Radar | Nov 19,2022
In a sweet bid to revive the souring honey export sector, experts from the Livestock Development Institute have proposed the establishment of commercial honey farms and the enhancement of its by-products with effective preservation measures to stay afloat. With only three exporters remaining, the urgency became apparent with the failure to meet half of the 15tns export target in the first quarter of the fiscal year.
This alarming trend prompted a two-month study by the Institute, shedding light on the myriad challenges that have plagued the industry for the last five years.
Exports had witnessed a dramatic fall throughout the decade from 876tns in 2013 to 47tns last year. To chart a course on pricing predicaments and production woes that have put honey export in a downward spiral, representatives from honey farmers to exporters and officials, convened in Adama town (Nazreth), Oromia Regional State.
Central to the cause is a concerning trend where the local price of honey stands at four dollars a kilogram, surpassing the export price.
According to Gezahegn Dugasa, head of the value chain & promotion at the Institute, this price distortion has led exporters to shift their focus to the domestic market, where honey is fetching a staggering 400 Br. Ethiopia's honey production was nearly a fifth of the potential amount of half a million tons last year, with most of the output consumed locally.
"Local prices had increased by 100 Br in a year," he told Fortune.
Gezahegn addressed the drop in the number of exporters from 16 a mere five years ago, attributing it to a dismal reward in the business. He highlighted the importance of other honey by-products, such as royal jelly and pollen, as significant contributors to the country's export revenues if properly managed.
Cutthroat global competition remains a challenge for exporters while security problems have increased over the past few years limiting productivity.
Johnny Girma is the general manager of Green Face Trading Plc. The five-year-old honey and wax exporting company halved its export volume to 30tns last year.
Johnny cited instances where exporters in countries like Zambia buy a kilo for around a dollar and sell it to European markets for tight profit margins of 1.5 dollars. He attributes his company's resilience as one of the last three remaining exporters to directly working with 245 local farmers to source certified honey products.
"Intermediaries create price hikes," he said.
The Ministry of Agriculture took note of the alarming trends in honey production and exports, drafting a bill to address gaps in quality, marketing, and production. However, the implementation of these measures is yet to take effect.
Aziz Ayalew, head of the development desk at the Ministry, said the proliferation of smuggling into neighbouring countries is one of the key novel developments challenging the sector. He acknowledged that a mere three percent of the 194,000tns of honey produced last year was exported while maintaining productivity and ensuring adequate supply remained challenging.
"Registered exporters have empty stocks," he told Fortune. "They can't compete in prices."
According to Aziz, they are exploring utilising capacity in western Ethiopia, particularly Illu Baboor, Mizan Tepi, Keffa and Sheka towns to extract the full potential from the two million beekeepers who produce 11 monofloral honey varieties.
However, Unions in southwestern Ethiopia point to financing hurdles as a significant obstacle to increasing the number of hives. Yidnekachew Beyene, deputy head of the Bench Maji Forest Coffee Cooperative in Bench Shako Woreda, emphasised the daunting task faced by farmers, with each hive costing 4,000 Br and needing 30 hives.
Despite failing to meet the 500tns production target, Yidnekachew puts faith in the recommendation of the report by the Insitutitue as holding significant promise in increasing production.
"Minute training in cutting honey goes a long way," he told Fortune.
Faji Bekele, a 33-year-old harvester, highlighted the proliferation of unregulated pesticide and insecticide use in neighbouring farms as the main cause for the decline in production.
"The bees are dying," he told Fortune.
Faji's honey output has halved to 50Kg over the past two years, a situation he plans to remedy by feeding sugarcane to the bees as flowers dry up each summer.
Experts expressed reservations about the impetus to export.
Shimels Araya (PhD), an agricultural economist, cautioned the importance of carefully considering export policies to preserve the integrity of Ethiopia's honey industry.
"Not every item should be exported," he said.
Pressing matters such as the importance of technology utilisation to advance Ethiopia's apiculture was deemed critical for the experts, who drew parallels with China's experiences. He recommended investments that can help maintain the organic nature of honey.
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