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THE VEGETABLE GAP

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Consuming fruit and vegetables as part of the daily diet ensures an adequate intake of most micronutrients, dietary fiber, and essential non-nutrient substances, and can help prevent major non-communicable diseases (NCD) such as heart disease and obesity. Despite the rich benefits, vegetable consumption in sub-Saharan Africa is the lowest of any region in the world. To bridge the ‘vegetable gap’ people need opportunities to produce and market vegetables to generate income and contribute to an accessible, affordable supply of nutritious food.
In order to bridge this gap, over the years, the World Vegetable Center has been conducting research, building networks, and carrying out training and promotion activities to raise awareness of the role of vegetables for improved health and global poverty alleviation. For a better understanding of World Vegetable Center’s projects in Ethiopia, Capital drew links with Wubetu Bihon (PhD), who is a Scientist for plant health and liaison officer for the center, here in Ethiopia. Excerpts;

 

Capital: Tell us about the ‘Veggies 4 Planet & People (V4P&P)’ project?

Webetu Bihon: The project was launched by the World Vegetable Center in collaboration with SNV Netherlands Development Organization, IKEA Foundation and the Ministry of Agriculture. ‘Veggies 4 Planet & People (V4P&P)’, is a five-year( 1 July 2020- 30 June 2025), €6M project that aims to establish 200 vegetable business networks (120 in Kenya, 80 in Ethiopia) to engage an estimated 4000 women and youth in market activities designed to improve their livelihoods and diets.
The initiative will also work with policy makers and implementers to facilitate an enabling environment for vegetable business networks. As a result, this project is of paramount importance in reducing poverty and in booming the country’s economy.

Capital: How many participant farmers are there?

Webetu Bihon: Currently we have 31 vegetable business networks and each has about 30 members which will increase to 900 members.

Capital: The project started in February, how is the progress thus far?

Webetu Bihon: In the first few months we gave training for the farmers, on the production months based on the country season of June and July. They have planted their produce, and currently the plants are growing and are expected to get in the market soon.
So far the progress has shown it is healthier and better than the old process, but it is still too early to give a full detailed progress. We have started the project in three places, namely: Welmera, Ejere and Weliso. We have arranged farmers in each place with vegetable business network under one lead farmer and we have also prepared learning plots, on different issues including using organic bio pesticides, water management and so on.

(Photo: Anteneh Aklilu)

So far it is great as it has helped to minimize cost. It has gone a long way in helping farmers to have a better understanding about chemicals and has aided in minimize using chemicals whilst still having good production. Overall, we are working to expand the project in the overall community.

Capital: Does the project create conflict from chemical users or companies?

Webetu Bihon: Yes it creates conflicting issues from chemical companies but not from users. The issue is when the farmers using natural fertilizer get less-price than the chemical users. However it has positive acceptance among the users that are in need of non-chemical plants, but still we need to work in the promotion of such products and expand it over the country.

Capital: What kind of changes does the project make in farmers’ lives?

Webetu Bihon: Vegetable diversity in the market and also in our food consumption is small. One of the fears is non-organic pesticide, which affects the overall production of vegetables and market price for farmers. Using organic pesticides can increase their production and their income.
In order for organic fertilizers to work, the soil has to first break them down. This means that both the soil and the plants in it get the nutrition they need when they need it. Synthetic fertilizers, although speedy, often over-feed the plant, do nothing for the soil, and can damage plants by burning them.
Organics are just as easy to apply as their synthetic, non-organic counterparts. Organic materials and fertilizers improve the soil texture, allowing it to hold water longer, and increase the bacterial and fungal activity in the soil.
We are introducing farmers to start using organic fertilizers and non-chemical bio pesticides in order to increase their production and protect their soil. The acceptance among the farmers has so far been good.

Capital: What are the challenges in the vegetable sector?

Webetu Bihon: Even though through time we are seeing changes in the agriculture sector, yet the vegetable sector is backward than others. One of the problems here is there is huge gap in the system, for example, finding best seeding companies is a challenge in that: they are not strong; they lack enough knowledge about the seed itself. This is because there is a systematic obstacle, finding land access to irrigation, lack of rules to import seed as we need foreign currency. Similarly, the registration process is cumbersome and there is lack of an international seeding company in Ethiopia.
The other thing is finding eco-friendly bio pesticide. There is a lack of a system to import and distribute in the market yet you can simply import chemicals which are harmful to the environment. It is difficult to find inputs to use as organic pesticide.
Furthermore, the policy and overall system should be looked into, which the Ministry of Agriculture is working on at the moment.

Capital: What should be done as a solution?

