Over the retiring decade , Ethiopia aimed to descale up production and meliorate logistics — peculiarly through the Bahir Dar Horticulture Development Cluster in the Tana River Basin . With ideal conditions for crop like flowers , the arena was support by a innovative perishable loading terminal built in 2006 to enable direct flights to Liège , Belgium . The goal was to bring down transport costs and advance competitiveness . Yet today , the end remains underutilized , and unmediated flight of stairs never took off . Instead , the government cover to subsidise dear inland transfer , an coming critics call uneconomical , contend that land should be better allocate to secret companies . In this article , Mekonnen Solomon W. , working at Ethiopia Ministry of Agriculture reflect on the task ’s pretermit potential drop , call it a " collective weakness of will . "
Mekonnen Solomon deliberate on logistical challenge
gardening export perspective planThe gardening export perspective plan , formulate over the retiring ten years , was drive with a vista of scale up export performance through expansion of cultivable estate and variegation of cool logistics corridor across unlike river basinful of Ethiopia . One of the strategic river catchment area areas selected for this determination was Tana River Basin . Bahir - Dar horticulture development cluster is parts part of this River Basin which is noted for its wonderful potentials for cultivation of blanket range of mountains of mellow economic value exportable horticultural commodity including Flower , Blue Berry , Ras Berry , Strawberry Herbs , Asparagus , Avocado etc . In Ethiopia demesne being government belongings , the possibility of expansion of cultivable state for scale up horticulture export were not been a effort of fear for choose Bahir - Dar gardening development cluster .
Ethiopian cargo freighter .
Perishable shipment built for verbatim flights from Bahir Dar cluster to LiegeAs part of its effort to support horticulture foreign swop . the Ethiopian Airlines have built big perishable freight terminals and facilities at Bahir - Dar gardening development clustering in 2006 . " This final deftness is contrive to handle flower , herbs fruit and veggie which are a major exportable commodity of the washstand . The pole is well furnished with the correct engineering like cooling and refrigeration equipment , motortruck sour grass , and other features for efficient handling . According to previous study Bahir- Dar perishable cargo terminal has a electrical capacity of 16,000 tons per yr . The Airlines has also 19 Cargo freighters with a capacity to load 50 to 100 tone . This capacity and practiced issue of freighter are fairly significant , as it allows the Bahir- Dar airport to treat a square amount of horticultural products and exaltation it forthwith to Europe . "
This perishable Cargo terminal was fundamentally build with intention to set about a lineal flight from Bahir Dar bunch to Europe particularly liege , one of the largest flush importers destinations . " The overall attempt of the program was to reduce unneeded inland transport cost which otherwise force farms to incur huge amount of price to transmit horticultural products from Bahair - Dar to Bole airport and there by Liege . The center strategy to make this end to happen was to allot require land to private investors that enable them to produce sufficient intensity of perishable horticultural involve for loading freighter requirements or to attain out liege lord market destinations . "
The potential difference is there – less expensiveSolomon emphasizes that the potential is there : direct cargo flights from Bahir Dar to Liège are less expensive than those from Addis Ababa ’s Bole Airport . " As is well be intimate , Bahir Dar is located at a mid - ALT of 1,821 meter above ocean grade , whereas Bole International Airport sit around at a higher height of approximately 2,334 meters . Various studies indicate that mid - altitude locations , like Bahir Dar , offer several advantages for aircraft . First , they require significantly shortsighted runway length due to higher air density , which provides more aerodynamic lift and want less ground speed for mockery . written report also show that mockery at mid - altitude results in lower fuel uptake compare to in high spirits - altitude locations . Shorter track essential and reduced fuel use interpret into lower operating costs for airlines . "
Not enough book of productAccording to Solomon , despite its grandness and potential , the plan for direct escape has not materialized . " This unsuccessful person stem from our inability to apportion sufficient farmland for private investor who were theorize to bring about the required volume of horticultural intersection for cargo merchant ship . The lack of equal mathematical product mass limits Ethiopian Airlines ' power to transport a sufficient quantity of prime directly from the Bahir Dar Horticultural Development Cluster to Europe at the downhearted potential cost . "
Flower fragrancy giving of Bahir Dar
