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Wednesday, May 16, 2012

Ethiopia: Second Indian Flower Farm to Sprout in Debre Brehan

 By Allafrica.com
A new Indian company, Esimo Flower & Agro Industries Plc, is investing 100 million dollars to start planting flowers in July 2012 at a 71ht farm it acquired in Debre Brehan, 130km northeast of Addis Abeba, in Amhara Regional State.

The farm, located three kilometres from the town, has finalised the land levelling and constructed a fence as well as a pack house, where harvested flowers are to be processed for export, according to Sanjaye Bangali, owner and general manager of Esimo. This was confirmed by Mayor Getaneh Zeke of Debre Berhan. The company was initially registered in 2009 with an investment capital of 10 million dollars. The company has increased its capital to drill water wells and build warehouses and greenhouses, it says. The farm is dealing with Israeli, Indian, and Palestinian companies to get the greenhouse supplies for 15 dollars a square metre.

Bangali plans to produce cut flowers, fruit, and vegetables for the European, Russian, and Middle Eastern markets. The farm is set to become the second flower farm in Debre Brehan after ASK Flowers and Greens Plc, run by Shahab Khan, another Indian investor. ASK was the first flower investment in Amhara, established in 2007 with an investment capital of 16 million Br.

Esimo plans to grow 75,000 rose plants on one hectare, which would enable a harvest of 80,000 to 90,000 stems in the first phase of production, covering 15ht. In the second phase of production, in the second year, the plan is to increase its harvest to 90,000 or 100,000, according to Bangali. Producing flowers is a high-risk and highly profitable investment, and Bengali thinks his company has a good opportunity to succeed within a few years.

"We are planning to buy the seedling for 0.52 dollars and sell the flowers with prices ranging between 0.71 dollars and 1.1 dollars, depending on the stem of the plant," he said. The construction, which includes the drilling of the water wells and building of the warehouses, flower stores, and staff offices, was done by Kifle Bisrat Building Contractor.

For the farm, the amount of water required for the first phase of production is 900 cubic metres for the total production. "We have already drilled a 200 metre-deep water well with 22, 000 dollars but could not find the water, which is why we are drilling again and have been seeing hints of it," Sanjaye told Fortune. In order to sufficiently use the amount of water and to modernise the system, the company plans to use drip irrigation.

"We are dealing with two companies: Neta Fim, an Indian company working in the field of irrigation and landscaping; and Jain Irrigation Inc, an Israel manufacturer of drip irrigation products," he said. The company foresees growing roses that are bred locally and are similar to Ecuadorian and Colombian breeds, according to Bangali. Ethiopia has a stable year-round temperature and strong sun, and the region is  acknowledged as one of the best growing areas, according to an expert from the Ethiopian Horticulture Producers & Exporters Association (EHPEA).

Debre Brehan, whose elevation is 2,840 metres above sea level, has an ideal climate to grow beautiful flowers, according to the expert. However, he says that there has not been much promotion for the town as a flower growing area.

The farm will start producing flowers after setting up its drip irrigation system, Bengali told Fortune. Revenues from flower exports have grown from 27.9 million dollars in 2002/03, when the Association was formed, to 178.3 million dollars in 2010/11, making flowers the third-largest export earner in the economy, following coffee and khat. 

Source: http://allafrica.com/stories/201205150518.html

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