The Ethiopian spices sub-sector has been characterized by use of poor yielding varieties, traditional production technologies and agronomic practices, with a lengthy value chain, adulteration, improper post-harvest handling, and high market volatility. Subsequently the export of Ethiopian spices never passed USD$2.6 million in value.
To enhance the Ethiopian export trade and private sector development the BENEFIT-ENTAG programme has been working on addressing market constraints of the spice sectors through creating better market linkages, technical and financial support to innovations, capacity building activities, and platform meetings.
In 2019, BENEFIT-ENTAG helped 14 private companies and two unions, introducing modern spices production technologies and out-grower scheme business models. The programme’s effort in strengthening market linkages focused on working with buyers based in United Arab Emirates and India resulting in more than one million USD export of Ethiopian spices. ENTAG facilitated a contract volume of 1617MT of Turmeric, Rosemary and Ajwain seed worth $1.075 million among three Ethiopian exporters and three foreign buyers based in India and United Arab Emirates. A business network has been established among 14 Ethiopian private companies, two unions, international spice and herbs buyers and technology suppliers.
- Inclusive trade support with technical capacity building training on production and marketing, trade missions, both forward and backward integration, and active involvement of private and government actors across the whole value chain were key success factors.
- The increasing credibility of BENEFIT-ENTAG and its effort to work in parallel with key stakeholders at regional and federal levels, such as Ethiopian Coffee, Tea and Spices Agency, Ethiopian exporters, commercial investors, traders, development agents, model farmers, cooperative and union leaders, was fundamental to create familiarity and build trust resulting in efficient and effective communication and follow-ups.
- Major challenges encountered included limited technical support in export contract facilitation and backward integration, need for export procedure and technical manuals to minimize contract defaults, and the need to work on disease outbreak and adulteration practice (ginger disease) that corrupts the quality of products caused reduction of export volume.