Vision ፡To create sugar industries competitive enough at international level based on a sustainable growth pattern

Quarterly Newsletter Published by Sugar Corporation Communication Directorate

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Ethiopian Sugar Corporation, SudanESE KEnana Sugar Company Sign mou

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Inside Pages

Sugar Corporation of Ethiopia and the Sudanese Kenana Sugar Company have signed a Memorandum of Understanding (MoU) to work in cooperation in the area of sugar, sugar by-products and other related industries.

The MoU was signed on 16 March 2014 by Sugar Corporation (SC) Director General with Rank of Minister, Shiferaw Jarso and Kenana Sugar Company (KSC) Managing Director Mohamed Elmardi Eltigani in Khartoum during a weeklong official visit by a delegation from Sugar Corporation.

dElEgation from Bodi Community viSitS Wonji

Shoa Sugar faCtory

tvEt graduatES from afar rEgion training in Sugar produCtion for

tEndaho Sugar faCtory

Some 122 Technical and Vocational Education and Training (TVET) graduates from Afar Region colleges employed for Tendaho Sugar Factory have taken a month long practical training on operation of various machineries in sugar industry. Natives of Afar are among the graduates.

Out of 418 graduates employed for the soon to be commissioned Tendaho Sugar Factory, 122 have already completed their practical training in Fincha and Wonji

A delegation drawn from Bodi Community around Omo Kuraz Sugar Development Project consisting of 44 members has visited Wonji Shoa Sugar Factory and sugar cane out growers’ association farms around Wonji.

The delegation that paid the visit to the factory and cane out growers’ farms on 7th and 8th of March, 2014 is comprised of 36 pastoralists, four experts, two senior leaders and two woreda administrators.

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Signing ceremony of MoU

Trainees said the training enabeled them acquire specific skill

The delegation astonished what they have seen at Wonji Showa sugar factory

Sweet Vol. 2 No. 3 March, 2014Newsletter

ENViRONMENTAl PROTECTiON WORKS UNDERWAy... PAGE >> 10

OMO KURAZ SUGAR DEVElOPMENT PROJECT BENEFiTiNG PASTORAliSTS page >> 8

DElEGATiON FROM BODi... tEndaho Sugar faCtory Will produCE 75 thouSand quintalS of Sugar thiS yEar

Members of the delegation have visited the new Wonji Shoa Sugar Factory, Kuriftu Cane Out-growers Farmers’ Association and Wake Mia Kebele Farmers Association cane farms.

Officials of Wonji Area Farmers Association Union and Kuriftu Kebele explained the essence of their associations and the assets they have owned since joining the sector.

Farm machineries, sugarcane farms and cane co-products such as tomato, onion and maize farms run by the farmers were parts of the two day visit by the delegation.

The visitors also watched intercropping of cane and haricot beans at Wake Mia Kebele farms along with activities undertaken by the farmers there.

Animal fattening and dairy farms owned by individual workers of the factory carried out by using byproducts of sugar production were the other focus areas of the working visit by the Bodi Community delegation.

The delegation finally visited the process of sugar production in the newly built Wonji Shoa Sugar Factory.

After their visit, members of the delegation expressed their appreciation for the warm welcome extended to them and said they were astonished by what they had seen both in the farms and in the factory.

They also vowed to go back to their area and explain what they have seen in Wonji to their community and make maximum effort for the speedy realization of the sugar factory underway there in Kuraz.

General Manager of Wonji Shoa Sugar Factory, Atkilti Tesfay for his part commended members of the delegation for the visit and promised to support the Omo Kuraz Sugar Development Project using the long accumulated experience of Wonji Shoa Sugar Factory.

Tendaho Sugar Factory, to be commissioned soon, is set to produce 75 thousand quintals of sugar as planned for the budget year, Sugar Corporation Director General with the Rank of Minister Shiferaw Jarso has said.

A group led by the Director General paid a working visit to Tendaho Sugar Development Project in January and February 2014.

The visiting group assessed the progress in cane farm operation as well as in the finalization stage of the construction of Tendaho cane crushing mill. Thorough discussions were also made with the main constructing contractor and the sub-contractors of the plant.

Separate discussions were also held with top officials of the Afar Regional State which included Chief of the Region, ismael Alisero concerning the progress of Tendaho Sugar Development Project and ways of further ensuring the benefit of the local communities from the project.

The progress of a shortcut road construction from the cane farm to the factory was among the group’s main visit.

Tendaho Sugar Factory will crash 75 thousand

tons of cane this year which is in accordance with the year’s plan for the factory, Shiferaw told journalists after the visit.

