Ethiopian Sesame Overall and Market Trend November,2017.

OUTLINE Global Sesame scenario. Ethiopian Sesame Production and Marketing Scenario Current Ethiopian Sesame Situation.

1. GLOBAL SESAME SCENARIO 1.1 Global Supply of Sesame Trend Year 2013/14 2014/15 2015/16 2016/17 Global Supply 1,757,216 2,100,000 2,267,217 2,350,000

1.2 Global Demand of Sesame Trend Year 2013/14 2014/15 2015/16 2016/17 Global Demand 1,400,000 1,640,000 1,800,000 1,980,000

Increased global sesame production. Traditionally sesame producing countries Sudan until 2011 has oil based economy since independence of South Sudan the North Sudan gave much focus to agricultural economy (  sesame production) Ethiopia, much focus gave to agricultural economy inline with GTP 2. -More or less Increase trend not withstanding whether change which is causing ups and downs in the trend East African countries (Tanzania, Mozambique, Uganda…etc. increase their sesame production. New entrant west African sesame producing countries increase sesame production every year. Increased global sesame demand. China sesame demand has increased Japan, Korea, and Turkey have stable demand India sometimes becoming sesame importer Other traditionally sesame importing countries still continue importing sesame. Increase in production is greater than the increase in demand. The consequence is pressurizing the international price. ( International price downward trend).

2. ETHIOPIAN SESAME PRODUCTION AND MARKETING SCENARIO 2016/17 Sesame production area. ETHIOPIA Sr. no Regions Production in Tons % 1 TIGRAY REGION 104,155.00 39% North Western Tigray 21,655.00 8% Western Tigray Zone 82,500.00 31% 2 AMHARA REGION 121,415.44 45% North Gonder Zone 116,558.57 43% South Wollo Zone 2,428.30 1% Oromia Zone 2,428.57 3 OROMIA REGION 24,283.78 9% 2,671.22 Kellem wellega zone 728.51 0.3% East Wellega zone 8,013.65 3% Horro gudru zone 12,870.40 5% 4 BENISHANGUL-GUMUZ REGION 20,145.78 7% Gondar Humara Wollega 39% 45% 7% 9% Sesame producing areas.

2.1 Ethiopian Sesame Production Sesame production increase since 2013 and shows declining since 2015/16. Increased cost of production to the farmers. NB:- All calculations made by ECX traded data.

2.2.1 Sesame Seed ECX Traded 2015/16 Vs. 2016/17. 2.2 Ethiopia Sesame Seed Marketing 2.2.1 Sesame Seed ECX Traded 2015/16 Vs. 2016/17.  Months ECX TRADED 2015/16 ECX TRADED 2016/17 Price difference Volume Ton Average price in USD/ton November 34,056.90 830.37 34,040.78 748.35 -10% December 81,561.58 687.64 42,349.55 840.78 22% January 71,538.58 709.89 28,144.28 989.54 39% February 69,016.00 730.09 28,384.00 1,066.48 46% March 48,170.15 840.07 31,654.24 1,006.21 20% April 25,438.78 1,024.30 27,253.68 989.53 -3% May 28,650.83 938.15 20,729.60 963.34 3% June 23,547.23 906.67 19,579.47 929.52 July 12,747.57 912.25 12,659.61 1,003.12 10% August 9,819.37 1,007.46 11,479.47 1,123.86 12% September 6,864.55 892.33 6,969.83 1,110.52 24% Total 411,411.54 845.49 263,244.99 1,003.40 18% 18% domestic price increment only 2.5 % increment in international price

ECX Traded Volume in Tons Sesame Seed ECX Traded Supply of Sesame to ECX was increasing in the past years and recently shows declining. Domestic Sesame price is fluctuating and not attractive to producers. Years 2012/13 2013/14 2014/15 2015/16 2016/17 ECX Traded Volume in Tons 120,217.80 279,270.00 297,116.70 407,313.42 268,142.07 Growth Rate 132% 6% 37% -34% Years 2012/13 2013/14 2014/15 2015/16 2016/17 Price 3,318.51 4,027.81 2,875.40 1,993.40 2,313.52 Growth Rate 21% -29% -31% 16%

2.2.2 Ethiopia Sesame seed Export performance. Monthly Export performance of 2016/17.  Months Export performance 2015/16 Export performance 2016/17 Price difference Volume Ton Average price in USD/ton November 20,802.00 1,193.07 20,640.62 1,013.58 -15% December 38,936.58 1,058.82 28,814.45 968.79 -9% January 67,224.47 971.58 23,970.01 1,013.91 4% February 67,57.90 987.98 29,450.83 1,128.31 14% March 54,533.21 1,021.24 35,223.36 1,156.47 13% April 35,359.00 1,165.58 31,671.96 1,154.82 -1% May 36,588.00 31,005.03 1,127.92 -3% June 28,587.31 1,130.66 24,186.00 1,100.00 July 19,919.73 1,141.87 19,365.83 1,130.00 August 10,004.50 1,141.56 21,092.00 1,130.77 September 13,011.91 1,123.35 20,912.03 1,146.11 2% Total 392,546.07 1,069.45 286,332.11 1,096.24 2.5% Years 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Export Volume in Tons 331,187.00 222,705.00 270,234.00 292,298.00 393,968.00 280,473.00 Growth Rate -33% 21% 8% 35% -29% Years 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Price 1,318.75 1,754.00 2,290.73 1,651.78 1,095.80 1,096.41 Growth Rate 33% 31% -28% 34% 0.06%

2.2.3 Export Performance by major Export destinations. 280,473 tons of Sesame was exported 2016/17. (July01,2016-june30 2017)

3. Current Ethiopian Sesame Situations 3.1 Market price situation (June/2017 – September /2017). Months Export Volume in Tons Unit Price in USD/Ton ECX traded Volume June 24,186.00 1,100 19,579.47 929.52 July 19,365.83 1,130 12,659.61 1,003.12 August 21,092 1,130.77 11,479.47 1,052 September 20,912 1,146.11 6,969.83 965.95

3.2 Current Sesame plantation. More than 700,000 hectare covered with sesame. Good Weather condition favorable for good sesame production both in quantity and quality. Currency devaluation by 15% Domestic price at ECX since mid of October 1250$/ton.

Sesame harvested ready for threshing First week of August

Sesame harvested ready for threshing

Sesame harvested ready for threshing

Sesame harvested ready for threshing

Unpredictability of the price . Increased cost of Production 3.3 Challenges of the business Unpredictability of the price . Increased cost of Production New entrant -Increased supply to the global market - Pressure on international price. Default still continue to be problem both for the exporters and buyers.

www.epospeaeth.org You all are invited to attend at 7th Annual International Conference on Pulses, Oilseeds and Spices November 22th and 23th,2017. Sheraton Addis Hotel Addis Ababa Ethiopia

Thank you Mr. Tadesse Ayenew Board Member of Ethiopian Pulses, oilseeds and Spices Processors Exporters Association CEO: Commercial of Belayneh Kindie Import Export Email : tadesse@belaynehkindie.com Mobile - 251 911206767