By MERGA YONAS | ADDIS FORTUNE
At a time when business in horticulture, particularly flowers, is highly threatened by the global economic downturn, Freesia Ethiopia, a joint venture by Ethiopian and Dutch businesspeople has joined the scene.
The official inauguration of the flower farm with 15hct green in Sululta area of North Shoa Zone, Oromia Regional State was held on March 28, 2009. Its shareholders, Samrawit Moges, Thomas Mattanovich, Ronald Vijverberg, vDijkn Hofland, Alex Barendse and Matthieu Barendse formed the joint venture in July 2007 with an initial capital of 18 million Br.
The new entrant to the horticulture scene secured start up finance from the Private Sector Investment Program (PSIP), a Netherlands government’s programme meant to stimulate investment in emerging economies and developing countries of Africa, South America, Asia and Eastern Europe, Matthieu Barendse, general manager of Freesia Ethiopia, told Fortune.
Though rose growers do not prefer the cold weather of the area where the new flower farm is found, it seems to be ideal for freesia; the 21°C – 22°C day time and the 3°C-5°C night time temperatures are perfect for the plant with fragrant flowers, according to the General Manager. The flat terrain of the area convinced the flower growers that they would succeed in their business.
“We had the feeling that the project will be even more successful when we use better materials,” said Barendse. Thus, Freesia Ethiopia has invested in a modern greenhouse with machinery for cultivation, heating and steaming the soil making their own borehole for fresh water and application of economical and environmental fertilizers and pesticides, the owners claim.
The joint venture, which has more than 80 people who are directly employed on the farm, has also partnered with a local company, Chancho Plc. The partnership is based on an arrangement in which Chancho Plc provides land and utilizes local knowledge of the country, the culture and the government, where as Freesia Ethiopia brings in knowledge of cultivation, labour and techniques.
Freesia Ethiopia envisions that from 2010 onwards, it will expand its flowers and bulbs production by one to two hectares of greenhouse per year, and further to 10hct within the following five years. It will have a yearly investment of four million Br. Production of freesia flowers and bulbs by 2013 will rise to 25 million and 18 million per year, respectively. The company anticipates having more than 200 employees by then.
European retail markets and Middle Eastern consumers are the targeted buyers for the flowers bulbs.