the government must ensure efficient and orderly management of
the spice value chain. Finally, financial services by banks and micro-credit institutions and transportation
and related logistic infrastructure are necessary. A key requirement in service provision is timeliness,
adequacy and ease of access. Defaults in delivery or quality are not accepted in this export environment.

As a cash crop, the spice subsector is amongst the important crops that fit within the strategy of
commercialization of agriculture. Spice, being a cash crop, has a high potential of enhancing the
purchasing power of the small holding farmers. This role is of paramount importance for poverty
reduction by making small holding farmers food deficient areas become food secure and reducing food
dependency of the farmers.

Spice crops already widely traded internationally have a high potential for expansion and diversification
of export earnings of Ethiopia. Thus it fits well into the export strategy of Ethiopia.

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Beneficiaries, Importance and Anticipated outputs
Agriculture in Ethiopia is the foundation of the country's economy, accounting for about half of gross
domestic product (GDP), about 80% of exports, and 85% of total employment.

Many economic activities depend on agriculture, including marketing, processing, and export of
agricultural products and the fact is that agriculture remains to be the country's most promising resource
base.

In general, production is overwhelmingly of a subsistence nature, and a large part of commodity exports
is provided by the small agricultural cash-crop sector. There is a minimal participation of private investors
in modern commercial spice production. Small holder farmers are therefore expected to be the main
beneficiaries because they carry out the production of spices largely as mixed production with other food
and/or cash crops.

The government of Ethiopia is promoting agro-industrial projects and has declared Spices a focus area for
development. The government is aware that presently the bulk of Ethiopian spices are not of export
quality due to lack of good agricultural practices, adequate post-harvest handling and primary processing
facilities and skills.

The recently launched Growth and Transformation Plan (GTP) gives due emphasis to agriculture under
the aegis of an Agricultural Development Led Industrialization (ADLI).

Anticipated outputs:

If Ethiopia could improve the quality of the supply chain, it could easily double its “surplus” volumes of
ginger, chillies and turmeric and grow its exports by USD 20-USD 50 million within 5 years.

The committee anticipates the following outputs to result from the strategy:

1. Yield will improve 20%

2. Volume loss will be reduced by 20%
(jointly this factor alone will boost volume output > 30% on the same acreage)
3. Quality will increase with 20% thereby addressing new clients in EU/USA markets
4. Spice Export volumes will double to 30.000 tons by 2015 (not counting paprika-extract
exports)
5. Spice Export earnings will reach US$50.000.000 + at expected world market prices

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2. The current spice sector situation from Global to Regional

2.1 Brief description of the Spice sector from a global perspective

World production of spices is estimated at 2.000.000 Mts. The majority of this volume is consumed
locally. India being one of the largest producers (800.000 Mts), has at the same time a history of spicy
food; it exports less than 25% of its production. Indonesia, with a production of 400.000 Mts, exports also
only 25%. Vietnam is a typical example of an export-crop society, where pepper is grown primarily for
export. Total volume of spices exported in the world is estimated at 600.000 Mts. Black and white
pepper account for nearly one-third of the spices and of which 100.000 Mts is exported from Vietnam
alone ! The EU is a major importer of tropical spices with an annual volume of 220.000 Mts. North
America imports 130.000 Mts. Almost all countries of the world import spices to complete the spectrum
of local available spices and herbs.

Imports Re-export
000Mts-
Country 2005 000 Mts
Germany 77 25
Netherlands 61 40
UK 53 7
France 28 11
Spain 44 34
Other 97 33
Total 360 150
*source: Imports Eurostat 2006, re-exports CBI
Market information database

From a global perspective, the spice value chain includes the following actors:
Farmers and Collectors in origin: grow, harvest, collect, dry, clean and select. Pack the spice usually in
gunny bags. Many now have installed sterilization equipment (mostly steam) and sell HT-spices even in
big bags
Input providers: seeds, fertilizer, packaging, transport
Agent/Brokers: act as an intermediate between collectors and European clients. Do back-to-back deals
for an indent (=fee) which ranges between 1% and 5%.
Traders: operate as principal, taking possession of the product
Grinders: Nedspice moved pepper grinding to origin-Vietnam. Olam followed. McCormick established
AVT-McCormick in India. Most UK grinders have stopped. In the Netherlands there are Inte rtaste,
Euroma and Handelsveem still actively grinding. Germany has Fuchs, Gewürzmüller. SFK grinds in

13
Denmark. Belgium has Caldic, France Ducros. The USA has McCormick as the biggest grinder and spice
processor. Grinders sell to producers of blends: the food processing industry.
Food processors & Packers: producers of retail packaging buy both whole spice and ground. Some large
Food processors still grind themselves (eg Hela-G, Verstegen-NL), most buy ground or even buy blends.
There is a trend to sub-contract or outsource the “spice room” to professional blenders like Huijbrechts,
Euroma, Intertaste, McCormick -UK, Saveur-F

TRENDS: An increasing number of spice users/processors choose to buy directly from origin, both whole
and ground spice. Communication today is easier, quality control is stricter and pricing has become more
transparent. The role of traders diminishes, while clients no longer wish to solely depend on the “spot”
market.

The leading spices consumed in the EU are capsicums = paprika/chillies (110+ Mts) and pepper (nearly 60
Mts). Leading herbs include thyme and oregano. Pepper and mustard seed are used in most savory
products and sauces, while mint eg. is used strongly in confectionery.

EU spices & herbs consumption: 310.000 Mts

Consumptio
n
Spice 000Mts- Supply from
2004 Tropical belt Leading processor/supplier in 2005
Hungary 74K Mts, Spain 10K Mts, South-
Capsicums 113 62 America
Vietnam-40%, Brasil-19%, Indonesia-15%, India-
Pepper 58 58 14%
Ginger 26 30 China-55%, Brasil-13%, Thailand-10%, India-9%
Cinnamon 10 13 Indonesia-45%, Sri Lanka-25%, Brazil-11%
Nutmeg/mac
e 8 8 Indonesia-80%, Grenada-15%, India-5%
Comoros-40%, Madag-23%, Bras-17%, Indon-
Cloves 2 2 10%
Vanilla 2 1 Madagascar-64%, Comoros-11%, Indonesia-6%
Other Spice 53 41
Other herbs 38 5 Austria and Czech produce 17K Mts
Total 310 220
• Consumption Source: FAOSTAT 2007, Supply source: Eurostat 2006

The consumption of spices and herbs can be divided into three end-user segments:
The industrial sector (55%), of which the meat industry is by far the largest user of a wide range of spices
but specifically pepper and capsicums. Food processing Industry includes also fish, canned products (eg
soups), sauces, dry soups/sauces, bakery products, chilled and frozen ready meals and snacks (fingerfood,
crisps). Non-food industries such as pharma and cosmetics use low volumes of spices. Specialist spice-
mixing companies such as Intertaste, Euroma, Huijbrechts, Raps etc. increasingly assist the meat and
bakery industry by supplying ready-to-use spice blends.
The retail sector (35%) where whole, ground and blended spice is packed in 50 gr – 1 kg containers and
bought by consumers in supermarket outlets for home cooking. Quality standards in retail are very high
and require a full control over the supply chain

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 The catering sector (10%), where ground and blended spice in 1 ltr containers is used for preparing out-
of-home meals

Portfolio Examples of companies processing capsicums and ginger per end-user segment
Industrial (55%) Retail Packers (35%) Catering (10%)
Whole & broken Grinders: RSabater, Pimurcia, Kotanyi (AU), Drogheria (IT), Isfi Packers of 1 liter flacons
chillies Fuchs, Euroma, Intertaste , (B), McCormick (F), Fuchs (DE),
Ducros/McCormick Prymat (PL), Flavori (B), Santa
(ginger, turmeric, garlic is Maria (S), Canamela (IT)
usually ground in origin)
Ground: Capsicums, Meat & sauce/meal processors, Same end users Packers of 1 liter flacons
ginger, turmeric Unilever, Kraft, Nestle, Raps,
Hela, v Hees, Kerry
Blends Smaller Food processors who Make special (local) blends No
closed their “spice room” themselves

Requirements of the Spices and Herbs market in the European Union (EU) and the USA

Specification: Must be in line with the ESA format. Must contain Analysis figures produced by a qualified
lab and applying ESA/ASTA-certified procedures.

