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Ethiopia - Six coffee exporters red carded for hoarding
The Ministry of Agriculture and Rural Development of Ethiopia said it has taken legal measures against six coffee exporters for hoarding. In a press statement it sent to ENA on Thursday, the Ministry said the roarders denied the country substantial foreign currency earnings.
Following is the full text of the press statement:
The government is providing all rounded support and incentive to exporters in a bid to develop the export sector.
Taking into account the huge contribution of coffee to the sector, the government has been implementing Coffee Quality Control and Transaction Proclamation in a bid to improve the quality and marketing of coffee with competitive price at the global market..
However, the country has not been earning foreign currency from coffee export as required due to the decline in the activity of people engaged in coffee export sector as of mid September 2008.
Senior government officials have been discussing with coffee exporters to ship the coffee they stockpiled in their stores to the international market on time to change this unfavorable situation, but to no avail.
As a result, besides disabling the country from getting foreign currency as required, the coffee exporters have created shortage domestically because of their failure to supply coffee byproducts to local market thereby opening doors to illegal trade.
The following coffee exporters
1. Mulege private limited company
2. S. Sara coffee export
3. Legesse Sherefa private limited company
4. kemal Abdella international private limited company
5. Seid Yasin Ali coffee export
6. Ersede private limited company
1. have hoarded last year’s coffee products instead of exporting to the global market before this year’s crop season
2. have also hoarded coffee byproducts instead of supplying to local markets
3. were found to hiding a substantial volume of standard coffee they bought lasy year from auction center from Ministry’s inspectors during inventory. The coffee exporters were also found to have failed to export significant volume of coffee abroad in accordance with their agreement with the Commercial Bank of Ethiopia.
Accordingly, the following measures were taken of the stated exporters:
1. Their coffee quality certificate were suspended
2. Their export licenses were suspended through the Ministry of Trade and Industry.
3. Their stores where export coffee and byproducts are stored were sealed
Similar measures were also taken on 88 coffee suppliers last year for hoarding coffee.
Similar measures will also be taken on other coffee export companies if they are found to engage in hoarding.
Can we hear from the other side?
All of a sudden ths issue pops up.
We were being told a rosy economic development.
We re being told how the justice system is modern.
Were these exporters to taken court?
What are you,malasa, going to do with the “hoarded” coffee?
Lets hear what the other side has to say.
What happened to all the US dollars the government had in CITI bank? The one the Nigerian guy was arrested for trying to steal with forged documents. Why doesn’t the government use that if they need foreign currency to the point they are seizing private property?
“ENDIAWEM TEZZA NESH ENQUANES ZENBOBESH”
Yeah that will be a good example to the others. Enough is enough
This piece will answer it.
I couldn’t help to notice that none of the TPLF affiliated companies were mentioned on the report. I am sure all the TPLF affiliated companies and their employees always play by the rule. LOL … The report also does not mention some of the biggest coffee exporters in Ethiopia. Some of them are supporters & families of top TPLF officials. They may just be using this law to eliminate none-party affiliated competition.
Is that all? Listing the names and call them guilty of not exporting a coffee that was not there to begin with is simply ridiculous. Where is the case?
You take away the certificate, suspend their license, seal their warehouse, I presume empty warehouse, just because you can, and then what?
How can this guarantee there will be more export tomorrow?
I couldn’t make any sense out of this report.
Accordingly, to make up for this lose; the following 6 new exporters have been give a license to export coffee.
Similar measures will also be taken on other coffee export companies.
To all greedy Mother F****RS, watch out mengistu is coming. No more hiding berber, teff etc… Believe me you will get a B****t when mengistu gets mad. To the government, don’t use all your capital because if people rise they won’t be stopped. What we saw last time was the opposition confusing the people, we didn’t see people rise. If people riot it will be suname. No sypmathy for the scavengers of Ethiopia who have no remorse or who have no good heart and love of country other than robbing people in the name of business. These criminals should not only lose their coffee or teff but should be taken to Zimbabwe to face mengistu’s court. He would deal with them apropriately.
DESPERATE TIMES CALL FOR DESPERATE MEASURES
I was thinking of entering the coffee or flower business but now, I am going to switch to planting Tea!
Our Government has not targeted this industry Yet…But wait we don’t even have a tea industry!
Yipee so I can have it all to my self and make Billions!!!
