MIDROC is set to increase production with an eye on competing in global fruit export market.
The long awaited transfer of three agricultural enterprises to MIDROC, and an affiliate, has finally been sealed with the signing of a contract between Mohammed Ali Al Amoudi (Sheikh) and Beyene Gebremeskel, director general of the Privatisation & Public Enterprises Supervising Agency (PPESA), on Thursday, April 4, 2013, at the Sheraton Addis Hotel.
MIDROC acquired Upper Awash Agro-Industry for 860 million Br, 35pc of which it has paid in advance. HORIZON Plantations, its affiliate, also purchased Coffee Processing & Warehouse Enterprise and Gojeb Farm for 228.2 million Br and 35.1 million Br, respectively, paying 50pc in advance for both. It took a year to finalise the process, with both companies having learned that their offers had been selected a year ago, in March 2012.
MIDROC Ethiopia will invest an additional 432 million Br into Upper Awash and, in doing so, double its production, according to Jemal Ahmed, deputy general manager of HORIZON Plantations.
Upper Awash Agro Industry Enterprise was established, in 1979, with a farm at Merti-Jiju, located on the border of the Afar and Oromia regions. It has a branch in Addis Abeba, which produces fresh and processed fruit and vegetables, as well as; cereals, cut flowers, seeds and fibre crops. The company is also well known for its oranges, mandarins, mangos, grapefruits, tomatoes and strawberries.
"The upgrading work will start in the coming year, to expand the farm's capacity, which currently contributes 50pc to the country's total orange produce," Jemal said.
Horizon Ethiopia also intends to invest 15 million Br on Gojeb Farm to grow bananas on 500ha of land, for the export market. This farm, Horizon Plantations said in a press statement, would enable Ethiopia to compete with India, the Philippines and Ecuador in the international banana market.
HORIZON's own study indicates that it could have a yearly income of 20 million dollars from the banana farm. The company will also invest 84.9 million Br for a fruit farm at Gojeb, according to a press statement. These fruits will also be export oriented.
HORIZON says that it will also invest an additional 80.5 million Br on the Coffee Processing & Warehouse Enterprise, located on 50,683sqm of land at the Saris, in Nefas Silk Lafto District, Addis Abeba. The Enterprise was established in 1994 to improve washed coffee export. It started exporting green coffee beans in 2009.
The Enterprise's net profit after tax, during the 2011/12 fiscal year, was 5,968,604 Br.
"MIDROC's companies outside Ethiopia will help us in our venture, by assisting in the international coffee market," said Jemal.
"Farming is a tough and interesting job," said Al Amoudi. "Now I am becoming a farmer."
He said he wanted to expand modern farming in Ethiopia to increase productivity and job creation. Beyene appreciated MIDROC for investing in every sector of the Ethiopian economy.
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