Ethiopia: Companies Secure Deal to Export Livestock to Egypt

Three local livestock exporters signed a deal with Egyptian Trust for Trade & Transport Company for the supply of 354,000 livestock worth 2.4 billion Br.

The agreement is an extension of a joint commission which was signed between Sahar Nasr, Egypt’s minister of Investment & International Cooperation, and Fitsum Arega, commissioner of the Ethiopian Investment Commission (EIC) back in January 2018 during the two-day visit to Cairo led by the outgoing Prime Minister Hailemariam Desalegn.

Alfoz Plc, Rimon General Trading and Beal Livestock Exports have signed the agreement on March 23, 2018, at Elilly International Hotel on Joseph Tito Street, to provide the Egyptian company with 156,000 cattle, 120,000 sheep and 78,000 camels for two years.

The deal was inked with the presence of Abou Bakr Hefny Mahmoud, Egypt’s Ambassador in Ethiopia, Alebachew Nigussie, state minister of Livestock & Fisheries, Ahmed Abou Khadar, chairman of Egyptian Company Trust for Trade and Transport and the representatives of the three companies.

Alfoz which is known for the export of Arabica coffee, an importer of construction machinery, and owns an animal ranch and quarantine, is the company which is going to export the majority of the livestock which are 96,000 cattle, 48,000 camels 120,000 sheep. Rimon General Trading agreed to sheep 24,000 camels and 60,000 while Beal will send 6,000 camels to Egypt.

 

Alfoz, which has been in the business for the past two decades, will send 4,000 castles, 2,000, camels and 5,000 sheep a day.

The three companies will start supplying the animals within 10 days of the inked agreement, which was facilitated by the Association, embassies of both countries, and agriculture ministries of the two countries. Group of Livestock health experts stayed for months for medical examinations.

“This is the first livestock export to Egypt after three years, and it will create a market opportunity to livestock exporters to sent their product abroad,” said Kibre Mulat, president of Ethiopian Livestock Exporters Association.

 
 

Trust for Trade & Transport which is operational under Trust Group in Egypt, Saudi Arabia and Ethiopia, has engaged in various trades including logistics and shipping. Founded in 1998, it provides general contracting service, real estate development and supplying construction raw materials throughout Egypt.

With about 54 million cattle, 25.5 million sheep and 24.06 million goats population, Ethiopia leads the continent and stands at fifth position in the world livestock resource.

 

The livestock sector in Ethiopia contributes about 16.5pc of the GDP and 35.6pc of the agricultural GDP and 15pc and 30pc of export earnings and agricultural employment, respectively.

However, lack of market-oriented production system, inadequate number of exporters, low level of quarantine facilities and procedures, the prevalence of various diseases, and excessive cross-border illegal trade, led the sector to contribute in the economy below the expected.

“We are trying to provide technical support to those areas with livestock potential,” said Alebachew.

Last December the World Bank Group has pledged 170 million dollars for the implementation of the Livestock & Fisheries Sector Development Project in 58 weredas, in six regional states of the country, 1.2 million farm households dependent on livestock rearing and fishing.

For the current fiscal year the country targets to generate 350 million dollars from livestock export. Saudi Arabia is the major destination of Ethiopia’s livestock followed by Qatar, Kuwait, United Arab Emirates (UAE) and North African states.

Live animal exports in the 2016/17 fiscal year have plummeted by two folds from the preceding year which generated 148 million dollars.

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