Saturday, December 13, 2025

Non-GMO agricultural export advantage threatened by foreign currency depreciation, GMO adoption

By Eyasu Zekarias

Ethiopia’s vital grain and oilseed export sector, valued at over half a billion dollars annually, is facing significant challenges from foreign competitors adopting genetically modified organism (GMO) crops and from the currency depreciation of competing countries. This dual threat jeopardizes Ethiopia’s long-standing advantage as a top supplier of high-quality, organic (non-GMO) products in the global market.

At the 14th International Pulses and Oilseeds Conference in Addis Ababa, Edao Abdi, President of the Ethiopian Pulses and Spices Processors Exporters Association (EPOSPEA), warned that major buyers such as India and Pakistan have started to use GMO products. This shift threatens Ethiopia’s market competitiveness, especially as these countries boost GMO self-sufficiency, complicating demand for traditional non-GMO products Ethiopia excels in.

Adding to the challenge is the depreciation of currencies in competing exporter nations like Madagascar, Myanmar, and Australia. This depreciation has driven down the prices of their exports, creating lower-cost alternatives that exert downward pressure on Ethiopian prices.

“The adoption of GMO products by India and Pakistan is hurting our non-GMO market dominance,” said Edao, emphasizing the risk posed by more affordable exports due to currency depreciation. Domestic issues such as high commodity prices, supply chain disruptions, tariffs, and logistics delays further strain exporters.

Although Ethiopia approved commercial cultivation of some GMO crops—including Bt cotton in 2018, Bt-GT cotton this year, and drought-resistant TELA maize in early 2025—the bulk of its exports still come from traditional, non-GMO agricultural products such as coffee, pulses, and oilseeds. These GMO crops are mainly aimed at ensuring domestic food security rather than export earnings.

Kassahun Gofe, Minister of Trade and Regional Integration, reaffirmed Ethiopia’s commitment to becoming a global leader in exports by implementing comprehensive reforms. Initiatives include export liberalization allowing foreign buyers to purchase directly from domestic suppliers and the rollout of a rapid business registration and licensing platform that streamlines processes from up to 30 days down to a matter of hours.

Former Prime Minister Hailemariam Desalegn, Chairperson of the Alliance for a Green Revolution in Africa (AGRA), underscored the strategic importance of Ethiopia’s pulse and oilseed sector. He urged the country to move beyond raw material exports toward value addition, highlighting the increasing global demand for plant protein and oils. With Ethiopia ranked as the world’s second-largest bean producer and among the top ten for chickpeas and dried beans, the country is well-positioned to capitalize on the projected growth of the global cereal industry to $143 billion by 2075.

At the conference, awards were presented to outstanding exporters contributing significantly to Ethiopia’s foreign exchange in 2024/25. MSA Trading led grain exporters with an export value exceeding $33 million, while Alliance Star Business Group topped oilseed exporters with nearly $18 million in exports. Collectively, Ethiopia exported more than 323,976 tons of pulses and 21,125 tons of oilseeds during the year.

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