Maxima: No salmonella
Aflatoxin (B1< 5 ppb, total < 10 ppb)
Sulphite (all origins) < 150 ppm
Moisture (<12 %) and Aw: < 0.60
Essential oil content min. 1.5% for ginger
Ash (<8%) and sand content ( < 2%).
Ochratoxine < 30 ppb

Logistics: Bags of 25 kg max, PP with inner lining, properly labeled

Containers must have no underweight, be clean and dry, paper covering on walls and
ceiling
Preferably CFR-mainport EU/USA (Incoterms 2000), alternatively FOB

Reliability: Adhere to agreed delivery times, max 2 weeks overdue. Avoid defaults
Goods identical to earlier delivered sample

2.2 The spice sector from a meso perspective: Africa & Middle East

African countries are known for spicing their food. Spice cultivation is mainly aimed at catering to local
markets. While the harvested crop is in optimal condition at the moment of harvesting, post-harvest
handling of spice products is often inadequate. Grading is done only visually. Baggi ng is of low quality
(already used PP bags or gunny material “sown” together). Intermediate storage in unclean sheds,
sometimes next to farm chemicals. The product is further damaged by transport on donkey back or horse
carts over bumpy roads. For imports, African countries procure from the “spice hub” Dubai, where exotic
spices such as pepper or nutmeg are sourced.

15
Most African spices are sold to the middle east, India and China. Partly this has to do with the special
organoleptical characteristics of eg African ginger (pungent), partly because African ginger and turmeric
contain more VO and are therefore interesting for oleoresin extractors in India. Reason why exports from
Africa to the EU/USA/Japan are limited is because traceability is poor, CoA2 incomplete, defaults are
common and all that does not comply with the needs of food processors in the EU/USA.

TRENDS: Egypt has developed into a major producer and exporter of dried herbs, also Maroc is increasing
its dried herbs exports. Zimbabwe, Mozambique and Tanzania are known for their sesame and ginger.
African ginger is especially liked by Indian oleoresin extractors for its high VO content. Contact between
countries is improving, so traders can take advantage of the spread in harvest time. Sesame from
Tanzania starts as of April, Mozambique comes in May, Ethiopia follows in June etc.

Requirements of the Spices and Herbs market in The middle east, India and China

Even though India and China are net exporters of spices, the internal consumption is such, that imports
are necessary of eg turmeric (India) and ginger. The “African” ginger of Ethiopia (“Nigeria type”), is liked
by Indian oleoresin extraction companies because of its higher VO content (8%) than eg Chinese ginger
(VO=6%). For the same reason, Ethiopian turmeric with 4% VO, is liked by extractors over the local
madras variety (VO=2%).
Ethiopia has developed into a supplier of these cash crops to North Africa, India, the Middle East, Turkey
and even China. At the same time, Ethiopia imports spices that do not grow internally, such as pepper,
nutmeg and cloves. The port of Dubai is serving as the major hub for spice trade in the middle east.

2.3 The spice sector in Ethiopia

2.3.1 Spices that grow in Ethiopia: types

In descending order, most grown spices are:

• Chillie pepper, in Ethiopia usually referred to as “pepper”. Most commonly grown is the
Marekofana variety, a pungent (50.000+ SHU 3) long chillie of dark red appearance. Also grown is
the small Mitmita chillie, an even hotter fiery red small pepper.
• Ginger, the local variety is fibrous and more pungent (VO4 = 8%) than asian ginger (VO = 6%)
• Turmeric, the local variety has a curcumine content of 4%, which is superior to madras (2%), but
lower than allepey (6%). Its colour is in-between of the bright yellow madras (cooked on the
farm) and the allepey variety, which like Ethiopian is uncooked.
• (black) cumin, this is exported to middle east countries as well as to Indonesia
• Korerima is a milder spice native to Ethiopia, where it is found growing in southern rain forests
• Ethiopian cardamom and coriander
• Sweet Paprika pepper: has been cultivated in the past for supply to the extraction factory. There
is no local market for sweet paprika pepper. But the climate and soil conditions are suitable.
Today some large agricultural operations have started to grow paprika as an intercrop. Africa
juice eg. Intercrops paprika with their main business passion fruit.

2
CoA = Certificate of Analysis
3
SHU = Scoville Heat Unit, a measure used to indicate pungency. Sweet paprika typically has a pungency SHU<
500, most common for western food processors is a pungency of SHU = 10.000
4
VO = Volatile Oil

16
Ethiopian cuisine is known for the berbere spice seasonings, a blend of red chillie, ginger, coriander, salt,
cardamom seeds, fenugreek seeds, black pepper, cinnamon, turmeric and garlic. The paste form is called
Berbere Awaze.

2.3.2 Exports of Ethiopian Spice

Exports in 2009/10 (ET calendar 2003) were at the same level as in 2008/09: slightly above 15.000 Mts.
Ginger being a typical “cash crop” is the largest exported spice. Second come (black) cumin, followed by
turmeric and coriander (dates are in the Western calendar). In value however, sales in 2009/10 jumped
50% to US$ 18,5 mio ! this is entirely the result of growing ginger prices - see the table. Ginger
contributes 65% to spice export value !

Export
Value 08/09 09/10
US$ 000
Ginger $ 6.036 $11.999
Black Cumin $ 1.888 $1.555
Coriander $ 417 $ 417
Turmeric $ 536 $2.840
Fenugreek $ 839 $508
Other $ 1.412 1.666
Total $ 11.128 $18.568

Industrialized agriculture focuses on export; spice are only a by-product today

Since 1995, Ethiopia has seen strong investments from international partners in agro industry:
coffee, oilseeds, flowers, vegetables and fruit. These companies exploit large acreages, often
covered by plastic and equipped with drip irrigation. They employ local workers. Production is fully
aimed at export. Some of these companies have started to include “outside farms”, contracting
small farmers in the region but implying strict rules as to quality. Usually both packaging and
transport is provided. Examples:
- EWE flowers
- Africa JUICE Tibila s.c., 14% state owned, who has started paprika queen as intercrop

17
 2.3.3 Ethiopian Spice export by country of destination

Looking at the export of spices by destination, in 2009/10, Sudan is the leading importer of spices from
Ethiopia (with a 38.4% share of value of total spices export from Ethiopia), followed by India (10.4%), and
Yemen (8.6%). Other important importers of spices from Ethiopia are: UAE (8.3%), Saudi Arabia (6.7%),
Morocco (5.8%), while Singapore and Jordan has a share of 3.2% and 3.1% respectively.

Destination Markets:
Only 2 % of exports to N-
America and EU

tons 2009/10
Sudan 6.229
Yemen 1.333
S-Arabia 849
India 1.490
UAE 1.297
Morocco 1.122
Singapore 472
Jordan 390
N-Am 85
EU 243
Other 2.084
Total 15.594

2.3.4 Agro-ecological mapping of spice cultivation in Ethiopia

The cultivation and processing in Ethiopia is traditional, in the sense that:

• seed is used from the own crop, both for peppers and for ginger
• rotation of the fields is poor

Chillie peppers are cultivated especially in the

higher lands of SNNP (10) and Oromia (8)
regions.
Ginger and turmeric are grown in the lower
lands of SNNP (10), Oromia (8) and Afar (2).

1.Addis Ababa 2.Afar 3.Amhara

4.Benishangul-Gumuz 5.Dire Dawa
6.Gambela 7.Harari 8.Oromia 9.Somali
10.SNNP: Southern Nations, Nationalities, &
People's Region 11.Tigray

18
 2.3.5 Harvest period and Processing at the farm level

Chillie peppers are typically rotated with maize, whereby maize is primarily grown for home
consumption. Chillie peppers are planted in April/May, when the rainy season starts; harvest is from
October to February.
In Woreda, with 12.000 has, chillie yield is 1.300 kg/ha, but irrigated it grows to 2.200 kg/ha.
Paprika can be grown as a complementary crop in the dry period IF irrigation is available.
Ginger is planted in May and June and is harvested from December to February.
Turmeric harvest starts as of November.
Black cumin and coriander harvest is from November-January.
Fenugreek and cardamom harvest starts as of October

• drying at the farm level is improper: eg on the road, in the dust rather than on concrete floors
• drying is insufficient: crops should be dried down to 12%, but most volume is shipped at 30%+
moisture which enhances mould growth during transport and storage
• post-harvest handling of the product is inadequate: poor and re-used packaging, storage in
unclean sheds and next to eg chemicals, much up- and offloading, bumpy transport
• trading/selling is done on open markets where the material is exhibited on bare soil or on plastic
undercovers where humans and animals freely walk.
• grading is done only visually..

