Export Marketing Customs And Bank Clearing Operations Of Floriculture In Ethiopia

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A country’s economic growth and development greatly depends on thernperformance of the export sector. The export structure of Ethiopia, like mostrndeveloping countries, is characterized by domination of few agricultural productsrnsuch as coffee. As a result of this, the national economic performancerncorresponds to the fluctuation of income earned from coffee exports. To this effectrnit is high time for Ethiopia to diversify its export products. Among the mostrnpromising export products Ethiopia could supply to the global market is cutflower.rnTwo decades have elapsed since cut-flower began to be produced inrnEthiopia for commercial purposes. However, starting from the production of cutflowerrnup to the logistics and marketing to the global market, cut-flower exportersrnare facing many challenges. The main issue of interest in undertaking this studyrnis to investigate the marketing, customs and bank clearing operations of thernfloriculture sector in Ethiopia. Focusing on these issues is necessitated by the factrnthat the long customs and bank clearing procedures could have a negative impactrnon the quality and competitiveness of Ethiopian cut-flowers on the internationalrnmarket. These issues can be addressed by developing a fully automated systemrnof customs clearance and expanding the range of services banks offer to cutflowerrnexporters. The export marketing procedures that an Ethiopian cut-flowerrnexporter shall follow constitute pre-shipment, packing and shipment, and postshipmentrnstages. In Ethiopia, the various activities involved in the rose supplyrnchain are highly process intensive consisting of production, logistics andrnmarketing components. The export volume and value of cut-flower account for arnsmall proportion of the total exports of Ethiopia. The major technical, institutionalrnand marketing problems associated with the production and exports of cutflowersrnare analyzed in detail. Finally, the paper offers possible solutions to thernidentified problems.

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Export Marketing Customs And Bank Clearing Operations Of Floriculture In Ethiopia

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