Ministry of Trade (MoT) disclosed it is planning to earn U.S. $ 2.51 Billion from the export of non-manufactured or agricultural products. This forecast is 16.6 percent higher than what the nation targeted for the past fiscal year.
As expected, the Ministry’s biggest target product is coffee for which it plans to earn U.S. $ 862.5 Million. The plan is to bring in a whopping 20 percent higher than what it has collected the last fiscal year.
According to a forecasting document by the MoT, a total of 235,950 tons of coffee is expected to be exported, which is higher than last fiscal year’s performance, 190,876 tons. During the past budget year, coffee export has generated U.S. $ 718.8 Million for the nation.
Even if the government has set a higher target than last year, it is still less than what is targeted by the Growth and Transformation Plan (GTP). According to Capital, a lesser target is set because of the past experience which did not meet the target set by the Plan.
Lower earnings of coffee export to what has been targeted is attributable to international market, Capital explained.
Nonetheless, current fiscal year’s earning is expected to boom for other coffee exporter countries have suffered from crop damage and their production is expected to decrease.
The current budget year’s coffee price forecast reveals coffee is going to be sold at U.S. $ 4,268.68 per ton while it was sold for U.S. $ 3,765.75 in 2013/2014.
The second highest export item targeted for the 2014/2015 budget year is khat. The Government plans to generate U.S. $ 332 Million by exporting 60,435 tons of khat.
Next to this, pulses are set to generate U.S. 307 Million from a total of 409,287 tons. The projection is 22 percent higher in value and 16 percent higher in volume when it is compared to the 2013/2014 budget year.
Livestock export comes fourth in line to amount of planned earning by the government. It is speculated Ethiopia will generate a total of U.S. $ 222 Million from the export of 808,747 live animals. This also shows an increase when compared to last year’s performance, U.S. $ 187 Million from 647,713 animals.
The first GTP period which is set to be over on the current fiscal year, forecasted Ethiopia will earn 4.04 Billion from exporting coffee, oilseeds and pulses by the end of the period. Nonetheless, the latest plan by the MoT shows the government is planning to earn half of what it has targeted, U.S. $ 1.9 Billion.
Another sector the government plans to generate foreign currency from is cereal, natural gum, tea and spices. The Ministry’s target for these products is to earn U.S. $ 58 Million.
Source: Capital