2.3.6 Current segments and distribution channels (domestic and exports)

Purchasing at the farmers level is done by traders. They either buy for their own account or they are
liased to large processors in Addis Ababa or Nazareth. There is hardly any direct contact between
processors and farmers within the traditional supply chain. For ginger and turmeric, the supply chain is
short. As these are primarily cultivated for export, they pass only few hands to reach the exporting
company. Players like YSO, Haile and Negash export a variety of crops like sesame, nigerseed, chick peas,
but also include ginger, black cumin and turmeric. They grade incoming volumes into:
A-export quality; B-export quality; C-domestic resale; D-rejects
Often the volumes to be exported must still be dried down to 10% moisture; this is usually done in the
open. C-grade and D-grade find its way to the Ethiopian consumer at eg the Mercato market.

2.3.7 Overall Issues in the Ethiopian spice sector

Major constraints in the spices production and marketing in Ethiopia

The major constraints facing the spices sub sector of Ethiopia cover pre production, production,
processing and marketing stages.

Pre and Production Stage:

• Low yield varieties in use, and lack of High Yielding Verities (HYV);
• Need for improved spice agricultural research in existing and new and locally adaptable varieties
that offer opportunities for increased yield, and meet home and export market demands;
• Poor quality of final output marketed;
• Weak role of private commercial investors in spices production;
• Irregular supply and variable quality of spices produced from forest and agricultural landscape;

19
 • Lack of proper post harvest handling practices, and problems of the marketing system in use
resulting in significant post harvest wastage/spillage and product quality deterioration;
• Weak business linkage among stakeholders in the chain including farmers, traders, processors
and meso level support institutions and macro level regulatory and enforcement institutions;
• Lack of use of appropriate modern technologies in farm management, drying, storage, etc;
• Lack of appropriate spices development strategic interventions

Pre-harvest issues in chillies are various: Local seeds are used over and over again. This, combined
with large variation in soil conditions, result in very heterogenous values of pungency and colour !
The low seed quality also results in poor yield. Additionally, drought kills seedlings

But export requires Homogeneity in quality and

specifications

Marketing Stage:
• Keeping spices in store for long in expectation of higher prices;
• Adulteration of inferior varieties with better ones for marketing;
• Poor quality of spices traded due to highly traditional pre - and post harvest handling practices;
• Adding water to increase weight and also colour/appearance;
• increasing role and importance of unlicensed brokers in the trading of spices in the market;
• Weak marketing system not stimulating production and marketing based on enforceable quality
standards;
• lack of value addition in terms of major agro processing activities in spices;
• weak organizational capacity of cooperatives/unions;
• Price volatility due to changes in demand and supply in local and overseas markets;
• Lack of organized market information service to the different actors in the spices farm-to-market
chain;
• Weak market research and promotion in potential overseas markets for natural and processed
spices products.

20
Post-harvest Quality deteriorates because:

Insufficient drying of crop (must be down to 12%)

Bumpy transport

Poor storage

Bulk up- and off-loading AND

Adulteration by adding water, dust, extra seed

Post-harvest Quality deterioration by spice :

Ginger: drying whole ginger is slow and leads to quality losses. Sliced ginger dries within 1 week and
has lower salmonella risk. Transporting ginger with high moisture results in high moulds
Turmeric : boiled at the farm gives a nicer product. Polished fingers yield a better price.
The Ethiopian chillie today enters a grinding stage with 25%+ moisture and practically the whole
crop is processed into a local blend. It is unsuitable for export. Yield remains < 1.000 kg/ha. Only
50% of the harvest reaches Addis as grade A, and does not comply with international quality
standards. There even is no surplus volume for export, price at the domestic market is sometimes
higher than in export markets.

21
3. Institutional and governmental support available for sector

3.1 Government Agencies:

The key government ministries and agencies concerned with the provision of the requisite policy,
strategy, regulatory functions and key support services for the spice and related crops are Ministry of
Agriculture (MoA), Ministry of Industry (MoI), Ministry of Trade (MoT) , Ethiopian Institute of Agriculture,
Ethiopian Cooperative Agencies and their respective offices at Regional, Zonal and Wereda levels.

Ministry of Agriculture (MoA) is a key Ministry mainly responsible for the production side of the crop by
providing the spice and related crops with the relevant policy and strategy inputs. In addition the MoA
and its respective offices at all levels provides a generic and specialized extension services for small
holder farmers on pre harvest and post harvest agronomic practices.

Extension is one of the key services required by all categories of value chain players in the spice sub-
sector and needs to be strengthened in order to continuously educate farmers to utilize specific
,innovative and sustainable farming methods and approaches.

Ministry of Industry (MoI) which has been reestablished as a new ministry separated from Trade will be
concerned with promoting production of industrial level and manufacturing products. MoI will be
concerned in facilitating and creating conducive policy environment in the expansion of agro processing
and manufacturing facilities which are pivotal in transformation of agricultural raw products into
producer and consumer goods.

Spice is a crop with ample opportunity for agro processing thereby helping the transformation into a
more value added economy. The spice sector will benefit from the policy and strategy directions given by
MoI in particular in promoting agro processing and manufacturing capacity in the country.

Ministry of Trade (MoT) was established in October 2010 as new separate Ministry and is concerned in all
trade related matters including spices both domestically and internationally.

3.2 Ethiopian Institute of Agriculture Research (EIAR)

Ethiopian Institute of Agriculture Research (EIAR) is the lead institution involved in generation and
dissemination of agricultural technology while working with Ministry of Agriculture (MoA) very closely.

One of the factors still limiting production of spices in Ethiopia is sub-optimal agronomic practices due to
a number of factors such as inadequate skill training and lack of improved input and technology such as
improved seed varieties, fertilizers and pesticides. Current Research programs on spices and their
disseminations are inadequate. This is well witnessed by the lack of improved varieties either developed
and disseminated within the country or introduced for evaluation and adoption.

EIAR has a key role in addressing this constraint by enhancing the existing research activities and making
it more market oriented and pragmatic. Currently EIAR is conducting research pertinent to the spice
subsector in some of its specialized and semi specialized research centers namely Tepi (major spice
research centre), Sinana, Jimma (primarily coffee, also some spices), Araca (primarily ginger) Kulumsa,
Debrezeit, Melkassa, Bako, Essential Oil, Gondar, Adet, Agricultural Research Centers. It also provide
advisory and technical services in partnership with the extension services.

22
3.3 Ethiopian Commodity Exchange -ECX

Agricultural markets in Ethiopia are characterized by high costs and high risks of transacting forcing much
of Ethiopia into global isolation. With only one third of output reaching the market, commodity buyers
and sellers tended to trade only with those they knew, to avoid the risk of being cheated or default. Trade
is done on the basis of visual inspection because there was no assurance of product quality or quantity,
this drove up market costs, leading to high consumer prices. For their part, small-scale farmers, who
produce 95 percent of Ethiopia’s output, came to market with little information and are at the mercy of
merchants in the nearest and the only market they know, unable to negotiate better prices or reduce
their market risk.

The Ethiopia Commodity Exchange (ECX) is as a new initiative for Ethiopia commenced operation in April
2008. It is the first of its kind in Africa with the vision to transform the Ethiopian economy into a global
commodity market by choice by revolutionizing Ethiopia’s tradition bound agriculture through creating a
new market place that serves all market actors, from farmers to traders to processors to exporters to
consumers. It strives in connecting all buyers and sellers in an efficient, reliable, and transparent market
by harnessing innovation and technology and based on continuous learning, fairness, and commitment to
excellence.

