1. World Sesame Outlook and Ethiopia’s position in the world market
C4C
World Sesame Outlook and Ethiopia’s position in the world market
Sesame Stakeholders Network Meeting (April 20-21, 2015) Mekelle, Ethiopia, organized by SBN & C4C/SNV, Agriterra/

2. World Sesame Production and Export
Description
Figure
No producing countries 76
Dominant countries
Asia &Africa
Production growth ( )
3.75 %
Export growth ( )
6.10 %
Share of export over production
25%-30%
World demand
Increasing fast(>SS)
C4C
Ethiopia's Sesame traded volume and FOB value
(2008/ /14)

3. Ethiopia’s Sesame seeds CharacteristicsNO
HUMERA TYPE
WELLEGA TYPE 1
Appreciated for its aroma and sweet taste
mainly used in raw form because of their aesthetic value 2
Whitish color
White seeds, with a white to golden colour 3
larger seeds size;
Small seeds 4
Good uniform seeds 5
48 – 50% oil content
High oil content % 6
Used for bakery products, Tahinia confectionary
Seeds crushed into oil

4. Current sesame market dynamics
C4C
2. The prices of sesame seeds has been dropped compared to 2014
Global
From 2200 USD to 1200 USD/MT
Ethiopia
From 2600 USD to <1400 USD/MT
Ethiopia’s FOB price trend from Jan/2014 to March/2015
Indicative export qty in 000MT
South America 50-60
OTHERS 20
INDIA
PAKISTAN 25-30
MYANMAR

5. 2005-2015 Ethiopia Whitish Sesame CNF Price Trend in China
C4C
Sesame Price Trend Comparison for Domestic and Imported Sesame
Indicative export qty in 000MT
South America 50-60
OTHERS 20
INDIA
PAKISTAN 25-30
MYANMAR

6. C4C Why Low Price?? a. Good Harvest in India
& this resulted not to import from Africa
2014/15 global Sesame production volume is beyond the expectation and the information from the consuming side could hardly make people optimistic
High Sesame Seed Price
b. High & unexpected growth in production happened in most of the African countries:
ETHIOPIA : ; SUDAN :
TANZANIA: ; UGANDA :20-30; MOZAMBIQUE 30-40
NIGERIA : ; OTHER W.A :
INDIA
PAKISTAN 25-30
MYANMAR
Low demand and surplus for Low demand and surplus for Maize/Corn, Sugar, Cotton, Soya etc.

7. 3. Poor quality of Ethiopia’s Sesame compared to previous years
C4C
Why Low Price COND----??
2. a month of delays in the harvest & marketing of India sesame, together with the concentrated harvest and marketing of sesame in East and West African
3. Poor quality of Ethiopia’s Sesame compared to previous years
4. Sesame seeds with 50-54% Oil at price of $1200/MTs is still in better position

8. Will the Low Price Continue in China??
most Chinese processors and millers have supplied their sesame STOCKS after Spring Festival,
more sesame shipments coming from Ethiopia, India, Togo, Sudan and Nigeria
C4C
Will the Low Price Continue in China??
after the Spring Festival, prices continue to "decline on the slide", market remain be weak in the short term
In china in April , 2015, the phenomenon of supply exceeds demand will be the same as
before. However, the overseas sesame price has reached an extremely cheap level after four months of sharp decline
processors are buying on current demand
traders need to maintain the free flow of cash,
Lack of market confidence, keep sliding
Rhythm
Purchase or Continue to Wait & See.

9. How Ethiopia responded to the Low Price??
C4C
How Ethiopia responded to the Low Price??
Domestic sesame buying price continue upward( higher than world price):
Optimistic feeling persist
(high price)
>140,000MT in stock
e.g. On march 31/2015
ECX Average price: 1267 USD/MT (and If you export 1500 USD/MT) However
Actual FOB Average price : USD/MT
High pressure on the International selling price will continue in the
coming months on contrary if the Indian and Tanzanian crop fails the outcome will be the opposite
Loose buyers, stock; loss; competitiveness

10. C4C OPPORTUNITIES FOR ALL China Japan
End user consumption has been increased - .
Substitution effect.
keep the trade active & continued demand of sesame seed

11. OPPORTUNITIES FOR ETHIOPIA
C4C
OPPORTUNITIES FOR ETHIOPIA
Well established brand : quality sesame producer; -
presence of adequate land and inexpensive labour .

12. COMPETITIVENESS OF ETHIOPIA ??
C4C
COMPETITIVENESS OF ETHIOPIA ??
Not speculate; high cost
100% comply with contractual arrangements
PRICE
High
DELIVERY
Bargain P
Unions have not utilized efficiently the ‘traceability’ & the direct export advantage over common traders.
Info:world prod &marketing
Limited long-term
contract
Poor Export Management
Competitiveness
Business arrangement
VOLUME
( high)
High cost of Production
Cost
Productivity
Individual quality defect result in bad image on country’s market
QUALITY
(world brand)
Processors: big size, uniform &white
B2B
Low productivity
Limited profiling & communication
Varies with exporters
Trade is all about creating relationships & trust

13. Global sesame FOB price (March/2015)
Country
Product
Fob price
USD/MT
CNF price
remark
Ethiopia
First-grade sesame ( ) from direct suppliers
1470 
Shipment date in Apr.
Second-grade sesame ( ) from direct suppliers
1370 
 Sudan
White sesame (  seasons
1430 
 India
New white sesame ( )
1500
 Nigeria
Nigeria oilseed ( )
1240 
 Mali 
Mixed sesame ( ) 
1230 
Burkina Faso
White sesame ( ) 
1270 

14. 2013/14 Top Ethiopian Sesame Destination Countries
India export to:
Far East 41% and EU 20%
Far east(Korea PR29%, Vietnam 25% and chaina 4%)

15. WORK FOR COUNTRY’S COMPETITIVENESS
C4C
How the SVC actors can generate sustainable benefit?? -
Every Body should work for the country's competitiveness .

16. C4C ISSUES FOR DISCUSSION
How can Ethiopia position itself better in the world market? Including market diversification to EU?
How cooperatives/unions become efficient & effective Market player?
Up to what level quality of sesame improved? How?

17. የመወያያ ጥያቄዋች
ችግር(issues) ምን
(what ?)
ማን (Who?) መቸ
(when?)
1. ኢትዮÉያ በአለም የሰሊጥ ገበያ ላይ ጥሩ ተፎካካሪ እንድትሆን ምን መደረግ ይሮርበታል ? የወጭ ንግድ መዳረሻ ሀገሮችን ወደ አዉሮፓ ሀገሮች ለማበራከት እንዴት ይቻላል?
2. ህብረት ስራ ማህበራትና ዮኔኖች በሰሊጥ ግብይቱ ብቁና ዉጤታማ ተወናዋይ እንዲሆኑ ምን መሆን አለበት
3. የሰሊጥን ጥራት በምን መልኩና በምን ደረጃ ማሻሻል ይቻላል?

18. C4C ግ ሰ ና መ ለ አ ሁ
THANK YOU