Pineapple Value Chain - Business Ethiopia (BOAM)

In the context of increasing the high value production of agricultural commodities fruit tree and perennial crops play an important role. This commodity group includes tropical nuts, fruit trees, grapes, bananas, pineapple, papaya, passion fruits, apples and others.

Tropical fruit trees like mango, avocado and the like are not well known and considered as diet by most Ethiopians however because of the expansion of state farms in the command economy and the prevailing expansion of private investors in different regions of the country has contributed a lot on the introduction of fruits as a business. Otherwise areas suitable for growing trees are idle even near riverbanks where there is ample water supply for growth.

Because of the high establishment cost, knowledge limitations of food technology and market information smallholders are not practicing other fruit tree except banana. However, introducing know how either through demonstration or teaching can bring remarkable impact.

The bulk of citrus production is still confined to state farms, which were established more than 20 years ago and the orchards are running up to the end of the production cycle. Since no significant replacement has been carried out during recent years a further decline of production from the state farm is almost certain.

Mangoes are still harvested from scattered production and the fruit quality is inferior and unfit for further processing. Fruit processing companies (medium to small size) do not exist due to the unavailability of planting material.

In the Chencha high land of SNNP region there is local apple with good performance of fruiting and farmers are accustomed to grow the fruit for decades and established good market. In the past few years high land apple fruits are well recognized by small holders and seedlings were imported from Spain and today about 20,000 apple trees are growing in the country and the market is attractive. At present there is no fear about the market of apple it is functioning well and additional 70,000 apple tree seedlings are ordered by Oromia for further expansion. In fact the prevailing market price for apple fruit and apple seedlings is attractive and the fruit is more than 20 EB per kilo while the price of an apple seedling is 30 to 35 EB.

Pineapple Investent Leaflet of SNNPRS Investment Commission in collaboration with BOAM

The fruit market is growing fine even import of some fruits has started due to the growing demand. Few private investors are involved in the expansion of banana, oranges, mangos, pineapples and others for local market. State enterprises like Upper Awash Agro Industrial Share Company and Etfruit have been doing better on production and marketing of fruit business in the country and still working on expansion and distribution of fruits and supply of grafted fruit seedlings. However, fruit supply in the country is running on very low levels with emphasis on banana, oranges, lemons, mangoes, avocado, and recently apples.

Due to unsustainable supply of Pineapple fruit a company working on Pineapple drying at Nazareth can not process as much as the capacity of the plant. The fruit and Vegetable processing plant which is planned to be established at Ziway is forced to have its own Pineapple farm at Gijeb as source of raw material. The quality of Pine apple fruit and the volume of production doesn�t help to work what the companies are intending to do. Introduction of Pineapple planting materials and working on extension support to the farmers may help to improve the supply of pine apple.

There are many reasons leading to the present unsatisfying Pineapple supply situation. The eating habit of the community and the purchasing power of the society together with high establishment cost of fruit trees and poor infrastructure could not encouraged farmers to work on Pineapple. Fresh and organic Pineapple and dried Pineapple slice has got attractive market in EU countries but the low level of production doesn�t let the business to proceed as expected.

Constraints [top]

Main problem
Lack of proper Pineapple variety with good potential yield and adaptability is a leading constraint and every business company is complaining on the issue of variety. Research institute support is the claim of every body who is dealing with.

Bottlenecks
Even the local pineapple supply is not sustainable for any type of processing. Most of the exiting local variety cultivation is rainfed and not enough to serve as raw material source for any large scale pineapple processing. The crop is seasonal and small quantity. Fresh organic pine apple export is going on in a very limited level and not successful in getting enough supplies from the farmers. The cultural practice of the crop and the post harvest handling and transport handling is not at satisfactory level and needs extension support. The packing is rudimentary not yet developed as it should be even for local markets.

Intervention Points [top]

Introduce new variety of pineapple suitable for drying process
Training and extension support on pineapple cultivation and post harvest handling
Establish linkages between the pineapple growing farmers and the processing plant

Suppliers and Equipment [top]

The Pineapple Processing Equipment Company

http://www.pineappleprocessing.co.uk/

Manufactured Machines: FCPM-80 Pineapple peeling & coring machine;
FCPS-900 Pineapple slicing machine; TIDDY Pineapple tid bit cutter
Equipment Supply: Graders, Juice Presses, Merry-go-rounds, Processing Tables,
PVS Fillers, Can Seamers, Can Washers, Can Labelers, Complete Processing Lines

Example of tid bit cutter

Loading Pineapple Rings...............Cutting.................Pineapple Tid Bits

Markets and Marketing [top]

