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Ethiopia: Teff in the Global Trade

In Ethiopia, teff is a national obsession. Ground into flour and used to make injera, the spongy fermented flatbread the grain is basic to Ethiopian cuisine.

In traditional terms, diners gather around a large piece of injera, which doubles as cutlery, and scoop up stews and feed one another – an action which in Amharic is known as gursha. This actions was featured in one episode of The Simpsons a couple of years ago. Now this super-grain is under international radar which has eventually led the Ethiopian government to consider policy changes, writes Tibebeselassie Tigabu.

The distance from Ethiopia to Bolivia is 12,038.1kms, an approximate travel time of an exhausting 15 hours and 32 minutes from Addis Ababa, Ethiopia, to La Paz, Bolivia.

These two countries do not have a significant diplomatic relationship but the two nations share something far more important for the two people. They are both birth places for two ancient gluten free seeds (gluten is protein composite found in wheat and related grains, which is main cause for celiac disease [disease of the small intestine to absorb nutrients]): quinoa of Bolivia and teff of Ethiopia.

Ethiopian Teff Grain
Ethiopian Teff Grain

The quinoa cultivation originated in the Altiplano (the Bolivian Plateau) around 3,000 BC. Legend has it that Quinoa was a gift from the gods to the indigenous people of Aymara. Similarly, legends surrounding teff looks to be in the same vein. The crop traces its creation from the early times perhaps as old as the creation of the first human being on earth.

Nowadays, “gluten free” is one of the romanticized terms for people who are diagnosed with celiac disease. Complete with protein, fiber, essential amino acids and rich with minerals, quinoa quickly became an alternative diet for a significant number of western consumers.

The popularity of the seed increased in connection with the United Nations Food and Agriculture Organization’s declaration of the “International Year of Quinoa” in 2013 in recognition of ancestral practices of the Andean people.

Following its recognition as an alternative dish with a powerful nutritional value, quinoa’s commoditization brought the price up to unprecedented levels in local market. This was tough for Bolivians for whom quinoa is a staple food to say the least. According to different reports, the price has tripled since 2006 triggering unprecedented price boom. As the saying goes one’s blessing is ones curse; the new changes in the global food system did not favor the Bolivians.

Quinoa once a staple food for the indigenous Aymara became unaffordable to them due to western demands and the associated price rise. Now the world is looking for the next super-grain which can replace Quinoa or can be used as an alternative. Now, the mainstream media are reporting how teff is going to be the next super grain. In this regard, a Huffington Post article entitled “Is teff the new super food?” in 2004 detailed how teff is a durable crop that can grow in almost any climatic condition. The piece also discussed various alternative uses of this crop in bread, cookies or pancakes.

The article also states teff has 50 percent more protein, five times more fiber, and 25 times more calcium than brown rice.

The other website Foods for Better Health reported that teff is also a great source of minerals like calcium, manganese and iron; teff also contains vitamin C which is rather unusual given that this nutrient is not normally found in grains.

Apart from that, different researches show that teff is full of complex carbohydrates and is low on the glycemic scale (the level of sugar). Hence, the reports say that the ancient country (Ethiopia) was sitting on the secret of teff which lowers the risk of heart disease, stroke, obesity and diabetics.

From the China Post to the BBC, The Guardian and various health websites is giving teff an overwhelming global attention. Ironically, this crop was once being dismissed by foreign experts as having low nutritional value. Better yet, in the past teff has been criticized for contrasting nothing but iron. Nevertheless, this attention quickly shifted with endorsement of celebrities such as Victoria Beckham and Gwyneth Paltrow.

Following this global overwhelming attention, the Ethiopian government recently lifted the embargo that was placed on the export of teff back in 2006. Now, the country is preparing to export 80,000 quintal of teff for the rest of the world.

Though many did not have a clear picture as to how teff is going to join the international market, critics of the global trade system are skeptical of the plan. And the main reason for this is the experience of Bolivia.

As far as the quinoa is concerned, the experience is quite bad. In the aftermath of the international hip, the local market in Bolivia changed like it never did before. The price hike caused quite stirs in the country and in some pockets reported to have instigated conflicts. The critical question or rather a fear regarding teff appears to be if exportation is going to spike the price of teff locally.

Nevertheless, these fears are not felt by the main actor, the Ethiopian Agricultural Transformation Agency (ATA), in exporting teff. According to Nega Wubneh, Systems Programs Senior Director for ATA, lessons have been drawn from quinoa and that teff’s induction to the international market will be handled with care and strict regulatory measures. Nega did not deny the fact that the timing of the lifting of the embargo on teff export is directly linked to the mainstream media reporting on teff as super, nutritious and gluten free food.

“Ethiopia is the source of teff and currently the main producer in the world. However, it is sad that the country is not in the list of international teff exporters; not even among the top ten countries,” Nega told The Reporter. The main exporter countries according to Nega are Spain, the US, India, Uganda, Cameroon and South Africa. With teff gaining momentum in many countries, he believes Ethiopia should take the advantage of the market. Since teff is a stable crop a strategy has been prepared which will act as a restrictive measure against unregulated exportation of teff.

National as well as regional steering committees made up of seven government agencies and ministries have been established to regulate the teff exportation sector, Nega says. The committee is comprised of Ministry of Agriculture, the ATA, the Ministry of Foreign Affairs, the Ministry of Trade, the Ethiopian Revenues and Customs Authority, the Ethiopian Standards Agency and the Ethiopian Agricultural Investment Agency.