ECX assures all commodity market players the security they need in the market through providing a
secure and reliable End-to-End system for handling, grading, and storing commodities, matching offers
and bids for commodity transactions, and a risk-free payment and goods delivery system to settle
transactions, while serving all fairly and efficiently. It creates trust and transparency through aggressive
market data dissemination to all market actors, through clearly defined rules of trading, warehousing,
payments and delivery and business conduct, and through an internal dispute settlement mechanism. It
provides market integrity notably the integrity of the product, the transaction and the market actors.

3.4 Farmers Organizations

Farmers’ organizations play an important role in the economy of the smallholder farmers. The formal
farmer’s organizations in Ethiopia are primary cooperative Associations, Cooperative Unions and
Cooperative Federation. In 2010 about 26,800 Farmers organizations exists in Ethiopia. These
organizations provide the smallholder farmers with the opportunities to access different services in a
more cost effective way. A good example is access to credit services where most smallholders are
deemed not creditworthy by the financial institutions but are nevertheless able to access credit within
the umbrella of their associations.

The farmers’ organizations also provide enhanced direct access to markets. In this regard, organizations
provide opportunity for bulking of produce thus making it possible to have adequate quantities of good
quality produce to attract the market. Besides, the organizations could improve access to storage
facilities which is crucial in spreading the supply of farm produce away from periods of glut. This ensures
that farmers do not sell their produce at non remunerative prices during periods of surplus to avoid loss
due to perishable nature of most agricultural produce.

Efficient farmer groups also acts as catalysts for investment in agro-processing. The associations are able
to leverage finances which can be used to establish processing and grading facilities for perishable
products this enables smallholder farmers to add value to their produce and attract better returns on
their produce.

23
 3.5 Some activities initiated by Private Business

Most of services provision to Spice producing smallholding farmers fall within the remit of the public
sector, through the Ministry of Agriculture. However, it is noted that some of the services can be
devolved to be more effectively delivered by the private sector players. Extension services for example,
could be undertaken by the farmer groups, input suppliers and exporters of the spices. There are
unutilized opportunities by leveraging synergies of public sector and private sector to ensure more
sustainable solution to the provision of services sought in the spice subsector with the view addressing
some of the challenges currently existing in this domain.

The case in point is that the recently initiated capacity building program by Eden Oil Plc, Ethiopian Spice
Extraction Factory, Yahia Seid Omer Company and the likes in the training of farmers and investments in
postharvest processing facilities closer to the farm sites.

3.6 Development Partners and Donors

There are a number development partners and Donors working in Ethiopia in the areas pertinent to the
Private Sector, Agriculture, Trade and Industry in support of promotion and expansion of production and
trade of key commodities particularly export commodities. The most important of them among other
includes: Bilateral Development Agencies such as USAID, JICA, SNV, GTZ, DFID IDA (Irish Development
Agency), CIDA, SIDA, Spanish Millennium Development Fund, French, Italian International Development
Agency and the Embassies and mission offices of most western countries and Regional, Continental and
International Agencies notably UN agencies (FAO, UNECA, ITC, UNIDO, UNDP, ILO, IFAD..) and other
Agencies and NGO’s such as AfDB, World Bank, Care Ethiopia, which are financed by other donors.

The potential and existing Development agencies and their specific program is also summarized at the
bottom of this document. Some of the programs/projects most relevance to spice and related products
among other include;
• USAID –Oilseed support under Agricultural
• GTZ-ecbp-Ginger support
• SNV-Oilseed
• PPP of Ethiopian and Dutch project on Oil seeds
• EPOSPEA
• JICA - on value addition and market linkage.
• HABP - Income resource generation of a produce, which could also be spices..(as far as it is
selected by the target farmers).
• AGP (Agricultural growth program) - Having a program of extension, development & scaling
up of different agricultural products in which spices could also be included as per the choice
of the regions, zones & woredas, basically swiched on by the interest of the farmers.
• FAO - can have an attachment/involvement according to a well developed project proposal.

24
4. Value Chain Dynamics and Challenges
4.1 Trends & challenges in the global Spice supply chain

With the upgrading of milling equipment in countries of origin and the stricter procedures followed by
suppliers, clients in Western Europe have increased confidence to source ground Spice directly. In chillies,
paprika and turmeric, origin grinding is already common for years. At the same time, it are these 3 crops
having caused most of the food scandals with adulteration in the last 10 years. The relation between
pricing of whole spice and ground spice becomes more transparent, helping clients to understand that
one spoonful of pure spice is less costly than 2 spoonfuls of “filled” spice . Today, Spice companies in the
destination markets dedicate themselves to developing blends for food industry or packing whole and
ground spice in retail- and food service containers. We have already seen grinding stopped in the UK
(2006), in Scandinavia (2007), and reduced in France and Germany.

It is the shorter supply chain that delivers the

Trends in Global Spice Supply
- Chain advantages for ground from origin:
Farm
Farm • Availability improves, because at an
ORIGIN Collector early stage decisions will be taken to
Processor/grinder
Processor Exporter in Origin either keep volumes whole, or crack, or
Shipper/Exporter
grind (mesh size)
DESTINATION
Agent
• Transport and up/offloading is reduced,
Importer/Dealer

Broker
enhancing the quality of the product
Grinder
• The number of middle men (brokers,
agents etc) is reduced, thereby saving
Customer
costs
• Processing steps in origin benefit from
lower labour costs and lower overheads.
• Adulteration in the form of adding
“fillers” like extraneous matter, foreign
matter or spent,is discouraged because
the market price for 100% pure spice
becomes more competitive

Ethiopia exports her ginger and turmeric in whole form. EU importers prefer ginger to come in sliced5.
Turmeric is offered whole to India for both grinding and for extraction. Also Far East markets buy whole.
EU/USA buy predominantly ground turmeric. Paprika & chillies are presently hardly exported by Ethiopia,
but should that be the case in the future, than whole or broken form is preferred by EU/USA importers.

5
Sliced ginger dries quicker (within a week) thereby preventing mould growth and enhancing (export) quality

25
 Ginger Value Chain: Capsicum World Value Chain:

Today: select & dry

Extraction

Future: slice & grind

For Capsicums (chillie peppers belong to that category), end-users require blends which are specific in
colour and heat. Colour is measured in ASTA: 60 for brown, 120 for bright red. Another measure is ic =
international colour units, whereby 100.000 ic = 100 ASTA. Heat is measured in SHU-Scoville Heat Units:
10.000 for mild, 120.000 for very hot. It requires proficient blending of different varieties and origins and
that can only be done by specialized grinders Most expertise can be found in Spain – Murcia, where
paprika and chillies are imported In broken form from China/Peru/Hungary/Africa and then ground and
blended into the right heat & colour.

Scandals with illegal dyes in chillies and turmeric mainly from India, but also from China, have resulted in
stricter controls at the EU border of these ground materials. This New EU ruling 669/2009 dictates that
from Jan-2010 for high risk-products a control at the port of EU-entry is obligatory:

• Aflatoxine testing on 50% of shipments with nutmeg-ginger-turmeric-capsicums from India

• Sudan dye testing on 20% of shipments with capsicum-turmeric-curry from all origins.

4.2 Supply Chain of Spices in Ethiopia

The spices market chain of activities involves production, collection, drying, storage, processing,
transporting, and marketing and selling activities.