CyberInstitute. Pineapple Production, Products and Marketing information centre
http://www.cyberinstitute.org/pineappl.html

Tips for pineapple businesses, Pineapple production, Business Management, Pineapple products, Pineapple farming and growing, Pineapple processing, Pineapple farming technical services & management, Pineapple varieties, Pineapple diseases & pests, Pineapple sales & marketing, Pineapple packaging, labeling & storage, Pineapple transport & delivery

Standards [top]

Standards are published and on sale by the Quality and Standards Authority of Ethiopia (QSAE) beside of Imperial Hotel. Contact person: Sisay Assefa Address: P.O.Box 2310, Addis Ababa, Tel. +251- 011-(6460111/6460525), Fax: +251-011-6460880

E-mail: qsae@telecom.net.et, Webpage: http://www.qsae.org/

In the following please find the specifications of pineapple.

Pineapples Specification

Reference Number ES B.B2602

Contents: Scope, Definitions, Grade and grade requirements, Tolerances, Sampling, Packing, Storage, Marking, Designation

Coordination Group of the Pineapple Value Chain [top]

The coordination group including the main stakeholders of each value chain is the leading group for the value chain specific intervention.

Reports and documents on Pineapple see under Library-Pineapple.

Value Chain Leader: Tesfaye Teklehaymanot

Name of the organization: Axumite Coffee and Fruit Export PLC, Position: General Manager

Address: P.O.Box 9594, Addis Ababa, Tel. +251- 091(1203360)

Fax: +251- 011(393674), E-mail: skaleb@ethionet.et

Value Chain Facilitator:

BCaD-Consulting Management /Business Creation and Development Services

Contact person: Afework Yohannes

Address: P.O.Box 11194, Tel. +251- 0911-242303/011-4655687, Fax: +251-011-4661997

E-mail: bcad@ethionet.et , Website: www.bds-ethiopia.net/bcad

Coordination Group Members are the following:

Ministries and implementing agencies:
National Support Institutions:
Private Pineapple Processing Firms and Cooperatives:
Associations:
- Awassa Women Entrepreneurs Association
Research Institutes:
- Debub University
- Awassa Agricultural Research Centre
NGOs and Projects:

Growing Ethiopian Market (GEM/DAI)

Finance:
Consultancy:
- Agonafir Consult Accessible Business Technology (ACABT)

Achievements [top]

A contractual agreement signed on October 20, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct a �Women Training on Production of Pineapple Planting Material�
A contractual agreement signed on October 20, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct an �Exposure Visit for Pineapple Farmers to Jimma Agricultural Research Center on Modern Pineapple Planting & Management�
A contractual agreement signed on October 15, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct a �Training of Pineapple in Agronomy , Post harvest Handling & Marketing�
A contractual agreement signed on October 15, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAMto conduct the � Development of Legal & Institutional Frame work and Guideline for Production, Supply & Distribution for Pineapple Planting Material �
The first large scale Pineapple plantlet micro propagation practice started by JARC (500,000 plantlets) and the seedings will be distributed to farmers in the SNNPRS Cooperative Promotion Bureau.
Out of 14 investors 3 of them (Hadia, Lemat & Family International Trading PLC) have shown interest in commercial tissue cultures business.
One investor (Family International Trading Pc) leased land from Addis Ababa City Government to establish tissue culture laboratory. The same company participated in the East African Tissue Culture Conference held at Bujumbura conference (Nov. 29-Dec1, 2006) with his own initiative.

Impact Indicators of the Programme Objective (impact according to the pineapple value chain):

Impact in terms of increased production capacity and increased turnover and sales: The pineapple plantlet micro propagation with distribution of seedings to farmers will have an impact on the production capacity, sales and income. If the interest shown by 3 potential investors for commercial tissue culture will become reality, then we will have an impact on production capacity, sales and income.
Impact in terms of improved product quality: The intended laboratory for tissue culture of "Family International Trading" company will contribute to fulfill the indicator for product quality.
Impact in terms of increased employment: New seeds, new investors and the laboratory will have an impact on increased employment.
Impact in terms of networking: The regular meetings of the pineapple coordination group have already contributed to experience exchange and synergies in the pineapple value chain. Networking is funtionning.

[top]

Main problem Lack of proper Pineapple variety with good potential yield and adaptability is a leading constraint and every business company is complaining on the issue of variety. Research institute support is the claim of every body who is dealing with.

Main problem
Lack of proper Pineapple variety with good potential yield and adaptability is a leading constraint and every business company is complaining on the issue of variety. Research institute support is the claim of every body who is dealing with.