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Ethiopia. Markets for Ethiopian Cotton Goods in Western Europe, the Arabian Gulf and the United States

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Ethiopia. Markets for Ethiopian Cotton Goods in Western Europe, the Arabian Gulf and the United States OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] I -· I ....... , ' '. UNIDO Contract No. 85/ 55 ·,...._, Project No: DP/ETH/83/013 I Activity Code: DP/01/31.4 I I I MARKETS FOR ETHIOPIAN COTTON GOODS m WESTERN EUROPE, I 1HE ARABIAN GULF AND THE UN1TED STATES OF AMERICA I Prepared for THE UN1TED NATIONS INDUSTRIAL DEVELOPMENT ORGANISATION I by AGR~ECONOMIC SERVICES UMITED I I I I I I I I November, 193(> --- - ~---~_ ...... ·-· I I UNIDO Contract No. 85/55 Project No: DP/ETH/83/013 I Activity Code: DP/01/31.4 I I I MARKETS FOR ETIIlOPIAN COITON GOODS rn WESTERN EUROPE, THE ARAIDAN GULF AND THE UNITED ST A TES OF AMERICA I I I Prepared for I THE UNITED NA TIO NS INDUSTRIAL DEVELOPMENT ORGANISATION by I AGRO-ECONOMIC SERVICES LlMITED I I I I I I I © November, 1986 I I I CONTENTS I Page ACTION SUMMARY (i) I 1.0 INTRODUCTION I 1.1 GENERAL 1 1.2 SCOPE OF CONTRACTING SERVICES I 1.2.1 The Original Agreement 1 .., 1. z.. z. Subse4ue11i Muuifications to St.:ope ... 1.2.2.1 Product Coverage 2 I 1.2.2.2 ;;eographical Coverage 2 2..0 SUMMARY: WITH MAIN FINDINGS AND I RECOMMENDATIONS 3 2.1 SUMMARY 3 I 2.2 MAIN FINDINGS 3 2.2.1 Screening of EuroEean and Middle Eastern I Mari{ets 3 2.2.2 The Ma .. ket for Grey Yarn and Grey Cloth 4 I 2.2.2.1 The Middle East 4 2.2.2.2 Germany 4 2..2.2.3 Italy 5 I 2.2.3 The Mar:;.et for Knitted Underwear 5 2.2.3.1 The Middle East 6 2.2.3.2 Germany 7 I 2.2.3.3 Italy 8 I 2.2.4 The Market in the USA 8 Z.3 RECOMMENDATIONS 9 2.3.l Production to be Oriented to Needs of Market 9 I 2.3.I.l Over-supplied World Markets 9 2.3. I.2 The Implications for NTC 10 I 2.3.2 Grey Goods 10 Z.3.2.l Germany and Italy 10 I 2.3.Z.2 The Middle East 12 2.3.3 Cai.ton Knitwear 12 2.3.3.I Europe 12 I 2.3.3.2 The Middle East J3 I I I Page 3.0 SELECTION OF MARKETS FOR DETAILED I STUDY 15 I 3.1 OBJECTIVE OF SURVEY 15 3.2 SCREENING METHOD '~~~ I 3.3 RESULTS OF SCREENING 17 3.3.1 Western Europe 17 I 3.3.2 The Middle East 21 I 3.3.3 Africa 21 3.4 COUNTRIES SELECTED 30 I 4.0 THE ARAB GULF MARKETS 31 4.1 KUWAIT 31 I 4.1.1 I:conomic Background 31 4.1.2 The Market for Knitted Cotton Goods 32 4.l.2.1 Supply and Consumption 32 I 4.1.2.2 Market Preferences 33 4.1.2.3 Distribution Structure '.)J 4.1.2.4 Prices 34 I 4.1.2.5 Packaging 34 I 4.1.3 The Market for Grey Goods 35 4.1.4 Future Treilds in Dema.>Jd 37 I 4.2 BAHRAIN 38 4.2.1 The Economic Background 38 I 4.2.2 The Market for Knitted Cotton Goods 39 4.2.2.1 Supply and Consumption 39 4.2.2..2 Market Prefer'mces 40 I 4.2.2.3 The Distribution Structure 40 4.2.2.4 Prices 41 4.2.2.5 Packaging 41 I 4.2.3 The Market for Grey Goods 41 I 4.2.4 Future Trends in Demand 41 4.3 THE UNITED ARAB EMIRATES 42 I 4.3.l The Economic Background 42 I I I Page 4.3.2 The Marl~et for Knitted Cotton Goods 44 I 4.3.2.1 Supply and Consumption 4-l 4.3.2.2 Market Preferences 47 4.3.2.3 The Distribution Structure 48 I 4.3.2.4 Prices 49 4.3.2.5 Packaging 49 I 4.3.3 The Market for Grey Goods 50 4.3.4 Future Trends in Demand 50 I 5.0 THE EUROPEAN MARKETS 51 I 5.1 WEST GERMANY 51 5.1.1 Economic Background 51 5.1.2 The Market fo._ ~\.nitted Cotton Goods 52 I 5.1.2.1 Supply and Consumption 52 5.1.2.2 Market Preferences 54 5.1.2.3 DistrilJution 54 I 5.1.2.4 Prices 61 5.1.2.5 Packaging 62 5.1.3 The Market for Grey Yam 62 I 5.1.3. J Supply and Consumption 62 5.1.3.2 Market Preferences 64 5.1.3.3 Distri:iution 65 I 5.1.3.4 Prices 60 7• 5.1.3.5 Packaging . 