He further said “the assessment showed that the contractor is behind the schedule and had agreed in the discussion to accelerate the pace of the finalization stage.”

Cane Development Director of Sugar Corporation Belachew Mehari for his part said the plan for this budget year is to cover 16 thousand hectares of land with cane and over 50 hectares of land is being planted every day.

The plantation work alone has currently created job opportunities for over five thousand citizens, he said. According to Belachew, the cane farm will cover 50 thousand hectares of land when fully covered with cane and half of it is being developed for the first phase plant with 13,000 TCD.

located in Afar Regional State, Tendaho Sugar Factory is under construction in two phases. each factories will have a capacity of 13 thousand TCD when fully operational. Out of the 50 thousand hectares of cane cultivation land the factory eventually will have, half of it is to be cultivated by sugarcane out growers.

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የስኳር ልማት በሚካሄድባቸው አካባቢዎች የሚገኙ ነዋሪዎች የልማቱ ተዋናዮች እየሆኑ ነውfour technologies that boost sugar productivity

transferred for implementation

Research and Training Division of Sugar Corporation transfers four technologies that boost productivity to Wonji Shoa Sugar Factory for implementation.

The four technologies which have passed through long period of research time are, performance of a promising Sugar Cane Variety called N52-219, Effect of Filter cake and mineral fertilizers on yield of sugar cane, investigation into Technical and Economical Tractor and implement Matching and Evaluation of Helerate 5% EC and Ethiozinon 60% EC against sugarcane Shoot Borer Complex in the Sugarcane plantations of Ethiopia.

During the technology transfer ceremony held at Wonji Shoa Sugar Factory, Acting Deputy Director General of the Reserch and TrainingDivision Ato yohannes Mekuanent, said the four technologies, developed by Sugar Cane Research Directorate and proved through long time research have the capacity of increasing productivity and reducing production cost.

He also underlined that the technologies which are going to be implemented by Wonji Shoa Sugar Factory and others will have a positive

impact in realizing the sugar sector goal.He further assured that his division will closely work hand in hand with Operations Division of the Corporation in implementing the new technologies in all existing sugar factories and new sugar development projects.

Agricultural Deputy General Manager of Wonji Shao Sugar Factory, Ato Gidey Gebregziabher on his part said that the four technologies will help the factory to increase productivity, thereby achieve the factory’s goals.

Besides increasing the productivity of the factory, the technologies are crucial in protecting the environment from pollution and climate change, he added.

He further stated that the four technologies to be implemented will also help in reducing production cost of the factory.

in the sugarcane productivity research conducted over a long period of time, the variety called N52- 219 was found to be the best in mean sugar yield, both in plant cane and first ratoon.

The verification trial of Filter Cake experiment

also resulted in better cane and sugar yields compared to other treatment combinations.

in investigating the existing technical and economic tractor and implement matching, the result clearly indicated that none of the evaluated tractor implement combinations were compatible which causes a loss of 2 million birr annually.

The research, therefore, recommended actions need to be taken to match the available tractors and implements as well as tractors and implements purchases to be based on detailed analysis to avoid the loss.

in the evaluation undertaken on insecticides Ethiozinon 60% EC and Helerat 5% EC, the later was found to be cost effective by 60%, it was learnt.

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mEtahara Sugar faCtory aWardS EmployEES With outStanding

pErformanCE

Metahara Sugar Factory has awarded its employees who have showed outstanding performance in implementing Kaizen which has helped in increasing productivity.

The factory’s production has increased by 70 percent as a result of positive attitude change witnessed because of Kaizen implementation, it was disclosed on the award ceremony held at the factory on 6 February, 2014. The implementation of this management philosophy has brought about a 35 percent increase in the factory’s daily sugar production.

Experts of the Factory told visiting higher government officials that Kaizen implementation has curbed wastages seen at various levels in the process of sugar production. According to the experts, it has also saved huge amount of foreign currency by enabling employees, using their own creativity, produce various materials needed by the factory.

The implementation of the philosophy has resulted in efficient use of time and quality of production, the experts added.

On the occasion, out of 633 Kaizen teams, 42 Kaizen development teams, 65 members and 17 facilitators were awarded. 20 employees were also among the awardees for innovative and upgrading works they have undertaken.

Awarding Ceremony

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Sugar Corporation’s six-month performance evaluation of the current budget year has indicated that the Corporation is in a good shape to achieve the goals set for the year.

in a press conference held on 17 January 2014 at his office in connection with the six-month performance evaluation of the Corporation, Director General with the rank of minister, Shiferaw Jarso told journalists the evaluation showed that the plan for the budget year is achievable.

