Sesame is one of the major Ethiopian cash crops impacting approximately 1 million smallholder farmers (SHFs) and second to coffee in export currency earnings. It’s trading through ECX has shortened marketing channels for all value chain actors and neglected the serious quality problem of adulteration and the weight loss reducing sales. The GoE is supporting producers by providing supply of fertilizer and pesticides through FCUs and tax exemption and export credit schemes to exporters. According to the Ministry of Trade, national sesame export was 187,714 MT at a cost of USD $319 during the past year.
To support and improve this trend, the key strategy for intervention under the Agricultural Growth Program – Agribusiness and Market Development (AGP-AMDe) is increasing the capacity of FCUs, commercial and private farmers through outgrower schemes to take advantage of export market opportunities presented to them with introduction of ECX.
Sesame exports: Three FCUs in Amhara Regional state (Metema, Selam and Tsehay) exported 1,361 MT at a value of USD $2,373,302 and profited USD $151,618. Although it is the FCUs first experience in the export market, the profit they have gained and the dividend given to member SHFs, government organizations and private financial institutions created a positive experience for FCUs.
Tigray Marketing Federation (TMF) exported 1,330 MT at a value of USD $2,506,110 as a result of the market linkage with Dansha Aurora, Lemlem Welkayit, Tekeze FCUs and Setit Humera FCUs. In addition, Setit Humera FCU and Kafta Humera exported 874 MT at USD $1,459,580 and 2,432MT at USD $3,711,446 respectively, as a result of the market linkages and MSP meetings.