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Alleged Thieving Affects Pulse, Oil Seed Export Via Djibouti

Addis Fortune (Addis Ababa)
NEWS
November 16, 2005
Posted to the web November 16, 2005

By Muluneh Gebre

Exporters of pulses, oil seeds and spices are to meet Addisu Legesse, deputy
prime minister and minister of Agriculture and Rural Development, this week to
discuss export problems related to goods going via Djibouti.
After passing through all the formalities in the Quality and Standards
Authority of Ethiopia and the Customs Authority, exporters said their goods,
packed in 50kg sacks, are transported on trucks to the port of Djibouti. They
alleged that their cargo, headed to China, Korea, Japan, Israel, Turkey, and
the United Arab Emirates, which include sesame, nigger seeds, kidney beans,
lentils and spices are being tampered with.
Since last year, the exporters started complaining that their clients claimed
the weight of the cargo they were receiving was smaller or had too much reject
in it. Such problems have cost Mallima plc 20,000 dollars, according to Geresu
Chaka, owner of the company, because clients declined to pay for the missing
weight or the rejects. Even sacks have disappeared, according to the exporters.
A number of exporters told Fortune that their cargos were more vulnerable at
places such as Nazareth, Metehara, Wolenchiti and Wonji, where some goods are
removed and allegedly re-filled with rejects. Yosef Markos, Export manager of
Mulatu Abegaz Export Trading plc, said that his company has paid 17,000 dollars
for losses of 4,690, 4,200 and 2,130kg of sesame lost on the way to Djibouti
out of three separate cargoes of 95,190kg which were shipped in July 2005 in
three instalments.
Geresu claimed that a truck driver that was carrying his cargo disappeared
after his act was uncovered. This problem, which once affected coffee, now
mostly targets sesame seeds, highly demanded in the Far East and Europe, and
selling at 7.30 Br a kilogramme.
" If the situation persists, we could lose our clients," Geresu said.
Nigussie Belaineh, secretary general of the Ethiopian Pulses Oils, Seeds and
Spices Processors Exporters Association, said that the problem often occurred,
and is becoming serious.
Exporters said that if there had been a weighing device at the Port of Djibouti
the problem could have been identified before delivery to the client. Niggusie
said that western African countries were now exporting similar products, and
that the country could lose buyers to these countries unless the problem was
resolved.
When the exporters talked with the deputy prime minister late in October, he
had promised them that the government would urge Djibouti to address the
weighing problem at Djibouti. Asefa Mulugeta, a team leader in the Ministry of
the Agriculture and Rural Development, and in charge of arranging the meetings
between the exporters and Addisu Legesse, said that the situation is not only
affecting exporters but also damaging the image of the country as an exporter.
He said unless the problem was resolved, further damage could occur.
In the meeting that is expected to be held this week, stakeholders, including
exporters, transport companies, representatives from the Ministry of
Agriculture and Rural Development and the Ministry of Trade and Industry, will
be present.
Eyesuswork Zafu, president of the Addis Abeba Chamber of Commerce and Sectorial
Association (AACCSA), said that the exporters have not formally notified AACCSA
about the problem, but added that there would be discussions with port
officials as early as this week about the possibility of installing weighing
devices at the port.

   

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