Webetu Bihon: The first thing we need to do is make soft policies, some of the systems are complicated. We have to provide seeds for the farmers and train them on using their best seed as business by reproducing seeds.
Introducing and promoting the production of local eco-friendly pesticides using local plants, is also a great solution.
Besides increasing capacity on seed agents, we also ought to plan to work and support these agents.

Capital: How do you assess government’s support on the sector?

Webetu Bihon: I think it is getting better from time to time. There is a horticulture division in the Ministry of Agriculture led by the state minister, and they are doing a lot, in that regard. There is focus on the commercialization, but still the system needs to be faster and there is room for growth.

THE GLOBAL ARISTOCRACY

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The aristocracy of old, besides being well endowed materially, was also widely recognizable. In medieval societies, the aristocracy along with the ruling sovereigns constituted the dominant or the ruling class. It ruled, not only over politics & economics, but also over cultural life. Its culture was considered ‘high’ as opposed to that of the human mass. Most importantly, the old aristocracy, as a rule, was not actively engaged in innovative commercial activities, i.e., entrepreneurship. In fact, detachment from all kinds of work, physical or otherwise, was the very defining characteristic of this class. The collection of rent was its most taxing peacetime occupation. Parasitic existence was the main prerogative of the old feudal aristocracy prior to capitalist social formation!
A couple of centuries after the triumph of industrial capitalism and liberal democracy, the world is again faced with a newly established global aristocracy. Currently, this new class seems to be in charge of global affairs, the usual farcical democracy of nation states and the empty rhetoric of paid global media (state/private) notwithstanding. What are the features of this pernicious aristocracy? For a start and by and large, the new aristocracy operates clandestinely. Secondly, it disproportionately and influentially leverages entrenched capital, which is very much embodied in the industrial-military-banking-state complex, to impose its mostly parasitic agenda on the global beast. Predictably, this new aristocracy resides in the metropolis of advanced industrial countries. This new global aristocracy, which has been in ascendance long before the formal establishment of such institutions as the ‘Bilderbergers Club’ (established in 1954) is highly selective and does not necessarily include all the very wealthy or the powerful from all nations! For example, the Bilderbergers Group is composed of Atlanticists or individuals from North America and Western Europe who aspire to maintain the global hegemony of the North Atlantic states. As such, the Japanese, the Russians, the Chinese, etc., are conspicuously excluded from its gatherings. Most importantly, the main global projects of the new aristocracy are and will not be appetizing to the global beast! Though this global aristocracy is self-selected or self-selecting, it deliberates, influences and acts upon issues as if it were an entity elected by the global beast.
This western aristocracy, mostly from the most economically and politically powerful countries is very conservative, in the sense that it just wants to protect the status quo by hook or a crook, against all reasoning. Environmental destruction caused by the prevailing order, social polarization (inside/outside, due to unequal exchanges, etc.) leading to instabilities all over are not, for example, tackled from the point of view of finding meaningful solutions, but are systemically neglected or thwarted off completely. The ‘rule of thumb’ here is; keep the status quo intact, and only relent if situations become completely disruptive to the prevailing order. In a nutshell, the main objective of this new aristocracy is to vigorously maintain, (across the world) the upper hand of capital and its copious unencumbered reproduction, in spite of all indications to the unsustainability of its internal logic, which anchors the prevailing world system! All other considerations, humans or otherwise, are subsumed under this rallying imperative. Those individuals/entities inclined to interrogate the new aristocracy and its dogma are severely penalized!
Another feature of this entity is; whichever way you cut it, it just doesn’t like human mass! This class always concocts excuses to make sure human mass is kept in its place, so to speak. To this end, all sorts of indoctrinating and sublimely subjugating projects/institutions are employed to numb the munching beast. So far the strategy has been quite successful. When and if situations become volatile and pointed grievances targeting the reigning aristocracy threaten the status quo, the honchos of this class will resort to all sorts of measures that might not exclude chaos, wars, etc. Don’t forget the main objective of the ruling aristocracy is to sustain its lopsided benefits that have been accruing for at least the last five hundred years!
The ordinary public does not know many of the institutions that are created (by this global aristocracy) to hoodwink it, even though they might be operating in the open. Decisions taken by the global aristocracy ultimately find themselves operating within the various nation states, inserted via the apparatuses of the executive, legislative or even the judiciary. The ideas and resolutions agreed upon by the secretive aristocracy gradually and systemically obtain legitimacy (by imposition or adoption) within the multitude nation states or through the proliferating global international organizations. Besides the ‘Bilderberg Club’, there are other institutions, like the ‘Trilateral Commission’, the Council on Foreign Relations (US) etc. that are diligently serving the ruling aristocracy.