1 I 5.1.4 The Market for Grey Goods 71 5.1.4.1 Supply and Consumption 71 5.1.4.2 Market Preferences n 5.1.4.3 Distribution 73 I 5.1.4.4 Prices 75 5.1.4.5 Packaging 76 I 5.1.5 Future Trends in Demand 77 I 5.2 ITALY 78 5.2.l Economic Background 78 5.2.2 The Market for Grey Yarn 79 I 5.2.2.1 Supply and Consumption 79 5.2.2.2 Market Preferences P.3 5.2.2.3 Di:.: 'ribution 83 I 5.Z.2.4 Prices 89 5.2.2.5 Packaging 91 I I -------------....... ---~ -~-~~--~~--------- ----------- I I Page 5.2.3 The \~a ·'.c ·t for Grey Cloth 91 I 5.2.3.1 Supp~; ::ti :onsu!llpt10n 91 5.2.3.2 Ma:-kc r ':-e f erences 94 5.2.3.3 Dis tr · .~ i ;,-n 95 5.2.3.4 Pric· 98 I 5.2.3.5 Pa..::- i:O::ir.g 99 5.2.4 "':'"\ : \:arket for Knitted Cotton Goods 99 I 5.2.4.1 ~ :,~ply and Consamption 102 5.2.4.2 "/arket Preferences 104 5.2..!.] ''istribution 104 107 I 5.2.4.4 ~")rices 5.l.4.5 Packaging 107 I 5.2.5 Future Trends in Demand 108 5.3 REGULATION OF ETHIOPIAN TEXTILE IMPORTS I INTO GERMANY AND ITALY 109 5.3.1 Third Lome Convention 109 I 5.3.:: Criteria of Origin 109 5.3 3 The Benefits Conferred on ACP Textile Exporters 110 5.3.3.1 Duty-free Access 110 I 5.3.3.2 Unrestricted Physical Access 111 I 6.0 TIIE USA 114 t.. l US TRADE IN COTTON GOODS 114 I 6.1.1 Knitted Cotton Goods 114 ::i.1.2 Grey Goods 117 I 6.2 THE REGULATORY FRAMEWORK 117 I 6.2.1 Duties 117 6.2.2 The Multi-Fibre Arrangement llE I 6.2.3 US Controls 118 6.2.4 Further i::>l'.'otectionist. Measures 122 I 6.3 OTHER F ACTOPS LIKELY TO IMPEDE ETHIOPIAN EXPORTS 124 I 6.4 CONCLUSIONS 125 I I I I Page I 7.0 TECHNICAL ASSESSMENT 127 7.1 INTRODUCTION 127 I 7.2 G:R:t:Y YARH AND FABRIC 127 7.2.1 Summary and Conclusions 127 I 7.2.2 Critical Examination of Present Output 129 7.2.2.1 Mar.ufacturing Machinery and Processes 129 7.2.2.2 Company Products 129 I 7.2.2.3 Marketing and Selling 141 7.2.3 Operational Assessment ~4Z I 7.2.3.l Process Research and Developmet 1~2 7.2.3.2 Process Testing and Quality Control 142 7.2.3.3 Machine Maintenance Control 143 7 .2.3.4 Work Study and Other Industrial Engineering I Practices 147 7.2.3.5 Supervisory Skills and Performance 148 I 7.2.3.6 Opera~ ;.,P. Skills and Pei"formance ~48 7.2.4 Recommended Improvements to l)esign and Quality 1·19 7.2.4.1 GP11eral 149 I 7.2.4.2 Fa. 1-iric Construe tions 149 7.2.5 Identification of Other Products for I Manufacture 149 7.3 COTTON KNITWEAR 152 I 7.3.1 Summary and Conclusions 152 7.3.1.1 General 152 7.3.1.2 Main Findings 152 7.3.1.3 Recommendations for Immediai~ Improvements 152 I 7 .3.1.4 Technical Assistance 152 7.3.2 Critical Examination of Pr"!sent Operations CiJ!.d I Output 153 7.3.2.1 General Observations 153 7.":J.2.2 Technical Factors Influencing the Nature of I Present Export Items 154 7.3.2.3 Other Production OriP.n~at"!d Factors Influencing the Nature of Exrort Items 155 I 7.3.3 Products Suitable for Export 156 7.3.4 Measures Needed to Improve the Design and I Ouality ol Articles Prese;tly ProduceCI to Make them More Attractive to International Markets 156 I 7.3.4.1 Outline of Technical As~,istance Progr< .nr.1e 157 7.3.4.2 Further Training for Counterpari.s 157 I 8.0 UST OF SAMPLES OF KNITWEAR COL!.ECTED 160 --, ---~· ------------ ------ ---- I I ANNEX~S I ANNEX -1 VISIT SCHEDULE ANNEX l DISCUSSION SCHEDULE I ANNEX 3 TABLES ANNEX 4 RECOMMENDED TECHNICAL ASSISTANCE PROGRAMMES FOR I SPINNING AND WEAVING ESTABLISHMENTS A4.l OBJECTIVE I A4.l SCOPE A4.2.l Process Research and Development I ;\.4.2.2 Process Testing and Quality Control I A4.2.3 Staffing ANNEX 5 TEXTILE AND CLOTHING TRADE FAIRS IN COUNTRIES OF I THE EEC IN 1986 I I I I I I I I I I I -......
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