As per the roadmap of the corporation, 70 percent of the Growth and Transformation Plan (GTP) set in sugar development sector is also within reach, the Director General stated.

He said sugar import was totally substituted with domestic product as a result of which over $130 million would be saved this year.

The Director General also confirmed that there is enough amount of sugar in storehouses at sugar factories to meet the domestic demand.

According to Shiferaw, water provision for sugarcane plantation, procurement and delay in tenders were among the challenges the sector encountered. He said the Corporation has been building its capacity to address the challenges faced in the execution process of sugar development projects underway.

Efforts are ongoing to upgrade cane productivity per hectare from 1,100 to 1,500 quintals in the existing sugar factories as the nation has the potential for a better yield, he further noted.

The corporation is working to increase its annual sugar production to 1.58 million tons, at the end of the 2007 E.C. through seven new sugar factories to enter production at various levels together with the existing three, he stated.

Sugar industry is among the mega projects the nation has embarked upon in the Growth and Transformation Plan and is creating massive employment for citizens.

The Director General of Sugar Corporation brifing journalists

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በውስጥ ገፆች

As per the MoU, the two companies have common objective to enter into cooperation with a view of enhancing sugar projects implementation, production, engineering process, technical development and sugar/sugar byproducts, as well as use of port terminals for the export of sugar and other products.

“…both KSC and SC agree to establish a cooperative strategic relationship with each other that includes sugar/sugar byproducts and other related industries in the Federal Democratic Republic of Ethiopia,” the MoU signed stated.

The cooperation is also committed to the creation of timely and appropriate business opportunities beneficial to both parties through sharing their information, coordinating their efforts and employing their resources and all other means available.

The scope of the cooperation between the two companies includes, among others, research and studies, consultancy, technical support, knowledge transfer and capacity building in

the area of agriculture and sugar technology.The companies have also agreed to cooperate in the marketing of sugar and sugar related products.

in the weeklong visit coordinated by the Ethiopian Embassy in Khartoum and hosted by KSC, the delegation from SC comprised of senior management staffs has gained valuable experience from KSC operations.

KSC’s experience in factory designing, technology selection and contract management of factory erection until its completion with the desired quality were among the focus of the visit.

important experiences were also drawn from KSC on how to build engineering capacity that would assist the Corporation in engineering and technical consultation in the production process.

The delegation visited KSC’s sugar industry related modern animal husbandry system that is benefiting pastoralists in the area.

Ethiopian Sugar Corporation, SudanESE KEnana...

Shoa Sugar factories. The same training has continued for the rest as well.

The training program coordinated by Training and Extension Directorate of Sugar Corporation Research and Training Division aims at equipping the TVET graduates employed for Tendaho Sugar Factory with the skill of sugar production process.

Human Resource Development and Management Deputy General Manager of Tendaho Sugar Development Project Gurja Belay had recently paid a working visit to Fincha and Wonji Shoa sugar Factories to assess the process of the training.

He said the trainees from the Afar Region where Tendaho Sugar Development Project is

found are taking relevant practical training for the positions they are employed to take.

According to Gurja, the project is working with over 3000 employees from the local community in the Region on permanent, seasonal and contractual basis. He also stated that the Project is facilitating for the local community to be organized in associations and benefit from job opportunities created in the sector.

Training and Extension Director of Sugar Corporation Research and Training Division, Wakshum Dugassa on the occasion said 1,495 newly employed and existing staff members have been trained in sugar cane mechanization and sugar technology in the current Ethiopian budget year. The training which is being given to the 418 TVET graduate employees for Tendaho

Corporation in good ShapE to aChiEvE BudgEt yEar goalS

Sugar Factory is part of the aforementioned training, he noted.

The trainees told Sweet Newsletter that, with the help of the training, they are acquainted with the process of sugar production technology in general and have acquired specific skills in operating the machineries they are employed to work on.

They have also expressed their keenness to apply their skills in Tendaho Sugar Factory to be commissioned soon.When its two phased construction fully completed, Tendaho Sugar Factory will be a sugar mill with a capacity of 26,000 TCD (619,000 tons of sugar & 55.4 million liters ethanol production annually) and one of the biggest sugar factory in Africa.

tvEt graduatES from afar...

omo KuraZ Sugar

dEvElopmEnt projECt

BEnEfiting

paStoraliStS

metahara Sugar factory ...