Loan suspension weighs heavy on investors

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The suspension of loans that was approved with ongoing dispersals in the pipeline has been cited as a bottleneck for activities particularly from project investors whilst the National Bank of Ethiopia (NBE) says it understands their concern but insists for patience.
It was recalled that NBE, the central bank, imposed a restriction on fresh loan approval and disbursement with selected type of collaterals.
The text message sent by Frezer Ayalew, Banking Supervision Director of NBE, on Wednesday August 11 for financial firm executives ordered banks to suspend releasing any fresh loans for clients who use real estates and similar properties as collateral.
However in past weeks the central bank is easing the loan and advance provisions for selected sectors, gradually, in different phases. For instance early this week the horticulture sector has got a relief to access finance from banks and similar measures have been taken for different businesses.
However investors, who are engaged on projects like the construction sector, expressed their concern by expressing the suspension on their sector is taking more time.
They said that they understand the decision of the government at the inception but through time it has been damaging their business.
One of the investor who demands anonymity said that his project was on going through the finance that was approved and has started dispersing from its client bank.
“Meanwhile the project activity gradually halted since the next round of disbursement was yet to be released because of the NBE decision. Now I have been forced to lay off the employees including daily laborers,” he said.
Some other investors are sharing similar situation which is being faced on their projects. They said that several projects have already been trapped because of lack of finance, “It is easy to spot in the city, construction projects like ongoing building constructions and expansion projects for instance suspending their activity.”
“We have already invested our equity and have also started accessing loan from banks but the decision has stopped our project and we need the central bank to consider our challenge and give the solution for the same,” they said.
They said newly started projects may not be affected like the on-going projects due to that special attention shall be required for projects that have holistic impact on the economy.
Bank executives that Capital spoke to accepted the claim and said that loans that were on the dispersing pool have been stopped like other loans as per the order of NBE.
They said that it is clear that the decision shall have effect for such kind of activities, but the order to suspend loans has effect for banks, borrowers, and government in general.
They said that is supposed to be relaxed gradually, but support the idea of NBE that shows visible changes on the illegal activities mainly on the parallel market that is automatically dropped.
“Yes it hurts the economy, lay off occur and even affects the government tax but in principle the measure of NBE is appropriate since it can control the biggest danger in the country,” a bank president told Capital. He recommended the business community to see afar and possible further economic sabotage and national treats besides their interest.
He added that the central bank closely examines the projects and eases its decision.
NBE on its side disclosed similar comment with banks. “The disbursement of loan is crucial for the economic development, while the current measure of NBE is temporary,” Solomon Desta, Vice Governor of NBE said.
“The decision of the government is selecting one of the two challenges,” he added.
Solomon promised that NBE will continue easing the measure with close follow up.
He told Capital that the issue would be all about a priority of sectors, “we recommend investor to be patient.”

ECX, ECTA clash over coffee trading

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The Ethiopian Coffee and Tea Authority (ECTA) rebuffs against the latest announcement of the Ethiopian Commodity Exchange (ECX) on the disclosure of flexibility on coffee trading by double range. ECX on its part ridiculed the allegation of the authority and insists the Ministry of Agriculture (MoA) to look into the matter.
The authority warns that those who issued the new change will be held responsible.
Early Monday October 11 ECX had announced that it has introduced some major reforms on coffee trading at the modern trading floor.
One of the major reforms emplaced was that it is easing the regulation on price fluctuation on coffee trading to 10 percent above or below of the previous date trading rate to which it had only fluctuated by a 5 percent range in the past.
The five percent range has been static since ECX introduced the coffee bean, which is the major source of hard currency for the country, trading at its floor.
However the exchange announced it set a new range that shall be effective as of Tuesday October 12. ECTA, which is also regulating the vertical integration of coffee trading as additional alternative besides ECX trading platform, has since rejected the idea.
Adugna Debela (PhD), Director General of ECTA, said that the decision that came from ECX was not consulted with relevant bodies. In general it is very sensitive due to its spike in the price locally contrary to the global market.
He said that the authority wrote a letter for all regions that there is not a change from the previous trend and ruled to continue as usual. “The current decision shall distort the market and would make the rate above the international market, meanwhile the global market is also spiking too,” he explains adding that the decision of ECX may hurt the export market which may lead to dis-interested buyers of the expensive commodity against the global coffee price rate.
ECTA said that ECX set the new range without the knowledge of the authority.

