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 1 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 2 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 3 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 ........................................................................................................................................