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Addis Ababa University Libraries Electronic Thesis and Dissertations: AAU-ETD! >
Institute of Regional and Local Development >
Thesis - Regional and Local Development >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/123456789/4176
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| Title: | CHALLENGES AND OPPORTUNITIES OF HORTICULTURE INDUSTRY AND ITS |
| Authors: | KEBEDE, KENO |
| Advisors: | Issac Paul |
| Keywords: | Export diversification, high- value agricultural
commodities, Horticulture industry |
| Copyright: | Mar-2011 |
| Date Added: | 30-Nov-2012 |
| Publisher: | AAU |
| Abstract: | The purpose of this study was to assess the challenges and opportunities of horticulture industry
focusing on its investment environment; production and export process sand its contribution to
Ethiopian export diversification as horizontal export diversification strategy in minimizing an
over-reliance on few low value commodities export. It is a case study of Sebeta area farms of
fruits, vegetables and flowers. Both qualitative and quantitative approaches were employed in
the study. Across-sectional survey though questionnaire, interview, focus group discussions and
observation methods were used to collect data from main industry’s development facilitators and
farms owners. Secondary data were also gathered from different publications. The data obtained
were analyzed though descriptive statistics using SPSS and SWOT analysis by narration. The
result of the study reveals that yet the Ethiopian export structure has not been diversified. It is
highly dominated by few traditional agricultural commodities. Hence, its export earning was
fluctuating both in value and volume. As a result, the overall balance of payment of the country
is widening deficit. The currently horizontal export diversification strategy through horticulture
industry is minimizing an over reliance on few low-value commodities. Investors from foreign
and domestic both in number and amount of capital they invest on horticulture are rapidly
increasing. The generated income account from the sector reached for 10% of the nation’s
foreign currency earning, which was only 3% before four years ago. The industry is also
becoming the 3rd largest source of foreign currency next to coffee and oilseeds. The incremental
of export share of horticulture produces is mainly from the rapidly booming of floriculture whose
share is 80.67% in average from the industry’s produces export. The reasons for the sector
remarkably booming are incentive schemes given and natural comparative advantages the
country has such as favorable climate, abundant land (long term leased), varieties soil types,
suitable topography, agro-ecology, cheap labour, loans in advantageous terms, location for
export (proximity), irrigable lands and rivers, increase demand of horticulture produces, market
oriented policy with attractive incentive packages and etc. Moreover, governmental
organizations such as EIA, EHDA, MOTI, DBE and the industry’s association EHPEA are
working in coordination to enhance development of the industry. Despite these efforts to develop
the industry, it is still at nascent stage and not performing at its maximum potential as compared
to what would have been achieved. Factors hinder expansion of the industry and the country
could hardly benefit from the industry were emerged from failure in realizing the existing
opportunities that help in development of the industry. The main bottle necks against further
expansion of the industry are categorized in to lack of public infrastructures, weak institutional
service delivery, weak market chain and unfair relationship, and lack of skilled manpower in
managerial and technical know-how on the industry activities and weak water management.
These constraints are serious especially in the rural areas of the country. Because of these
problems most horticulture farms in the country are limited to just adjacent to main asphalt
roads nearby the capital city-Addis Ababa closeness to Bole airport. Hence, in order to expand
the industry and be benefited from the sector, working in coordination of Government, donors
and stakeholders and investors to fulfill the problem is very important. The currently work of
government by giving high attention for public infrastructure has a good prospect for the future
development of the industry. |
| URI: | http://hdl.handle.net/123456789/4176 |
| Appears in: | Thesis - Regional and Local Development
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