MOHA (Mohammed Hussein Al-amoudi) Soft Drink Industry S.C stops its production of soft drinks.
MOHA which is popular for producing drinks like 7 UP, MIRINDA, PEPSI, Tossa Minch natural water, and Kool Carbonated Natural Mineral Water, has shut its doors due to ongoing challenges.
The ongoing challenges stem from the current shortage in foreign currency in addition to the firm facing a shortage of such raw materials. To this end, as sources indicated to Capital, the company has now stopped its production of 7 UP, MIRINDA, and PEPSI products.
As sources revealed, since a few months back, the company has been working for three days per week which is under its capacity due to lack of raw materials. As the strain has weighed in heavy, the soft drink firm has had to stop its activities as from the last two weeks.
Employees have also been forced to take cumulative leave with pay until the problem is sorted out, sources explain.
The severe shortage of foreign exchange has resulted in delays in importing vital raw materials like glass, crates, and spare parts for production of the beverages. Bottlers now report that they are struggling with foreign currency shortage problems, a lack of raw materials, disruptions due to power outages, and the overpricing of raw materials necessary for production.
Previously, about 20 bottled water producers had stopped their production as a result of shortage and price hike of materials.
MOHA which is a member of MIDROC Ethiopia (Mohammad International Development Research Organization Companies) is engaged in manufacturing and selling of different types of soft drink in Ethiopia. The company was acquired from the Ethiopian Privatization Agency and established on May 15, 1996.
The overall activates of the company are managed and administrated by Sheikh Mohammed Al-Amoudi, owner of the company.
In the market, MOHA Soft Drinks Industry S.C claims it holds a 52% market share in the soft drinks industry in the country. With an expansion and replacement of obsolete machinery, production capacity of the plant has increased substantially. A significant growth over the years of production, sales, and profitability due to reorganization of operations has been achieved. Productivity has improved tremendously with major cost saving and has insured a regular supply of high quality products. It has also succeeded in reaching new market areas across the country.
Getachew Birbo, CEO of MOHA when reached out by Capital refused to comment on the issue.
Al-amoudi’s soft drink firm stops production
Ministry calls on exporters to register
The Ministry of Trade and Regional Integration calls up on oilseed and pulse businesses exporting to China to be registered.
The new requirements come into effect on 1 January 2022. Businesses exporting to China may need to apply to be registered and ensure their labeling is compliant well in advance of the requirements coming into effect.
According to the letter the ministry calls exporters which have their own processing facilities including conducting farming, manufacturing, storage required standards registration number to get a permit.
The new requirements cover the registration of overseas food manufacturing, processing, and storage businesses. They also set out labeling requirements. The requirements apply to a broad range of food products.
Previously undisclosed amount of oilseeds that was transported to China has changed its voyage back to the country due to latest new law imposed by the most populous nation in the world and major trading partner of Ethiopia.
On his performance report that Gebremeskel Chala presented on Tuesday April 5 at the parliament said that as per the declaration of China issued late last year agricultural products that are entered into its border from different countries should have pass the requirement that it introduced.
He said that the declaration of the fast growing economy country has designed agricultural commodities like oilseeds and pulses, which are Ethiopia’s major export commodities to China, exporters should have their own processing facilities and required standards registration number to get a permit.
“We have significant number of exporters, while those who meet the criteria are very few. Those who have their own processing facilities are not more than 40,” he explained.
“Without our knowledge about the new standard set by the Far East country sesame seed has been started its voyage to China, however lately we have got the new declaration due to that the consignment is now returning back to Ethiopia,” he added what was happened on Ethiopian sesame seed export in related with the new declaring of China.
According to Gebremeskel, the registration process for exporters that shall align with the precondition is doing and others who do not have the capacity to meet the criteria may use the registration number of other exporters.
On his eight month report of the 2021/22 budget year Gebremeskel said that because of the new import standard that has become in effect in December last year the volume of sesame seeds, which is one of the major export earning agricultural commodity for the country and the major destination for the Ethiopian seeds is China, exported to the second biggest economy in the world has declined by 74 in volume for January 2022 only.
“The volume has declined by 3,477 tons and in terms of value it has reduced by 73 percent in the month of January compared with the same period of last year,” he said.
The Order imposes a new labeling requirement for all food products imported into China to include the registration number on the label of the inner and outer packaging of the food products, which China Customs would examine and verify at the border prior to granting customs clearance.
EHPEA holds event to flourish its sector
The Ethiopian Horticulture Producer Exporters Association (EHPEA) hosts a sectoral promotion event to revamp the sector’s potential.
During the promotional conference held at the Inter Luxury Hotel on Thursday, April 28, the federal and regional investment officials turns to highlight the potential the country has in horticulture and other agricultural investments, whilst potential investors, ambassadors and other members of the diplomatic community sat in attended.
At the conference representatives of the Ethiopian Investment Commission and Ministry of Agriculture explained the government’s readiness to tap the sector investment potential. They elaborated that the government is creating an additional conducive environment for investors to invest in Ethiopia.
Regional investment bureau officials gave an inside view of the potential that the country has for the sector investment and equally responded to the questions raised by participants.
Tewodros Zewdie, Executive Director of EHPEA, said that although it is a little over a decade since Ethiopia started an organized endeavor to have a modern horticulture export industry; the sub-sector has shown quite glittering and exponential growth in the last ten years.
He added that since 2004, the Ethiopian horticulture export has skyrocketed by about 25-fold to become one of the top three hard currency generators from export and second in agricultural export only to coffee.
Tewodros added that the industry continues to be very dynamic, where growers are constantly improving sustainability through the adoption of environmentally friendly technologies and energy-efficient systems.
“Ethiopia has both competitive and comparative advantages for the production and export of horticulture produce as the cost of doing business is cheaper in comparison with other countries,” he said in his opening remark at the conference by adding energy cost is among the cheapest in the world and suitable climatic condition in the country besides its proximity for global market and strong logistics scheme like the wide destination of Ethiopian Airlines.
