Export Marketing, Customs and Bank Clearing Operations of Floriculture in Ethiopia

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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 .



Customs and Bank Clearing Operations, Floriculture in Ethiopia