According to the director, initially teff exportation is not open to everyone. Some 48 commercial farms have exclusively been chosen to plant the seed, process it as flour, package it and finally export it to the global market. For Nega, this is how the local market will be curtailed from the adverse effect of the rigor of the global market. These farms, according to Nega, were chosen using different standards. Some of the standards include farmland with 20 hectares and more, usage of mechanized farming techniques, owning an investment license and also who can add the most value to the teff, exporting in flour form being the minimum requirement. Nega also noted that starting from the planting of the seed, the different level of the value chain will be overseen by the regulatory offices.

According to Nega, there will be a monitoring process on how much these commercial farms produce per hectare to check whether these farms are not sourcing their products from other local smallholder farmers.

In every step, Nega says, there will be a very careful monitoring process. The machine they use for milling, packaging, recipe listing and a sanitary regulation up to the shelf life will be done cautiously. Institutions such as Ethiopian Agricultural Research Institute will work collaboratively to set the standard, he explains. Apart from that, according to Nega, the DNA make up labeling of each production will be done in a way that would enable traceability to the respective commercial farm. To do that a company will be hired to certify and also trace it. “If any health hazard is found there will be a way to actually trace production to the respective farm,” Nega says.

Though the embargo is lifted, still exporting the raw grain is strictly prohibited and the farms are required to process and package it. This, according to Nega, will create jobs for many and since ATA promotes agro-processing it goes in line with its goals. Going forward, there will be cookies, crackers and pasta which will be available to the local market, he also noted.

While the whole world is glorifying Ethiopia’s teff or gluten free super grain, Nega says that the overall gluten free market is estimated at 4 billion up to 12 billion dollars annually. Since Ethiopia is a recent comer, for Nega, the main job that should be done is to promote aggressively. “Though the global attention is shifting to teff, it is still a niche market and it needs a rigorous promotion work,” Nega argues.

Regarding the concerns of price hike, Nega is of view that would not be related to supply; rather speculation of the traders. But this is bound to stabilize, he argues, since the exportation does not touch the existing supply in the local market. Nega argues that speculators could gain for only short period of time; their effect could never be that strong. He takes the example of sesame exporters who actually hoard it despite the advice that was given to them to sell it but they assumed the price will increase which actually resulted in the opposite.

Looking at teff, the price is increasing. A teff trader for the past twenty years, Masresha Chane, who works in the Arbaminch area, says that in the past seven years the price of teff never went down from 1,000 birr. Around Arbaminch area the price of first grade teff price is 1,400 birr while in Addis it is 1,900 birr per quintal. Twenty years ago teff’s price was 130 birr per quintal. And this shows that price of teff is in increasing trajectory even without outside demand, he told The Reporter.

Teff, one of the smallest, 1/32 inch in diameter seed, is grown by over six million farming households in Ethiopia. In relation to the fertilizers farmers in Ethiopia apply and the soil acidity that resulted from it, the farmers could not produce what they were capable of producing until a couple of years ago; however with ATA’s involvement teff’s productivity has been boosted by introducing fertilizers and ways of harvesting which increase the yield from 10 -12 quintal per hectare to 25-26 quintal per hectar; the changes are applied in 1.5 million farm households in the country.

He says the productivity of teff is growing on the supply side to accommodate growing demand of locals. As it stands at moment, teff production is dominated with smallholder farmers with only 2 percent of producers under taking the production in commercial farms. But Nega pointed out that the 48 new are not even in this category. “There will not be any pressure regarding the local market,” says Nega.

It is not only Nega but Demiss Chanyalew (PhD), an agro-economist, also says that according to a research that is done on corn and barely the productivity of the crops is actually increasing by some 7 percent. Hence, he also argues that there is a lot of chances for productivity of teff to increase in the coming years. Though some are concerned with the exportation of teff, Demiss says the government banned the exportation when the environment is not favorable and with this timing the embargo was lifted because the environment is favorable.

For Demiss teff should be seen as not staple crop rather a commodity like any other. Whether raw grain or in any form, he also believes it is right time to export it. “Teff is going out of our hands while countries which are not the sources are getting a benefit,” Demiss says. He also shares the idea of Nega with possibility of speculators increasing the price.

More than 97 percent of the farms work on less than five hectares land which he thinks is enough for the local supply. He actually believes even in importing it as raw the promotion should be done aggressively.

For Costentinos Berhe (PhD), an important question that should be answered is the teff demand and supply. With the exporting of raw grain, Contentions does not agree since the patent question for teff is not answered yet. He also questions how commercial farms are able to produce teff because it needs a constant weeding process.

The process of exporting, according to Costentinos, will destabilize the local price because of price speculation. “Just up on hearing that teff is to be exported, the price might increase up to 3,000 birr,” Costentinos says. He suspects whether the government might be forced to actually have a price cap. With the proposed restriction which allows only 48 commercial farms, he says that cannot be done since it is a free market. Since it is inevitable, he supports the exporting of teff after adding value and should be packed since there will be labor creation which will also benefit the local people.

Nevertheless, Nega says that already the commercial farms have started production in Bale, Oromia Regional State. It is still at early stages, but five big food chains from England including Tesco and the American multi-international corporation General Mill and a Dutch company showed their interest over teff but no agreements have been signed yet. Currently, teff is sold at the international market at rate of 150 dollars per ton

Although with many varieties of teff, the price would register slight difference.

Source: The Reporter: Ethiopia

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