FINAL MISSION REPORT (September 13 - October 15, 2014)

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Establishing industrial processing and marketing of Beles-based food products for increased income in rural communities in Northern Ethiopia.

SAP ID 100092, XX/ETH/11/X05 (43884)

30 November 2014

FINAL MISSION REPORT (September 13 - October 15, 2014)

NAME 1: Ralph LIEBING, ORA - International Organic Retailers Association NAME 2: Andreas G. ANDIEL, GAFÉIAS - Global Association for Environmental Investments and Sustainability of Economic, Social and Environmental

BRANCH: Aurelia P. Calabrò-Ballamoli, Senior Industrial Development Officer Chief, Agro-Industries Technology Unit, Agri-Business Branch, UNIDO

Beles Painting, Hotel Canaan, Adigrat

Contents

Establishing industrial processing and marketing of Beles-based food products for increased income in rural communities in Northern Ethiopia...... 1

PREFACE ...... 1

PURPOSE OF MISSION ...... 2

DATES OF MISSION, DATES & PLACES VISITED (incl. travel times): ...... 2

1. ASSESSMENT OF CURRENT PROJECT SITUATION IN ADIGRAT & EXCURSION TO ALITENA ...... 3

1.1. Introduction, Assignment of Tasks, Course of Action ...... 4

1.2. List of Meetings in Mekelle, Adigrat and Irob Region, Alitena (in chronological order)...... 4

1.3. UNIDO Beles Processing Unit Hall Tour: assessment of present status ...... 5

1.3.1. Beles Processing Unit, on-site visitation, Adigrat, 23.9.2014, 11:30-13:00 ...... 5

1.3.2. Beles Processing Unit in Adigrat, on-site visitation, with HE State Minister of Industry Dr. Mebrahtu Meles, 28.9.2014, 10:00 - 11:00 ...... 6

1.4. Excursion to Irob, Alitena ...... 7

1.4.1. Field trip from Adigrat to Irob Region, Dohan Village, Alitena Village; 25.9.2014, 09:30-16:30 ...... 7

1.4.2. MEETINGS & REPORTS in Mekelle, Adigrat and Irob Region, Alitena, 20 September – 05 Oct. 2014 ...... 9

1.4.3. Dr. Debesaye H. Senbeto, UNIDO Beles Project Technical Coordinator, Mekelle 20.9.2014, ...... 9

16:30-17:00 ...... 9

1.4.4. Meeting with Mr. Ermios, Co-Director of SME - Small and Micro Entrepreneurs Agency in Adigrat, 23.9.2014, 13:30-15:00 ...... 9

1.4.5. HE State Minister of Industry Dr. Mebrahtu Meles, Dinner, Adigrat, 27.9.2014, 20:00-22:00 ...... 10

1.4.6. HE State Minister of Industry Dr. Mebrahtu Meles, Breakfast, Adigrat, Hotel Canaan, 28.9.2014, 09:00- 10:00 ...... 11

1.4.7. HE State Minister of Industry Dr. Mebrahtu Meles, Meeting at AGORO LODGE, Adigrat, 29.9.2014, 10:15-11:15 ...... 11

1.4.8. Dr. Zaid Negash, President Adigrat University, 02.10.2014 09:30-09:45 ...... 11

1.4.9. Department of Marketing, Adigrat University, 3 representatives (contact details pending) 02.10.2014, 14:00-14:30 ...... 12

1.4.10. Meeting with Helvetas, Mr. Ato Bahre Embaye (AB): Senior Expert Helvetas Ethiopia Beles SUNRise Project, Tigray and Mr. Berhane Hailu (BH), Project Manager, Helvetas Ethiopia Beles SUNRise Project, Tigray, Mekelle, 03.10.2014, 16:40 – 17:30 ...... 12

1.4.11. Dr. Debesaye (D), UNIDO Beles Project Technical Coordinator, Mekelle, 04.10.2014, 10:00 – 11:00 ... 16

2. MARKET DEVELOPMENT ...... 19

2.1. Mission task ...... 20

2.1.1. Reference to Draft Preliminary Market Study ...... 20

2.2. Introduction to Market development ...... 20

2.2.1. Product ...... 20

2.2.2. Price...... 21

2.2.3. Package ...... 21

2.2.4. Points of sales (POS) ...... 21

2.2.5. Promotion ...... 21

2.3. Special Marketing Features for Beles from the UNIDO-project: ...... 22

2.4. Introduction FAIR TRADE ...... 23

2.4.1. Quick Entrance Request to Fair TRADE ...... 27

2.5. Why Organic Wild Collection ...... 29

2.5.1. Basic Principles of Organic Wild Collection ...... 30

2.5.2. Special Proceedings for Certification and Quality Assurance ...... 30

2.5.3. Procedure concerning certification-process of organic wild-collection of BELES ...... 31

2.6. FAIR TRADE and ORGANIC: SUCCESSFUL TWINS on the sustainable food-market! ...... 32

2.7. Meeting with Mohammed Kiyar (MK), FAIRTRADE ...... 33

2.8. Introduction to PGS (Participatory Guarantee System) ...... 34

2.9. The 2 markets for Beles: National and Export ...... 39

2.10. Key-success-factor processed BELES-products ...... 40

2.11. Actions undertaken in Beles-market development ...... 42

2.12. Dialog Partners met ...... 43

2.13. Minutes of the Meetings ...... 43

2.13.1. Meeting food-retailers, importers, exporters, wholesalers in Addis ...... 43

2.13.1.1. Meeting at SHOA Supermarket, 18.9.2014, 13:30-14:00 ...... 44

2.13.1.2. Meeting with Mr. Tesfalidet, General Manager of Fresh Corner Supermarkets, Addis Ababa, 18.9.2014, 15:00-16:00 ...... 44

2.13.1.3. Meeting with Mr. Girma Fantu (GF), Import Manager of Fantu & Family Trading & Industry P.L.E., Fantu Supermarket, Bole Road, Addis Ababa, 09.10.2014, 09:30-10:30 ...... 45

2.13.1.4. Visitation of NOVIS Supermarket, Bole Raod, recommendation to meet Mr. Adalberto Frezza, Owner, Cash & Carry Center (3c), Addis Ababa, 09.10.2014, 11:00-11:15 ...... 46

2.13.1.5. Visitation of BAMBIS Supermarket, recommendation to meet Mr. Bambis, Owner, Addis Ababa, 09.10.2014, 11:30-11:45 ...... 46

2.13.1.6. Meeting with distributor & logistician, ETFRUIT, Mr. Sisay Kibrel (SK), Addis Ababa, 09.10.2014, 14:00-15:00 ...... 46

2.13.2. Quality Management – Prices – Pricing ...... 50

2.13.2.1. Meeting with Ms. Meresu G/ner, Wholesaler, Beles Collection and Distribution Manager (BCDM), Helvetas, Mekelle and Addis Ababa, 08.10.2014, 11:45-12:30 ...... 50

2.13.3. International Hotel, Caterer ...... 51

Meeting with Mr. Assefa Gebeye (AG), Food & Beverage-Manager, INTERCONTINENTAL ADDIS HOTEL, Addis Ababa, 08.10.2014, 15:30-16:00 ...... 51

2.13.4. Coffee-House Chain Addis KALDI’S COFFEE P.L.C., Meeting with Mrs. Tseday Asrat (TA), CEO, Addis Ababa, 08.10.2014, 16:15-16:45 ...... 52

2.13.5. Producer/Exporter ...... 52

africaJUICE Tibila S.C., Meeting with Joost Bolt, Planning Manager, Addis Ababa, 12.10.2014 12:30-13:15 ...... 52

2.13.6. Agency ...... 53

Agency / Meeting 1 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014, 14:30-15:00 ...... 53

2.13.6.1. Agency / Meeting 2 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, ...... 55

7.10.2014, 15:00-15:30 ...... 55

2.13.6.2. Agency / Meeting 3 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014, 15:30-16:00 ...... 56

2.13.7. Meeting EHPEA – Ethiopian Horticulture Producer Exporters Association, Addis Ababa, 10.2014, ...... 57

09:30-11:00 ...... 57

2.13.8. HE State Minister Dr. Mebrahtu Meles, Debriefing, Ministry of Industry, Addis Ababa, 10.10.2014, 11:00-12:00 ...... 60

3. FUNDRAISING AND LOBBY-WORK ...... 61

3.1. Introduction ...... 62

3.2. Meetings ...... 62

3.2.1. Meeting at the Austrian Embassy in Addis Ababa, H.E. Ambassador Dr. Andreas Melán and Mag. Stephan Rutkowski (SK), Deputy Head of Mission, 18.9.2014, 10:00-11:30 ...... 62

3.2.2. Meeting at the ADC – (Austrian Development Cooperation) Coordination Office in Addis Ababa with Dr. Heinz Habertheuer (HH) (Head of Office Counsellor), 19.9.2014, 09:30-10:30 ...... 63

3.2.3. Meeting Andrea De Marco (ADM) (UNIDO Consultant), Hotel Intercontinental, Addis Ababa, 17.9.2014, 09:30-11:00 ...... 67

3.2.4. Meeting with KOCIA - Korea International Cooperation Agency, KOICA Ethiopia Office Addis Ababa, Mr. Halley Teklehaimanot, Program Coordinator [Architect], 14.10.2014, 11:00-11:30 ...... 68

3.2.5. Meeting Addisu Alemayehu, Ethiopian Institute of Agricultural Research, Addis Ababa, 12.10.2014, 15:15-16:00 ...... 69

3.2.6. Meeting with Mohammed Kiyar (MK), FAIRTRADE Liaison Officer for Ethiopia and South Sudan, ...... 69

GAFÉIAS ETHIOPIA Office, Addis Ababa, 15.10.2014, 12:00-12:30 ...... 69

4. Introduction of Mr. Addisu Alemayehu ...... 70

4.1. Meetings with Mr. Addisu Alemayehu ...... 71

4.1.1. Result of the 1st Meeting and interview with Mr. Addisu Alemayehu in Addis Ababa, 16.9.2014 ...... 71

4.1.2. Suggestion and 1st Draft of Terms of Reference (TOR) for Mr. Addisu Alemayehu, Ethiopian Institute of Agricultural Research ...... 71

5. Appendix: ...... 74

5.1. Roadmaps...... 74

5.1.1. Roadmap for the finalization of the processing plants in Adigrat ...... 74

5.1.2. Roadmap for the establishment of cooperatives and umbrella cooperatives ...... 77

5.1.3. Roadmap for Market Development ...... 78

5.1.4. Roadmap for Fundraising Measures and Lobby-work ...... 83

5.2. Lists of questions to different areas concerning the Adigrat plant ~ author: RL ...... 90

5.3. Curriculum Vitae of Mr. Addisu Alemayehu ...... 91

6. Brief Introduction of the Authors & Organizations ...... 95

PREFACE

The authors are pleased to present their final mission-report to Ethiopia from Sept. 14 to Oct. 16, 2014.

In regard to the current status of the UNIDO-Beles-project in Tigray/Ethiopia, one of the central concerns faced were certain retardations in the schedule. This generated some doubts amongst a few stakeholders and proponents in the country. Especially having missed the Beles-season of 2014 was most significant for this development. An assessment of the present status of the project was one of the author’s tasks.

A second important task of this mission was to set initial steps for the development of market access – mainly for the domestic market, but also for export. Therefore a row of meetings has been organized which resulted in a number of positive and encouraging prospects and options, formerly unknown.

A third and likewise import topic was to set measures in securing grants from Austria for the UNIDO Beles project. A meeting with the Austrian Ambassador to Ethiopia, Dr. Andreas Melán with request for support and another meeting with the head of ADC (Austrian Development Cooperation) in Ethiopia, Dr. Heinz Habertheuer, took place. Both meetings resulted in a positive reception of the project and consents of support. 4 more meetings also resulted in interesting options for fund-mobilisation.

Generally spoken the authors are very pleased with the many inspiring and supportive meetings held. We could take home much valuable information in favour of the ongoing and fruitful development of the Beles-project.

The authors thoroughly have tried to investigate and assess. We have identified 3 major areas for the report: 1. Assessments in Adigrat & Mekelle

2. Domestic & International Market-Development

3. Fundraising and Lobby-work

Besides the reports about a high number of meetings, the valued reader will find a comprehensive disquisition on the marketing-issue. As conclusions of our mission we have put into the report’s appendix a register of recommendations and questions, as well as roadmaps for the core topics.

The authors allow to emphasize that high performance of accuracy, professionalism, engagement and will to co-operate is in demand from all individuals and organisations involved. This will eliminate possible uncertainties and create a positive spirit which will help this exceptional project to reach its goals!

Ralph Liebing & Andreas Andiel Vienna, November 30, 2014

PURPOSE OF MISSION

(i) Assessment of current stage of project progress, including project area field trips and on-site factory visitations. (ii) Measures to securing grants from Austrian Ministry of European and International Affairs and ADC (Austrian Development Cooperation) (iii) Introduction of Ralph Liebing to the project’s national key stakeholders and representatives as international expert for emerging market development within the Beles project. (iv) Initial steps for the development of national and international markets for Beles.

DATES OF MISSION, DATES & PLACES VISITED (incl. travel times):

Addis Ababa 13 September – 19 September 2014 Mekelle 20 September 2014 Adigrat 21 September – 02 October 2014 Mekelle 03 September – 05 September 2014 Addis Ababa 06 October – 16 October 2014

Abbreviation of authors:

AGA = Andreas Andiel

RL = Ralph Liebing

Chapter 01

Authors: Andreas Andiel, Ralph Liebing

 Assessment of current project situation in Adigrat and Mekelle

 Excursion to Alitena

1. ASSESSMENT OF CURRENT PROJECT SITUATION IN ADIGRAT & EXCURSION TO ALITENA

1.1. Introduction, Assignment of Tasks, Course of Action Author: AGA

Main focus of the project mission to Adigrat and surrounding regions has been the assessment of project progress in relation to processing and marketing. Ralph Liebing has been introduced to all relevant stakeholders located at the project site, the Beles processing unit and related farmland as well as small holder farmer. After a briefing by the National Technical Project Coordinator the consultants visited the industry halls with both, the technical coordinator and HE State Minister of Industry. Relevant information regarding staff recruitment has been achieved from the Small and Micro Entrepreneurs Agency in Adigrat. The excursion to Irob region and especially the visitation of farmers in Alitena introduced the dimension of farmland covered by Cactus and the harvesting potential as well as life conditions of small holder farmer population. The photographical documentation of the trip provides relevant information for potential donors especially for the Austrian Development Agency. Various harvesting methods have been discussed with Helvetas and the technical project coordinator in regards of premium quality of Beles, training organization and logistics providing harvesting tools for farmers. Moreover a link to the Department of Marketing of the Adigrat University has been established.

1.2. List of Meetings in Mekelle, Adigrat and Irob Region, Alitena (in chronological order)

 Dr. Debesaye H. Senbeto, UNIDO Beles Project Technical Coordinator, Mekelle 20.9.2014

 Beles Processing Unit, on-site visitation, Adigrat, 23.9.2014

 Meeting with Mr. Ermios, Co-Director of SME - Small and Micro Entrepreneurs Agency in Adigrat, 23.9.2014

 HE State Minister of Industry Dr. Mebrahtu Meles, Dinner, Adigrat, 27.9.2014

 HE State Minister of Industry Dr. Mebrahtu Meles, Breakfast, Adigrat, Hotel Canaan, 28.9.2014

 Beles Processing Unit in Adigrat, on-site visitation, with HE State Minister of Industry Dr. Mebrahtu Meles, 28.9.2014

 HE State Minister of Industry Dr. Mebrahtu Meles, Meeting at AGORO LODGE, Adigrat, 29.9.2014

 Dr. Zaid Negash, President Adigrat University, 02.10.2014

 Department of Marketing, Adigrat University, 3 representatives (contact details pending) 02.10.2014

 Dr. Debesaye (D), UNIDO Beles Project Technical Coordinator, Mekelle, 04.10.2014

 Meeting with Helvetas, Mr. Ato Bahre Embaye (AB): Senior Expert Helvetas Ethiopia Beles SUNRise Project, Tigray and Mr. Berhane Hailu (BH), Project Manager, Helvetas Ethiopia Beles SUNRise Project, Tigray, Mekelle, 03.10.2014

1.3. UNIDO Beles Processing Unit Hall Tour: assessment of present status

1.3.1. Beles Processing Unit, on-site visitation, Adigrat, 23.9.2014, 11:30-13:00

Participants: Dr. Debesaye (Technical Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

We discussed on-site the renovation progress, especially the lacking connection from the transformer (street side) into the two, as well as the inexistent installation of high voltage electrical supply for the arriving of the machines. Detailed construction and installation plans (e.g. water and sewage management; electrical installations) as well as relevant documents have been requested. This is necessary in regards of the upcoming project submission to the Austrian BMEIA, Section VII.

Budget for renovation: ETB 500.000; 4 instalments: 20, 30, 30, 20%

Hall 1 and 2 - connecting passage, September 23, 2014 (Adigrat)

Hall 1 - modification, Beles supply area, September 23, 2014 (Adigrat)

Hall 2 – unfinished state, September 23, 2014 (Adigrat)

1.3.2. Beles Processing Unit in Adigrat, on-site visitation, with HE State Minister of Industry Dr. Mebrahtu Meles, 28.9.2014, 10:00 - 11:00

Participants: Dr. Debesaye (Technical Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

HE State Minister of Industry Dr. Mebrahtu Meles and UNIDO Consultants raised several questions in regards of the renovation process or the Beles Processing Unit:  Hygiene measures: special coating of floor and walls (oil paint?)  Open roof measures  Electricity supply: sufficient high voltage 380 V plugs according to machine outlets?  Question regarding emergency backup generator  Timing for connection of high voltage cables from the transformer to the industry halls  Sewage water management in the machine hall  Adaption of the lighting system according to the necessity of work places related to the machines  Questions concerning process description related to delivery, weighing and intermediate storage delivered Beles.  Questions concerning outfall of machines and emergency measures  Is there a tender for the Cold Store and Deep Freeze Warehouse (not yet considered) for the second industry hall in Adigrat?  Question concerning the utilization of biodegradable waste.  Off season production: for which commodities the machines could be of interest?  There is sufficient space available for extension buildings according to project phase II. and III. on the premises. 6

Beles processing unit, on-site visitation (right to left) HE Minister of Industry Dr. Mebrahtu Meles, Dr. Debesaye, Building Constructor, Ralph Liebing

1.4. Excursion to Irob, Alitena

1.4.1. Field trip from Adigrat to Irob Region, Dohan Village, Alitena Village; 25.9.2014, 09:30-16:30

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant); Vehicle: 4x4 Toyota of University Adigrat

On our way north to the Eritrean border we observed and documented (photographs) extensive wild collection potential for Beles. Our observations were focussed on the general life conditions of the rural population, their settlement and agricultural structures, water supply, public transport, road conditions, as well as general infrastructures, e.g. schools and medical infrastructure; this especially in order to meet the requirements of the Austrian BMEIA regarding documentation.