Disappointment across the chainThis situation has direct to disappointment among many value chain doer . " Ethiopian Airlines feels the loss , as the expensive and heavy perishable cargo terminal built for outside commercial aim remain idle or underutilized . According to current appraisal , these seven farms produce approximately 3,986 tons of last horticultural products annually . When compared to the ideal electrical capacity of the Bahir Dar perishable cargo pole , the utilization rate is less than a quarter of its capacity , mean nearly 75 % of the facility remains underused . The underutilization of the terminal means that the investment and functional costs are spread over fewer social unit of perishable horticultural products , increase the average fixed price per unit . This , in routine , reduces the profitability of the airline and potentially makes the tune cargo business less competitive . "
The absence of a unmediated flight from Bahir Dar to Liège has had electronegative consequences for exist horticultural farms . " Due to the lack of a direct flight , farm are forced to transport their products from Bahir Dar to Bole Airport Cargo in Addis Ababa using cold trucks . The longsighted distance , about 552 km , compound with short route term , creates several challenge . Rough roads and vibrations cause mechanical damage and exhibit the products to climatical factors that accelerate spoiling and loss . For blossom , this also head to aesthetic degradation . "
The deficiency of sufficient horticultural product loudness required for cargo merchant ship to function direct flight from Bahir Dar to Liège has created a state of affairs where existing farm are unable to in full use their export capability or compete with other horticultural companies located in the Hawassa , Wolketa , Holeta , Beshofetu , and Sebeta clusters , which are close to the Bole International Airport Cargo Terminal , he continues . " Additionally , companies in Bahir Dar face higher cost for land conveyance , including cold truck rentals , fuel , lubricants , care , and overhead expenses — costs that the existing efflorescence farms are unwilling to give . "
Government subsidy for Din Land transportAs bloom farm were unwilling to cover the high cost of inland conveyance , the government began allocating substantial public investment trust to subsidize the transport of perishable horticultural product from Bahir Dar to Bole Airport . In July 2015 , the Ministry of Finance and Economic Development introduced the Inland Transport Subsidy Directive ( Directive No . 36/2013 ) , originally signify as a short - term cadence for the 2014 financial yr . However , due to the ongoing lack of sufficient production loudness to excuse unmediated cargo flights to Europe , the subsidy has remained in place for over 11 days . As of former 2025 , just about seven farms ( five prime farms and three producing fruit and vegetable ) in the Bahir Dar Horticulture Development Cluster extend to get these annual transportation subsidy .
Weakness of willThe challenge facing this cluster appear to staunch from a corporate failing of will , Solomon enunciate . " While it is wide recognized that allocating sufficient land for high - value export crops is essential to attain the need production volume , land persist in to be diverted to other speculation . Despite the open profitability of a unmediated cargo route from Bahir Dar to Liège , reliance on inefficient and quality - compromising inland transport persists . terminate government transport subsidy through proper farming allocation and investment is crucial to reducing public spending , yet these subsidies have remain indefinitely . Likewise , fully utilizing the Bahir Dar load terminus is vital for the profitability and fight of Ethiopian Airlines , but the lack of unified natural action prevent these cost - saving opportunity from being realized . "
Solution : apportionment of equal land to private sectorMany critics argue to only potential result of Bahir Dar horticulture Development clump is apportioning of fair to middling farm land to private sector who will directly get their produce like a shot to liege through well - equipped Bair - Dar Cargo terminal . " transportation subsidy are unnecessary government activity funding . It was considered as a reckless and wasteful spending . "
" This requires the regional governing to take natural action by transfer the already set aside Kunisada Hort Park res publica — gauge at no less than 455 hectare — to private prime producers and exporters , as to begin with planned . In accession , the cluster should apportion 1,100 hectare to dependant private entrepreneurs with a proven track record in the sphere , stiff financial content , give market memory access , and the technical capabilities needed to produce and export in high spirits - value horticultural crop , include summertime flowers , roses , rooted and unrooted cuttings . "
" transmute the Bahir Dar Horticultural Development Cluster into a full-bodied output and logistics hub — and launching direct flight to Liège in the good time to come — would significantly enhance the competitiveness , reliability , and sustainability of Ethiopia ’s export sphere , particularly in flower gardening " , he concludes .
For more informationMekonnen SolomonEthiopia Ministry of AgricultureEmail:[email protected]www.moa.gov.et
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