ASSESSMENT OF THE PROSPECTS AND CHALLENGES OF ETHIOPIAN SESAME SEED EXPORT

Abstract

Sesame seed export is one of the highest foreign currencies earning activity. The sector needs due attention as it has attractive demand in the international market; However, the sector is being managed under a very challenging working conditions that affect its competitiveness. This study assesses the current status of sesame seed trading activities with respect to its prospect and challenges. The study employed both quantitative and qualitative approaches. The respondents were sesame seed exporters who are working with Commercial Bank of Ethiopia. Data was collected through questionnaire from a population of 165 sesame seed exporters. Data collected from the questionnaire were analysed using SPSS version 20 statistical tools such as mean and standard deviation quantitatively, and followed by interpretation and qualitative analysis made. The result of the study indicates that there is an increased demand for organic oilseeds in general and sesame seeds in particular in the global market. The demand for Ethiopian sesame seed is still holds the leading position among other sesame seed exporting countries. The major challenge for the sector is quality production, price volatility in the international market and infrastructure related problems. Moreover, lack of trade protection, lack of integrated work flow among all responsible organs, lack of reliable market information and exaggerated price bidding on ECX become unsolved issue for the development of the sector. The problem related with infrastructure and market information need immediate solution. The sector requires the involvement of all concerned parties as it has a potential to expand the country’s foreign currency earnings. Government must draw additional and up-to-date policies and regulations that will help exporters to become competitive in the dynamic global market. Investors could consider the unexploited market opportunity.