 Welcome reception by the Mayor of the settlement of Dohan (Eastern Zone of Tigray Erob Wereda Office of Agricultural and Rural Development).  Introduction to Hagos Yasin, Development Agent of Eastern Zone of Tigray Erob Wereda Office of Agricultural and Rural Development in Dohan.

(1) Interview with Hagos Yasin: Irob region consists of approx. 500 households, 5-6 persons in average which results in approx. 3.000 inhabitants. Within a 40 km radius the Development Agent of the Agricultural and Rural Development Office of Irob in Dohan is supporting approx. 2000 farmers regarding farmers in their agricultural development with the help of 10 extension workers on motorbikes. 7

Based on an agreement (MoU) between FAO and UNIDO regarding the Beles project, the extension workers will be assigned for a Train the Trainer programme which will enable them to train the farmers according to the necessary high standards for Beles production, harvest, storage and transportation.

Farmer’s visitation: Mr. Jonas, Farmer in Dohan, and 2 Farmer colleagues  cultivate a high number of Cactus varieties  are owners of a huge range of land  demonstrated Beles pears for tasting  showed us how to prepare cattle feed out of Beles cladodes

Beles on Cactus, wild growth, Irob Region

Farm with Beles – view from the rock church Abuna Abraham Debre Tsion

1.4.2. MEETINGS & REPORTS in Mekelle, Adigrat and Irob Region, Alitena, 20 September – 05 Oct. 2014

1.4.3. Dr. Debesaye H. Senbeto, UNIDO Beles Project Technical Coordinator, Mekelle 20.9.2014, 16:30-17:00

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

Briefing:  Introduction of Ralph Liebing according his core expertise  Introduction of the current UNIDO mission: filling gaps and swift procedures of implementation process  Introduction of Addisu Alemayehu, Ethiopian Institute of Agricultural Research, and suggested ToR in order to guarantee success of the upcoming project phases  Planning meetings with Dr. Debesaye in Adigrat  Pointing out that it is critical to identify export chains  Focussing on the quality of Beles fruits  Clarifying 2 types of cooperatives: farmer cooperatives and collectors cooperatives  Option of meeting at UNIDO field office regarding Beles project to take place October 3 with an alternative date October 10, 2014.

1.4.4. Meeting with Mr. Ermios, Co-Director of SME - Small and Micro Entrepreneurs Agency in Adigrat, 23.9.2014, 13:30-15:00

Participants: Dr. Debesaye (Technical Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

Mr. Ermios is supervisor at the SME - Small and Micro Entrepreneurs Agency Adigrat based on an 18 years’ experience in his professional field. SME, which has been established by the Ethiopian government, cooperates and organizes jobless students who graduated from Universities in different fields and links them to cooperative businesses in urban areas and/or farmers in rural areas. SME slowly expanded from rural areas into urban areas. SME is providing trainings for youth cooperatives and provides support in developing business plans. Students are organized e.g. to work for cobblestone pavements in order to generate funds for upgraded businesses. If they are ready to finance 20% of the investment for their business, governmental micro-loans of 80% will be added in order to start their entrepreneurship, which needs to be paid back within a period of time – 98,4% are able to pay back within 2-3 years. SME practices therefore a kind of rotary finance system – all back payments are used for further funding in order to create more small enterprises. SMEAA generated huge experience accordingly, so far 5.540 jobless young has been supported successfully in rural and urban areas.

In the light of Beles processing unit Mr. Ermios and Dr. Debesaye explained that approximately 170 jobless youth shall be recruited to work in the factory – based on 20% start-up budget they already generated. Therefore those young members of the Beles factory team will participate in the business regarding ownership. The delivery and installation of the machines in the Beles processing unit is a benchmark for SME regarding warranty to start the recruitment process. Dr. Debesaye will focus on the moment the machines will arrive in the harbour of Djibouti City

– pushing its way to Adigrat. Immediately after arrival and installation the focus will be turned on the trainings for the recruited young people – general training in relevant fields including rural entrepreneurship development training.

Recruitments are taking place in rural areas for harvester cooperatives and in urban areas for collector cooperatives. Job descriptions are to be developed in time for all positions needed in the Beles processing unit, the farmers and collectors’ cooperatives - e.g. mechanical engineers, technicians, cleaners, and staff for loading. Dr. Debesaye prepared job profiles already.

Producers versus farmers respectively farmers cooperatives need to directly deliver to the collector cooperatives respectively to the Beles processing unit. Middleman needs to be excluded in order to minimize the value chain – this is also in the sense of FAIRTRADE procedures. The technical terminus for this procedure is ‘direct sales’ – farmers deliver directly to collectors of the factory – the factory delivers directly to wholesalers or/and retailers or/and other potential buyers.

Contracts will be prepared between the farmers and collectors - regarding start-up budget from micro finances to buy Beles. Beforehand it is crucial to establish a demand for Beles at local, national and international level, which is specifically UNIDO’s role in the project. UNIDO will provide the needed market-accesses. A number of wholesalers and retailers have been already met by UNIDO consultants in Addis Ababa during mission week 38/2014. It has been pointed out that measurable quality matters and special PR-measures will be prepared step by step. FAITRADE standards will be implemented in order to guarantee a fair system of income for the identified farmers, women and youth. The development of an attractive brand-name will be launched in form of a public contest in Ethiopia and a test phase amongst consumers after a committee has selected the best nominations. The corresponding logo is advised to be developed by professional graphic-designers.

Finally the topic of transparent cash-flow procedure to the farmers has been on the agenda. This foremost as this topic was regarded as unsatisfactory laid out to the Austrian Development Agency ADA, as significant project-donor. Contracts will clearly indicate the paid amount (equivalent to start-up budgets for youths recruited by SME) and payment time frames (periods) from the collector’s cooperatives (factory) to the farmer’s cooperatives. The contract must include standards regarding quality and price of the products creating a win-win approach for either partners. UNIDO consultants asked for samples of these contracts before the end of October 2014 in order to attach them as proof to the fund submission documents to the Austrian Ministry of Foreign Affairs/ADA.

Dr. Debesaye pointed out to make use of the time-gap between October 2014 and April 2015 (the off-season regarding Beles) to organize youth cooperatives, execute recruiting’s as well as to conduct all relevant trainings.

1.4.5. HE State Minister of Industry Dr. Mebrahtu Meles, Dinner, Adigrat, 27.9.2014, 20:00-22:00

Participants: Dr. Debesaye (Technical Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

Invitation by HE to attend traditional dinner. Informal exchange of different more general aspects about Ethiopia, its relation to Eritrea, the political situation in Eritrea and the necessity to implement further projects to fight youth unemployment and to create new business opportunities.

1.4.6. HE State Minister of Industry Dr. Mebrahtu Meles, Breakfast, Adigrat, Hotel Canaan, 28.9.2014, 09:00-10:00

Participants: Ralph Liebing (UNIDO Consultant), Dr. Debesaye (Technical Project Coordinator), Andreas G. Andiel (UNIDO Consultant)

HE informed about his planned visit to Vienna coming November 4 and 5, 2014 to attend a special meeting by UNIDO about industrial development in Ethiopia and Senegal. In his ongoing conversation with Ralph Liebing the idea was established to arrange a number of high ranking meetings in Vienna with HE. Ralph Liebing suggested a meeting with the Director of BOKU, the University of Natural Resources and Life Sciences, Vienna, in order to establish close relations with the University of Adigrat with focus on land degradation management and landscaping. Furthermore a meeting with the new designated General Director of the Austrian Development Agency, Federal Ministry of Foreign Affairs (BMEIA, Section VII.) accompanied by a high ranking UNIDO representative was suggested.

1.4.7. HE State Minister of Industry Dr. Mebrahtu Meles, Meeting at AGORO LODGE, Adigrat, 29.9.2014, 10:15-11:15

Participants: Dr. Debesaye (Technical Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant); Further aspects of the Beles project were discussed.

1.4.8. Dr. Zaid Negash, President Adigrat University, 02.10.2014 09:30-09:45

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

Check-Out Meeting including oral intermediate mission report; Meeting arrangement with Adigrat University Marketing Department;

Landscape Tigray

1.4.9. Department of Marketing, Adigrat University, 3 representatives (contact details pending) 02.10.2014, 14:00-14:30

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant),

After mutual personal introduction the question was raised whether the department had any knowledge about the Beles project and abut its current status. The members of the Marketing Department stated that they had heard about the existence of the project by the Agricultural Department last year, but they have not been updated ever since. Ralph Liebing suggested the exchange of email addresses and project updates per email (Annual Report). Furthermore RL pointed out that the project is following a new approach for Ethiopia which is the certification of Beles according to the FAIRTRADE and organic wild-collection standards. Furthermore RL pointed out that those marketing activities in connection with certified fair-traded organic products must follow a totally different marketing approach as non-certified products. He offered the department an upgrading of the general food marketing knowledge by supplying them with basic issue-related information by mail. He also announced the possibility of special training unit for the department concerning this topic within his next mission and presence in Adigrat. This was received with high content by the visiting three members of the Marketing Department. Information leaflets about FAIRTRADE certification as general information were handed over.

E: [email protected], M: +251 914 788692 Participants: Ralph Liebing (RL) (UNIDO Consultant), Andreas G. Andiel (AGA) (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

AGA/RL Meeting Agenda:  Helvetas role as stakeholder in the UNIDO Beles project  Who is giving farmer trainings for 15.000 estimated small hold farmers in 8-10 regions?  Who is writing the ToR for plucking sticks and palettes  Who is estimating facts and figures regarding expenses of production and delivery of the sticks  Who is organization the Beles transports to the Beles processing unit?

YTD’s Meeting preparation support concerning the role of Helvetas: 1. Trainings for farmers 2. Quality analysis and labelling in cooperation with MU and AU 3. Assisting in market linkage / value chain development 4. Assisting to prepare technical specification and cost estimation of harvesting tools 5. Advisory service for the cooperative establishment and management 6. Farmers training: Adigrat University in cooperation with TARI will give on farm trainings for farmers UNIDO - will give TOT for AU and TARI experts 7. Pallets and packaging materials are already considered by Dr. Debesaye.

Minutes:

Introduction of topics by AGA and RL: Is there an idea when all of the estimated 15.000 Beles farmer shall have access to the market? The cooperation process needs to start at the first possible moment from now on. ToT (training of trainers) needs to be started at the soonest possible moment. Also, improved harvest technologies needs to be introduced to approximately 16000 farmers in 8 Woredas. 16.000 harvesting sticks should be available until the final phase of the BELES-project. It needs to be clarified if one or two harvesting sticks per farmer are needed. AB reports about Helvetas trainings for 5 Woredas, which has been given for 320 households respectively small holder farmers. Harvesting sticks need to be purchased directly by Helvetas, the prototype works very well. The handle could be of wood, the basket is metal (springs)

Helvetas designed prototype of Beles harvesting tool

Helvetas sells it for ETB 80 to farmers. If it is not affordable a discount will be given (ETB 50). Eventually UNIDO could pay a certain percentage for each harvesting tool. If it is still rejected by the farmers it has to be made clear that only undamaged Beles with highest quality will be bought by the Beles processing unit in Adigrat in order to meet the expectation of the markets. This rule of purchase will certainly stimulate the acquisition of the new harvesting tools. SME could produce the tools in order to provide another chance for business development.

Training of model-farmers: for each region farmers will be selected who will function as models for the surrounding Beles-farmers. BH informs about a previous meeting with YTD and Dr. Debesaye about the same topics (harvesting methods and trainings) – there should be minutes available! Regarding time schedule and work plan: responsibilities have to be clarified, who is doing what, where and in which time? A stakeholder meeting has to be arranged accordingly. Concentration on concrete time frames and steps of implementation is essential in order to use the time of 6 months until the opening of the Beles processing unit in April 2015 so not to miss the Beles fruit season 2015.

Ms. Meresu G/ner (Beles Collection and Distribution Manager, Helvetas) could give training regarding quality. She will provide data regarding prices. (See report of meeting in AA 8.10.)

Beles handling with gloves at the de-prickling tables has been discussed.

Pickup trucks will deliver Beles to the Beles processing unit. Cartoon type or plastic type of fruit crates have been discussed. Production of crates could be implemented in Mekelle.

Statistics regarding Beles related population per Woreda is available at Helvetas. 13

In cooperation with Beles project experts Meresu is capable to develop characteristics for Beles regarding quality standards by size, taste, colour at the soonest, in order to meet market standards for different regions: e.g. Irob- type, Adigrat-type; focus on one variety which is most liked by the majority of consumers and focus on more research at Adigrat University on that variety

BH explains again the role of Helvetas:

Ad 1. The Training of farmers is included in the 2015 plan of Helvetas. It will be given at first in 2 Woredas close to Adigrat, where Helvetas is working already. The training of farmers will be expanded according to the increasing Beles supply for the processing unit.

Ad 2. Quality analysis and labelling in cooperation with MU and AU; grading and sorting of varieties regarding taste; RL points out that Beles needs to be introduced to the markets as Beles commonly is not known by consumers; BH informs that Beles from Adigrat are well known to customers e.g. in Addis Ababa as fresh and tasty as well as easy to handle; BH discussed the need of branding indicators such as taste (sour) as well as contents of vitamins – start the most easy way. Quality analysis and labelling needs a budget as well as cooperation with MU and AU.

BH recommends delivering literature elaborated following the Helvetas 2009 Beles workshop to RL. Quotation: Propagation, Ecology and Cultivation of Temperate Zone Fruit Trees (Almond, Apple, Apricot, Cactus Pear and Plum). Ed.: The Italian Society for Horticultural Science. Food and Agricultural Organisation of the United Nations. Project CGP/ETH/073/ITA. Addis Ababa, 2009.

Ad 3. Assisting in market linkage / value chain development: domestic market needs not much input from the project; BH points out that it is not very profitable to deliver Beles from Adigrat to Addis Ababa. Helvetas will contribute very little to this point. RL points out that the market in general needs to be conquered with premium quality – no matter with or without FAIRTRADE or organic wild collection certificate. BH stresses an assessment of the markets in Addis Ababa which are full supply by street vendors of low cost Beles.

Street vendors in Mekelle selling Beles for ETB 1,-- per fruit

RL informs that the project tries to reach specific super markets in Addis which will take some time. We will start with a small segment of high quality Beles for a higher prize. In addition international 5 star hotels will be addressed as well as Ethiopian Airlines. BH pushes to focus on the penetration of international markets forced by UNIDO. He estimates a low chance for domestic market for high quality Beles. RL introduces Middle East countries as prior target and points out that the import of fresh fruits to Europe by airfreight is increasingly unpopular by European customers. On the other hand processing and added value has a higher chance in Europe. He introduces a special market research concerning brands and ranges and prices at the most significant food-markets of the EU executed by master-programme-students of the BOKU-University of Applied Life Science in Vienna in the coming winter- semester 14/15 which will deliver interesting and valuable background information for further product-development of Beles

Ad 4. Assisting to prepare technical specification and cost estimation of harvesting tools: Helvetas: the estimate of numbers of tools will be provided by the time harvest is starting. (Comment AGA: at that time it might obviously be too late already). Fruit crates: cartoon crates caused high spoilages. RL requested prototypes of crates as well as pictures. Crates shall provide space for 1 layer and needs to sustain 2 way transports to and from Addis Ababa.

The cooling systems of the Beles processing unit have been discussed.

Ad 5. Advisory service for the cooperative establishment and management:

FAIRTRADE certification in identified areas will be executed by one certification body in combination with Organic Wild Collection. This helps to safe costs.

The Regional Cooperative Agency (a governmental body within the Bureau of Agriculture) is organizing cooperatives. RL point out the importance of an Umbrella Cooperative Organization for all involved cooperatives in terms of cost reduction measurements with the certifications.

ToT issue: Helvetas will provide trainings in cooperation with Bureau of Agriculture & Rural Development and the Regional Cooperative Agency. Trainings need to be started as soon as possible in order to meet the upcoming harvesting time April/May 2015. BH suggests immediately to start with awareness trainings in order to increase sensibility and to identify communities as supply areas. A sensitive topic is the flow of general information which strictly has to follow realistic facts & figures in order to avoid over-expectations.

The Ownership of the Beles processing unit must be clarified; the enterprise needs to be registered at the soonest. Recruitment needs to be started – who shall operate the machines? Who will be responsible for sales & marketing, who is estimating the number of tons for the market?

BH: A soon meeting of the steering committee needs to provide a clear governing action plan and to make key decisions and update schedules. Also, a cautious approach concerning the recruiting of Beles-farmers needs to be considered. The magic figure of “15.000” Beles-supplying smallhold-farmers can only be reached if all processing- and marketing-related developments manifest as planned. The mission report shall be sent by Aurelia Calabro to the Steering Committee in order to provide necessary decisions latest by the end of 2014 or early 2015.

1.4.11. Dr. Debesaye (D), UNIDO Beles Project Technical Coordinator, Mekelle, 04.10.2014, 10:00 – 11:00

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Filmon Lebelo (GAFÉIAS Consultant)

Minutes:

YTD shall send Palermo 2013-11 report including photographs of the practised special cactus pear harvesting methods in Sicily. In addition the minutes of the meeting of YTD with Helvetas in August 2014 are requested especially in regards of discussed harvesting methods.

FAO cooperation with UNIDO has been discussed; a MoU will be prepared by both sides.

Helvetas is member of the Steering Committee (Mekelle University - MU, Adirgat University - AU, TARI, TAMPA, SME); Laboratories are available; Product development; Adigrat University is mandated for research, cactus development; Dr. Mebrahtu established relationship to University Palermo; International Cactus forum: starting a modern cactus farming system, including small holder farmers, organisation in cooperatives; improved harvesting sticks, implementation of an organic compost system.

