Export Marketing, Customs and Bank Clearing Operations of Floriculture in Ethiopia
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Date
2007-08
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A.A.U
Abstract
A country's economic growth and development greatly depend s on the
performance of the export sector. The export structure of Ethiopia, like most
developing countries, is characterized by domination of few agricultural products
such as coffee. As a result of this, the national economic performance
.
corresponds to the fluctuation of income earned from coffee exports. To this effect
it is high time for Ethiopia to diversify its export products .Among the most
promising export products Ethiopia could \ supply to the global market is cut flower.
Two decades have elapsed since cut-flower began to be produced in
Ethiopia for commercial purposes. However, starting from the production of Cut flower
r up to the logistics and marketing to the global market, cut-flower exporters
are facing many challenges. The main issue of interest in undertaking this study
is to investigate the marketing, customs and bank clearing operations of the
floriculture sector in Ethiopia. Focusing on these issues is necessitated by the fact
that the long customs and bank clearing procedures could have a negative impact
on the quality and competitiveness of Ethiopian cut-flowers on the international
market. These issues can be addressed by developing a fully automated system
of customs clearance and expanding the range of services banks offer to cut flower
exporters. The export marketing procedures that an Ethiopian cut-flower
exporter shall follow constitute pre -shipment, packing and shipment, and post shipment
stages. In Ethiopia, the various activities involved in the rose supply
chain are highly process intensive consisting of production .Logistics and
marketing components. The export volume and value of cut-flower account Fir a
small proportion of the total exports of Ethiopia. The major technical, institutional
and marketing problems associated with the production and exports of cut flowers
are analyzed in detail. Finally, the paper offers possible solutions to the
identified problems .
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Keywords
Customs and Bank Clearing Operations, Floriculture in Ethiopia