The principal actors/participants in the spices market in Ethiopia involves (see figure 1):
• The small holder farm households /the predominant production system for spices in Ethiopia/,
and also their cooperatives/unions, and limited emerging cases of commercial farming, selling to
local and regional traders in the nearest towns. They sell the spices in a wet/fresh stage (in most
cases), or after drying, depending upon their cash need, interest and experience in spice drying
processes. And marginally cooperatives/unions,
• small to big Local Collectors and regional traders (buyers) /including small local shops in growing
areas, engaged in purchasing and bulking from farmers and their cooperatives/unions/. They sell
their spices purchases to local wholesalers after making a sort of processing (drying), and also sell
directly to consumers
• the Local traders/buyers in turn may do further drying of the spices, do bulking operation till it
reaches the level to be transported using trucks, 50-90 quintals (1quintal=100kg or 0.1ton) and
above, to transport and selling to traders in central/terminal markets in major urban areas,

26
• there are national level wholesales of spices in terminal markets, who do further bulking mainly
from regional traders/buyers and mainly engage in selling to processors /that ground, mix with
other spices/, exporters, or other local wholesalers and retailers, including to those regions that
do not grow or do not have adequate supply of spices,
• millers: village and spice market center milling houses who, for instance, do pepper milling for
customers or do own milling and sell the flour to different traders, and consumers,
• micro and small and medium /SME/ spice processors:
• table spice producers and traders, such as Selam , Etsub, Abyssinia, Abeba, etc …, and also the
ESEF who cater to households and also institutional consumers/buyers (such as hotels, hospitals,
educational institutions, military camps, …); and
• the fast increasing number of micro and SME spice processing, packing and retailing businesses in
major urban centers, mainly catering to households.
• cleaning and processing facilities,
• spices factor(ies), Ethiopian Spices Extraction Factory (engaged in oleoresin extraction and
export, and also pepper flour production and selling to consumers), and
• Retail chain: supermarkets, retail village shops,etc.
• Exporters who buy from regional traders/buyers, and also from wholesalers in terminal markets.
The exporters are not as such specialized in export of spices alone, and are also engaged in export
of such commodities, as pulses and oil crops.
• Consumers:
• Household consumers /significant majority of who buy in smaller volumes, and above, and ---
large are the households with few percentage shared with table spices processors and traders,
such as Selam , Etsub, Abyssinia, Abeba, ESEF and numerous micro to SME spices processing and
retailing businesses in urban areas, …
• Institutional consumers, such as hotels, restaurants, military camps, academic institutions,
hospitals, …., who are known to buy large volume of spices mainly pepper (including other spices
used for pepper milling) and others for consumption need of large number of employees in
camps, students, inpatients
• There are also brokers involved at different stages in the supply chain during the purchase and
selling processes from farm to terminal markets.
• Besides, brokers and commission agents are also involved in the market channel of spices
purchase and selling in Ethiopia.

27
Value Chain Spices – The Principal Players (From ITC report on Market potential)

Two
extraction
firms
Local use Animal
Land Feeds
Preparation,
Weeding

Seed Field Harvesting Drying Collecting Delivery to Oleoresin Packing Inspection Import
Supply Production Wholesalers, Extraction Production Delivery to I intern.
Transporter Plant Port, export Markets

Delivery to Blending Grading and Distribution Domestic

Food With spices Packing Market
State
Processors For berbere
farms

Collecting Open
whole Market
salers Sales

Commercial Spice
farms millers

28
 4.3 Value chain mapping specific to Ethiopian CHILLIES

Chillie peppers are by far the largest spice grown in Ethiopia and it finds its way for 95% to the
national market. Farmers grow it as a cash crop, usually alternating with maize. The red pods, once
harvested, change many hands. The chillie peppers value chain starts at the farmgate. Farmers dry
the pods in the open. Usually back to 25-30% moisture. Farmers then group their harvest (after
drying) and offer the volume to traders. From there we see a series of uploads and offloads with
intermediate storage, until the prime material reaches the intermediate market of Alaba or the final
market of Mercato in Addis. In Mercato the pods are either bought by consumers (home grinding) or
by sellers of ground material. Then it is de-seeded and de-stemmed, hand picked selected, mixed
with 15 or more spice ingredients, crushed & ground by contract grinders and finally packed to pass
into the hands of the final consumer who will use his/her favourite berebere blend for homecooking:

Spice processing plant in Koshe:

With support of Irish Aid, a small facility has been established in Koshe, in the middle of the pepper
growing area. Spices are de-stemmed in a clean facility, recipes made, crushed and ground in a
separate space and packed for retail. Similar to the structure above, moisture content is 25%+. But
much less off- and uploading; better storage, organized and hygienic processing and packing.

Value chain of chillie pepper for local use in Ethiopia – Price Sep-2010
Level Main issues affecting this level Selling Price
Chillie
Farmer After harvest, drying down to 30%. Volumes are
grouped by farmers, sold alongside the road 25 Bir/kg
Buyer at the Buys in the village/collects alongside the road.
farmgate Stores at low conditions, sells when price is to his 28 Bir/kg
liking. Quality loss during transport and storage
Buyer/seller at Buys per bag, material is unloaded & uploaded.
Alaba market Quality loss during transport to the city 32 Bir/kg
6
Buyer/seller at The Mercato buyer de-stems, , hand pick selects
Mercato and makes a recipe and has that ground. 35 Bir/kg
7 8
Processing De-stemming, deseeds , rejection: material loss 20-30%
De-stemming by women in the street who charge B 12/17 kg
Crushing grinding by dedicated grinders who know B 1/kg
the clients requirements
Buyer/seller of This person buys the blend, has it packed (at home
ground blend or by 3rd party and sells a blend
Exporters

4.4 Value chain specific for Chillie oleoresin

The Ethiopian Spice Extraction Factory and chillies:

The ESEF is designed to process oleoresins for export. Also ground spice is provided to the export
market. In order to meet the international requirements, the following additional steps are
necessary:

6
Hand pick selection into eg. A grade (B 30/kg), B grade (B 28/kg) and rejects (B 10/kg).
7
Adulteration: can take place at the grinding stage. Mixing A and B grades eg, adding seeds or worse, adding
ground red brick. There is no quality control so consumers relate to the reputation of blenders.
8
The seeds are sold again to farmers at prices of B 25/kg

29
 - Chillies are de-stemmed (3% of volume) and selected into export quality and rejects (which
are resold locally). Rejects vary from 20% in the harvest season to 50% in the low season
- Then the 25% moisture chillies are dried down to 10% moisture (!)
- The pods are crushed and deseeded, loosing another 25% of weight
- The dried deseeded and crushed material is then ground and ready for export; out of 100 kg
of fresh material, only 60 kg of export quality grind can be retrieved.
- And these 50 kg of grind give 3 kg or oleoresin (remember: VO = 6%)

As the plant manager says it: “we require 27 kg of purchased chillie, to retrieve 1 kg of oleoresin”

At an exchange rate of ETB 100 = USD 8, the process is hardly profitable for chillies.

Value chain of capsicum oleoresin

Level Main issues affecting this level Weight Price / KG
FEB-2011
Input 100 kg of 30% moisture chillies from eg ETB 32
Alaba market at a price of ETB 30 100 kg (USD 2)
Preparing Destemming and deseeding, drying down
to 10% moisture 60 kg
Processing Grinding, then extracting,
3,5 kg USD 30
Desolventing The remains are dried and sold as animal
feed at a price of 5 B/kg 30 kg ETB 1.50

To increase output of 1st quality capsicums, it might be considered to raise seedlings by horticulture
companies like Florensis and Ethiopian World Flowers. Also programs where so called “outgrowers”
are placed on a strict regimen of Agricultural Practices, are successful in Ethiopia.

It is obvious, that for paprika, with a VO=12% content, the factory results would improve
considerably.

Paprika is not consumed in Ethiopia, so production should be done purely for the extraction factory.
Farmers who have done this in the past, felt themselves very dependent, certainly in times of falling
world market prices of paprika powder and paprika oleoresins. There are initiatives to grow paprika
on an industrial scale. Productivity is currently at 1.200-1,500 kg/Ha but should ideally reach 3.000-
4.000/ha. The factory has an input capacity of 15Mt of 10% moisture paprika.

Quality of inputs for the oleoresin factory is measured in ic = international colour units, whereby
100.000 ic = 100 Asta.

4.4 Value chain mapping specific for Ethiopian Ginger/Turmeric

Ginger is the biggest export-spice of Ethiopia, reaching 9.000 Mts in 2009 (of a total export of 15
Mts). Ethiopian ginger (African ginger) is more pungent than eg Chinese or Indian ginger. It also is
rather fibrous. It is liked by extracting companies because of its high oil content (VO = 8 % China VO =
6%).
Issue in the value chain is the way of washing (away the dirt/soil) and drying by local farmers. Often
the exporting company has to do additional drying, down to 10%. To reach export quality (i.e. to
keep mould levels such as aflatoxine, to a minimum), it is advisable to speed up the drying process.

30
This can be done by slicing the ginger, so it can dry down under a shed in the open within 7 days.
Drying whole ginger requires several weeks.