“Palermo” harvesting method: Dr. Debesaye reports about a special harvesting method used in Sicily, Italy; Special cactus pear harvesting clothes are in use – in order to get very close to the plants without getting injured. Small parts of the cladodes are removed with a knife while harvesting the cactus pear; the fruit remains completely closed that way (the bottom of the fruit) which is increasing the shelf-life significantly. No fermentation can start and no bacteria will enter the fruits. Moreover ladders are used in order to reach the fruits as close as possible. RL and AGA asked for the Palermo report (which has been received meanwhile – the “Palermo” harvesting method is not mentioned in the report, no photographs are provided). However, a manual harvesting is requested in analogy to the “Palermo” harvesting method. Farmers needs to be trained and motivated to harvest according the new method

16 with a small amount of cladodes remaining on the fruit; the new harvesting method is important especially for the export market; RL considers visiting Beles-plantations in Sicily to study the harvesting method and the packaging & logistics; D.: Israel uses also a new harvesting method, using a tool with a mechanism like a pistol or a gun; the cactus fruit will be removed from the bottom without harm; RL asks about details; could we get a sample of the harvesting tool from Israel? D.: YTD has established contacts to experts from Israel supporting the feasibility study, who needs to be contacted accordingly; Dr. Debesaye points out, that Helvetas’ harvesting basket mechanism should be used only for Beles for the local markets as farmers still will damage Beles if not using to tool properly. RL: if this is the case, there will be two different qualities of Beles; this is unrealistic and has to be avoided. The farmers have to learn that only undamaged Beles will be purchased at the processing plant. To achieve this comprehensive supply is most essential - all involved farmers needs to be equipped with improved harvesting-tools!

D.: Beles processing unit capacity: 4 tons per hours / 32 tons per day

Helvetas shall provide fruit crates; RL explains that fruit crates for export must meet certain standards for shipping; special crates must be organized; D.: sample in Addis Ababa; RL: are there pictures? D.: YTD can provide pictures RL: investigate fruit crates standards for export; RL will send this information to D. and YTD. D.: there are packaging factories in Addis Ababa, using a strong material, strong paper, strong covers for the corners;

The final marketing report from the Tunisian expert has been delivered. Access market according delivered marketing studies. However, export of Beles from Ethiopia never happened before;

Contact the Ethiopian Diaspora in Gulf Countries as well as in Austria and Germany.

RL, AGA: Revenue re-calculation: re-calculation including a tendency to export market; benchmark re-calculation;

Establish cooperatives and start the trainings accordingly as soon as possible in order to meet the next Beles season early 2015. Training experts for training will be assigned by FAO, Helvetas, TAMPA, SME, MU, AU und UNIDO; Establish cooperatives in a distance equal to Irob (Alitena); RL: training must focus on reaching premium quality for all markets, not only export;

D.: Transport; Buy 6 Cold Storage Trucks, 4 tons per lorry; transport to Mekelle Airport and Addis Ababa (3 to 5 days trips); RL: use open space in cooling trucks of other companies who deliver goods to Adigrat area as alternative as many of them normally return to AA empty.

D.: The project needs immediately one permanent staff member to support him in Mekelle office as well as regarding all activities in Adigrat;

RL: A cold storage and a deep freezer are most essential to be procured for Adigrat. This would facilitate to buy all Beles available and provide processing work for the off-season to a part of the approx. 180 workers & staff.; D.: during 2nd phase of the project; has identified a company in Addis Ababa, the prize has already been investigated (lower that the prize for the machines); a cold storage for 5 till 6 degree Celsius would be sufficient for the 1st phase; dimension: 10m * 17m; there is also cold storage space at Mekelle airport; D. mentioned that the cold storage at Mekelle airport is still not functioning; clarify with the project manager regarding cold storage purchase;

D. asks regarding the role of RL in the project; RL: practical product and market development based on the market feasibility studies and the results of BOKU’s market research in the EU as much as his long-time know-how and vast international network; developing a new quality-type of Beles (premium quality), relying on the promotion & sales 17 advantages of FAITRADE and organic wild collection standards and certification; fair distribution must be guaranteed, in order to increase income for the benefiting farmers and to sustainably improve their living conditions; middleman are to be excluded; D. is in line with that, he points out that we never have to allow middleman to come in between; D. is also in line with FAIRTRADE; focus on those very strict standards and executed annual FAITRADE audits; RL: Focus on capacity building and more professionalism also; D.: focus on best technology; RL: prepare for entrepreneurship, for hand over to the new owners of the Beles processing unit; D.: focus on university graduates, young jobless, and form cooperatives; we need to establish the project office as soon as possible in order to constantly cooperate with the governmental Cooperative Agency; RL would like to visit that agency;

D.: we need start-up money for a minimum of 2 months; will it be covered by SME as seed money for the young jobless? Who is covering the pre-start running costs? D. calculated expenses for the first 2 months – about ETB 1,000,000 -2,000,000 / USD 50,000 – 100,000;

RL: Project phase 2: processing marmalade, juice etc. (based on research results of BOKU* and results of feasibility study) – write business plan as soon as possible; phase 2 needs to be implemented as soon as possible as to secure higher income through added-product value; D.: need additional machines; we need a project design based on engineering work and financial analysis; RL: BOKU Vienna: marketing study development starts October 15, 2014, producing product related surveys;

Office / car of D. in Mekelle: D. covers expenses from his UNIDO salary and covers also car costs; ETB 12,000 – 15,000 are still left, which covers expenses for the upcoming 6 months, in average ETB 2,000 per month. D. suggests buying a car for the project which cost about USD 30,000

D. hands over “Terms of Reference for Civil Works for the Improvements, Renovations and Rehabilitation of Beles- Agro-processing plant Building in Adigrat, Northern Ethiopia”, 23 p.

Cactus-Fruits from Italy on sale in German supermarket-chain, summer 2014 (1 kg €uro 2.38 = ETH 59.00)

Chapter 02

Market Development

Author: Ralph Liebing

2. MARKET DEVELOPMENT

2.1. Mission task

The task concerning market development in this mission was focused on surveying all possible and important contacts in the country. We met and spoke to individuals or groups of persons who could either give ongoing information, provide effective support or have the potential to become partners.

The fields of survey consisted of:  national market support  export-market support  quality management, prices and pricing  distribution and logistics  wholesale & import  retail  producer  hotels, catering, cafés  associations (national & international promotion support)  agencies (national & international promotion support)

2.1.1. Reference to Draft Preliminary Market Study (of Sept. 2014) and Draft Communication Strategy (of June 2014) by Ms. Mastouri Manel

It is well aware that there is a number of valuable research-data, references and recommendations deriving from these 2 publications. They all are well appreciated and will certainly be taken into consideration by the marketing-team from case to case.

2.2. Introduction to Market development

One of the centrally important areas in the whole Beles-project is the sales of its products – in phase 1 the fresh Beles-fruits and in phase 2 the product range of processed Beles like jams, juices etc. To create the best possible starting position with the highest long-term impact in the areas of sales, the classical 5 Ps of Marketing will be considered and applied in practise:

1) Product 2) Price 3) Package 4) Point of Sale (POS) 5) Promotion 2.2.1. Product

As in Phase 1 of the project solely fresh Beles will on disposal, the task is not all that difficult – or – difficult enough when it comes to deliver the BEST QUALITY POSSIBLE. To achieve this, a definition and a special product-standard have to be developed. A PREMIUM standard who is outplaying the existing and low product-standard of Beles on the market.

Most important: as the fruit is not harmed any longer during harvest, fermentation will be impeded which is significantly extending the product’s shelf-life.

Compared to the existing quality standards of Beles on the market in Ethiopia, Beles supplied by the UNIDO-project will be marketed in PREMIUM QUALITY. It will be:

 carefully handpicked at the right stage of ripeness

 picked with a new harvesting technique not harming the fruit’s cladodes and preventing fermentation  hand-selected at the gate of the processing plant in Adigrat  carefully washed and de-spined  stored in technically appropriate crates and coolers  transported in cooling trucks to the POS (points of sales) in the country or to the export-hub.

This up to now unfamiliar product-quality consequently will be welcome for sale and use in

 retail-supermarkets  fruit-shops  hotels, restaurants, coffee-houses (juices, smoothies, cakes, fruit-salads +++)  catering services  airline catering

2.2.2. Price

We were able to precisely investigate about national Beles-prices and pricing. The fact that we will supply Beles in premium quality to buyers & clients allows the project to calculate a slightly higher retail price (approx. +15%) which also is positively influencing the margins for the venders.

2.2.3. Package

Packaging is very crucial in two ways: firstly for a careful transportation to the POS or other user and secondly concerning attractiveness in the shelves of supermarkets. This asks for suitable transportation in appropriate crates still to be identified plus a variety of packages for the end-consumer to take home Beles from the different POS.

2.2.4. Points of sales (POS)

We were able to meet a representative number of owners of supermarkets and supermarket-chains in Addis Abeba and the conclusion of the interviews is very valuable for the preparation of fresh Beles sale for the coming season of 2015 it gives clear direction about certain expectations.

2.2.5. Promotion

Promotion measures to raise attention amongst consumers can be manifold. The least expensive measures are connected to tastings in the diff. POS on days with high consumer frequency, linked with special offers of BELES. Additionally eye-catching-devices for the shelves will be applied. Also, special information-leaflets or folder will be produced to give valuable back-ground-information about the source of Beles. This kind of promotion is called „product with a face“ and is the contrary to anonymous products from „somewhere“ who are beneficial solely the vendors and not a group of people like in our project! Other forms of promotion have to be considered specifically and more precise in relation to costs & effects to be expected like advertisement in print-media or even TV-spots. The least expensive pro-activities always are connected to action by people involved as they are authentically presenting their product to the consumers.

2.3. Special Marketing Features for Beles from the UNIDO-project:

Today’s world of trade is full of tough competition. To establish a market for a new product is challenging and asks for a sequence of different and important things like:  an appealing brand  best product quality  appropriate and eco-friendly packaging  reasonable price incl. attractive margins for the entire supply-chain  accurate survey and observation of the selected sales-channels  professional networking and key-account management  sales-activities  PR activities  +++

The starting position for marketing Beles descending from a huge initiative like the UNIDO-project for Eastern Tigray is different to a product launched by an average company of a big agro-industrial or food-industry business.

Beles as a „product with a face“

All products from the plant in Adigrad have a unique story to tell. A story about the smallhold farmer growing and picking Beles, as much as about of the unemployed youth at the processing plant in Adigrat, obtaining a chance to self-organise their professional careers for the future. The success-potential for Beles as a so called „product with a face“ is high, much higher as of a product from „somewhere and of somebody“. Central advantage: the ability to tell authentic life-stories connected to the product. This makes a difference with the consumer/buyer if they learn that by their purchase they do not only do something beneficial for themselves (tasty & delicious Beles) but also will support a meaningful project for live-improvements of some of their country-fellows (or poor smallhold-farmers in Ethiopia) in despair and need.

Advantages through FAIR TRADE and Organic certification

On top, another upgrading for Beles will occur by participating with the professional FAIR TRADE- certification system plus receiving the valuable Organic-Wild-Collection certificate. This has a high impact when it comes to marketing processed Beles-products from Tigray to the EU and other export markets. The FAIR TRADE philosophy has been very well received amongst consumer of the Western markets since the last decades. With the FAIR TRADE philosophy a strong market-relevant movement has developed and the will of the consumers to pay a little extra for those special products is well established in society meanwhile. Furthermore, it has become „chic“ for all notable companies in the food-processing industry to introduce a FAIR TRADE segment in their product range. FAIRT RADE-certified products like coffee, tea, juices, spices, rice, cotton, fruits etc. have reached main-stream status in the markets of the EU as well as USA & Canada.

In Germany (2012) in 36.000 points-of-sales FAIR TRADE products were sold. 18.000 gastronomic businesses offer FAIR TRADE products and 200 companies produce and process products under the FAIR TRADE standard. www.en.wikipedia.org/wiki/Fair_trade

Important links for further information: http://www.fairtrade.org.uk/ http://www.fairtradeafrica.net/ http://doku.cac.at/eza_sd_englischneu.pdf www.fairtrade.net/fresh-fruit.html

The costs for the FAIR TRADE certification are affordable in relation to the achieved advantages on the markets. The special PGS-certification system has been developed for this purpose (see 3.7.) 22

2.4. Introduction FAIR TRADE

2.4.1. Quick Entrance Request to Fair TRADE

This is the first official step to start with the development of integration of BELES into the FAIR TRADE certification. It was implemented on September 19, 2014.

2.5. Why Organic Wild Collection

Source & © Imo – Institute for Market Ecology - www.imo.ch

Organic certification to gain access to high quality markets Trade in “organic” wild products is becoming more and more important, not only within the food sector but also in the personal health care and the medicinal herb sectors.

For certified organic products, producers can, therefore, expect either a higher price, improved market access or both.

Organic certification to enhance sustainability Sustainability is a long-term concept that requires producers to look into the future as much as to the present. For generations, many societies have harvested from the wild at a sustainable level, but changes in these societies resulting from population growth, conversion of land to agriculture as well as for the global popularity of herbal products today, are leading to higher levels of harvesting that not only threaten species’ survival but also local livelihoods. Organic certification has to its aim that the collection of wild crops does not endanger the ecosystem and that the collected populations endure despite harvesting.

Organic certification for safety and quality control One important aspect of organic certification is the implementation of a traceability system which allows to track a product from its collection area to the finished product. In this way, it is guaranteed that the organic quality of the product is maintained. In addition, traceability is crucial for food safety and quality: the better and more precise the tracing system, the faster a producer can identify and resolve food safety or quality problems.

2.5.1. Basic Principles of Organic Wild Collection

Plant products which are grown in the wild can be certified as organic. But not every plant collected in its natural habitat can be considered as organic. The following basic principles need to be applied:

Only Naturally Grown Plants (without any agricultural measures)

 Clearly Defined Collection Area (The Certification applies to plants grown in an approved area. The area itself is not certified.)  Clean Collection Area: No un-allowed inputs and potential sources of contamination in the collection area  Sustainable Collection: Collection must not threaten the stability of the plant population or the ecosystem  Full Traceability: All activities from the collection area to the sale of the products need to be documented in detail

The regulation about organic wild collection is very vague. Thus, the efficiency of certification is highly dependent on the responsibility of the certification body. Long-term effects can only be assured by choosing a high quality certification body.

2.5.2. Special Proceedings for Certification and Quality Assurance

 Description and evaluation of the plants and part of plants to be collected  Definition of collection methods  No endangered plants are certified  A list of approved collectors is defined before collection  Development of Internal Collection Rules  Emphasis on collectors knowledge and training on Sustainability issues: - Limits of the collection area - Identification of species - Collection methods for the different species - Intensity of the exploitation - Collection only at correct physiological state of species - Botany and reproduction cycle of species - Frequency of visiting the collection area - Postharvest management  Design of a Collectors Manual including - general rules for collection - description of collection methods - Plan monographs for the most often collected species  Control of the complete supply chain - field verification of the collected plant populations - visits and interviews with the collectors - control of collectors post-harvest management - inspection of each purchase centre

2.5.3. Procedure concerning certification-process of organic wild-collection of BELES (information based on a telephone-conversation between Ralph Liebing and Joe Ritt, Manager of ABG International Certification Agency from Austria on Sept. 12, 2014)

Essential steps & requirements:

 assessment of defined harvesting surface areas for BELES

 accurate maps of the areas are essential

 evidence of right to cultivate BELES

 harvesting-records of BELES

 proof that BELES have not been treated with chemical sprays and/or fertilizers within the last 36 months or

 compulsory conversion-time according to diff. regulations (IFOAM, EU +++) = 36 months before allowed to market product according to certified organic wild-collection

 2 separate costs for FT & OWC certification o there is a possibility of shared costs for both certifications in terms of travelling

2.6. FAIR TRADE and ORGANIC: SUCCESSFUL TWINS on the sustainable food-market!

In order to reach the optimum of marketing advantages (as explained in the introduction about FAIR TRADE - 3.3) it is highly recommended to twin this advantage by certifying processed Beles- products to come under the OGANIC WILD COLLECTION Standard and – thus – having the advantage to participate on the fastest growing food-market in the world: ORGANIC.

The annual compendium The World of Organic Agriculture – statistics and emerging trends – offers a comprehensive insight into this global story of success: https://www.fibl.org/fileadmin/documents/shop/1636-organic-world-2014.pdf

In Europe there are a number of well-established national FAIR-TRADE organizations offering a wide range of FAIR TRADE and Organic FAIR TRADE Products. Here you can find an appealing and informative introduction about FAIR TRADE by the Austrian Organization EZA : http://doku.cac.at/eza_sd_englischneu.pdf

2.7. Meeting with Mohammed Kiyar (MK), FAIRTRADE Liaison Officer for Ethiopia and South Sudan, GAFÉIAS ETHIOPIA Office, Addis Ababa, 15.10.2014 12:00-12:30

T: +251 (0)920 053823, E: [email protected], [email protected] Participants: Andreas G. Andiel (UNIDO Consultant)

Minutes:

MK is agronomist, graduated in business administration (M.A.), works as part time FAIRTRADE consultant; he is expert, product manager and trainer in organic farming, takes part in research, project planning and management; he established links to experts in organic farming in Israel; MK is expert in organic certification and horticulture industry;

EUPIP (Brussels) is supporting in capacity building; MK established a strong link to EUPIP and recommends application for funds for the UNIDO Beles project. The FAIRTRADE Quick Entrance regarding Beles has been acknowledged; MK is also focussing on social auditing.

Codex Mendoza with Eagle sitting on Beles, Mexico, 16th century

The Codex Mendoza is an Aztec codex, created about twenty years after the 1521 Spanish conquest of Mexico. It contains a history of the Aztec rulers and their conquests, a list of the tribute paid by the conquered, and a description of daily Aztec life, in traditional Aztec pictograms with Spanish explanations and commentary.

2.8. Introduction to PGS (Participatory Guarantee System) A smart control-system with high impact at affordable costs for small hold-farmers!

Impacts of PGS

PGS facilitated 1000s of small hold farmers to market together (e.g. in Uganda over 200.000 households for export and 150.000 for domestic).

PGS provides stable and continuing access to markets (e.g. PGS groups in Uganda have been continuously marketing for years and had assured income through participating).

2.9. The 2 markets for Beles: National and Export

The expected market share of the Ethiopian domestic market lies around 30%, for the export markets at around 70%.

