A new report that is on its finalization to be released states that counterfeit seed is threatening the seed sector. The gap in demand and supply is stated as one of the major reasons for the vulnerability to counterfeit seeds.
The draft country report that was prepared by The African Seed Access Index (TASAI) and tabled for stakeholders for final consultation indicated that the counterfeit seed, which is also known as fake seed, threatens the seed sector in two important ways.
“First it reduces farmers’ confidence in the certified seed when farmers unknowingly plant inferior quality grain falsely labeled as certified seed,” it says, adding, “it threatens the successes of efforts to increase the adoption of improved varieties because farmers won’t be sure which seed is genuine.”
Maize and wheat are the dominant crops in terms of seed production in Ethiopia, accounting for 95 percent of combined sales (by volume) of the four crops.
Mohammed Hassena, who is one of the lead researchers on the 2022 country report of TASAI, said that the case shall not be that much exaggerated since it is mainly seen on very few seeds mainly on maize seed.
The problem mainly occurs on maize, due to that grain to seed price ratio is from 1 to 3.5 for public varieties and at some private seed companies, it is one to 6.9, while the price ratio is not that high for others like wheat or teff.
“The illegal actors are mainly abusing the sector because there is a shortage of improved seed supply,” Mohammed said.
Commonly and frequently the case is seen in some known areas like Bure, east Wellega, Shashemene, or Alaba in the country.
“The limited capacity of regulatory bodies and knowledge gap of law enforcement instrument is the major challenge to tackle the problem,” Mohammed says, adding, “for the increment of access to the seed; expanding the number of seed producers, marketing and law enforcement must be tackled strongly.”
In its report, TASAI covered the seed sector of maize, wheat, teff, and sorghum.
The draft report shows that Ethiopia registered 54 active seed producers for the four crops in 2020: 27 private companies, four government parastatals, and 23 seed cooperatives. Most of these entities produced maize seed (34 producers) or wheat seed (27 producers).
The number of seed producers has increased for three crops except for sorghum between 2017 and 2020.
Improved seeds coverage for grain crops that includes pulses is about 20 percent on average of the demand. When it comes to maize quality seed, which is a hybrid seed, the coverage is about 55 percent of the demand.
TASAI’s survey identified that in 2020 seed companies sold 28,177 metric tons of maize seed, 41, 646 metric tons, 3, 069 metric tons, and 106 metric tons of wheat, teff and sorghum seeds respectively.
TASAI’s survey has slight changes like increased wheat and teff seed sales and reduction of maize compared with the data from the regulatory body due to different sampling and availability of relevant data.
The draft report added that for all crops, these were modest increases from seed sales recorded in 2016. For instance, seed sales for sorghum were 60 metric tons in 2016 that stood at 106 metric tons in 2020, and teff seed sales have reached 3,069 metric tons from 2,654 metric tons in 2016.
The draft report indicated that an increase in the number of varieties sold in a country often results in an increase in the choice of varieties available to farmers.
In 2020, 65 varieties of the four crops were sold to farmers: 28 wheat varieties, 24 maize varieties, 11 sorghum varieties and 10 teff varieties, “despite the high number of varieties released for the four crops, a small number of varieties dominate seed production on the country.”
In the case of maize, the top five varieties account for 87 percent of all maize seed production. For wheat and sorghum, the top five varieties account for 75 and 93 percent of seed production respectively, while the top four teff varieties account for 98 percent of all teff seed production.
“These findings imply that most of the varieties are not widely grown, despite the fact that Ethiopia has a wide range of agro-ecologies,” the report that is expected to be finalized very soon said.
From 2001 to 2020 a total of 258 varieties of the four crops were released wheat and maize took the lion share by 107 and 65 respectively.
Just in three years’ time up to 2020, 43 varieties were released that are also led by wheat seed.
TASAI is to promote the creation and maintenance of enabling environments for competitive seed systems serving smallholder farmers. It is this enabling environment that TASAI seeks to measure, track, and compare across African countries. TASAI’s intended outcome is improved access to locally adapted, affordable, and the high-quality seed of improved varieties by smallholder farmers in Sub-Saharan Africa.
Counterfeit seeds threaten sector
Low bid entry sees ESLSE putting a pin on truck procurement
Ethiopian Shipping and Logistics Service Enterprises (ESLSE) annuls the bidding process to procure 150 heavy-duty trucks. The enterprise disclosed that the international bid will be refloated with some revisions in the bid document.
It is to be recalled that the logistics mammoth and multimodal monopoly invited international sellers to compete on the bid to supply 150 trucks for its cross-border operation.
A few weeks back, the enterprise stated that a technical evaluation had been undertaken before opening the financial offer. However last week ESLSE officials in a turn of events disclosed that the bidding process had been terminated owing to the low number of participating companies.
Wondimu Denbu, Deputy CEO for Corporate Service, told Capital that the enterprise was forced to stop the process because only one company submitted its bid documents to supply the trucks.