Value chain of ginger in Ethiopia

Level Main issues affecting this level Selling Price Export price
national (FOB)
Farmer After harvesting, ginger is dried down on the farm
from 80% to 20% of moisture. Volumes are 55 Bir/kg
grouped by farmers, sold alongside the road
Buyer at the Is often contracted by an exporter of Addis Ababa.
farmgate Negotiates a price and transports to processing 65 Bir/kg
Selection in Hand pick select into export grade A-70%, export
Addis/Nazareth grade B-20%, for local market, waste 10% 66 Bir/kg
Processing A and B qualities are sundried down to moisture
10%, then packed in 50 kg PP bags 86 Bir/kg
Logistics Cargo is trucked to Djibouti (2 days), then uploaded
in 40 foot containers (24 Mts). Ginger is bulky. 4.50Bir/kg $ 2.500/Mts
Customer Grinds the material in ISO-9000 facilities, adds
certificates, pack in 20Kg food grade bags and sells 50 Bir/kg $ 4.000/Mts
”sterile” to spice blenders

Turmeric is growing as an export crop. The Ethiopian turmeric has a higher Volatile Oil content (4%)
than the madras type of India (2%), but lower than the Allepey from Indonesia (6%). Farmers are not
skilled in the cooking process, which give Indian turmeric the nice yellow colour throughout the
whole root. For export mainly the fingers are used; they are separated from the bulb. Some
exporters “polish” the fingers, which add to the costs, but also allows for better pricing

Value chain of turmeric in Ethiopia

Level Main issues affecting this level Selling Price Export price
national (FOB)
Farmer After harvest, no cooking. Drying down to 30%.
Volumes are grouped and sold to traders 17 Bir/kg
Buyer at the Is often contracted by an exporter of Addis
farmgate Ababa Negotiates price and transports to 19 Bir/kg
processing
Selection in Hand pick select into export grade fingers 70%, $ 1.200/Mts
Addis/Nazareth export grade bulbs 26% local, waste 4% 22 Bir/kg
Processing If necessary, export qualities are sundried down
to moisture 10%. Fingers are polished to add 42 Fingers:
value, then packed into 50 kg PP bags Bir/kg
Logistics Cargo is trucked to Djibouti (2 days), then 4.5 Bir/Kg $ 1.200/Mts
uploaded in 20 foot containers (17/18 Mts). $ 2.400/Mts
Customer Heat treats and grinds the material in ISO-9000
facilities, adds certificates, pack in 20Kg food $ 3.000/Mts
grade bags and sells ”sterile” to spice blenders

31
5.The Future for the Spice Sub-Sector

5.1 Priority Target Markets

During the participatory workshops sector representatives across the whole value chain analyzed
potential and decided that the strategy number one priority would be to develop the export market.

The selected priority markets for this strategy are: Europe, Middle East, East and North of Africa and
Far East

From the participatory Workshop in July 2010, participants defined the following target markets:

Farmer's
Segment / Products Destination Consumption markets Buyers' requirements
requirements
Ginger Dried whole Ginger Meet African/Asian/Middle East < 12% moisture Proper drying
95% export
Sudan Requirements places
Meet EU/ASTA requirements < 12% moisture Slicing machines
Yemen
100% export aflatoxin < 10 ppb
Dried sliced Ginger S-Arabia sulphur < 150 ppb
Meet EU/ASTA requirements Extraction Factory
100% export India
Oleoresins
Turmeric UAE Meet African/Asian/Middle East boiled for colour Polishing equipment
Turmeric fingers 95% export N- Am Requirements polished fingers boiling equipment

Sweet Pepper Pods Meet African/Asian/Middle East no salmonella Contract with spice
No production in 2009 Spain
(paprika) Requirements < 5 ppb aflatoxin extraction factory
powder Meet EU/ASTA requirements no illegal dyes Contract with
No production in 2009 Spain
exporter to Spain
Oleoresins No production in 2009 World Meet EU/ASTA requirements Flavour houses
Chillie pepper dried 80% to local grinders There is a market for every preferably < 12% Grading like in
(berbere) All consumed domestic quality level; coffee
20% to retail (domestic)
powder 80% to local blenders Better color >> Grinders
All consumed domestic 10% to retail (domestic use) higher price
10% to catering pungency in line
blends 80% to retail (domestic) with local taste Blenders and
All consumed domestic 10% to local industry packers
10% to catering
Black Cumin dried 50% local consumption

50% exports Far east

With an overall emphasis in Value addition (including primary and secondary processing and quality
preservation and volume) the priority spices selected were: Ginger, Capsicum/Paprika, Turmeric
and Black Cumin

Targeted export volume and revenue generation by 2015:

The coordinating committee has estimated that even at modest world market prices, and omitting
extracts (essential oils), export earning of a minimum of US$ 50 million per year can be secured by
2015. As we can see in the table below, the 50 million USD export earnings can be achieved mainly
with Ginger, Turmeric and Black Cumin. This implies significant growth in spice export earnings
contributions when comparing with the actual 18.5 million USD for 2009/10.

2009/10 Export achievables by 2015

Has
Volume Valus planted Yield in yield/ha Volume Value
Spice (tons) ($ 000) for export fresh kg in kg dry dry(tons) Specification ($ 000)
ginger 10.270 $11.999 5.000 16.000 4.000 20.000 50% sliced $35.000
turmeric 2.932 $2.840 500 16.000 4.000 2.000 50% sliced $3.000
black cumin 801 $1.555 3.750 800 800 3.000 $6.000
other 1.591 $2.174 5.000 $6.000
Total 15.594 $18.568 30.000 $50.000

32
5.2 Main Strategy objectives
After analyzing value chain constraints and potential five strategy objectives were defined by sector
stakeholders in a participatory manner that included farmers, government, processors and buyers.
The implementation of the objectives will enable the spice sector to achieve the above targets and
overcome the main issues in the spice sector value chain.

The Spice Sector Strategy Objectives are:

1. Improve pre- and post harvest and processing practices

2. Improve marketing practices
3. Improve capacities/capacity building and access to Finance
4. Improve Quality and standard compliance
5. Improve value chain governance

These objectives are cross cutting throughout the value chain and are not only aimed at the
smallholder farmer. In follow-up meetings, the Committee further defined sub objectives as follows:

Priority of Objectives Sub Objectives (rephrased by Committee)

1 Improve pre - and post harvest and processing a. Improved seeds
practices ( selected 1st by farmers and exporters) b.Drying techniques
c. Slicing, Treating,
d.Storing
e.Transporting
f. Packaging
g. Processing
2 Improve marketing practices h.Market intelligence
(Selected 2nd by farmers, 3rd by exporters) i. Market system
j. Market research/study
k. Market promotion
l. Branding
3 Improve capacities/capacity building and access to a. Training farmers, Das, lab staffs ,
Finance (Selected 3rd by farmers, 2nd by traders) exporters
ii. Pre harvest
iii. Post harvest/Processing
iv. Marketing
v. Laboratory
a. Support Spice Value Chain Financing
i. Assessment of financing constraint
of spice value chain
ii. Undertake consultative meetings
between FI and Value Chain
Operators

33
4 Improve Quality and standard compliance b. Quality Standard Development
(Selected 4th by all) c. Testing and quality assessment
(grading) procedures
d. Rehabilitating exiting laboratories
and/or establishing new ones
5 Improve value chain governance a. Package/Strategy Development
(selected 5th by all) b. Assigning focal persons at relevant
levels
c. Strengthen EPOSPEA and set up
spice subsector subcommittee
within EPOSPEA

The coordinating committee also evaluated market pote ntial and past experiences in Ethiopia and
decided to add a 6th overall market objective which is primarily aimed at producing and selling
(sweet) paprika for extraction. In the past several attempts to include smallholder farmer into
paprika planting proved unsuccessful and one solution would be to involve large scale commercial
farming, whereby output is completely focused on exports: both powders and extracted paprika.

Encourage commercial scale production of Minimum 5.000 Has of paprika to be planted

paprika Involve at least 2 farmers in seed reproduction

The detailed Implementation plan showing objectives, sub-objectives and activities is shown on
the next page.