This has to be looked at from the perspective of 3 possible product-groups which the project in its advanced state will be able to provide:

1. fresh Beles-fruits 2. semi-finished Beles products like seeds for oil, fresh or frozen puree 3. processed Beles-product under own brand

Thus, the split-up of 30 : 70 can only materialize in reality when all 3 product groups are fully produced and traded. The turnover and profit generation by selling predominantly fresh Beles is relatively low in comparison to exporting semi-processed or processed products, particularly if upgraded with special certifications like FAIR TRADE and Organic Wild Collection. The added product-value and higher prices consequently result in higher profits and will significantly contribute to an overall economic success of the project. Taking this fact into consideration, the launch of phase 2 = processing and the investments into processing units is of high importance!

2.10. Key-success-factor processed BELES-products

“The vision is to process Beles into various products and become the largest supplier of high-quality Beles products to Middle East and European markets”

(Project vision, Feasibility-Study of Nov. 2013, p.8)

This very ambitious vision asks for prompt action, especially as there definitely is a market for processed Beles products from Tigray. These products have a realistic chance to be linked to the diversified markets of the EU and Middle East, as much as to the domestic market at the soonest possible moment, precisely already in 2015, the Year 1 of production. Especially the split-up of 30% for domestic market sales and 70% for export market sales indicates the necessary emphasis in market-development.

Therefore: processing of fresh Beles into marketable products (upgraded by FAIR TRADE & Organic certification) must be seen as the key to success for the project and therefore should be implemented at the soonest possible moment.

This consideration also is connected to the fact that the availability of fresh Beles will exceed the absorption of the domestic and Middle East-markets and thus an instant start with basic processing-steps in Adigrat is a logic consequence. It is uneconomic to reject Beles from farmers if they comply with the quality-criteria. It is of significance that over- supply of Beles is not rejected but used for processing or – at least – storing in deep-frozen state for further use – also in the „dead-season“ after October. This time is ideal for processing the stored Beles-flesh into different products of the 1st processing category (jams, purées, syrup, dried Beles, seeds for oil).

Premium quality is of high significance for the entire product range. To gain substantial knowledge about the existing products on the market, a comprehensive market survey is executed by master-course students of BOKU-university in Vienna from October 2014 until January 2015. 8 of the most interesting markets in the EU will be screened about existing products, brands and prices. This will provide us with valuable information for the further development of our product range in the future.

Process of determination for new products

Another most important effect of the immediate implementation of processing in Adigrat is that it creates employment-opportunities beyond the Beles season and helps to fight un- or underemployment. This can be seen as in the light of a most effective off-season utilization strategy.

The processing will start with products easy to process like jams, pulps, dried Beles for teas, raw-food & cosmetics, seeds for oil. This is labour intensive but cost-saving and no additional, expensive machinery has to be purchased.

One investment still is essential to perform: the installation of a freezing-unit for storing Beles-pulp for further processing as well as a semi-processed product for sale. Additional investment cost will be manageable. But there needs to be sufficient and hygienically faultless space for this processing unit and the freezing storage in the halls of Adigrat.

Beles from Tigray has a special USP (Unique Selling Proposition) which will be helpful to market it fresh and processed. To underline the USP of the Tigray- Beles a unique brand still has to be developed.

USP = Unique Selling Proposition!

As an important task still to accomplish, an EU-wide survey & assessment about marketing-potential of FRESH Beles for European Market (conventional & organic/FAIR TRADE buyers) will be performed in the 1st quarter of 2015.

An attendance at the leading organic trade-fair BIOFACH 2015 in February in Nuremberg/Germany will give the opportunity to meet with potential importers of organic & FAIR TRADE products (fresh & processed).

2.11. Actions undertaken in Beles-market development

 domain www.beles.eu secured  contact to the International FAIR TRADE network and inquiry about Beles as a FAIR TRADE certified product www.fairtrade.net/  preparation measures for development of special BELES standards for FT certification www.fairtrade.net/fresh-fruit.html  contact to FAIR TRADE Africa for support www.fairtradeafrica.net  contact to the expert–in-charge for FT-certification issues in Ethiopia (see 3.7.)  contact to FloCert, FAIR TRADE-certification agency from Germany www.flocert.net  contact to Austria Bio-Garantie, international certification agency from Austria http://www.abg.at/en  contact to IFOAM (International Federation of Organic Agriculture Movements) www.ifoam.org concerning membership and connected support  market survey for Opuntia-indica in 8 major EU-markets (Austria, France, Germany, Holland, Italy, Great Britain, Spain, Switzerland) conducted by mastercourse-students of BOKU (University of Applied Life Science Vienna/Institute of Marketing & Innovation), October 2014 – January 2015  contact and disposition for special raw-food Beles production & training with Mr. Marius Gabor of Petras Bio: http://www.sproutedrawfoods.eu/db/index.php/benefits/

Marketing Projektstudie

Opuntia ficus indica – Kaktusfeige –

Cactus Pear

Gruppe 5.1 Katharina Dornauer Thomas Maletzky Georg Faber Benedikt Fritz

2.12. Dialog Partners met

Food-retailers, wholesalers, importers, exporters

1. General Manager of SHOA Supermarket, Addis Abeba, 18.9.2014 2. General Manager of Fresh Corner Supermarkets, Addis Ababa, 18.9.2014 3. Fantu & Family Trading & Industry P.L.E., Mr. Girma Fantu, Addis Ababa, 09.10.2014 4. Novis Supermarket, Addis Abeba, 09.10.2014 5. Bambis Supermarktet, Addis Abeba, 09.10.2014

Fruit logistician (national & export) 6. ETFRUIT, Mr. Sisay Kibrel (SK), Horticulturist, Addis Ababa, 09.10.2014

Quality management, prices and pricing 7. Ms. Meresu G/ner, Addis Ababa, 08.10.2014

International Hotel Addis 8. Intercontinental Hotel, Mr. Assefa Gebeye, Food & Beverage-Mgr., Addis Ababa, 08.10.2014

Coffee-House chain Addis 9. Kaldi’s Coffee P.L.C., Mrs. Tseday Asrat (CEO), Addis Ababa, 08.10.2014

Producer/exporter 10. africaJUICE Tibila S.C., Joost Bolt, Planning Manager, Addis Ababa, 12.10.2014

Association 11. EHPEA – Ethiopian Horticulture Producer Exporters Association, Addis Ababa, 8.10.2014

Agency 12. EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014

HE Dr. Mebrahtu Meles 13. HE Dr. Mebrahtu Meles, Ministry of Industry, Addis Ababa, 10.10.2014

2.13. Minutes of the Meetings

2.13.1. Meeting food-retailers, importers, exporters, wholesalers in Addis

Introduction

All these meetings followed a certain pattern: RL briefly introduced himself and his role as market- and product-development advisor of the established UNIDO- Beles-project in the n/e Tigray-region. Background information about the project’s objectives, locations, target beneficiaries, quality aspects, estimated production volume and timeframe was provided. The aim of the meeting was highlighted as attempt to establish a long-term business-relationship on the basis of BELES-supply from the coming season 2015 onwards.

The project’s aim was outlined as to produce premium-quality Beles fruits in a previously in Ethiopia not available quality. This high quality-goal will be reached by applying new harvesting-techniques, hand-selection at delivery, professional washing and de-spining, careful packaging and undisrupted cooling logistic.

Also, for the planned processed products to come – like jams & juices - certification for Fair Trade and Organic Wild Collection will be executed to secure a special USP for international marketing.

New ways of product promotion, like tasting-offers and information-materials will be provided for the POS (points of sale) aiming to emphasise the premium-quality of the Beles and to relativize its higher sales-prices of about +15%. A reverence to an attractive margin also was mentioned.

To successfully reach these aims and fulfil the identified tasks concerning national market-development and distribution, the project is screening the Ethiopian food-market for its most eligible and committed distribution- partners. Hopes for a future cooperation with the visited entrepreneur were expressed.

2.13.1.1. Meeting at SHOA Supermarket, 18.9.2014, 13:30-14:00

Participants: Yoseph Tewodros Delelegn (YTD) (National Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (AGA) (Consultant); Mrs. NN/owner of Shoa (no business card/name by email pending)

# 1: Beles products introduction # 2: Beles products promotion # 3: Plans to win SHOA as one of the major distribution partner in Ethiopia; # 4: SHOA showed big interest in fresh Beles ready for sale, SHOA buys fruits from wholesalers; as soon as the products are available SHOA is ready to work with us # 5: SHOA is used to sell Beles but is missing good quality and reliable availability; SHOA looks for the best quality # 6: SHOA buys from suppliers on credit basis with payment dates between 45 and 90 days; damaged products will be taken back by the supplier; # 7: SHOA operates in Addis Ababa 6 POS (=point of sales) including 1 Hypermarket; plus 1 POS will be opened in November 2014 # 8: SHOA Bole has a better frequency, between 50kg and 120kg Beles could be sold per day (Onions: 400kg per day, potato: 250kg – 300kg per day) # 9: SHOA sells more than 4000 products # 10: SHOA is looking for organic products, a FAIRTRADE certification is welcome

2.13.1.2. Meeting with Mr. Tesfalidet, General Manager of Fresh Corner Supermarkets, Addis Ababa, 18.9.2014, 15:00-16:00

Participants: Ralph Liebing (UNIDO consultant), Addisu Alemayehu (consultant) Agenda: Business Partnership for the Beles Agribusiness Project in Northern Ethiopia

Mr. Tesfalidet Hagos (General Manager of Luna Export Slaughter House in Addis Ababa) introduced his company’s business which is engaging in a wide range of agribusiness activities for their well-established local and export markets. His company’s core-business is slaughtering of all kinds of animals and sales of meat. The other important business is the production of fruits and vegetable from their farm site at Mekelle and around Koka and other contract farmers in the country. Their export target market for these products is mainly The Middle East, but also EU/UK. The local market is concentrated mainly to Addis Ababa through their five supermarkets.

Fresh Corner, the companies’ POS (Points of Sales) for fresh meet and fruit and milk products, has not established a market for Beles yet, because of insufficient packaging, unsatisfactory quality and handling limitations due to the spines. Nevertheless Mr. Tesfalidet Hagos sees a big potential for Beles also in relation to the continuously growing demand for fresh fruit products in the local market.

Concerning the topic of the company’s policy in introducing new products, Mr. Tesfalidet Hagos replied that the company normally does not operate on a credit-based business model like many other wholesalers/retailers in the 44 country. If the delivered products meet the company’s expectations in quality and quantity, cash payment is standard. Fresh Corner in principle is interested in marketing fresh Beles and depending on the reception by their customers is certainly interested and willing to introduce processed Beles products in a next step.

Concerning the question about options to cooperate within the company’s export-market-activities, Mr. Tesfalidet Hagos showed serious interest and is willing to screen his clients in The Middle East, and EU/UK for potential interest in importing Beles through his logistic-channels.

To the question raised concerning options to joint-use the company’s cool-transport-logistics from Mekelle to Addis for Beles (and further on to export-destinations) Mr. Tesfalidet Hagos responded positively.

The discussion was closed with mutual interest in keeping contact for negotiations concerning the establishment of an official business partnership.

Result of the meeting:

3 business partnership areas could be identified for further and future-development: 1. Business partnership for developing the local market for fresh Beles fruit via the fresh corner retail supermarket-outlets. 2. Business partnership for developing export markets for high quality certified fresh and processed Beles products through the fresh corner export market linkage in EU/UK, The Middle East. 3. Business Partnership for Synchronizing cool-logistics and freight for Beles products from Mekelle Farm to Addis Abeba

2.13.1.3. Meeting with Mr. Girma Fantu (GF), Import Manager of Fantu & Family Trading & Industry P.L.E., Fantu Supermarket, Bole Road, Addis Ababa, 09.10.2014, 09:30-10:30

M: +251 91 1514033, E: [email protected], Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes:

Girma Fantu is shareholder of Fantu & Family Trading & Industry ple, his responsibility is import; he graduated in Business Administration in Denver, USA, where he lived for 12 years. RL asks if it would be possible to integrate Beles in the Fantu-businesses like the 3 retail-supermarkets und the 4*- hotel on Bole-Road in Addis. GF states that FANTU would appreciate to market Beles and Beles products “Made in Ethiopia”; GF & Fantu need reliable supply both for fresh & processed Beles. He is also interested in an expanding his food-range to more organic products, FANTU has 2 supermarket-outlets, a 3rd is under construction; FANTU also operates a dairy farm, which is planned to be converted into an organic farm; the farm produces milk products (milk, cheese, yoghurt), meat products (beef, pork); GF invites to visit the farm during the next Beles project mission in February 2015;

FANTU operates business relations with 40 supermarkets in Middle East and in South Africa – contacts will be provided by GF;

GF recommends ALE Corp. (contact details needs to be clarified with GF), wholesaler for manufactured products, owned by the government, for in-country marketing;

2.13.1.4. Visitation of NOVIS Supermarket, Bole Raod, recommendation to meet Mr. Adalberto Frezza, Owner, Cash & Carry Center (3c), Addis Ababa, 09.10.2014, 11:00-11:15

M: +251 118 551210 (Secretary) Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes: M. Frezza was not available. His deputy manageress shows interest that at NOVIS Beles goes on sale by 2015 – both fresh & processed. Contacts should be made “in time” to provide samples and make appointments for tasting & promotion.

2.13.1.5. Visitation of BAMBIS Supermarket, recommendation to meet Mr. Bambis, Owner, Addis Ababa, 09.10.2014, 11:30-11:45

M: +251 115 502300, E: [email protected] / [email protected], Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes:

As Mr. Bambis was on holiday we briefly introduced to the deputy manager (NN) the Beles project and handed over our business cards, focussing on a meeting in February 2015;

2.13.1.6. Meeting with distributor & logistician, ETFRUIT, Mr. Sisay Kibrel (SK), Addis Ababa, 09.10.2014, 14:00-15:00

M: +251 911 479940, E: [email protected], recommendation to meet Mr. Mengistu (CEO ETFRUIT) Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes ETFRUIT

CEO of ETFRUIT is Mr. Mengistu; Helvetas worked with ETFRUIT according to agreement; Mr. Sisay Kibrel (SK) has 25 years of experience, he attended Beles-related workshops in Mekelle conducted by Helvetas; because the Beles supply has not been sustainable, delivery has been stopped; ETFRUIT operates 61 outlets, container shops in the streets of Addis Ababa; Beles are sold if they are in a very good condition which rarely is the fact. (Fermentation problem!)

RL informs about the capacity of the Beles processing unit in Adigrat – 3 tons fresh Beles per hour as well as processed products in plan; the Beles project is focussing to increase livelihood of small holder Beles farmers; Middle man will be excluded, direct marketing will be practised – farmers will be linked directly to consumers;

SK: ETFRUIT is ready to cooperate with us. SK asked for information about the current margins of Beles ETFRUIT’s policy is to avoid middlemen; ETFRUIT bought Beles for ETB 7.00 per kg and sold them for ETB 9.00 per kg;

Cool trucks: ETFRUIT assists a pharmaceutical company in Adigrat, delivering raw material from Djibouti to Adigrat; Beles could be transported on the way back to Addis Ababa as the trucks normally go empty!; new medium 12 t cool trucks are operating and space can be rented; 1 driver and 1 assistant would need 2 days to drive from Adigrat via Addis Ababa to Djibouti harbour; if Beles are exported by airfreight from Addis Ababa airport, fresh fruits can be stored in ETFRUIT’s cold storage at the airport;

ETFRUIT operates 14 branches out of Addis Ababa;

ETFRUIT is willing to cooperate in the development of marketing materials , like posters etc. and – in case of available budgets _the production of TV adverts; RL: the Beles project would be happy to win celebrities, prominent Ethiopians, promoting the fruits and processed products;

SK: send basic information about the Beles project, e.g. a PowerPoint presentation; send also information about the organic wild collection certification and FAIRTADE standards;

ETFRUIT also operates a branch in Mekelle; ETFRUIT could provide container; SK also recommends making use of local resources;

ETFRUIT Company Profile

ETFRUIT Company Brochure

2.13.2. Quality Management – Prices – Pricing

2.13.2.1. Meeting with Ms. Meresu G/ner, Wholesaler, Beles Collection and Distribution Manager (BCDM), Helvetas, Mekelle and Addis Ababa, 08.10.2014, 11:45-12:30

M: +251 914 040389 Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Translation: Mahletay Alem (GAFÉIAS ETHIOPIA)

Meresu is a Beles Collection and Distribution Manager (BCDM) of one of Helvetas communities and has been buying Beles fruits from communities and successfully supplying it to Addis Ababa market. She is the right person to meet and discuss on Beles fruit marketing to Addis Ababa.

Minutes:

AGA explains the UNIDO Beles project to Meresu G/ner, the processing unit, the selected Woredas, no. of farmers and people involved the members of the stakeholder consortium as well as the proportion of in-country sales and export contingent. The phases I. fresh fruits, II. jam and juice and III. Pharmaceuticals, neutraceuticals and cosmetics are explained; RL is introduced as well as Addisu Alemayehu, key expert from Addis Ababa;

What are Meresus’s tasks and relationship to Helvetas? Helvetas provides technical support for her; Meresu also distributes Beles to Tsega Gebrekidan, Mekelle.

Meresu is dealing with Beles since 12 years, she started to sell Beles on the streets, and gradually transformed into selling Beles to street vendors since a couple of years; Helvetas communicated with her in order to sell Beles in Addis Ababa; Helvetas provided some technical support for sales.

Meresu introduces herself as business women acting as middle women; she buys Beles from small holder farmers in the Adigrat region, transports them to Addis Ababa in order to sell them for local markets; vendors in Addis Ababa buy from her;

Helvetas provided fruit crates to her, they were produced from cardboard and got damaged, therefore Beles have been harmed during transport; instead of those she is now using wooden fruit crates; Ask Berhane Haile from Helvetas to send pictures from the wooden fruit crates.

Question about the transport time from Adigrat to Addis Ababa: 1 transport per day for 2 months during the main season in July and August, further transport activities during June and September.

How does the distribution work in Addis Ababa? Currently 1 customer is distributing Beles in Addis Ababa:  Meresu is buying 1 kg Beles from farmers for ETB 2.50  She is selling 1 kg Beles to a middle man for ETB 3.75  The middle man sells Beles to markets and street vendors for ETB 12.00 per kg !!!!!  The consumer prize for Beles is about ETB 15.00 per kg Beles;  Street vendors sell 1 Beles for ETB 2.00 per piece  She makes ETB 1,000 net profit per day and has to pay salaries and logistics from it

RL asks her if she could imagine executing the quality control at the Beles-processing unit in Adigrat .She also could act as link to the farmers concerning necessary quality and varieties. Meresu was very excited about this idea and would be happy to get this engagement.

