Fintrac Harvest Summer 2009

Ethiopian grape industry burgeoning under Fintrac

ADDIS ABABA, Ethiopia - As table grapes emerge as a new business opportunity in Ethiopia, Fintrac is in on the ground floor to help, working with growers and international buyers through the Agribusiness and Trade Expansion Program (ATEP).

The program quickly deployed its team of specialized agronomists in November 2007 to get production underway. Lead client Luna Fruit, in Oromia, dedicated 10 hectares to grow the Red Flame Seedless variety and had its first harvest in February 2009, which yielded 18,000 kilograms. Fintrac's agronomists and specialized consultants helped Luna Fruit owner Tesfalidet Hagos cultivate the vines and harvest the fruit and continue to support him with marketing assistance, farm expansion and infrastructure improvements that include packing, grading and cooling facilities.

Through Fintrac's market linkages and logistics support, Luna Fruit sent a trial shipment of its first harvest to buyers in the Middle East and reports indicated that color, texture and Brix level, or sugar content, were well received and now Luna Fruit is aiming to export its next harvest by sea.

"Growing table grapes in Ethiopia would be unimaginable without the support I received from Fintrac," Hagos said.

With fertile soil and favorable weather, the Oromia region of Ethiopia is ideally suited for table grape production, which is why Luna Fruit was able to harvest within a year and a half. In other countries, it can take as long as three years for grape seedlings to mature and bear fruit. As Luna Fruit's vines mature, Hagos expects another harvest later this year that will yield 80,000 kilograms.

"We believe we will have a strong competitive edge since we are expecting our harvest in October and November when the world supply of table grapes is at a minimal level," Hagos said.

Fintrac is also working with two other lead client table grape growers to build this emerging industry. These farmers regularly receive agronomic and postharvest handling support. For this group of growers, Fintrac is also developing integrated marketing strategies to establish a common brand for Ethiopia, facilitating buyer missions and more trial shipments, setting up shipping options for growers, and working to consolidate supply to meet demand in Europe and the Middle East.

Fintrac ATEP is an aggressive, market-led effort designed to energize four industry sectors - coffee; hides, skins and leather; oilseeds; and horticulture. Fintrac's effort in these sectors is increasing sales and incomes for thousands of Ethiopian farmers, processors and traders and increasing employment throughout the country. The program is funded by USAID.