34
 Implementation Plan Spices Pepper, Ginger,
Ethiopia - Committee targets 2015 turmeric, black cumin
Costs

Progress indicators 2011 2012 2013 2014 2015

Sub Objective Activity achieved by 2015
Resources needed Priority
ETB ETB ETB ETB ETB
Total

Inventorise seed performance Min 1 improved 60 research mandays/yr @ 1 90.000 90.000 90.000 90.000 90.000 450.000
(selected 1st by farmers and exporters)
1. Improve pre- and post harvest and

for yield, quality, demand seed/crop ETB1.500/day

Identify areas for irrigation Develop min 10 irrigation ETB 1 mio per scheme 1 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 10.000.000
schemes (within the 25
pocket areas)
processing practices

Select pocket areas for 25 pocket areas 150 mandays @ ETB 1 45.000 45.000 45.000 45.000 45.000 225.000
projects 100 farmers/area 1.500/day
4 DA per area
Encourage reproduction of 100 model farmers 150 reseraches days @ 1 100.000 50.000 50.000 50.000 50.000 300.000
improved seeds by small scale specialise E2000
farmers
Promote simple bamboo & Min 50% of produce with 25 simple demo centres 50.000 50.000 50.000 50.000 50.000 250.000
@ E 10.000/centre
1
covered drying places moisture < 20%
Better packaging material 50% of produce in clean 1000000 PP bags @ E7 1 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 10.000.000
PP bags or crates 50.000 plastic crates
@E60
Farmers bring harvested crop 30% of harvested 3% premium on spice 1 6.000.000 6.000.000 6.000.000 6.000.000 6.000.000 30.000.000
straight to processor produce directly to price
processor
Encourage research & Establish lab by 2013 E 500.000 for the 1 250.000 250.000 500.000
developm activities to be more research centre
market responsive
Facilitate spice trade through Min 50% of spice trade 100 expert days @ E 2.000 0 50.000 150.000 0 0 200.000
3
ECX through ECX
Provide regular & reliable info Weekly updated info to 30 expert days @ E 2.000 2 150.000 150.000 150.000 150.000 85.000 685.000
(selected 2nd by farmers, 3rd by
2. Improve marketing practices

on volumes & prices to the 25 pocket areas 40 PC's @ E 15.000/PC

farmers/traders/buyers 25 bill boards @ E 1.000
Assess acceptance of ET 1 report with improvement 120 natl expert days @ E2000 3 0 0 250.000 250.000 240.000 740.000
60 int experts d @ E 8000
ginger taste in EU/USA measures (if needed)

Spice Pavillion at ET fair 1 trade fair + 1 spice E 50.000 per event 50.000 0 50.000 0 50.000 150.000
exporters)

2
mission to Ethiopia every
other year
Take part in international trade 1 mission & 1 E 340.000 per exhibition, 1 0 580.000 0 580.000 0 1.160.000
fairs& spice missions international ingredients
15
fair per year p per mission @ E 80.000
Develop brand profile for ET Certify at least 1 variety
100 expert days @ 2.000 3 1.440.000 1.440.000 1.440.000 1.440.000 1.440.000 7.200.000
spices & promote like coffee per spice Brand certifi @E500K
Brand reg EU/USA @E1
mio
Selling: Find new clients 2 new EU/USA Engage 1 national expert 1 350.000 360.000 0 0 0 710.000
outside Sudan/Yemen/Dubai: in customers per spice per (120 days@ E2000) & 1
EU, USA year int expert (60
days@E8000)

Training Activities
3. Improve capacities/capacity building and

Train the 100 Development 100 DA's trained over 15 1500 DA-days @ ETB400 1 1.120.000 0 0 0 0 1.120.000
(selected 3rd by farmers, 2nd by traders

Assistants (DA's) days in 2011 160 Trainer days/Etb2000

Coordination & materials
Train the farmers in the 25 25*100 = 2.500 farmers 25.000 trainee days @E20 1 1.200.000 600.000 600.000 600.000 0 3.000.000
pocket areas trained 125 trainer days @ E2.000
1.000 DA days @ 200
access to Finance

E 50.000 coordination
Develop syllabi for spice All 25 Farmers Training Syllabus/crop E 100.000 1 900.000 0 0 0 0 900.000
production and marketing Centres (FTC) introduce Printi 25.000 copies
courses @E20

Finance Activities
Encourage Financial institutions 50% increase in credit 60 expert days @ E 2.000 1 260.000 260.000 0 0 0 520.000
to provide credit services supply + 2 workshops @
E200000
Supply small scale equipment Min 50% of ginger sliced Micro credit: 1250 facilities @ E 1 500.000 500.000 500.000 500.000 4.180.000 6.180.000
for slicing ginger & boiling min 50% of turmeric 2.000
turmeric
Encourage farmer unions and boiled
Min 8 central drying/proce Land lease 5 HA @ E 0 4.180.000 4.180.000 4.180.000 4.180.000 16.720.000
1
private sector to install central and storage units installed 500K
drying/processing/storage Credit E 2,04 mio/plant
Processors & exporters collect 30% of produce collected 40 trucks @ E 500.000 1 4.000.000 4.000.000 4.000.000 4.000.000 4.000.000 20.000.000
with own truck at farm level from the farm gate

Set simple Q-standards/grades Min 1 Q-benchmark per 50 expert days @ E 2.000 2 100.000 100.000 100.000 100.000 50.000 450.000
& identify appropriate spice, 50% output comply E 50.000 for publication
4. Improve Quality and

benchmarks
standard compliance
(selected 4th by all)

Support testing capability of Adequate laboratory E 500.000 for spice 2 250.000 250.000 0 0 0 500.000
Ethiopian Quality Standard facilities for EQSA specific equipment
Authority
Rehabilitate or establish establish 4 labs amongst E 1 mio per new lab 1 1.500.000 1.500.000 1.500.000 1.500.000 0 6.000.000
facilities of Afro Star, ESEF, the 25 pocket areas E 500.000 for
NHRI etc Upgrade 4 existing labs rehabilitation
Train local laboratory staff on 20 laboratory staff trained 30 trainer days @ E 2.000 2 100.000 116.000 0 0 0 216.000
EU/ASTA regulations 140 trainee days @ E 400
E 100.000 coord & rent

Introduce pricing system For each selected spice 50 expert days @ E 2.000 2 50.000 50.000 50.000 0 0 150.000
related to quality/grade, similar E 50.000 to promote
to coffee grading
Promote Spice development Spice subsector Package 100 expert days @ E 1 140.000 140.000 140.000 140.000 140.000 700.000
(selected 5th
governance
value chain
5. Improve

plans as part of GTP developed in GTP 2.000

E 500.000 for workshops
by all)

Assign a spice sector officer in a 30 esperts @ E50.000/y 1 300.000 300.000 300.000 300.000 300.000 1.500.000
the MoARD, BoARD, ZoARD,
MoTI
Strengthen EPOSPEIA Create in EPOSPEIA a E 100.000 1 100.000 100.000 100.000 100.000 100.000 500.000
spice subcommittee
Encourage private business to 5000 Has large scale Landl lease 500 Ha @ 1 150.500.000 150.500.000 200.500.000 500.000 500.000 502.500.000
commercial scale

embark on commercial scale paprika commercial E1000/ha + credit E

production of
6. Encourage

spices (eg paprika) production 100.000/ha

committee)
(added by
paprika

Other crops in private 5.000 Has large scale of Landl lease 500 Ha @ 1 150.500.000 150.500.000 200.500.000 500.000 500.000 502.500.000
enterprise other spice E1000/ha + credit E
100.000/ha
Encourage reproduction of high 2 private entrepreneurs Lease 10 Ha land & 1 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 10.000.000
yielding seeds do spice seed finance equipment
reproduction

35
5.3Anticipated Outputs

The committee anticipates the following outputs to result from the strategy:

1. Yield will improve 20%

2. Volume loss will be reduced by 20%
(jointly this factor alone will boost volume output > 30% on the same acreage)
3. Quality will increase with 20% thereby addressing new clients in EU/USA markets
4. Spice Export volumes will double to 30.000 tons by 2015 (not counting paprika-extract
exports)
5. Spice Export earnings will triple to US$50.000.000 + at forecasted world market prices

5.4 Resources needed to implement the strategy

As per the implementation plan above, each activity was costed by the coordinating commitee with
support from the Ministry of Agriculture , trade and Industry. As the table below evidences, the
estimated cost of implementing objectives 1 to 5 in the period 2011-2015 is 7,5 million dollars or 121
million Bi rrs.