Meresu has 11 employees, earning each ETB 50 per day. 50

Each Beles is controlled before paying to the farmers; the best Beles are selected.

Adi Hana, Tigray: Meresu meets farmer and local people at the Beles collecting point; she is sending her employees with megaphones to the area, announcing the purchase of Beles; Meresu is practicing strict quality control, because damaged Beles are sent back from the street-vendors. RL asks how much Beles she normally rejects from buying because of bad quality; answer: less and less.

After production start at the Beles processing unit in Adigrat, Meresu could be involved in promoting Beles and Beles products; she should be teaming with the sales-department of the processing unit and Addisu Alemayehu, the planned national project- advisor; Meresu has been trained by EHDA - Ethiopian Horticulture Development Agency as Beles Collection and Distribution Manager (BCDM. In case she should be employed in the production-unit in Adigrat she could be involved in the training of the unemployed youth in topics connected to the quality control system. Unemployed youth are recruited by SME for a limited time, one year, therefore there is a constant need for quality training; training of hygienic standards could be also in Meresu’s responsibility, a special training for her in HCCP*-management is compulsory; moreover she could participate at (international) food-fairs in her traditional Tigray costume – her very basic English should be improved;

*HACCP: http://en.wikipedia.org/wiki/Hazard_analysis_and_critical_control_points Hazard analysis and critical control points or HACCP is a systematic preventive approach to food safety from biological, chemical, and physical hazards in production processes that can cause the finished product to be unsafe, and designs measurements to reduce these risks to a safe level. In this manner, HACCP is referred as the prevention of hazards rather than finished product inspection. The HACCP system can be used at all stages of a food chain, from food production and preparation processes including packaging, distribution, etc.

2.13.3. International Hotel, Caterer Meeting with Mr. Assefa Gebeye (AG), Food & Beverage-Manager, INTERCONTINENTAL ADDIS HOTEL, Addis Ababa, 08.10.2014, 15:30-16:00

M: +251 912 090585, E: [email protected] Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes: AG comes from Tigray; the introduction of Beles to the Intercontinental Hotel in Addis is of high interest to him ; the cooperation has been welcomed. All available information about Beles and possible Beles products – e.g. high nutrition values, decreasing diabetes - shall be sent via email to AG; AG reports about a local fruit juice company, producing not pasteurized juice, supplying to Radisson; RL introduces intentions regarding Beles as a premium quality product, with organic wild collection and FAIRTRADE certification which is of interest to all Western Hotel-clients; AG points out that Beles would be an new and interesting fruit for customers of every top-hotel in Addis Ababa – prompting new local products from Ethiopia such as the famous white honey; e.g. at Breakfast buffets Beles would be a new and tasty Ethiopian product and can be specially promoted; processed Beles-products can be on sale as souvenirs for tourists.

AG introduces a Lebanese who started juice production in Ethiopia, his factory will be opened soon;

2.13.4. Coffee-House Chain Addis KALDI’S COFFEE P.L.C., Meeting with Mrs. Tseday Asrat (TA), CEO, Addis Ababa, 08.10.2014, 16:15-16:45

M: +251 911 218573 E: [email protected], [email protected], Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes: TA is interested to promote Beles and Beles products in KALDI’S COFFEE; she asks to send her all interesting information about Beles; she is happy to support the approach of the project and appreciates the involvement of FAIRTRADE; She owns a farm producing milk products; RL introduces organic farming to her; TA welcomes to visit her farm during the next Beles project mission in February 2015.RL suggests TA to consider an assortment of organic coffee for KALDI’S COFFEE; at present 24 branches of KALDI’S COFFEE are operating, 2 branches will be opened soon, one at Addis Ababa Airport;

2.13.5. Producer/Exporter

africaJUICE Tibila S.C., Meeting with Joost Bolt, Planning Manager, Addis Ababa, 12.10.2014 12:30-13:15

M: +251 930 108257, E: [email protected], www.africajuice.com, Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

Minutes: africaJUICE is a public-limited company in Dutch hands and runs the Tibila Farm at Adama, Ethiopia.

Following topics have been discussed:  Export costs in general from Ethiopia – considered to be high  necessity of long shelf life of fresh Beles regarding export  Staff recruitment: o Consider remote areas as unattractive for high qualified staff o Consider mind set as challenge – mind set training such as success principles training is mandatory o Mentality challenges o africaJUICE experience: hand over to locals failed; involvement of external foreign staff is mandatory, during implementation and after exit  Business plan evaluation, business development phase: share experience with africaJUICE HQ in De Hague, NL  Invitation to visit africaJUICE Tibila Farm at Adama, Ethiopia during the next Beles project mission in February 2015 o Production of juice and packing for export to EU in plastic barrels of 200 litres o Sterilization of juice o Passion fruits only at the moment o Need to contracting a highly reliable Ethiopian transport company – cooling trucks o Djibouti Rotterdam: 18 days shipping time 52

2.13.6. Agency

Agency / Meeting 1 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014, 14:30-15:00

Mexico Square, Coffee & Tea Building T: +251 11 5502483 E: [email protected], [email protected]

Mr. Wondwossen (W.), M: +251 911 119798, E: [email protected] Participants: Andreas G. Andiel (UNIDO Consultant), Ralph Liebing (UNIDO Consultant), Addisu Alemayehu (Ethiopian Institute of Agricultural Research)

Minutes: Addisu Alemayehu introduces our meeting request, AGA explains the Beles project, RL has been introduced; We need support regarding market linkages and market development – 30% in-country market and 70% export of Beles. Emphasis needs to be put in a swift development of export market;

Introduction of EHDA Officer Mr. Wondwossen: Strategic Planning of Ethiopian Horticulture Development Agency; dealing with different types of high valuable vegetables transported to market destinations abroad; to Europe, Middle East and Sudan; Somalia also is an enormous market; considering seasonality regarding fruits – especially if it is winter in Europe export to Europe is a mandate for support through EHDA:  Market promotion  Support for investors regarding land, bank system and duty free approach  Technology transfer directorate  Work with professional consultants regarding production and post-harvest handling and transport  Different operational benchmarks regarding export

W.: to export 70% of the Beles harvest is a great effort; does it exist in other countries? AGA: send Beles paper to W. RL: Mexico, Sicily, Israel, South Africa, Egypt; we consider not only fresh fruit transport but also processed fruits, such as jam, juices and other products; RL introduces himself as market development expert; FAIRTRADE standards will be implemented – organic wild collection standards in order to guarantee a high value addition especially for at European markets; harvesting techniques needs to be improved in order to extend the shelf-life of Beles;

W.: Costs are accumulating through export; RL explains that he came in as marketing expert officer in order to meet such challenges and find solutions; W.: will involve other EHDA officers, regional transport logistics needs to be involved; refrigerator container are necessary from Djibouti, to be paid for both ways, in order not to break the cooling chain. W.: Technical challenges regarding competitiveness needs to be considered; Work on logistic aspects; EHDA office will help in that aspect; EHDA is a governmental office inheriting a mandate of transit, working at break-even level, working e.g. on transport of banana and how to cover transport costs;

RL: what actual support could be provided? W:  Establishment of linkages between producer and exporter as well as transporter  Recommendation with whom to work with, e.g. Maersk-Containers, in order to obtain the lowest possible transport price  EHDA is also linked between producer and buyer  EHDA is responsible for the facilitation of export  EHDA assists in production aspects with a number of horticulturists  EHDA assists in post-harvest handling 53

 EHDA assists in training  EHDA assists in guiding farmers

W.:  governmental officer to coordinate experts, governmental budget, MoI to extend funds  Dr. Mebrahtu is chairman of national transport  Covering participation in international fairs, exhibitions: EHDA will find funds  Horticultural exhibition in Addis Ababa  Exhibitions abroad  EHDA acts upon request from European Countries or from Middle East  Access to Middle East data, e.g. from Abu Dhabi o Ministry of Foreign Affairs o Business diplomats Both inform about data of exhibitions; plan participation in the right time ahead; access information on internet including prices for booths; customs data available regarding quality and price  Export now: bananas, mangos; RL: Organic? Certification?  EHDA: marketing department, Dr. Solomon Amede, check data about fruits which are exported regarding identification of international markets for Beles  Start penetration in existing markets, then expand to new areas  Send samples through Ministry of Foreign Affairs, they can promote Beles  Contact trade commissionaires at every Ethiopian Embassy

EHDA Service Summary:  Cooperation on logistics, transport, post-harvest  Facility expense sharing together with the Ministry of Trade  Promotion locally and international  Updated marketing information  Work with our diplomats

Literature received (1) The World Cactus-pear Market (1996). Pablo Ramirez Moreno, Claudio Flores Valdéz. J. PACD, p. 75-86. (2) EHDA Brochure

2.13.6.1. Agency / Meeting 2 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014, 15:00-15:30

Dr. Solomon Amede (SA), Marketing Promotion, Research and Quality Follow-up Directorate Director, E: [email protected] Participants: Andreas G. Andiel (UNIDO Consultant), Ralph Liebing (UNIDO Consultant), Addisu Alemayehu (Ethiopian Institute of Agricultural Research)

Minutes:

Addisu Alemayehu and AGA introduced the Beles project; RL explains FAIRTADE and organic wild collection; we intend to reach a Beles quality which is unknown in the country so far; we will introduce new harvesting technologies; we intend transport improvements; market entry will be the Beles season 2015; we focus on fresh fruits and investment in fruit processing which leads to increased value addition;

SA: the Beles project is in line with governmental guidelines because it is focussing on the export of processed products; it is a challenge to deliver fresh products, it needs to be clarified if the transport will happen via Maersk or Sealine;

RL: we are focussing on product development, premium sequence, and on USP regarding FAITRADE and organic wild collection certification;

SA: Link with EHDA regarding support  Promotion  Co-financing promotion – divide among stakeholder  Product promotion in Europe and Middle East  Entering the premium product market  Subscription fees  Payments for updates of market data  Supporting cooperatives to continue and run the business  Cooperative needs in the long term  Market information  Collaboration with embassies  Exhibition preparation, promotion through fruit experts o By now only bananas are promoted o Beles would be the second species to be promoted  EHDA is concerned about fresh supply  Awareness of skills of farmers: cooperation with FAO and Helvetas  EHDA will discuss with stakeholder, Steering Committee and HE The State Minister, Dr. Mebrahtu Meles  EHDA considers the Beles project as a nice challenge and opportunity  The common goal of EHDA is focussing on export and to promote Ethiopian products abroad

RL: the next Beles project mission will take place in February 2014 – we need to prepare: o Announcement to arrange meetings with stakeholders o EHDA shall send a list of annual exhibitions

2.13.6.2. Agency / Meeting 3 - EHDA - Ethiopian Horticulture Development Agency, Addis Ababa, 7.10.2014, 15:30-16:00

Mr. Gossaye Dechasa, Directorate Research and Technical Development, E: [email protected] Participants: Andreas G. Andiel (UNIDO Consultant), Ralph Liebing (UNIDO Consultant), Addisu Alemayehu (Ethiopian Institute of Agricultural Research)

Minutes: Provided service:  Introduction of alternative harvest technology to farmers from Israel and Italy  Processing of the introduction of alternative post-harvest technology  Focussing on premium fruit quality  Mandate on fresh fruits  Linkages to MoI regarding processed fruits in case of production gap to satisfy the Industry  Contract farming  Assessment of industries in Ethiopia and necessary support regarding shortages; e.g. introduction of new technologies  Providing necessary technology regarding the export of fresh fruits  … Cooling container  Small holder farmers are supported in general by the Ministry of Agriculture (MoA), a specific department for capacity building  In case a company is collecting products from small holder farmers, EHDA is involved e.g. regarding contracts with the farmers  MoA is responsible form national till regional level  If the project is linked with industry, MoI is involved  EHDA mandate: enhance the export of exportable products  EHDA is providing direct support to companies if producers are linked with companies  Submit business plan and EHDA will support to develop the project; ask the Beles project Steering Committee to submit it to EHDA; the business plan will be evaluated and EHDA will support the new company according its mandate: o Needs regarding new harvesting methods as part of the business plan o Show investment capital – if it is not sufficient to run the business a loan agreement will be provided o If import of harvesting technologies: EHDA can support regarding duty free permission o Arrangement of participations at exhibitions

2.13.7. Meeting EHPEA – Ethiopian Horticulture Producer Exporters Association, Addis Ababa, 10.2014, 09:30-11:00

www.ehpea.org Mickey Leyland Road, Chechenya, NB Business Center, 6th Floor (Anneke Hyso, 603 and 604) P.O. Box 22241 code 1000 Addis Ababa Ethiopia

Mr. Tewodros Zewdie, Executive Director, T: +251 116 631760, E: [email protected] Dr. Adhanom Negassi, IPM Component Manager, T: +251 116 636751, E: [email protected] Berhane Lodamo, Promotion and Information Service Dept. Head, T: +251 116 185178, E: [email protected] Anneke Hyso (NL), Horticulture Business Advisor, T: +251 11 6636750, M: +251 929 186355, E: [email protected] Glenn Humphries (UK), Training, T: +251 956 010956, E: [email protected]

Participants: Andreas G. Andiel (UNIDO Consultant), Ralph Liebing (UNIDO Consultant)

A. EHPEA Minutes by Anneke Hyso:

Prickly pear project in Adigrat – UNIDO funded project - Processing location work in collaboration with out growers (do not have own production) - Processing capacity of 20.000 tons per year - Involving 15.000 farmers – impacting 200.000 people. - Plan to start in April/May 2015 – Ralph to send Anneke an indicative volume which can be supplied at the start. - Ralph to send general information on the farm to Anneke (product specifications, production capacity various standards, impression of the processing unit and the farmers, harvesting method, general production methods such as harvesting) – information relevant to communicate to buyers.

Market development/access - 70% intended for export (Middle East/ Europe) - Standards: o Organic 1st class quality o FAIRTRADE certified 1st class quality o Regular – for regional markets - EU: o Growing demand for organic and fair trade in Germany, Austria, Switzerland o Main competitors in Sicily (have a well-developed system and closer to market) o Reluctance to buy air freighted products – particularly the customer group interested in fair trade

- Middle East: o Closer access to Middle East o Anneke and Ralph to share ideas on this for future development. - USP (Unique Selling Point) o Highly nutritious o Highly beneficial for diabetics o Organic, FAIRTRADE o Niche product o Ethiopia has good conditions for IPM – essential for Organic practices

Supply Chain - Shelf-life max 7 days with improved harvesting max 10 days - Transport is currently a challenge

General - Membership 10.000 Birr first year and thereafter 5.000 annually - Registration to be communicated between Yoseph Tewodros Delelegn and Ralph Liebing / Andreas Andiel. - Plan a visit to the farm with the EPHEA team, Ralph and Andreas in February.

B. EHPEA Minutes by Andreas Andiel:

EHPEA has been founded 12 years ago and has currently 111 members. Main issues are flower (89%) and vegetable export, production for the export market, marketing issues and capacity issues in close cooperation with the government. Important targets are focusing on the improvement of the business climate and to diversify the Ethiopian export market. EHPEA supports networking, is functioning as a “door opener” and to help to overcome challenges. Six universities opened disciplines in horticulture, MBA programs started.

The Ethiopian Airlines is investigating in cargo, new 777 aircrafts are operating.

Horticultural clusters have been established in Bahir Dar, Mekelle, Addis Ababa and other cities.

EHPEA support to the sector and is proactively engaged to create a better environment for the export sector – e.g. to export to Europe and Middle East without tax.

Project Djibouti: the goal is to export competitive via container.

There is a high demand at local markets.

Investors are needed to capacitate Ethiopia.

Fruit sector: Israeli companies are involved, e.g. regarding seedlings.

Ethiopia needs more foreign technology and technicians in the country. RL explains the export of fresh Beles to Europe and Middle East, FAITRADE and Organic Wild Collection Standards and certification. He reports about research on Beles conducted by the University of Natural Resources and Life Sciences, Vienna (BOKU) about the existing Beles-market in Europe: its prices, brands, product ranges & chances. RL explains that cooperatives will be established, the legislative status of the Beles processing unit as P.L.C. on top of the cooperatives will be implemented; this will be a good basis to become a member of EHPEA. RL asks about the membership requirements of EHPEA; The Beles processing unit in Adigrat intends to cooperate with EHPEA in regards of the integration of a new commodity into the EHPEA program, Beles to represent Ethiopia on international markets.

Mr. Tewodros Zewdie, the Executive Director of EHPEA points out that the UNIDO Beles project procedure is exiting to them, as it is a unique attempt for Ethiopia – especially the community based approach of the project was well 58 received and addressed as “very noble” – supporting the “poor man’s crop” which provides many advantages – it is a big breakthrough regarding a good conservation plan for the region.

RL introduced IFOAM - International Federation of Organic Agriculture Movements (http://www.ifoam.org/) regarding organic market development and recommends integrating it in the EHPEA contacts. He offered support in linking.

The EHPEA training team provides training for sustainable production and projects such as horticulture development, capacity building of farmers, training to small holder farmers.

EHPEA membership: eligible are legal entities providing a trade license in Ethiopia for export; the regular fee is ETB 5.000 one time; if trainers are sent, high costs arises; The Beles processing unit can join EHPEA as a practical member, the benefit will be very high. E.g.:  Members are represented in international exhibitions  Links to national buyers will be established  Market information will be provided  Dissemination activities  Replication of the Beles activities  Link to Holland  Export to Middle East

Discussing integrated pest management with support from Holland, environmental friendly and including alternative control measures, but not applicable for Beles project!

Is contamination with pesticides discussed in Ethiopia? It shall be avoided by a biological control agency; coordinate programs with local universities regarding control technologies; EHPEA appreciates future cooperation in that matter;

Cactus will be treated as food crop, for income generation, 70% will be exported; this creates high income potentials; Beles is already introduced to the local markets and known as very tasty; UNIDO is coming with a new crop which has been ignored for centuries; UNIDO moves processing to an industrial level;

RL: Our project has the potential of improving live conditions to thousands of poor farmers in Tigray. The big challenge lies in balancing traditional growing and harvesting techniques with industrial cultivations and extensive plantations;

Tewodros Zewdie: will send literature Strategy of Crops – inclusion of small holder farmers focusing on the improvement of their livelihood. Discuss the document with Addisu Alemayehu. RL: points out the high costs of organic certification; new: “Participatory Guarantee System” – PGS, in order to reduce costs;

Green Economy in Ethiopia: question, if it is economically feasible? R.L. recommends study by FIBL - Research Institute of Organic Agriculture;

Ripening process of the Beles fruits stops after harvesting;

Beles processing unit in Adigrat: capacity of the machines about 3 tons per hour.

