ECX preps to floor aromatic gum, resins

The Ethiopian Commodity Exchange (ECX) that has been in modern trading facilitation for almost 13 years is on the process to embark the trading of aromatic gum and resins.
The exchange that is working to add more commodities on the electronic trading floor is now developing a contract for frankincense, myrrh and opopanax that are classified as aromatic gum. The floor has also planned to trade, gum Arabic, which is non-aromatic gum and resins.
According to the information Capital obtained from ECX, the trading floor has drafted the contract that was tabled on the panel of exports consultation for private and enterprises stakeholders and relevant public bodies like the Ministry of Agriculture.
During the discussion, relevant inputs were given to improve the draft contract document that considers grades and different measurements.
Further industry level consultation with stakeholders including suppliers and exporters is expected to be undertaken to introduce the trading at ECX.
The information indicated that ECX has targeted to commence the trading in this budget year, while it would depend on the preparation work.
Ethiopia is considered to have a long-established gums and resins sector, experienced in harvesting, grading, trading and exporting. The country is also considered as the widest range of endemic gums and resins in Africa, “and this represents an important commercial resource base for the country,” a Global Business Network Program document stated.
Different studies indicated that Ethiopia is one of the countries well endowed with various species of Acacia, Boswellia and Commiphora that are known to produce gum arabic, frankincense and myrrh, respectively.
Available estimates of the total area of oleo-gum resin bearing woodlands cover about 3.5 million hectares of land in the country, with over 35,000 to 114,000 metric tons of natural gum production potential. According to different study report, gum and resins production are playing significant economic role both at the local and national level today in Ethiopia, and their contribution is growing every year.
According to the Global Business Network Program document, the annual formal exports are around the 5,000 tonnes level.
A study that was conducted about a decade ago indicated that gum and resins is one of the forest export commodity that contributes over USD 30 million annually.
Frankincense, also known as Olibanum – these comprise sources from three different geographical zones, namely Tigray, Ogaden and Borena. The most commercially traded is from Tigray, Boswellia papyrifera, whilst the principal commercial species from the other main areas are Boswellia rivae and Boswellia neglecta. Myrrh and Opoponax – various species that are most likely endemic to Ethiopia, these include Commiphora myrrha as well as Commiphora guditti.
Ethiopia is one of the countries well endowed with various species of Acacia, Boswellia and Commiphora that are known to produce gum arabic, frankincense and myrrh, respectively. Available estimates of the total area of oleo-gum resin bearing woodlands cover about 3.5 million ha of land in the country, with over 30,000-33,000 metric tons of natural gum production potential. According to different study report, gum and resins production are playing significant economic role both at the local and national level today in Ethiopia, and their contribution is growing every year.
ECX which is at the heart of trading agricultural crop mainly trades; coffee, sesame seeds, soybean, white pea beans, green mung beans, speckled beans, red kidney beans and pigeon beans.
Recently the trading of four spices and vetch has been introduced to its electronic trading platform that started operation in 2008.