Addis Ababa based dairy farms voice out complaints that despite being a contributor to the community, government has not given them the attention they deserve in the sector of urban farming. The flood of complaints stem from the skyrocketing animal feed prices which has brought forth numerous challenges for their activities in addition to the rippling increase of dairy products.
The urban farmers’ who explicitly expressed their claim to Capital said that in the past few years the trend of accessing animal feeds mainly hey has become a nightmare.
The trend for the animal feed market has changed in the past decade and has been spoiled by illegal actors and traders unlike the past, which made the price of hey and other animal feeds to soar.
As per the trend, urban farmers had been accessing the hey from the surrounding areas of Sebeta and Sendafa, while the link between the farmers and dairy farms in Addis Ababa have been cut with middlemen now becoming suppliers of the feed. This has made the price of hey higher, which is a primary feed for cattle.
“And the trend form year to year has further dramatically changed making the price to hike every time without any reason,” the lamented.
Ermias Akalu, one of the dairy farmers in the city with over three decades in the business highlighted the situation has become severe with entry of middlemen catalyzing to burden in the market.
“The price is rising every week or month even the price on the heyday season of October, December are at peak highs,” Ermias, who also supplies animal feeds for urban dairy farmers, told Capital.
“In the current state of affairs, traders located on the major source of hey massively buy the product and put in the stockpile and up the sale price as per their high profit margins,” he explained the tactics being used at this particular moment in time.
Atsede Assefa, who is engaged in the dairy farming around Frensay Legasion, one of the top areas for dairy farms in Addis Ababa, said that urban dairy farms contribution to the community is crucial.
“The major portion of the urban dwellers are the low income communities who we try to supply milk at affordable price to, while the trend on the price hike on animal feeds has altered the price of milk to become higher, which is not community friendly,” she told Capital.
“For the wellbeing of the society particularly for children and elders, milk is crucial; however the price has become expensive from time to time and some farmers are forced to suspend their urban farming since it is demanding significant capital,” she complained.
“The extraordinary price hike and shortage on food for the animals, fodder, a by-product of different grains that factories then sell to dairy farmers demands farmers to allocate significant amount of money while they do not have such,” the urban farmers’ said whilst pondering on the challenges they face.
They argued that despite there being no ample supply of the animal feed hey is exported to other countries. The farmers have also expressed their suspicion pointing out that one of the factors for the price hike is the export of the commodity.
Farmers claimed that the price of haystack, which is mainly sourced from grass, now is about 250 birr which was about 120 birr a year ago and less than a hundred birr a year before. On average a haystack weighs 18 kilos.
Similarly the price of milk has been growing steadily in the past few years reaching up to 80 birr per liter. A year ago a liter of milk was about 35 birr.
Dairy farmers also expressed that the price of other animal feeds like bran, molasses, straw, brewing byproducts and others have also spiked.
Urban farmers have also claiming that the government is not giving any attention to the sector despite it being stated that urban agriculture is one of the top policy priorities for government.
Urban farmers have pushed for government to intervene on the matter with urgency.
Fikru Regassa, State Minister of Agriculture, said that the ministry wrote a letter to the Ministry of Trade and Regional Integration citing for hey export to be considerate of the local supply.
Addis Ababa dwellers milk mainly comes from urban and peri-urban dairy farmers. There is an estimation of about 6,000 dairy farmers located in the capital city.
“With drought and other factors, we have expressed our concerns through the letter for the then Ministry of Trade and Industry to minimize the export, which is mainly hey,” he said.
“If the crop production catastrophically drops or millers’ inputs are reduced the supply of animal feed will reduce also. Our crop production is growing and similarly the number of millers is expanding so the output from millers is not showing reduction,” he argued clearly calling a spade a spade by showing that the price increment was not related with the supply reduction.
“I doubt that the price hike is related with the supply reduction, while suppliers have also complained about multiple taxations which has been solved weeks ago,” he said.
Fikru, who is a bioscience engineer by profession, elaborated that the animal feed sector hosts multiple actors and intermediaries which is supposed to see change.
According to the State Minister, traders are buying the byproduct directly from factories at very low prices but because of the long and irrelevant market chain the price hike has occurred when it reaches dairy farms.
He added that the price increment on grain products have to take account for the price increment on byproducts, “these are some of the reasons for the price hike on compound feeds.”
“Overall there are also factors like transport cost and others for animal feeds and price hikes rather than supply shortage,” he explained.
He also reminded that the drought which occurred on the southern part of Ethiopia in the past budget year affected the market, “animal feeds have been transported from the highland for those affected areas.”
He recommended that the marketing system should be corrected to alleviate most of the challenges that has seen on animal feeds.
Regarding the capital city, Fikru said that the Agriculture Standing Committee of the parliament recently discussed with relevant offices including the city administration.
He said that on the sector there are alternatives like compound feed, hey, natural range land like grazing land, improved forage, and cereal byproduct.