Objective 2011-2015 total cost 2011-2015 total cost in

in ETB USD
Improve pre - and post 51,725,000 3,232,812
harvest and processing
practices

Improve marketing practices 10,845,000 677,812

Improve capacities/capacity 48,440,000 3,027,500

building and access to
Finance
Improve Quality and 7,316,000 457,250
standard compliance
Improve value chain 2,700,000 168,750
governance
SUB-TOTAL 121,026,000 7,564,125
(5 Objectives)

The resources needed for 5 years are not significant and the return on investment is high if we
consider that the immediate export revenue generation (using the existing export crops ginger,
turmeric, black cumin) can be increased 3 times from 18 million USD per year to aproximately 50
million USD per year between 2011 and 2015 if the strategy is implemented.

This intervention will also have a spillover effect on the domestic production and consumption
improving the quality of life of the scetor stakeholders.

Objective 6 which has been added by the coordinating committee and is based on the market
potential for oleoresins and essential oils as well as for export of paprika and chilie. As explained in
the strategy objectives section, the committee has suggested that this ojective is treated on a
commercial farming basis and thus should be dealt with separately. This objective is mainly seen as

36
an investment opportunity for private sector for the development of a full commercial value chain
with participation of smallholders.

The coordinating committe has estimated that the investment cost would amount to 63 million USD
as per the implementation plan. However, in order to asses the potential and return on investment a
full feasibility study and business plan need to be undertaken.

5.5 Implementing Framework

The coordinating committee has identified the framework portraid in the structure below as the best
system for an efficient strategy implementation, management and coordination.

It is recommended that the overall ownership and championship of the spice scetor development
lays within a National Spice Board (NSB). The National Spice board would be a high level cross-
ministerial forum responding to specific sector needs in terms of policy formulation.

The NSB would receive inputs and progress reports from a technichal committee which would be
responsible for implementation coordination through its operational arm. The Technical committee
shall be composed of value chain and stakeholders from private and public sector and its overall task
will be to coordinate the implementation and to ensure stakeholder priorities are represented. To
fucntion efficiently, the cooridnating committee would count with the support of an operational
body composed of a manager and administrative staff.

Reporting and progress review on the spice sector strategy implementation would be undertaken by
the Technichal committee to the National Spice Board 3 times per year.

End of document

37
38
 . ANNEX 1, Strategy Workshop Participants List, July 14-15, 2010

No Name Organization Responsibility Mobile/Tell Email

1. Abedella Yahia 0911-205180 [email protected]
2. Abdikemal 0911-0664598 [email protected]
Ethiopian
Investment Research Team
3. Ahmednur Yusuf Agency Coordinator 0913 - 236054 [email protected]
4. Alemayehu Asebo Union Top Export 0920 - 313421
Seed Production
5. Ali Adem ESE Divisions Head 0911317549 [email protected]
6. Andinet Degefa BOARD Export 0913 - 176464 [email protected]
7. Aseged Adane UNIDO Experts 0911 - 873193 [email protected]
8. Asemare Tokkan I/A/Bororrace Matuu 0917 - 115927
9. Ashenafi Adugna LIU Export 0917 - 830059
10. Ayele Mamo Amdehun C.T Plc Commercial Man 0911 - 684294 amdehun@ethion
11. Badane Alaakoo Ag/Ketch 0912 - 156636
12. Badi Aman Mencheno Union Manager 0911 - 537713
13. Berecha Turi SG2000 T3-Coordinate 0911- 234940 [email protected]
14. Bereket Meseret MOARD Expert 0911 - 606139 [email protected]
Crop Protection
15. Berhan Mallare MOARD Exp. 0911- 432053 [email protected]
16. Bethelem Abebe Camera Man Addis Tv 0910-511436
17. Bethelem Tigistu ETV 0910-070329 [email protected]
18. Biniyam Biyena Olota Driver 0911-121079
19. Bogalech Mulugeta Yso Impex >> >>

39
20. Damma Sheko Sovoti Int. Trade Manager 0911 - 428026
21. Denku Turi ETV2 Camer Man 0911 - 106556
22. Derege Dejene UNDP Team Leader Moe 0911 - 512355 [email protected]
23. Dereje Cheriy PPPO Coordinator 0911 - 698603 [email protected]
Director &
24. Digafe Tilhaun EIAR Researcher 0911 - 772686 [email protected]
Dr.MEBRAHTU
25. MELES Ecbp Director 0911 - 369408
26. Ejigu Tegegne MOARD 0911 - 784221
27. Endeshaw Admasu Abissynia Baltena Manager 0911 - 072830 [email protected]
28. Ermiyas Tadesse Fm 96.3 Producer 0913 - 344667 [email protected]
29. Fekede Wondmagen MOARD Expert 0911 - 487114 [email protected]
30. Fikiru Haile BOARD Expert 0914 - 706345
31. Getachew Yalew ENA D.Editor 0913 - 260774 [email protected]
Process
32. Girma H/Micheal Tepi- EIAR Represntative 0917 - 808895 [email protected]
33. Girmaw Adise Farmer-Ganber Farmer
34. Haile G/Egziaber Erca Senior Officer 0911 - 128923 [email protected]
35. Hailu Neguss Smart Biessqub 0911 - 608364
36. Hassen Ali FAO Assistant Dir. 0911 - 402420 [email protected]
37. Kabeto Gemechu Duro Langano Manager 0911-078680
38. Kassakun W/Hana ard Agronomist 0910 - 621789
Melik Sihie
39. Kelifa Ulsero F/C/Union Manager 0911 - 710760 [email protected]
40. Lema Bekele Epospea G.M 0911 - 203474

40
41. Mariam Farmer Farmer 0912 - 245786
42. Mengistu H/Giorgis O.A.R.D.B Process Owner 0911 - 616210 [email protected]
43. Meskerem Lulseged Network Int Plc D/G/Manager 0911- 229690 [email protected]
44. Mitiku Teshome Aamma Reporter 0911 - 742099
45. Mitsuo TAMADA JICA Experts 0920 - 649359 [email protected]
46. Mohamed A/Kedir Ag.Qure Dev Horticultural 0911 - 945699
47. Netseanet Tadesse EPA Reporter 0913-684973
48. Nigssie G/Mariam Ecbp Expert 0911 - 028690 [email protected]
49. Nigusu Bedada ETV Reporter 0913-091458
50. Nuruhussen Ahmed Kasin G.M 0911-202566 [email protected]
Export Good SC.
Procedure S.
51. Rahel Alemayehu ERCA Office 0911 - 373797 [email protected]
52. Selamu Anose 0916 - 275606
53. Selamu Anose 0916-275606
54. Selomon Sisay ETV2 TV Programmer 0911 - 389866 [email protected]
55. Sintayehu Miskir BOARD/Amhara Export 0918 - 704899 [email protected]
56. Susan Mlvae FAO Agri. Business 0913 - 110205 [email protected]

57. Tadele G/Egziabher D.D.Agro G/Manager 0911 - 243862

58. Tasuko OSE JICA Experts 0920 - 813829 [email protected]
SNNPRS
59. Tefera Zerfu BOARD Representative 0916 - 862859 [email protected]
60. Tefesse Geberu Ese G.M 0911 - 511553 Tafesse
61. Tesfaye Sisay Net Ways Netways 0911 - 221122

41
62. Tesfaye Tsega Ecbp Expert 0911 - 035045 [email protected]
63. Tewodros Yilma Epospea 0911 - 203254 [email protected]
64. Tsegaye Abebe Amal Trading Officer 0911 - 091065 [email protected]
65. W/Michale Legese Farmer Farmer 0914 - 162866
Tembwate Fruit
66. Wale Getaneh Urban Agriculture Production Office 0911-1128818 [email protected]
67. Wendmu Ulbanu Kembat
68. Wonirad Mandefro MOARD Director 0911 - 892637 [email protected]
69. Yared Asefa MOARD Camera Man 0911 - 431346 [email protected]
70. Zeregaw Feleke MoTI Team Coordinate 0910 - 982639 [email protected]
71. Zeyneb Yso Impex 011-751296 [email protected]
Negaderas
72. Mr. Tewodrous Newspaper G/Manager 0911-123132

42