Ethiopia Struggles to Benefit from Cotton Trade Amid Factory Supply Shortages

Ethiopia Unable to Benefit from Cotton Trade Due to Supply Shortages Faced by Factories

Although Ethiopia has significant potential for cotton production, the amount of cotton it currently supplies to foreign markets is extremely limited, according to the Ministry of Agriculture. Samson Asefa, the Executive Director of Cotton Development at the ministry, explained to Bsrat Radio and Television that Ethiopia is not utilizing its production capacity to supply cotton to the global market.

He highlighted that there are complaints regarding shortages in the supply of cotton to textile factories. This issue has been identified as one of the factors negatively impacting foreign currency earnings. The ministry has stated that efforts are underway to address challenges in cotton development and trade, aiming to enable Ethiopia to benefit from the sector.

To address the issue, a discussion forum focusing on improving productivity in cotton production and agricultural contracts has recently been held. A five-year cotton seed strategy is being developed to replace imported products and address the supply shortages in the textile industry. The ministry emphasized the importance of preparing agricultural contracts for textile industries, which will significantly contribute to creating a robust trade system by connecting producers and processors.

It was also noted during the forum that working in isolation within the cotton and textile sectors is ineffective. Therefore, efforts are being made to ensure collaboration and that stakeholders along the value chain benefit. The forum included participants from cotton producers, ginners, textile factories, and various institutions.