3The authority argued that it is its mandate to regulate such kind of issues under ‘coffee marketing and quality control proclamation no. 1051 /2017’ and ‘coffee marketing and quality control regulation no. 433-2018’ that was ratified in 2017 and 2018 respectively.
On the letter that ECTA issued on Tuesday October 12 and copied to the Office of the Prime Minister (OPM), MoA and ECX, it strongly criticized the announcement of the trading floor. “It is illegal and against the rule,” the letter said.
The letter that was signed by Heiru Nuru, Deputy Director General for Market Development and Regulation at ECTA, and sent to the regional trade bureaus and other stakeholders stated that as per its power any changes on the trading shall be emplaced on the modality of consultation with relevant stakeholders that is carried out by ECTA.
“The separate decision of ECX that introduces new practices would not be applicable. Due to that those who are mentioned on this letter shall continue their activity as per the existed practice,” the letter that Capital obtained a copy of, strongly added.
Adugna told Capital that the intention of ECX is targeted to increase the flow of the commodity to its trading platform.
Since the commencement of vertical integration trading, which was introduced about one and half years ago, the volume of coffee traded via ECX has reduced.
He argued that the range for vertical trading is also within, similar to ECX, “that is also regulated by the authority properly.”
“Under the new directive for this coming harvest season, we clearly stated that we will strictly regulate the illegal acts regarding on the trading range,” Adugna elaborated.
On its side ECX has issued a letter on Thursday October 14 a day after of ECTA’s compliant letter. On its letter ECX sent to MoA and copied the OPM, Ministry of Trade and Regional Integration (MoTRI), the recently restructured and ECX’s regulatory body, ECTA, regional trade bureaus and stakeholders including coffee associations saying that the new change has taken place as per the consultation with relevant government bodies including ECTA.
It asked MoA, which is responsible to control ECTA, to look into the matter.
ECX on its letter reminds that on August 17 there was a meeting at OPM’S Export Coordination Committee that endorsed the leadership of Ministry of Trade and Industry, which is now separated to MoTRI and Ministry of Trade, MoA, ECX and ECTA to establish a technical committee that is led by MoA on the aim to come up with a solution in connection with challenges on coffee price estimation.
According to the letter the newly formed committee had conducted several meetings and passed a decision to make changes on the price issues.
Based on that the committee has agreed the weekly price estimation is to be set under the initial selling price of coffee by farmers and adding other related costs and profit margin. “The weekly price that is calculated under the scheme mentioned above is to be set by ECTA to ECX and it would be the base price to trade at the trading floor with 10 percent price fluctuation up or down,” ECX stated on its letter.
The committee chaired by MoA has also agreed ECX to change the contract of unwashed coffee grade, which is now reduced to from one to 5 grades against the previous up to grade nine.
Besides the range change on its announcement, ECX has also introduced new grades on the export coffee quality. As per its announcement the contract has reduced from 1 to 5 grades and UG. It was from 1 to 9 grades and UG in the past.
“As per the direction reached by the technical committee ECX has announced new changes, as mentioned above, for traders and shall be implemented,” the letter ECX wrote added.
It said under Ethiopia Commodity Exchange Proclamation No. 550/2007 and Ethiopia Commodity Exchange Authority No. 551/2007 it has a mandate to set grades with the prior approval of Ethiopian Commodity Exchange Authority on commodities that are traded at ECX.
“Similarly the percentage for trading range is conducted based on the weekly price estimation of ECTA,” it argued.
It claimed that the letter issued by ECTA is improper and does not account the power that is given by ECX’s establishment proclamation, “The ECTA claim has not also considered the direction of the OPM’S Export Coordination Committee and the understanding of the technical committee.”
Due to that ECX asked MoA to look into the issue and ECTA to avert its letter that it sent to the regions.
Some coffee exporters told Capital that the decision that came from ECX was good, while others stated that the range is a bit higher.
Meanwhile the authority argued the range at the vertical market is respecting the ECX range, whilst coffee experts ridiculed the argument. They said that reality at the ground is different.
Coffee experts Capital interviewed strongly claimed at the vertical integrated scheme that the range above the five percent significantly eroded the availability of the bean at ECX warehouses, “It affects exporters’ ability to access the bean at the trading.”
They said the open range at the vertical market is attracting suppliers to sale their product without ECX since it has more benefit than the strictly regulating platform.
Experts and exporters who demand anonymity because of the sensitivity of the issue added that the trading of coffee against the range is not hidden.
“In the reality the alternative coffee market is using ECX’s maximum range as a benchmark for its minimum price tag,” one of the coffee trading consultants said, adding, “It means that the bean is trading over the range of five percent. We have observed that coffee sold about 20 percent above the range and 6 and 7 grade coffees have been also sold on the rate of 5 or 4 grades of coffees.”
He said it is now common to buy coffee based on negotiation manner rather than binding by the range.
Experts said that the authority only evaluated the contract of the two parties, suppliers and exporters, and not the receipt of the trading, “The good thing is that suppliers are issued the receipt for exporters. If ECTA wants to know the case it has to ask for the transaction receipt in addition to the contract agreement.”
Capital has got information from ECX that the new change will be effectively emplaced after this year’s harvest season. The harvest season is set to start from the end of this month.