EHPEA offers to look for markets regarding Beles – we need to send specifications accordingly.

Ms. Glenn Humphries (Training Officer EHPEA) reports about EHPEA training activities: training is given by EHPEA since 2007 especially in regards of horticulture export as well as export of vegetables and fruits; EHPEA provides training to meet highest standards for export; Currently 7 trainer are operating, in the near future 11 will be engaged; training activities will be extended to vegetables and hygiene; EHPEA trainer are teaching trainer skills; focusing on group certification and in order to maintain standards; Ethiopian graduates achieve internal EHPEA 59 training and cooperate with stakeholders in order to build capacity to give training; EHPEA follows up to help implementing the trainings; in Tigray an EHPEA branch office could be operated according the activities of the UNIDO Beles project, Adigrat is recommended; send contact details [Glenn Humphries (UK), Training, T: +251 956 010956, E: [email protected]] to Addisu Alemayehu;

2.13.8. HE State Minister Dr. Mebrahtu Meles, Debriefing, Ministry of Industry, Addis Ababa, 10.10.2014, 11:00-12:00

Participants: Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant), Addisu Alemayehu (Ethiopian Institute of Agricultural Research)

Minutes:

Dr. Mebrahtu found out that FANTU provides catering for 27 hotels and for Ethiopian Airlines; HE will support marketing of Beles in regards of the Ethiopian Airlines; both, the CEO and the head of cargo department come from Adigrat.

Hand collection of Beles saves fruit and increases shelf life.

Dr. Tekaba, MoI, Ethiopian Meet & Industry Division, M: +251 (0)919 354278, is linked to relevant BOKU departments in Vienna; RL shall contact BOKU professors accordingly and prepare a meeting with HE at BOKU Vienna in early November 2014. Contact YTD and coordinate with him.

HE: integrate the Beles processing unit in the cluster of industry according the Tigray Regional Development Plan.

RL informs about the organic & Fair Trade aspects of the Beles project.

The General Director of the Ethiopian Horticulture Development Agency comes from Adigrat; he is member of the Steering Committee for the establishment of the Ethiopian Ten Years Strategic Plan on Spice, Fruit and Vegetables, where Addisu Alemayehu is Vice-Chair; Addisu Alemayehu is introducing new ideas regarding organic farming, reflecting it as a new level for the country.

Dr. Mebrahtu points out that export is a top priority of the government in regards of value addition. Ethiopia needs to export more products.

HE suggests an appointment with ADC in Vienna; he received an invitation to the CZ/AT National Day celebration in the CZ Embassy – RL points out the importance of his participation.

Suggestion to arrange a meeting with Addisu Alemayehu and MoI in regards of the UNIDO Beles project in relation with agro processing parks, investors and quality investments. 60

Chapter 03

Fundraising and Lobby-work

Authors: Andreas Andiel, Ralph Liebing

3. FUNDRAISING AND LOBBY-WORK

3.1. Introduction

The documentation in this chapter shows the endeavours of Yoseph Delelegn, Andreas Andiel and Ralph Liebing to set measures in securing grants from the Austrian authorities for the project. The meetings with the Austrian Ambassador to Ethiopia, Dr. Andreas Melán and the Director of ADC (Austrian Development Cooperation) in Ethiopia, Dr. Heinz Habertheuer underwent relevant preparation and were held in a constructive atmosphere. Our team was able to achieve consents of support and valuable advice how to proceed with reapplying for funding at the section VII.1 in the Austrian Ministry of European and International Affairs (BMEIA) in Vienna. 4 additional fruitful meetings were held with Mr. Andrea de Marco, who shared with us some unknown aspects of fundraising on the international banquet, whereas Mr. Addisu Alemayehu gave us some very valuable advices how to gain financial support on the national Ethiopian level once the Beles enterprise has been officially registered as at Private Limited Company. The 3rd meeting was with KOCIA - Korea International Cooperation Agency, where some options for co-financing of the project were discussed. The 4th.meeting was with Mr. Mohammed Kiyar who also gave one important hint for fund-mobilisation.

3.2. Meetings

3.2.1. Meeting at the Austrian Embassy in Addis Ababa, H.E. Ambassador Dr. Andreas Melán and Mag. Stephan Rutkowski (SK), Deputy Head of Mission, 18.9.2014, 10:00-11:30

Participants: Andrea De Marco (ADM) (UNIDO), Yoseph Tewodros Delelegn (YTD) (National Project Coordinator), Ralph Liebing (Consultant), Andreas G. Andiel (AGA) (Consultant)

Topics discussed: # 1: Welcome # 2: Introduction of meeting participants # 3: YTD presented the Beles project,  Pointing out that the major focus is the support of poor people, poor communities and jobless youth in Tigray. The project means a big move for them. 15.000 farmers will be supported; the Beles processing unit will inherit 170 staff members. YTD explains the products which will be produced. Crucial is the marketing issue which will be addressed by the current UNIDO project mission.  Finances: Mashav Israel, OFID, FAO cooperation, submission to Austrian BMEIA Section VII.1  Machines purchased in Italy: Installation in November 2014  Beles processing unit in Adigrat: start operation at the beginning of the Beles fruit season 2015  Cooperation between Universities in Austria, BOKU Vienna, and Ethiopia, Bahir Dar, Mekelle and Adigrat

# 4, HE: the project meets a new quality of industrialization; which companies from Austria are involved so far?

# 5: RL and AGA explained the purpose of the current UNIDO mission:  marketing  national market  export market  FAIRTRADE and organic wild-collection certification  Regarding Austria: “Wirtschaftspartnerschaften” (PPP) are planned

# 6: HE highly recommends that Aurelia Calabro arranges a meeting with Peter Launsky-Tieffenthal, Head of Austrian BMEIA Section VII., who is coming back from New York end of November 2014. He worked as the highest 62 representative from Austria at UN. Before that he has been Head of Department for Press and Information, Federal Ministry for European and International Affairs. HE offers support with pleasure although remaining budget restrictions. 2015 will be another year of 10% budget cut (€ 8-10 M) for all Austrian missions abroad. From 2016 onwards no further cutbacks are likely but there is no increase guaranteed.

# 7: Concerning the rejection of the Beles project’s application for funds at ADA, foremost the proof of project beneficiaries need to be conducted and documented; ADC Ethiopia Dr. Habertheuer has shown interest in the project, but the Austrian aid programme country has been restricted for North-Gondar and the Federal State of Somali. HE comments the support of Manfred Schnitzer, BMEIA Director of African Affairs, as valuable in order to succeed with the project submission to VII.1.

# 8: HE kindly asked UNIDO to forward a report indicating results from the meeting with Peter Launsky-Tieffenthal and the evaluation of Manfred Schnitzer.

# 9: HE highly recommends checking which Austrian enterprises that would fit into the project; regarding juice production e.g. Rauch or Pfanner would fit in; products from Rauch are also available in Ethiopia.

# 10: HE reports that only around 300 enterprises from Europe are operation in Ethiopia so far; fears are existing regarding the post-communist structure of the country, state ownership, restricted market conditions; business in Ethiopia are generally considered as difficult and highly unattractive, connected with extensive taxing and time consuming; moreover so far only Ethiopian companies are allowed to export;

# 11: ADM kindly requested a support letter concerning the Beles project from HE for the Austrian BMEIA Section VII.1.

Meeting Austrian Embassy – left to right: Yoseph Delelegn, Andreas Andiel, HE Ambassador Dr. Andreas Melán, Ralph Liebing, Andrea de Marco, Mag. Stepah Rutkowski (deputy head of Austrian Mission)

3.2.2. Meeting at the ADC – (Austrian Development Cooperation) Coordination Office in Addis Ababa with Dr. Heinz Habertheuer (HH) (Head of Office Counsellor), 19.9.2014, 09:30-10:30

Meeting report by Ralph Liebing

Participants: Yoseph Tewodros Delelegn (YTD) (National Project Coordinator), Ralph Liebing (RL) (UNIDO Consultant), Andreas G. Andiel (AGA) (UNIDO Consultant)

#1: Project introduction YTD updates regarding Beles project implementation status, cooperation with Adigrat University and University Mekelle, cooperation with governmental institutions on national (MoI), regional and municipal levels. He introduces the status of the Beles Processing Plant in Adigrat industrial zone, the renovation status of interconnected buildings, one for processing, and one for cold storage. The renovation has been started and will be completed end of September 2014. Four machine offers has been collected from Italian suppliers, the evaluation has been finished September 19, 2014. The installation of machines is planned for December 2014. With beginning of the new Beles season in 2015 production for domestic market will start and is aimed to cover on the long run a minimum of 30% of the harvest. Another important focus lies on export markets. Here the Middle East Countries and particular European Countries like Germany, Austria, UK have been identified for an initial phase. These markets are planned to cover 70% of the production. YTD points out, that financial support is needed in order to start the 2nd phase of the project, the production of high level processed products like cactus seed oil, juices, jams, neutraceuticals and pharmaceuticals. YTD informs about the OFID funding of USD 600.000. For the 1st phase of the project USD 300.000 has been transferred from OFID to UNIDO. Respective evaluation is currently in progress in order to receive the 2nd transfer of USD 300.000 which is dedicated for market development and training.

#2: Project mission introduction RL and AGA gave a brief introduction on their current UNIDO mission focussing primarily on product and market development, fund mobilizing activities as well as work plan and timeline evaluation.

#3: Export HH points out that beyond the projects efforts in regards of domestic market the focus on international market is very ambitious. He advises to elaborate a clear roadmap regarding export.

#4: ADA rejection 2014 HH informs about those critical points which lead to a rejection by the NGO department of ADA regarding UNIDO’s previous submission for ADA funds. He quoted and handed over an internal statement, which is considered as confidential: (1) GAFÉIAS submitted the UNIDO project to 5 different ADA departments: FGF, NRO-Kofin., Desk, Kobü and to the Austrian Embassy in Addis Ababa. GAFÉIAS tried to raise interest for the Beles project and to generate funds for the project respectively the promotion of Opuntia Ficus-Indica. (2) GAFÉIAS submitted to the 32nd Fördersitzung NRO-Einzelprojekte Süd (ADA Funding Meeting NGO-Single- Projects-South) June 21st, 2012, projects with different topics, but similar regarding the general project design. None of those three had been evaluated finally because the submission has not been in concordance with ADA submission guidelines (they exceeded ADA budget). (3) ADA experts in Vienna and those in Addis Ababa of the Austrian Embassy - Development Cooperation, Coordination Office, have been sceptical regarding the contents of the Cactus/Opuntia project designed for Ethiopia. The quality of planning of all tasks has been evaluated by ADA as not consistent and little concrete. The project is only marginal coordinated with local authorities and to be treated with caution in regards of ecological and agricultural point of view, because Opuntia Ficus-Indica could easily develop to pasture weeds, which cannot be controlled any more (see experiences in Australia). (4) A specific intervention of such kind, with inexistent pilot experience, the lack of an experienced implementation partner with the appropriate capacity in Ethiopia, the desired budget volume (3-5 Mill. Euros) must be seen from ADA’s point of view as unrealistic and very risky. (5) GAFÉIAS’ submission for the Beles project did not follow the specific ADA project submission format, which should have been identified in advance. Therefore the Beles project has been considered as not in concordance with ADA guidelines. 64

#5: Submission of a new project proposal to the Austrian BMEIA Section VII.1 HH advises to re-submit a substantial project proposal to the Austrian BMEIA Section VII.1. UNIDO needs to submit the new request to VII.1 before end of November 2014, as HH will leave Ethiopia. (This foremost, as he is well informed about the Beles-project now and positively tuned for it.) It is important to submit the proposal not only in the right ADA-format but also in the “thinking” of Section VII.1. It takes approximately 6 months up to a year or longer to obtain a decision concerning funding. The submission is advisable directly to be addressed to the new Director General of the Austrian Development Cooperation (BMEIA Section VII.) Dr. Peter Launsky-Tieffenthal. HH suggests to exactly follow the given ADA-submission format (download ADA-web) and to meet all required submission standards so to reach the official applicant status. The submission must include all relevant documents, documentation of the key players on the ground, illustration of all co-financings, extensive demonstration of all relations to governmental, regional and municipal administrations, as well as enclosures of all signed documents such as contracts, MoUs, and other agreements including payment documentation e.g. for experts, renovation activities, and other related purposes.

HH informed that after submission of the proposal to BMEIA Section VII.1 it will be forwarded to ADA for internal screening and recommendation. Consequently, ADA will forward the proposal to ADC-Ethiopia/HH with request for evaluation and recommendation. In case the submission follows the obligatory ADA guidelines, preconditions are positive that the Beles project in Tigray will eventually be replicated in Amhara and thus be included in the next ADA country programme for Ethiopia, respectively Ethiopian country programmes. ADA will negotiate in this case with the regional government of Amhara. The regional government will be sending the proposal to ADA. The decision regarding the replication of the Beles project will be made then between the governments of Ethiopia and Austria. Section VII, Peter Launsky-Tieffenthal, will receive information from the Ethiopian governmental body accordingly. If the project is successful in Tigray, it certainly has good chances to be considered for other parts of the country.

2015 will start the next ADA programme phase for Ethiopia until 2020, as subject of negotiations from the AT to the Ethiopian government. The main focus areas of the ADC are since 1998 the regions of Amhara and Gondar. There is an option to raise the question, whether ADA could extend its engagement into Tigray region. In case of important supporters (e.g. BMEIA VII.), willing to back-up this idea, HH sees realistic chances. Benefit: the Beles-project can be seen as a “trial balloon” with high potential of replication and impact.

#6 Topic ADA’s PPP (Public Private Partnership) funding-line HH also advised us to consider the establishment of PPP in connection with the Beles-project. To successfully install such Partnerships, the project-team needs to identify European businesses with interest to cooperate with the Beles-project on the establishment of serious business ventures. #6.1 additional information about PPP by RL: The legal status of both partners must be that of a private limited company. This PPP-cooperation-projects can focus on any kind of product and/or product-development leading to marketable products for European markets or vice-versa.

To guarantee a sound start of the project-idea, a budget for a feasibility-study in the value of € 20.000 can be applied for and will be available with a minimum administrative procedure.

The PPP-rules are such, that a maximum project-budget of €400.000 (exceptions: €500.000) for a period of 3 years (extension +1 yr. optional) is possible. 50% of this budget must be covered equally by the 2 business

partners in Europe and Ethiopia, 50% are refunded in a 6 month-periods by ADA. The project partner outside Europe must be able to invest 30% by own economic activity, not relying on a third party financing; the remaining 20% can be covered by in-kind investment. The distribution-key of the budget is related to 3 cost units 1) staff costs, travel costs 2) material cost such as investments for technical equipment and construction materials 3) other costs like office-rents, communication-costs, costs for marketing and PR (e.g. fairs, PR-material), translation costs, certification costs (e.g. Fair Trade, organic). The budget-percentage for each area is negotiable to a certain degree.

#7_bilateral agreement between Austrian BMEIA and the Ethiopian MoF HH explained the bilateral cooperation procedure between Ethiopia and Austria. According to the MoU between Austria and Ethiopia, Ethiopian budgets will be extended by Austrian assistance, e.g. for basic service delivery (e.g. funds for certification) according key issues such as food security and industrialization, including exports. Available Ethiopian financial instruments from the Ethiopian MoF need to be identified. HH and YTD pointed out that it is not likely that the Beles-project can receive funds from this line, as out of experience the MoF mostly is using the funds to promote their own projects and to cover internal costs.

Roll-up information about work of ADC

3.2.3. Meeting Andrea De Marco (ADM) (UNIDO Consultant), Hotel Intercontinental, Addis Ababa, 17.9.2014, 09:30-11:00

M: +251 912 06861, E: [email protected], Participants: Yoseph Tewodros Delelegn (YTD) (National Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (AGA) (UNIDO Consultant)

Andrea De Marco graduated in the fields of international relations and diplomatic affairs.

Topics discussed: # 1: Andrea De Marco will specialise in fundraising regarding the Beles project Funding status:  USD 100.000 UNIDO / Mashav Israel  USD 600.000 OFID 1 (1st transfer to UNIDO processed; progress report submitted OFID for 2nd transfer of USD 300.000)  USD 600.000 OFID 2 under evaluation  EUR 500.000 Austrian BMEIA Section VII.1

# 2: FAO funds from the Italian Development Cooperation; € 250.000; cooperation agreement is pending – a draft has been sent already to Aurelia Calabro # 3: Ethiopian authorities want larger projects # 4: Cooperazione Italiana is interested in contract farming, also regarding Beles # 5: Export to Middle East Countries and European Countries # 6: For the replication of the projects more funds could be generated, e.g. USD 4 M – invest in processing and machines # 7: new: ATA – Agricultural Transformation Agency; check website carefully; Diaspora involved, USA methodology, 2014 till 2017/2018 1st satellite map of Ethiopia, crop identification; interested in contract farmer, private sector, guarantee sustainability; # 8: Establish strong links with external markets and identify the bottle necks # 9: Other sources of funds: Arabian countries; attract donors by showing the processing plant, machines and training activities for unemployed youths # 10: Machines: USD 99.000 plus transport and construction, total USD 120.000; ToR submitted to 4 companies; buy supply and spare parts; # 11: share fund mobilization protocol from 2012 with ADM; keep apart formal fundraising and lobbying # 12: MoFinances Ethiopia: grants funds to cooperatives according ownership; ask regarding finances for UNIDO Consultancy; follow up essential; # 13: Sisay A. Shimelis, PTE International Inc., Addis Ababa, Beijing, Djibouti, Dubai, Johannesburg, Luanda, Maputo, Mumbai, Tianjin, Washington D.C., E: [email protected], exclusive MoU regarding export (evaluate agreement annually) via Djibouti Seaport, identify export constraints # 14: ADM informs about a honey project in Tigray from an Argentinian group, “White Honey from Tigray” is considered as expensive; establish a link to Addisu Alemayehu; honey from Tigray also could be traded via FAIRTRADE. This would be one of an alternative production during the Beles off season. # 15: ADM pointed out that there is a possibility that European governments apply for co-funding in the area of developing projects, which might be an approach for the Austrian BMEIA. ADM explains that the Austrian BMEIA could achieve funds from European Union; BMEIA grants e.g. € 100.000, EU-Funds of € 900.000 could be granted; consider this bilateral way of funding. (To be investigated)

3.2.4. Meeting with KOCIA - Korea International Cooperation Agency, KOICA Ethiopia Office Addis Ababa, Mr. Halley Teklehaimanot, Program Coordinator [Architect], 14.10.2014, 11:00-11:30

T: +251 (0)11 3720340/41 M: +251 (0)911 772752 E: [email protected] www.koica.go.kr Nefas Silk Lafto Sub City, Kebele 05 P.O. Box: 5652, Addis Ababa T: +251 (0)113- 20340/41, E: [email protected] Participants: Andreas G. Andiel (UNIDO Consultant)

Minutes:

Korea International Cooperation Agency (KOICA) is a government agency of the Republic of Korea which was established on April 1, 1991. KOICA is currently conducting official aid programs and technical cooperation, likewise supports the socio-economic development of partner developing countries.

