Dropping exports slightly affect Ethiopian cargo business to and from Europe
Reporter, Ethiopia
December 6, 2008
Hayal Alemayehu
Flower exports, which lately became one of the seven major foreign currency earners, is showing a decline over the last few years with exports destined to Europe - the major destination for the country’s flower exports - falling, it was learnt.
The presently dropping euro against the appreciating dollar and the global credit crunch are the major causes for the decline in the country’s flower exports to Europe over the last few years, according to exporters who opted to remain anonymous because stakeholders have yet to convene a meeting to discuss the issue with relevant government officials and other service providers for the export sector.
Flowers exports during last fiscal year had fetched close to USD 100 million, thereby becoming the fourth major foreign currency earner. That amount is expected to decline with exports to Europe steadily falling over the last couple of years, according to sources.
The exports, however, are expected to rise in the coming months from December to April - a peak season for flowers markets over the world - although they are very unlikely to reach their level of the same period of last year, according to sources.
Being a major export item employing air cargo for shipment overseas, the flower export has accordingly affected the Ethiopian Airlines cargo business to some degree, especially in Europe, according to knowledgeable sources.
The airline’s cargo business to and from Africa has in the meantime increased significantly, according to its officials.
The airline employs two of its B757 planes for its air cargo operation to and from Africa, and at times uses the two B747 bigger size jets it leased a year-and-a-half ago when the shipment increases.
The MD-11 cargo jet it purchased last year with a financial arrangement with Boeing Corporation Company is scheduled to be delivered in January while the same type of cargo jet the airline leased is expected to land in Addis some time in August.
The airline is in the process of upgrading and enhancing its air cargo business, with additional cargo aircraft expected to join its current fleet.