“So urban feeding is mainly supported by cereal byproduct that is also focused by MoA, while range land is difficult for urban areas. But we have to work on improved forage that might be produced on small lands with improved technologies to expand the option for urban farming,” he explained.
“Of course some sort of plots of land is required to produce improved animal feeds and that has been discussed and proposed to be included on the agriculture extension. The other option is that everything is not produced in the cities; so animal feeds suppliers shall linkup with producers outside cities and towns to access more products for the urban diary activities not only for Addis Ababa but also to other regions,” he concluded.
‘Gov’t has ditched us’, urban dairy farmers’ lament
“Terrorism has no nationality, ethnicity nor religion. FETO threatens humanity as a whole”
By Mevlüt Çavuşoğlu
On the evening of July 15, 2016, the “Fethullahist Terrorist Organization” (FETO) launched a bloody coup attempt against the people and the government of my country. Their aim was to establish a radical, fundamentalist regime, loyal only to their ringleader Fetullah Gülen.
As FETO affiliated army units left their barracks to occupy key locations, such as the Bosphorus Bridge in Istanbul and fighter jets and attack helicopters bombed strategic targets including the Parliament, Presidential compound, army and police headquarters; thousands of civilians took to the streets to stop this unprecedented heinous coup attempt. The plotters killed 251 innocent civilians and left thousands injured. On that night the Turkish people defended democracy with their lives. This heroic response was something the conspirators did not foresee.
To understand what transpired, one has to understand the true nature of FETO. FETO was established in the late 1960’s as a so-called “religious movement”. In the guise of promoting education and inter-religious dialogue, it managed to cover its malign intentions.
The well-planned and wide-spread infiltration by FETO members and converts into the army, law enforcement, judiciary and numerous government institutions, including my Ministry, was carried out for decades clandestinely for an overarching plan, of which the final phase was unleashed on July 15, 2016.
Had the coup attempt succeeded, there would have been a very different Türkiye today. Democracy would not have existed and fundamental rights and freedoms would have been suspended indefinitely. The nation would have fallen in the hands of an extremist government.
FETO not only controlled a significant portion of educational institutions, but also owned numerous financial institutions. Their bank accounts were fed by prominent FETO members in industry and commerce, as well as by officials and members of the public. Many innocent civilians were also lured into contributing to FETO’s finances as their piety was manipulated. The enormous income driven from their schools around the globe was channeled into these accounts clandestinely waiting for their ultimate move.
Following the bloody coup attempt of July 15, 2016, a resolute cleansing of the public sector, including government institutions and the military, as well as of the private sector from all FETO affiliated persons and companies was initiated. Some prominent conspirators have been apprehended. Others escaped justice and found refuge in foreign countries. The head of the FETO terrorist organization, Fethullah Gülen, still resides in the United States. Our government has been requesting the extradition of Gülen to Türkiye from the United States as well as that of FETO members from European countries for years. Unfortunately, these requests have not been fulfilled yet.
On the other hand, elsewhere in the world, an increasing number of governments understand the danger this terrorist organization also poses to them and are taking the necessary steps. FETO is also engaged in illegal activities such as visa fraud, money laundering and arms trafficking. Consequently, FETO members are being cleared from public and private sectors in many countries. Many schools affiliated with this terrorist organization abroad have been transferred to the Turkish Maarif Foundation after 2016. Today, Maarif Schools are functioning in many countries and are providing excellent education worldwide.
The nature and scope of Türkiye’s fight against FETO is no different than that exercised by other countries against organizations which had terrorized officials and civilians alike, and endangered democratic values, fundamental rights and freedoms. Türkiye is doing what the respective countries in their fight against terrorism have done in the past. All procedures are in compliance with law.
Terrorism does not have a nationality, ethnicity or religion. This menace threatens humanity as a whole. Therefore, the response to this threat must be united and determined. No state has the luxury to differentiate between terrorists and no terrorist organization can be classified as “useful” according to preferences. FETO is responsible for the loss of hundreds of lives as well as other grave crimes against the Turkish people. Six years after July 15, 2016, Türkiye continues its resolute fight against FETO, just as it continues its fight against other terrorist organizations such as the PKK, PYD-YPG, DHKP-C and DAESH.
We expect the international community to stand in solidarity with Türkiye in the fight against terrorism.
Mevlüt Çavuşoğlu is Minister of Foreign Affairs of the Republic of Türkiye
Governmental gas station under pipeline
Ethiopian Petroleum Supply Enterprise (EPSE), one of the 27 public enterprises under the Ethiopian Investment Holding, plans to revise its plan to build governmental gas stations under the management of EIH.
“The investment holding was established to administer the national wealth in an organized way, in order to help support government development agencies to strength their weakness in financing development projects; in addition to creating wealth for the current and future generation of Ethiopia,” Tadesse Hailemariam, Chief Executive Officer of EPSE told Capital.