The Korea - Ethiopia Alumni Association (KEAA) was formally established under the support given by Korea International Cooperation Agency Ethiopia Office (KOICA-Ethiopia Office) which was established in 1995. The Main aim of the association was to promote friendly ties between the two countries through socio - cultural and educational activities among the members of the KOICA Alumni Association and the Ethiopian Society.

KOICA has been established under the Korean Ministry of Finances; bilateral cooperation is possible between KOICA and the Ethiopian Ministry of Finances and the Ethiopian Ministry of Development; Independent development project proposals can be submitted, KOICA has the capacity to implement projects by itself;

Approach of application: Channel respectively submission of an independent part of the UNIDO Beles project through the Tigray Bureau of Industry & Urban Development and Tigray Agricultural Bureau in Mekelle, Tigray; ask the Bureaus about the sectors they are working on; volunteer the project through a strong lobby; consider 2017 to achieve a donation; the contract need to be signed by the Ethiopian MoF for 2017; the project is not to be considered as part of a co-financing concept; KOICA is interested to contribute in the expansion of the UNIDO Beles project according the 5 years transformation plan of the Ethiopian government and according a new focus of KOICA regarding the agricultural development of Tigray in Northern Ethiopia.

KOICA works in the fields of agriculture, education, health, information and commercial technology (ICT) and governance; for other sectors volunteer programmes of the public sector are available – minor projects are funded with a budget of USD 50,000. Volunteers are working in Mekelle, Tigray;

3.2.5. Meeting Addisu Alemayehu, Ethiopian Institute of Agricultural Research, Addis Ababa, 12.10.2014, 15:15-16:00

Participants: Andreas G. Andiel (UNIDO Consultant), Ralph Liebing (UNIDO Consultant)

Minutes: Options for Co-Financing of Beles-project

ECF-Fund, Ethiopian Competitive Facility Fund: offers total donations of USD 600.000 in 3 phases regarding agro-processing, marketing, export, as well as packaging, promotion and exhibitions supported by highly qualified local and international experts for 6 months; the project document can be submitted right after the registration of the Beles processing unit as P.L.C. / organisation / including license; Addisu Alemayehu has a strong link to ECF, to Dr. Shimelis Ademasu, the Director of the Food, Beverage & Pharmaceutical Industry Development Institute, who is a Committee Member of the ECF Fund;

ICCO-Fund – the International Christian Cooperational Office in Ethiopia; “ICCO is the interchurch organization for development cooperation. We work in 44 countries in Africa, Asia and Latin America. Please visit the links below to learn more about our organization. www.icco- international.com/int/; www.agri-profocus.nl - Our partnership promotes farmer entrepreneurship in developing countries;” basic rules for applications: € 100.000,- per project; calls every 6 months; the Beles processing unit has to be established as P.L.C. / organisation / including license; identify gap of the Beles development project and apply for gap filling modules of the project reflecting on machineries, training, experts, marketing, e.g. 3 or 6 shops to open; funding will be provided for private companies who are working with farmers; NGOs cannot receive funds;

CFC - Common Fund for Commodity: right now there is an open and active call; minimum ETB 250,000; co- financing of 50% from the granted loan is appreciated; 3rd part co-financing appreciated;

Andreas Andiel, Ralph Liebing, Addisu Alemayehu in a working-meeting

3.2.6. Meeting with Mohammed Kiyar (MK), FAIRTRADE Liaison Officer for Ethiopia and South Sudan, GAFÉIAS ETHIOPIA Office, Addis Ababa, 15.10.2014, 12:00-12:30

T: +251 (0)920 053823, E: [email protected], [email protected] Participants: Andreas G. Andiel (UNIDO Consultant)

Minutes: EUPIP (Brussels) is supporting in capacity building. MK established a strong link to EUPIP and recommends application for funds for the UNIDO Beles project.

Chapter 04

Introduction of Mr. Addis Alemayehu

Authors: Andreas Andiel, Ralph Liebing

4. Introduction of Mr. Addisu Alemayehu

4.1. Meetings with Mr. Addisu Alemayehu

4.1.1. Result of the 1st Meeting and interview with Mr. Addisu Alemayehu in Addis Ababa, 16.9.2014

Participants: Yoseph T. Delelegn (UNIDO National Project Coordinator), Ralph Liebing (UNIDO Consultant), Andreas G. Andiel (UNIDO Consultant)

The contact to Mr. Addisu Alemayehu came about through Ralph Liebing who met Mr. Alemayehu during the First African Organic Conference in March 2009 in Kampala. His large expertise derives from various studies and professional engagements in the fields of organic agriculture, certification and product and market development in Ethiopia and overseas over the past years. He is founding member of the Ethiopian Association of Organic Agriculture – EAOA, and has been assigned in September 2014 by HE State Minister of Industry Dr. Mebrahtu Meles, as Vice-Chair of the Steering Committee for the establishment of the Ethiopian Ten Years Strategic Plan on Spice, Fruit and Vegetables. The study is conducted by the Universities of Addis Ababa and Adama. The steering committee is responsible for monitoring, evaluation and providing technical support and support to the study group.

C o n c l u s i o n & P r o p o s a l Related to this high number of valuable experiences and know-how, Yoseph T. Delelegn, Ralph Liebing and Andreas Andiel came to the mutual conclusion that Mr. Alemayehu is filling the gap of essential expertise urgently in need for the project’s development and success. Therefore we propose Mr. Addisu Alemayehu to be assigned by UNIDO as the project’s national project advisor.

For further interest please see Mr. Alemayehu’s Curriculum Vitae in the appendix

4.1.2. Suggestion and 1st Draft of Terms of Reference (TOR) for Mr. Addisu Alemayehu, Ethiopian Institute of Agricultural Research

Suggested position name: National Advisor for UNIDO-Beles-Project

Main areas of responsibility:

 Assessment of the UNIDO-Beles project’s components, setting and development status according to the existing documents  Assessment of the project areas and development status in Tigray including meetings with all important stakeholders involved.  Administrative and organizational support for o production o national market development o export market development  Revision of the Feasibility Study of November 2013 (in team-work) o Revision of the Beles processing unit management structures (see Feasibility Study, Appendix 5: Operational & Administration and Figure 9: Project Organigram recruitment), development of job- descriptions and team-evaluation of applications, training program supervision and preparation for

UNIDO exit strategy in close collaboration with the international project management and the steering committee

 In cooperation and co-ordination with the int. project-advisor Ralph Liebing and the team of the marketing & sales-department in Adigrat: o National market-development o Export market development (Ethiopian based tasks) o Supply-chain development and management o Development of national and international PR-strategy & promotion-strategy o Product-development o Brand and logo development

 Strengthening and providing technical back-stopping for the institutional development of the umbrella- association of the involved Beles-cooperatives with focus on P G S (Participatory Guarantee System) for organic wild-collection in close co-operation with the designated stakeholders.  Leading the preparatory-process for implementation of FAIRTRADE and Organic Wild Collection in close collaboration with the assigned certification bodies and project steering committee-members.  In collaboration with the steering committee, the national project-coordinator and financial expert (e.g. agro-economists): audit and review of the financial performances in the areas of business administration, investment, production and sales to create a realistic business-plan with status 2015.  Training performances in quality management, related to Organic Agriculture, FAIRTRADE, GAP (Good Agricultural Practice), GMP (Good Manufacturing Practice), HCCP (Hazard Analysis and Critical Control Points) and general documentation of all mentioned processes.

Chapter 05

Appendix  Roadmaps

o for the finalization of the processing plants in Adigrat

o for the establishment of cooperatives and umbrella cooperatives

o for market development

o for fundraising measures and lobby-work

 Sum-up list of recommendations  Lists of questions to different areas concerning the Adigrat plant  Curriculum Vitae of Mr. Addisu Alemayehu  Brief Introduction of the Authors & Organizations

5. Appendix:

5.1. Roadmaps

5.1.1. Roadmap for the finalization of the processing plants in Adigrat

Chapter 01: author & ASSESSMENT responsible for REPORTS ADIGRAT content: & ALITENA Andreas Andiel Milestones aims steps & tasks responsibilities start deadline comments renovation of hall 1 and 2 finalized Renovation, machines, cold storage and deep staff, training, freezer installed marketing, transport, machines installed clarification of the staff recruited Yoseph, Dr. ownership, start money provided Debesaye, SME, Beles processing unit registration of P.L.C., training given UNIDO, is registered and estimation of market chains developed Helvetas, Ralph, A01 starts operation production in tons transport secured Andreas 03.2015 05.2015 retardations lead to image loss

overcome traditional harvesting methods Identify harvesting and establish methods in Sicily and harvesting methods Israel and decide which is Clarify if 1 or 2 harvesting sticks will be from Italy or Israel in appropriate to implement provided per farmer; purchase via Helvetas, order to achieve in Tigray for 15.000 Beles YTD, Dr. percentage by UNIDO; excursion to Sicily, A02 Harvesting organized premium quality farmers Debesaye 12.2014 03.2015 training in Israel

Milestones aims steps & tasks responsibilities start deadline comments

Machines for the Beles processing unit Delivery and arrival in Djibouti harbour delivered and implementation of and transport to Adigrat, Yoseph, Dr. A04 implemented machines installation, training Debesaye 12.2014 03.2015 380 kV electricity supply

Training for UNIDO, FAO, participating Beles MoU UNIDO and FAO Helvetas, BARD, farmers started and ToT, train Extension worker provide Reg. Coop. harvesting premium quality, transport, A05 continously practiced model farmers trainings Agency 02.2015 03.2015 storage

Recruitment and Recruitment and Training UNIDO, Recruitment and Training for 170 young for 170 young FAO, AU, MU, Training of Staff for unemployed from unemployed from SME, TAMPA, SME Beles processing unit SME, job descriptions, job descriptions, training Helvetas, develop course programme, selection of A06 completed start-up money courses, start-up money Andreas 02.2015 03.2015 training experts

UNIDO, Entrepreneurship FAO, AU, MU, Training for Beles Entrepreneurship development training, job TAMPA, SME processing unit development training, descriptions, training Helvetas, develop course programme, selection of A07 Management given job descriptions courses Andreas 02.2015 03.2015 training experts

Milestones aims steps & tasks responsibilities start deadline comments

Revenue and revenue and breakeven re- breakeven revenue and breakeven A08 calculation finalized recalculation recalculation Addisu 01.2015 03.2015 realistic figures; tendency to export market

Cooling trucks decision regarding decision regarding cooling Dr. Debesaye, option ETFRUIT cooling trucks instead of A09 available cooling trucks trucks Yoseph 01.2015 03.2015 purchase

Phase II - processed Beles products processing of jam, purchase machines Dr. Debesaye, A10 implemented juice etc. recruit and train staff Yoseph asap 06.2015 off season utilization strategy

5.1.2. Roadmap for the establishment of cooperatives and umbrella cooperatives

Milestones aims steps & tasks responsibilities start deadline comments Recruitment and establishment of Foundation of Recruitment and harvester cooperatives, participating establishment of contracts, training Regional harvester harvester courses, FAIRTRADE Cooperative Agency, Cooperatives for cooperatives, standards development FAIRTRADE Liaison A11 phase I. finalized contracts and audits Officer 01.2015 03.2015 urban areas

Recruitment and Foundation of Recruitment and establishment of Regional participating farmers establishment of cooperatives, FAIRTRADE Cooperative Agency, Cooperatives for cooperatives, standards development FAIRTRADE Liaison A12 phase I. finalized contracts and audits, contracts Officer 01.2015 03.2015 rural areas

Establishment of an umbrella cooperative, Regional Foundation of Establishment of an contract, FAIRTRADE Cooperative Agency, Umbrella umbrella cooperative, standards development FAIRTRADE Liaison cost reduction measurement regarding A13 Cooperative finalized contract and audits Officer 01.2015 03.2015 certification

5.1.3. Roadmap for Market Development

author & Chapter 02: responsible for MARKET content: DEVELOPMENT Ralph Liebing

Milestones aims steps & tasks responsibilities start deadline comments establishment of development of it is advisable to merge the 2 departments marketing and sales decision of number of department scope of in the beginning. Start of operations latest M01 department employees duties (marketing & sales) NN 03.2015 04.2015 04.2015! recruiting of eligible formulation of indiv. job- persons descriptions NN 02.2015 04.2015 determination of salary and working conditions NN 02.2015 04.2015 dev. working-contract NN 02.2015 04.2015

database of domestic dev. database of domestic domestic market clients in different clients in different sales conti- all minutes of adequate meetings from the M02 development sales channels channels Team & Addisu 04.2015 nuous FR must be used and followed-up

contacting potential key-account clients to present Beles conti- all minutes of adequate meetings from the management and take orders Team & Addisu 04.2015 nuous FR must be used and followed-up

aiming to establish long-term business- key-account conti- relationships - winning clients as management continuous service Team & Addisu 04.2015 nuous "ambassadors" of the Beles-product range!

Milestones aims steps & tasks responsibilities start deadline comments

database of export clients in different dev. database export export market sales channels of diff. clients in different sales Ralph & team & conti- M03 development countries channels of diff. countries Addisu 04.2015 nuous

support & coop contacts, meetings & concrete offers by Fresh Corner & Fantu & Ethiopian fruit- negotiations with conti- EthFruit . All minutes of adequate meetings exporters Ethiopian fruit-exporters Team & Addisu 04.2015 nuous from the FR must be used and followed-up! key-account contacting & meeting conti- management potential clients Ralph 04.2015 nuous initital contacts by RL - follow-up by team

contacting & meeting potential clients to key-account present fresh Beles and conti- management focus on listing & orders Ralph 05.2015 nuous initial contacts by RL - follow-up by team

contacting & meeting potential clients to present processed Beles- key-account products and focus on conti- management listing & orders Ralph ??? nuous initital contacts by RL - follow-up by team

planning & seeking coop. concrete puplic Partners + possibilities; see options for cooperation with EHDA! Public relation events relation events for budget-securing; Ralph & team & conti- possibly also with support of chambers of M04 for domestic market domestic market scheduling Addisu 04.2015 nuous commerce

Milestones aims steps & tasks responsibilities start deadline comments

planning & seeking coop. conrete puplic relation Partners & possibilities; possible cooperations with EHDA & EHPEA Puplic relation events events for export budget-securing; Ralph & team & conti- (see 07) - options with chambers of M05 for export market market scheduling Addisu 04.2015 nuous commerce?

concept-development one key-element of domestic promotion is planning different actions sending out teams into benchmark POS in Development of concrete promotion- + information materials; Addis for tasting our special Beles and tell Promotion-activities activities for domestic budget securing, Ralph & team & conti- consumers the special Bele-story > "product M06 for domestic market market scheduling Addisu 04.2015 nuous with a face"

there are a number of important food-fairs to be attended in Europe & Middle East. - EHDA (Eth. Horticulte Dev. Agency) and EHPEA (Eth. Horticultural Export-Producer- Association) offered support in terms of collective presentation. All minutes of concept development adequate meetings from the FR must be planning different actions used and followed-up; additionally similar Development of concrete promotion- + information materials; activities (tastings) will be organised in every Promotion-activities activities for export scheduling of dates; Ralph & team & conti- country in coop with the M07 for export markets markets budget securing Addisu 04.2015 nuous importers/wholesalers.

Milestones aims steps & tasks responsibilities start deadline comments Promotion-coop. on contacts & meetings & national level with arrangements & negotiations, budget Ralph & team & conti- EHDA offered support > follow up according M08 EHDA, EHPEA etc. agreements securing Addisu 04.2014 nuous to FR!

Promotion-coop. on export-country-level contacts & meetings & eg. EHDA, EHPEA, negotiations; securing of Ralph & team & conti- EHDA and EHPEA offered support in terms M09 IFOAM etc. funds & budget Addisu 04.2014 nuous of collection presentation

the development of an attractive, appealing and authentic brand is of high significance Special brand for Ralph & team & for the placement of Beles & Beles-products Beles-fruits & development process incl. Addisu plus in the market. No costs & efforts should be M10 existing Beles-brand processed products testing-phase graphic-designer 02.2015 05.2015 spared to reach a brilliant result!

extern. expert (Addisu?) for all involved groups informative meetings Yoseph, & introductions about FT & OWC must be Certification for FAIR contracting & execute PGS- certifications Helvetas, organized continuously before certification- TRADE & ORGANIC certification process in together with SME and FloCert, SME, conti- process is starting; cost-related issues and M11 Wild Collection process farmer's cooperatives ??NN nuous 05.2015 the distribution key of costs included!

