From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Wed Feb 11 2009 - 04:09:39 EST
Ethiopian Review
Global economic crisis cuts down Ethiopia flower earnings
February 11th, 2009 | Categories: Featured
EDITOR'S NOTE: The flower exporters are destroying Ethiopia's fertile
land by using fertilizers that are toxic. It would be good if they all
get bankrupt and out of business. Ethiopia's fertile land need to grow
food, not flower.
ADDIS ABABA (Reuters) - Income from Ethiopian flower exports has reached
only 60 percent of a targeted $298 million over the last 18 months as
the global recession hits the sector, a senior government official said
on Tuesday.
The Horn of Africa nation earned $177.6 million during the period from
the sale of some 1.5 billion stems, Girma Gelelcha, an expert in the
Ministry of Trade and Industry, told Reuters.
"Unless the global financial situation shows some improvement, it may
also be difficult for Ethiopia to earn the targeted $207 million . in
(calendar year) 2009," he said.
Ethiopian horticulture officials expressed fears at the end of last year
that the worldwide economic crisis could hit their industry as European
consumers cut back on luxury purchases.
On Tuesday, a source at the state-owned Development Bank of Ethiopia
said two Israeli-owned flower farms had been put up for auction in
recent weeks after failing to service bank loans.
The source said three more farms were in a similar position and might be
put up for sale soon.
The government has offered tax breaks to attract investment in flowers.
More than 100 local and foreign firms have been drawn to the sector, and
the country hopes exports will overtake coffee within five years to be
worth $1 billion annually.
http://www.ethiopianreview.com/news/2009/02/global-economic-crisis-cuts-
down-ethiopia-flower-earnings/