“Having governmental gas stations will stabilize the market as it creates competition between the government and the private sector, especially at a time where man made shortages have bewildered the market,” Tadesse explained, while underlining the merits of the governmental gas stations.
In 2015, the Ethiopian government had shown an interest in joining the fuel distribution markets in the country and had identified 60 of the 130 locations in which it planned to establish the gas stations across the country. However, as Tadesse elaborates it was the hiatus of the Addis Ababa city administration which refused to give land for the construction.
“Being under the EIH umbrella will help us to solve certain challenges, such as the shortage of depots, which we face. We have been planning to build a depot at Dukem at a cost of 150 million dollars. However, it was difficult to get financing and EIH will be instrumental in achieving this,” said Tadesse.
As the CEO said, the enterprise has plans to build a depot at Dire-Dawa and Woldiya, as well.
In the past few days severe fuel shortage has pricked the country, including that of the Capital, Addis Ababa. Furthermore the government on Tuesday announced a 38 percent increase in the price of diesel as it plans to stop subsidizing fuel. Removing subsidies will be applied with different mechanisms where it will be removed within one to five years based on assessments.
“The government is importing fuel properly with no stated decrease on the amount, however, the main problem comes after it is shipped from Djibouti with trucks, which results it not to arrive to its allocated destination,” said Tadesse indicating that it is a manmade problem created by few unlawful traders who have created the situation by hording fuel in anticipation of higher prices. “The public has to know the truth that the government is providing enough supply,” he underlined.
“Hundreds of trucks carrying petroleum have been found in different parts of the country and some have been going to Sudan and Tigray whilst some are hording petroleum until the price adjustments are made. Until the end of this week, more than 20 gas carrying cars have been seized by the government,” said Kumneger Ewnetu, Public Relation Director at the Ministry of Trade and Regional Integration.
“After the price adjustment, beneficiary vehicles which are to be found in the involvement of using this opportunity for illegal sell of gas, will face the full penalty of the law, which can stretch from 6 months to 7 years,” Kumneger stressed.
With regards to pointing out the thorn in this space, oil company executives, transport companies, and gas stations are said to be part of the problem as opposed to the solution.
Exporters in outcry over pre-shipment credit
Exporters shade in outcry over the lack of appetite of the financial sector which is eroding its provision of pre-shipment export credit facility.
Business community members who are engaged in the export business claim that despite most of their export activity being supported by pre-shipment export credit, they are unable to go under the previous regular circumstance due to lack of interest from banks to provide such kind of loan facility.
One of the exporters that Capital interviewed said that because of capital shortage, his operation has been stuck; meanwhile, he has been presented several contracts to ship commodities for foreign clients.
“In the past, we operated our business with pre-shipment export credit facility, however the banks interest have eroded in the past few months,” the exporter says, adding, “because of that I can not undertake the business even though there are huge demands from clients in my sector.”
Exporters said that the case is particularly challenging for growing businesses that do not have ample collaterals as big and long established businesses owners.
“Banks are now demanding to provide over draft credit facility or term type of loans, which is affordable for well established business actors,” they added.
Experts stated that the current trend of banks, on becoming uninterested to provide pre-shipment export credit facility is directly related with the revision of retention directive which was amended by the National Bank of Ethiopia (NBE), financial sector regulatory body, early this year.
They argued that the directive has eroded the financial sector to provide service for international businesses since it smashes the hard currency retention portion that banks or exporters secured from the activity.
The retention and utilization of export earnings and inward remittances directives no. FXD/79/2022 that was amended and became effective on January 6 on its article 4.1 stated that banks are required to surrender 70 percent of the foreign currency earnings from export of goods and services, private transfer and NGO’s transfer to the NBE.
Article 4.2 stated that exporter of goods and services and recipients of inward remittance shall have the right to retain 20 percent of their export earnings in foreign currency indeterminately in a retention account after the deduction of 70 percent surrender requirement from the total earnings. It added that the remaining 10 percent shall be surrendered to the respective bank.
The prior directive that was revised early last budget year gave a right for NBE to take half of the foreign currency earnings and the balance for exporters and banks.
Experts said that banks benefited from the hard currency earnings whether that is their portion or exporters, “but it is now not more attractive as a business for banks due to that they are reluctant to provide credit facilities like pre-shipment loans, which is only considered as an export contract with less interest rate compared with the market.”
“Banks now prefer to do other businesses at better interest rates and even secured procedures like providing loans with collaterals,” experts explained.
“Bankers argued that they would not be profitable even if they get 30 percent of the hard currency,” experts said.
They added that currently some banks shall provide pre-shipment credit but it might be with collateral and high interest rates unlike the past, which was below 10 percent.
Pre-shipment export credit facility is a type of loan extended for the purchase of raw materials, processing and converts them into finished goods, warehousing, packing, and transporting the goods until the time of shipment.