According to insights, the Chinese vehicle-manufacturing giant, Jinan Sinotruck Co. was the only company that came through with its offer.
Jinan Sinotruck Co, which is known for its heavy-duty trucks, Sinotrucks, was the company that won last year’s bid to supply 150 Sinotruck vehicles at the cost of 11 USD million.
Wondimu said that ESLSE will refloat the bid for another round, “if the coming bidding process will not be successful the enterprise will look for another alternative as per the country procurement rules.”
He said that the second-round bidding will take place with some revisions from the former bid document.
On the initiative embarked by the Ministry of Transport and Logistics that allowed 168 transport companies to import 3,200 general cargo trucks through a differed letter of credit (LC), ESLSE has engaged in the bidding process to buy its quota, 150 trucks. However, the actual demand of the enterprise is over 300 brand new trucks.
As per the differed LC scheme the enterprise has opened the LC by 30 percent of the procurement value and the balance will be paid in the coming two years’ time. The government has given the guarantee for the payment that will be settled in the timeframe given by the scheme.
Currently, 38 trucks that are directly bought from the Chinese manufacturer at the cost of the same winning price of last year’s bid are being transported to Djibouti. According to the country procurement rule, the enterprise has a right to conduct up to 25 percent additional direct purchase from the bid winning supplier, “that is the advantage we applied to procure additional 38 trucks, besides the 150 Sino trucks, which are already in the operation,” officials of ESLSE recently told Capital.
Currently, ESLSE has 450 operation heavy-duty trucks and the new coming 38 trucks will increase the number to 488.
About five years ago, 215 trucks were purchased from the French automotive company, Renault Trucks. As the norm of ESLSE, the new fleet will allow the enterprise to exclude the long-serving and economically inefficient trucks from its cross-border operation.
EEP reveals massive success in generation, operation of power
With all the dire situations in the country, Ethiopian Electric Power (EEP) discloses that in a positive light most of the mega projects are running as per projection. At the half year mark, the energy service export has reeled in over USD 46 million with no incidence of nationwide blackout being reported.
Moges Mekonnen, Public relation head of EEP, said that despite challenges popping in different corners of the country, mainly on the northern part of Ethiopia, the power generation entity has recorded smooth running of its mega projects.
“Our big projects that are being undertaken in different parts of the country are running without any halt. For instance, the GERD is running as per schedule, similar to Koysha hydro-electric project whilst government on its end has given required attention and support,” he told Capital.
Moges likewise called on the public to continue accelerating its moral and financial support for projects, saying, “for instance, currently GERD is at 84.2 percent completion, thus the public should continue their contribution aggressively since the project is on the early generation work stage.”
“Our concern on delay of projects is at the sites located in Amhara, Afar and Tigray,” he added.
Projects like Bahir Dar-Woldya-Komblocha 400 kv transmission line, which is 85 per cent accomplished, has been looted by the terrorist group as they expanded their territory through aggression to Amhara region.
Similarly, the Mekele-Dallol transmission line project that stretches to Semera-Afdera has fully been stopped.
Because of the aggression, 1.6 billion birr worth of damages were incurred in Amhara and Afar regions, while the infrastructure status at Tigray and some areas in Afar where the terrorist group relaunched its aggression is not known.
In the first six months of the budget year EEP has generated 7,673 GWh energy which is 84 percent of the target. “The generation projection was 9, 080 GWh, while some part of the areas in Afar and Amhara were out of service because of the aggression, thus our generation was reduced for the sake of power saving,” Moges explains.
Similarly, the generation was reduced due to the two power stations operating in Tigray not being included in the report for the stated period.
In the first half year USD 46.4 million was earned from power export to Djibouti and Sudan. The revenue earned from the export has increased by ten percent compared with the same period of last year.
“From energy export to Djibouti increased by 10 percent to USD 26.9 million compared with the same period of last year,” Moges explained.
Ethiopia is also on the process to embark power sales to southern neighbor, Kenya.
Moges said that in the budget year, EEP has projected to earn USD 138 million from service export of the three countries, while the export to Kenya is yet to commence.
“If the export to Kenya commences in the coming months the earnings will be expanded,” he explained.
Last year, USD 90.5 million was secured from energy export.
The Public Relation head stated that in the past six month it has achieved massive success in generation and operation, “for instance in the last budget year, during the first half, two nationwide blackouts had occurred which has not transpired during this period.”
Ashewa Technology launches project to benefit youth
Ashewa Technology Solution SC launches a seven million birr project that is set to benefit 500 youths.
The digital commerce and learning platform will see the youth creating market lineage through the digital scheme that it facilitates.
Ashewa Tech, being a solutions company that houses an e-commerce platform where buyers and sellers converge, will enable the beneficiaries to sell their commodities and services on its platform, under the new initiative. Daniel Bekele, General Manager of Ashewa, to this end explained that the company is designing and implementing different projects that shall benefit the youth.