Tindaho + other sugar factories; 4-5 electric dams, roads across the country; condos from north to south; all these need hard currency not just printed billions of birrs that can be nominally borrowed from local bank. Had it not been for the very low price of oil, the regime could have collapsed by now.
all these projects were run by an economist from open university who knows all. most of these big exporters are supporters of the regime, they have no interested in sabotaging the regime, but only waiting to make more money, some are looking for new clients instead of Japan that closed its market for Ethiopian beans; some are even trying to cover their cost
pirates of the dedebit– TPLF, should have taken a more cautious move.
one clear consequence of this “hand cutting” will be massive layoffs. Many families, perhaps in the range of thousands will be directly affected. A likely event is that some of them might join the 12 million drought stricken citizens within a matter of days.
as usual, its only pirate masters who will send all the money from catch to the SWISS bank…… while salivating crew members including nicole, shega yaye (shagataw), yoni, lekim , etc… will not see a penny.
Nice job Meles. Now fill the place with Tigray merchants so that you will have full control of the economy towards your strategy. That is mafiya’s job.
Should be able to think beyond ourselves. If any country develops well and wealther of course every one would benefit. People are a country and if the people excel the country does do. People make a country wealther and advance. Everyone should contribut to the growth of their countries that is what is expected from a nation. Individualism always ends in disaster. Greed leads to disaster, I think that is one of the problems in the usa even their strong financial foundation is off its set and is affecting every one in the whole world. People should collectively “Ene kemot sar aybekel” aittitued is very dangerous and ugly. Government only can not do anything unless people particiated along. Let’s love ourselves let’s love our country. Coffee is our livelyhood and a sacred product for our growth. Let’s come together and build. Peace
too many unanswered questions. 1) why are the traders hoarding the coffee and what made them think its gona go up in the near future 2) why didnt they buy the coffee from the local traders at the market price 3) cant the government buy it from them at the price they bought it and export the coffee, was this what the government offered them which they refused?
The government is jumping to the taking over of those businesses without giving the due process and without taking legal steps. This surly is discouraging for anyone to do any business in Ethiopia under the cloud of this communist government is hanging over to take business away.
Those businesses must be the only few that are not owned by TPLF thieves. Now they are creating excused to steal them since the cash in TPLF account is going down.
This is simply greed by those lisenced exporters. at this time, export standard coffee have more demanded localy than exporting it, and they are in dilama if they have to sell it local than exporing it because they can earn more if sold locally. on the government side argument is that the country budgeted for hard currecy based exoprting coffee , in which the the traders refused to do so. They bought it at market value from farmers and they have the obligation to sell it for the countries need for hard currency they like it or not. Hording is illegal any where including the US. Readers,Please make your research before you taking any side.
Albania & Tulu,
You sound like you are the brother of some of those revoked license for coffee beans exporters. The Government took the right action to revoke and give the license to other responsible and honest business oriented citizens. Anyone who has a license for Coffee, Sesame and other cash crops can not do what ever they want because the above crops are the central nerve and blood line of the Federal Government to do business for the interest of the 80 million people on daily bases with foreign countries.
Ethiopia solely depend its importing consumer and capital goods on the cash crop export to pay its debts to importers in hard currencies. The license belongs to the public and the exporters are obligated to serve the public interest by conducting themselves as honest business person and communicate daily bases with concerned agency of the Government for all purpose.
I am not sure 100% the situation of about the individual exporters but they should be forced to hire an accountant to run their business and have communication with the commodity exchange representatives to find out the latest or daily world market price and other stuffs to bring their goods to commodity exchange efficiently.
In order to avoid a large amount of loss or gain from the sell or buy of the coffee beans between farmers, the exporters and the commodity exchange should establish some kind of pricing mechanism like accounting pricing method:
FIFO – First in First out
LIFO – Last in First out
Weighted average pricing method.
One of the above method will avoid the hoarding problems since they will be priced accordingly and shipped immediately to the appropriate locations for the commodity exchange ware house.
Any accountant who is graduated from Addis Ababa University accounting Department should know how to pricing them based the above pricing methods. These are the basic standard of pricing method to any manufacturing and crops or goods/inventories anywhere in the world. For the stock holders of coffee beans are pricing methods are totally different. If they need someone to help them how to set up unit price for individual investors or retiree government employees, teachers association or unions, let us know a lot of us can be helpful how to set them up (give you the formulas how to set them up).
Halafi Mengedi, (zeg angol)
You sound like the tyrant Meles’s TPLF collaborator who is chained to his greedy and corrupt communist and tribal agenda.
This is Meles’s and people like yourself deliberately and systematically taking away the NON-TPLF OWNED businesses without any due process, a court order or any lawful process.
Only in his draconian laws Meles has made himself the one to moan and groan and to take away businesses he doesn’t own or spend a dime on in a matter of few days.
He is the accuser, the judge and the executioner all at once.
People like you will never understand the process of democracy, right to life or right to own property.
Where there is law people can arm themselves and defend their property even by force when the government is bulling them.
Where as in TPLF’s law of the jungle, only the government can gets its way because it has disarmed its citizens so they will easily succumb to its demand. And since you are with the gun you get exited when the government is bulling and taking illegal actions against the law abiding citizens.
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