Addis Ababa, February 16, 2006 -
Middle East Times reported from London that a major UK retail chain Morrisons is
soon to stock Ethiopian flowers - roses, carnations and the red-brown berried hyperacid.
The report posted on the Meddle East Times website on Tuesday indicated that
annual flower exports from Ethiopia currently stand at more than $20 million and
are expected to reach $100 million by 2007.
The report said, more projects - with a further
100 investors from the Netherlands, Germany, India and Israel - have acquired
the use of 450 hectares to set up farms, and should generate an estimate extra
$300 million a year by 2007. Floricultural development is a thriving part of
Ethiopia's export trade according to the Ethiopian Export Promotion Agency's
director, Melaku Legesse.
The report quoted Melaku as saying that revenue
earned from flower exports has grown significantly over the last couple of years
from sales to the European market. "Ethiopia has an ideal ecology for
floricultural development, with an immense potential to grow high quality
standard flowers that would meet the requirements demanded by the international
market." Karuturi Networks is one of a number of hi-tech Indian
floriculturalists that has recently announced that it is setting up operations
in Ethiopia.
The Indian company has set up a 50-hectare unit at
Holeta, near Addis Ababa and is in the process of adding a further 50 hectares.
Other companies including Pushpam Florabase Pvt
Ltd. are also in the process of setting up their operations. Karuturi recently
won a major order with the UK supermarket chain Morrisons and will be using its
Ethiopian operations to service it. According to K.S. Ramakrishna, managing
director of Karuturi Networks, Ethiopia's appeal lies in its proximity to
consuming markets such as Europe and West Asia, its ideal climate conditions all
year round, the improved investment code in the country, the accessibility to
bank loans and the availability of land. Ramakrishna added, "Located in the
equatorial belt, Ethiopia has an ideal climatic condition that helps in
producing premium grade roses. The Ethiopian government offers large tracts of
land for floriculture companies on a perpetual long-lease at very attractive
rentals." "Roses produced in Ethiopia are of top quality and command a
significant premium compared to the Indian roses." "Indian growers
expect to reap the low freight cost advantage by operating from Ethiopia,"
said Manjunath Reddy, CEO of Pushpam Florabase, which is setting up a 50-hectare
unit in the country. "Freight costs, which account for more then half of
floriculture earnings, are 50 to 60 percent lower from Ethiopia to Europe than
the costs from India," he added.
(ENA)