Milestones aims steps & tasks responsibilities start deadline comments development of new processed processed product evaluate BOKU-market Ralph & team & M12 Beles-products range survey of 01.2015 Addisu 04.2015 has to be translated into English! production & marketg collect sample for tasting of range in domestic & & appraising for decision export markets making Ralph 02.2015 decision-making process with management-team all relevant 04.2015 purchase and implementation of Technical Dir. & minor investments have to be considered processing facilities & team 04.2015 06.2015 and put in the finance-plan investigation and purchase of product- containers 04.2016 06.2016 decision according to Technical Dir. & deep-freezing-storage needs; procurement team 04.2015 06.2015 training of staff NN 04.2015 04.2015 Tsega? dummies should be tasted internally but Beles product dummies also externally with potential consumers - for tasting & decision all relevant ??? questionnaire needed! name developmt, labels, Ralph & team & label-dev. according to international (EU, container, packaging Addisu 04.2015 06.2014 US) labelling standards

attractive web-presence is essential; the presentation of authentic persons concept-dev.; seeking (smallhold-farmers) and their continuous development of support by experts & benefit from the project is crucial; budget presentation on professionals; testing in finance-plan? - face-book needs Beles & web & social WWW, face-book, phase before going Ralph & team & start of Content-service & updating, important M13 media Youtube online; budget-securing Addisu 04.2015 production tools for sympathy & sales

5.1.4. Roadmap for Fundraising Measures and Lobby-work

author & Chapter 03: responsible for FUNDRAISING AND content: LOBBY-WORK Andreas Andiel

Milestones aims steps & tasks responsibilities start deadline comments

information regarding submission criteria, elaborating submission document, submission, follow up; asap appointment with acquiring financial Manfred Schnitzer Financial support by support by BMEIA, regarding steps and Aurelia, Yoseph, precondition: registration of the Beles F01 BMEIA, Section VII.1 Section VII.1 submission Andreas, Ralph asap 06.2015 processing unit as P.L.C.

information regarding submission criteria, Andreas, elaborating submission Mohammed Fund-mobilization acquiring financial document, submission, Kiyar precondition: registration of the Beles F02 with EUPIP support by EUPIP follow up (FAIRTRADE) asap 06.2015 processing unit as P.L.C.

respon- Milestones aims steps & tasks sibilites start deadline comments

submit an independent the project is not to be considered as part of part of the UNIDO Beles a co-financing concept; KOICA is interested project through the Tigray to contribute in the expansion of the UNIDO Bureau of Industry & Beles project according the 5 years Urban Development and transformation plan of the Ethiopian Tigray Agricultural Bureau Andreas, Halley government and according a new focus of in Mekelle, Tigray; Teklehaimanot KOICA regarding the agricultural contract needs to be (KOICA Addis development of Tigray in Northern Ethiopia; Fund-mobilization acquiring financial signed by the Ethiopian Ababa), Aurelia precondition: registration of the Beles F03 with KOICA support by KOICA MoF for 2017 Calabro 02.2015 06.2017 processing unit as P.L.C.

Yoseph, Andreas, Addisu, Dr. submit an independent Shimelis part of the UNIDO Beles Ademasu project through the Tigray (Director F&B, ECF-Fund offers total donations of USD Bureau of Industry & Pharmaceutical 600.000 in 3 phases regarding agro- Urban Development and Industry processing, marketing, export, as well as Fund-mobilization acquiring financial Tigray Agricultural Bureau Development packaging, promotion and exhibitions with ECF-Fund, support by ECF-Fund, in Mekelle, Tigray; Institute, supported by highly qualified local and Ethiopian Ethiopian Competitive contract needs to be Committee international experts for 6 months; Competitive Facility Facility Fund (Co- signed by the Ethiopian Member ECF precondition: registration of the Beles F04 Fund financing) MoF for 2017 Fund 02.2015 12.2015 processing unit as P.L.C.

Milestones aims steps & tasks responsibilities start deadline comments

Yoseph, promotes farmer entrepreneurship in Andreas, Addisu, developing countries;” Dr. Shimelis basic rules for applications: € 100.000,- per Ademasu project; calls every 6 months; identify gap of (Director F&B, the Beles development project and apply for Pharmaceutical gap filling modules of the project reflecting Fund-mobilization acquiring financial Industry on machineries, training, experts, marketing, with ICCO-Fund – the support by ICCO-Fund information regarding Development e.g. 3 or 6 shops to open; funding will be International – the International submission criteria, Institute, provided for private companies who are Christian Christian elaborating submission Committee working with farmers; Cooperational Office Cooperational Office in document, submission, Member ECF precondition: registration of the Beles F05 (Ethiopia) Ethiopia (Co-financing) follow up Fund) 05.2015 12.2015 processing unit as P.L.C.

right now there is an open and active call; acquiring financial information regarding minimum ETB 250,000; co-financing of 50% support by CFC - submission criteria, from the granted loan is appreciated; 3rd Fund-mobilization Common Fund for elaborating submission part co-financing appreciated; with CFC - Common Commodity (Co- document, submission, Yoseph, Andreas, precondition: registration of the Beles F06 Fund for Commodity financing) follow up Addisu 12.2014 12.2015 processing unit as P.L.C.

Milestones aims steps & tasks responsibilities start deadline comments

right now there is an open and active call; acquiring financial information regarding minimum ETB 250,000; co-financing of 50% support by CFC - submission criteria, from the granted loan is appreciated; 3rd Fund-mobilization Common Fund for elaborating submission part co-financing appreciated; with CFC - Common Commodity (Co- document, submission, Yoseph, precondition: registration of the Beles F07 Fund for Commodity financing) follow up Andreas, Addisu 12.2014 12.2015 processing unit as P.L.C.

UNIDO MoU regarding FAO funds cooperation agreement is from the Italian pending – a draft has been Development acquiring financial sent already to Aurelia Andrea De F08 Cooperation support by FAO Calabro Marco, Aurelia 12.2014 04.2015 € 250.000

Fund-mobilization acquiring financial information regarding with ATA – support by ATA – submission criteria, Agricultural Agricultural elaborating submission Transformation Transformation document, submission, Andrea De interested in contract farmer, private sector, F09 Agency Agency follow up Marco, Andreas 12.2014 04.2015 guarantee sustainability

Milestones aims steps & tasks responsibilities start deadline comments

information regarding submission criteria, Fund-mobilization acquiring financial elaborating submission attract donors by showing the processing with Arabian support by Arabian document, submission, Andrea De plant, machines and training activities for F10 countries countries follow up Marco, Andreas 12.2014 04.2015 unemployed youths

apply for co-funding in the area of developing projects, which might be an approach for the Austrian BMEIA. The information regarding Austrian BMEIA could achieve funds from Fund-mobilization acquiring financial submission criteria, European Union; BMEIA grants e.g. € with BMEIA Austria support by BMEIA elaborating submission 100.000, EU-Funds of € 900.000 could be via European Austria via European document, submission, Andrea De granted; consider this bilateral way of F11 governments governments follow up Marco, Andreas 12.2014 04.2015 funding

8.3. Sum-up list of recommendations

Recommendations (sum-up list) Deadline topic recommendation (option) comment 01 revision of Financial Analysis (as of Feasibility Study of 11.2013) The entire cost-structure of the project influences the success of the project revise the complete project finance-plan in all details of and the planned exit-strategy after 4 all cost-centers years! „The project’s viabilty is most important for the final success of the project“  C O S T T R A N S P A R E N C Y (Dr. Debesaye, 10.2104)  potential of rationalization & cost 02 revision of organigrame revision of staff-organigram Adigrat asap saving 03 re-calculation of Beles-price for domestic and export markets asap price-differences of market-surveys 04 cost-factors PR & promotion  concept & calculation cost center with tendency of high  integration into finance-plan costs! 05 search for logistician o Adigrat > Addis the cheapest is not always the best! o Adigrat > Mekelle Airport (cool store) o Ethiopian cities o Export-handling . off Adigrat . off Airport  Mekelle  Addis

06 air-freight Inquiry about standards of source: chamber of commerce or o Delivery logisticians o Packaging o Quantiy per charge o Administration/export- paperwork

o Ask wholsalers about coop & rates . EthFruit . FreshCorner . Fantu  05.2014

5.2. Lists of questions to different areas concerning the Adigrat plant ~ author: RL 01_Recruiting of Management  Who is performing the recruitments for the Management-team in Adigrat?  Start?

02_Recruitment of staff  Who is performing the recruitment of different staff?

03_Job-descriptions  Who is in charge of formulating the different job-descriptions for the different department and position?

04_Manuals for working processes in plant in Adigrat  Are there existing manuals for the different work-processes according to the organigram?  If not: who is responsible for the development?

05_Beles-crates  As cost-factor in finance-plan?  Labelling standards for crate to investigate (domestic/export)

 Who decides about the type of crate to be used?

 How many crates as 1st order?

06_Income department  Will there be a incoming-department (missing on the organigram)  Who is responsible for the purchase of Beles?

07_Pricing & calculation  Who is responsible for the calculation of price, for pricing in general?  What is the basis of calculation?  Which prices are paid to the smallhold farmers? (there is a difference between indications in the feasibility-study of 11.2013 and the data of Maresu)

 When do farmers/suppliers receive their money?

08_Contracting farmers  Will there be supply contracts with individual farmers or cooperatives?  how is the assingnment of the smallhold-farmers organised in terms of „right“ number of contract- farmers?

09_Harvesting & Beles-collection  How is the harvesting & delivery to Adigrat organised?  Who is deciding about the demanded quantity per day/week for all existing markets?

10_Harvesting tool  When will there be a decision about the upgraded harvesting tool  Who is in charge?

5.3. Curriculum Vitae of Mr. Addisu Alemayehu

Curriculum Vitae

Personal Information Surname(s) / First Name(s) Ferede Addisu Alemayehu Address (es) Addisu Alemayehu, P.O. Box 687, Code 1230, Addis Ababa, Ethiopia. Telephone(s) + 251-11-4197779(office) Mobile 251-911-807523 Telephone(s) +251-114349814(home) Fax (es) 251-11-4197780 E-mail(s) [email protected]/ [email protected]/[email protected] Nationality Ethiopian Date of Birth 26/06/1981 Gender Male Work Experience Date June 2012 till now Occupation or Position held Free Liaison Lead Assessor and Business Developer Main Activities and Responsibilities 1. Assess the organisation performance of producer organisations, private companies and farmers cooperatives 2. Assess the institutional, financial and marketing policies of organisations 3. develop assessment report for capacity builders, banks, international NOGs and business partners 4. developing product and business plan

Name and Address of Employer SCOPE Insight/ Netherlands Type of Business or Sector Private Sector Supervisor’s Name/ Position Anne Shoemaker/Global Assessment Manager Supervisor’s Email Address [email protected] Supervisor’s Telephone Number +31302348273 Date December 2013 till now Occupation or Position held Spice, Herbs and Aromatic Private Sector Development Facilitator

Main Activities and Responsibilities 1. Assess the private sector demand and provide capacity building programme in trade, marketing, product development, business plan and feasibility study 2. Facilitate trade agreement, market linkage, business partnership and joint venture investment in agro-processing and value addition 3. Promotion of Ethiopian products and trade development through trade and investment mission. 4. prepare a proposal on establishment and operational modalities of spice, herbs and aromatic plants platform of Ethiopia 5. identify and communicate participants for platform members 6. prepare stakeholders’ engagement procedures, terms of reference 7. moderate quarterly platform meeting and public private partnership dialogue 8. prepare the programme and report of the platform meeting Name and Address of Employer Addis Ababa chamber of Commerce and Sectoral Association(AACCSA) Type of Business or Sector Agribusiness Supporting Facility( Private Sectoral Association) Supervisor’s Name/ Position Mr. Gertjan Becx(Lead Project Advisor) Supervisor’s Email Address [email protected]/ www.addischamber.com/absfproject Supervisor’s Telephone Number +251-912660725/115542405 Date June 2014 till now Occupation or Position held Part time Business Advisor Main Activities and Responsibilities 1. Assess the market and competitiveness of the company and its products 2. Provide technical advise in production, new product development and quality management one day per week 3. Search innovative business ideas, grants, soft loans and joint venture 4. Prepare documentation( technical and financial) of the company 5. Follow up the company performance and give back stopping for the company in improving the performance 6. Make feasibility study and prepare business plan for new business investment and expansion Name and Address of Employer H.E.A Spice and Seasoning PLC Type of Business or Sector Spice Processor and Seasoning Private Companies Supervisor’s Name/ Position Elsa Habte G/Mariam General Manager Supervisor’s Email Address [email protected]/[email protected], Supervisor’s Telephone Number +251-911611090 Date February 2013 till Now Occupation or Position held Associate Researcher Main Activities and Responsibilities 1. Make baseline survey for identification of major gaps in production, products development, quality management, financial and human resource management 2. designing research project proposal that increasing production and productivity of spice and herbs in the country 3. preparing spice production and processing manuals, guidelines, leaflets 4. providing training and advisory service for private companies, farmers, students and development workers 5. organising and participating on national and international workshops, conferences and meetings 6. other activities assigned by my employer Name and Address of Employer Ethiopian Institute of Agricultural Research P.O. Box 2003, Code 1000, A.A, Ethiopia Type of Business or Sector Research Supervisor’s Name/ Position Girma Haile Micheal, Coordinator and Case Team Supervisor’s Email Address [email protected]/[email protected] Supervisor’s Telephone Number +251-917808895

Date February 2011 - January 2013 Occupation or Position held Assistant Researcher I Main Activities and Responsibilities 1. Data collection, analysis and interpretation of national spice research project activities 2. scaling up and out of spice technologies to end user 3. Identification and Prioritization of major challenges of spice production 4. Writing Research Project Proposal , annual and progress report 5. collection, evaluation and selection of indigenous and exotic spice accession and variety development 6. providing training and advisory service for students, investors, farmer and agricultural expert in spice production, processing and marketing 7. other activities assigned by my employer Name and Address of Employer Ethiopian Institute of Agricultural Research P.O. Box 2003, Code 1000, A.A, Ethiopia Type of Business or Sector Research Supervisor’s Name/ Position Girma Haile Micheal, Coordinator and Case Team Supervisor’s Email Address [email protected]/[email protected] Supervisor’s Telephone Number +251-917808895

Date May 2007 → October 2010 Occupation or Position held Deputy Manager Main Activities and Responsibilities 1. Organizing and giving training in organic and ecological agriculture for different clients. 2. Developing business plan, project feasibility study and strategic plan development for farmers, traders, NGOs and CBOs, 3. Provide training on organic production, export, marketing, certification and community growers’ group value chain and quality management. 4. Provide advisory service in organic marketing, Participatory market chain approach and internal control System (ICS) development for group producers and exporters. 5. Provide consultancy service on organic project formulation, mid term and post programme evaluation and organic research. 6. Prepare financial and technical report of the company projects. 7. Developing market linkage, market chain and company profile. 8. Participating on different Workshops and meeting. 9. Promoting the company mission and build network with wide rage of organisations (more than 200 organisations) and create collaboration. 10. Building capacity of farmers, traders and policy makers in sustainable and organic agriculture. 11. Managing the financial and technical resources of the company. Name and Address of Employer Aco Ersha Promotion PLC P.O. Box 14230, Addis Ababa, Ethiopia Type of Business or Sector Consultancy Company Supervisor’s Name/ Position Mohammed Kiyar, General Manger Supervisor’s Email Address [email protected] Supervisor’s Telephone Number +251-114197779 Date September 17,2008 to Sept 2009 Occupation or Position held IFOAM Contact Point Coordinator in Ethiopia

Main Activities and Responsibilities 1. carry out the activities as planed with the International Federation of Organic Agriculture Movement(IFOAM) 2. Made communication flow in both directions between IFOAM and Ethiopia and within neighbouring countries and other IFOAM contact points in Africa about organic agriculture, environment, biodiversity and sustainable agriculture. 3. Participate actively in the discussion within the network. 4. Represent IFOAM when mandated by the IFOAM executive director and in accordance with IFOAM policy 26 on external representation. 5. perform basic membership related activities in coordination with the IAO and IFOAM Head office 6. Contribute articles on organic agriculture development and experiences, event announcements and other relevant contributions for the electronic monthly newsletter. African Organic News. 7. Promote the IFOAM PR materials during networking activities. Name and Address of Employer International Federation of Organic Agriculture Movement(IFOAM),Charles-de-Gaulle-Str.5. D-53113, Bonn, Germany Type of Business or Sector NGO Supervisor’s Name/ Position Herve Bouagnimbeck, IFOAM Africa Office Coordinator Head Office Supervisor’s Email Address [email protected]/www.ifoam.org Supervisor’s Telephone Number +49-228-95650-23 Date July 2007 → October 2009 Occupation or Position held General Manager/Coordinator of EAOA Main Activities and Responsibilities 1. Prepare strategic plan and project proposal on community development and Impact assessment. 2. Developing organic agriculture public private partnership among governmental, private and international agencies. 3. Organic and ecological agriculture advocacy, lobbing and networking with both local and international organisations. 4. Manage the financial and technical issues of the association projects. 5. Preparing agenda and minuets for Board meeting. 6. Promotion of the association and organic products on the International events. 7. Responsible for doing the day-to-day activities of the association. 8. Corresponds and sign agreements with different organisations on behalf of the association. 9. Develop training manuals and organise and facilitate national and international conferences meeting and workshops on organic agriculture, climatic change and ecological farming. 10. Prepare and present quarterly and annual reports to the board and international donors. 11. Prepare policies and action plans for the association, to be approved by the board. 12. Do fundraising activities for the organisation. 13. Coordinates the association activities. 14. Executes any other activities as instructed by the board.

Name and Address of Employer Ethiopian Association of Organic Agriculture (EAOA), P.O.Box 1432, Addis Ababa, Ethiopia Type of Business or Sector NGO Supervisor’s Name/ Position Tsegaye Kassa, Vice president of EAOA Supervisor’s Email Address [email protected] Supervisor’s Telephone Number +251-911173748

6. Brief Introduction of the Authors & Organizations

ORA & Ralph Liebing

ORA is the internationally engaging Organic Retailers Association with it’s headquarter in Vienna, Austria. ORA is member of the IFOAM-EU Group (International Federation of Organic Agriculture Movements, Europe Section).

Ralph Liebing is a founding member and CEO of ORA and has profound experience and knowhow in international organic market-development and capacity building.

The development of products and product ranges, as well as the linked promotions and public-relation activities are one of the many supporting areas ORA can provide. ORA is embedded in the vast network of the international organic food-processing and trading industry and able to link to potential buyers in processing, wholesale and retail. www.o-r-a.org

GAFÉIAS & Andreas G. Andiel

GAFÉIAS, the Global Association for Environmental Investments and Sustainability of Economic, Social and Environmental Spheres is registered as NGO in Vienna, Austria and initiates and implements international development cooperation projects. GAFÉIAS is registering a subsidiary, GAFÉIAS ETHIOPIA, in Addis Ababa, Ethiopia, in order to foster development cooperation focussing on street children reintegration, water management for cities in semi-arid areas, success & life principles trainings as well as in regards of Eco Tourism and Heritage.

Andreas G. Andiel is initiator, a founding member and President & CEO of GAFÉIAS. www.gafeias.org

REPORT PREPARED BY & DATES & SIGNATURE: 30 November 2014

Ralph LIEBING - International Consultant, ORA - International Organic Retailers Association

Andreas G. ANDIEL - International Consultant, Rural Entrepreneurship Development