» Projects: Sub Saharan Africa

Integrated Value Chain Analysis for the Floriculture (Rose) Sector in Ethiopia

Global Development Solutions maintains a long-term presence in Ethiopia and has engaged in numerous consulting projects in the country.  Integrated value chain analyses include: honey and beeswax, floriculture, cotton-to-garment, skins and leather, road construction, housing construction and tourism.  Additionally, GDS established a strategic intervention plan for mango and highland fruits to support local business organizations with access to markets.  Further, a regional value chain for strategic agricultural commodities encompassing nearby countries was also designed by GDS as the key component for a significant United Nations initiative.    

Demand cyclicality, fierce competition, underdeveloped local support industries, strict breeder’s rights, environmental standards, and increased importance of supermarkets and direct sales are creating challenges for the nascent floriculture sector.  Twenty-seven small and medium size farms are involved in cut flower production in Ethiopia with the majority growing only roses.

Using rose farming as a proxy for the floriculture industry, the integrated value chain analysis revealed that, for example, due to a lack of locally available propagation materials, plant material and related royalty payments constitute over a third of all farming costs.  Further, 20% of farm costs go to greenhouse maintenance with plastic film representing 79.8% of these costs.  While analysis showed that support of investments in nurseries would provide considerable cost-savings to rose growers in Ethiopia, it was also determined that given the limited number of growers in the country and in light of the necessary start-up costs, a domestic base of manufacturers of greenhouse plastic film is not cost effective and importation is the best option in the short to medium term.