The awardees received trophies, gold necklaces, bond certificates of Renaissance Dam worth from 500 to 6000 Birr and certificates from higher government officials present at the ceremony.

Sugar Corporation Director General with the rank of Minister, Shiferaw Jarso on the occasion said the Corporation is working hard to reach at a capacity of producing over 1.5 million tons of sugar by the end of the Growth and Transformation Period.

He urged the employees of the factory to contribute their part on the effort the corporation is making to attain the goal set. The Director General called up on the employees to offer their rich expertise in the new sugar development projects underway side by side with achieving their own factory goals.

Good Governance and Reform Cluster Coordinator with the Rank of Deputy Prime Minister and Civil Service Minister, Muktar Kedir, former Sugar Corporation Director General and currently board member of the Sugar Corporation Abay Thehaye as well as members of leadership of existing sugar factories and new sugar development projects attended the event.

Metahara Sugar Factory is working to produce 1.3 million quintals of sugar and 12,500 cubic meter ethanol in the current Ethiopian fiscal year.

The Omo Kuraz Sugar Development Project, which is underway in Southern Nations, Nationalities and Peoples Regional State, is one of the sugar development projects carried out by Sugar Corporation.

The project, which will have five sugar factories when fully completed, covers a total area of 175 hectares of land for its sugarcane plantation.

lusoru Kuta who is a native of the project area, South Omo Zone, is one of the beneficiaries of the job opportunities created by the project.

He is among the graduate tractor operators, trained at Chancho, Ethiopian Roads Authority Training Center for three months. The training was fully sponsored by Sugar Corporation to open doors of job opportunities especially to natives of the area and there by benefit local community youths through working in the project.

lusoru, a father of a son says, “Before i started working in Omo Kuraz Sugar Development Project, i was a pastoralist. i spent most of my time moving from place to place to look for water and pasture for my cattle.”

After becoming an employee of the Omo Kuraz Sugar Development Project, he is now running a settled and a better life getting access to various social services. He also pays his younger brother’s school fee Who is currently found enrolled in a school at nearby town

According to the custom of his Gnagatom community, owning large number of cattle is a symbol of hard working and wealth. He, with his extra income as an employee of the project , is now regularly buying cows and oxen to show that he is a hard worker as well as wealthy. like lusoru, Tsehaynesh yeltona, 28, is among the pastoralist’s youths benefiting from the project underway in her local area. Tsehaynesh, according to the custom of her community, was given to be a wife to a man fourfold older than her when she was only 12 years old.

Her parents had received 38 cattle and a Kalashnikov (AK-47 rifle) as a dowry out of the marital arrangement of their daughter, Tsehaynesh. However, according to Tsehaynesh, she refused to be married to an old man for which she suffered physical and psychological harassment.

Tsehaynesh who is currently married to another person of her choice is working as a receptionist in the sugar development project site at Salamago District. in fact, she says she is paying back from her salary the dowry that her parents had received from the man she was once supposed to marry.

Besides her personal employment at the Omo Kuraz Sugar Development Project, she speaks of the benefits the pastoralist community obtained as a result of coming together through the villagisation program.

“The living style of our society was a scattered one usually moving from place to place to get water and pasture for cattle. Now, this way of living is transforming to a settled and mixed agriculture. The community has started farming using irrigation facilitated by

the project. They get potable water at their doorsteps. This has reduced the load of work for women and saved the time they used to spend to fetch water. They are also happy to get grinding mill in their village,” She said.

The Omo Kuraz Sugar Development Project has currently, created job opportunities for about ten thousand citizens like that of lusoru and Tsehaynesh.

General Manager of the Omo Kuraz Sugar Development Project, Ato Nuredin Asaro, says besides its main goal which is producing sugar the project is benefiting the pastoralist communities around the project area.

The social service institutions and infrastructures built by the project for the community of the three new villages are indicatives of the commitment of the project as well as Sugar Corporation to the local community, he said.

“Prior to the construction of the Sugar Factory number one, what the project did was arranging irrigable farmland for pastoralists. in addition, in all the three villages, we build social service institutions like water facilities for human and cattle, schools, health centers grinding mills, farmer’s training centers, etc. These all facilities we have made ready show that we are committed to make the pastoralist community benefit from the project” Nuredin adds.

To make the community benefit more from the project in the future, special attention is given to education, the project manager stresses.

“Currently, many children got the chance of education in schools built by the project. Especially, the number of female students enrolled is very encouraging”, Nuredin said.

Sugar Corporation’s Deputy Director General of Public Organization Division, Ato Damene Darota, on his part said, the pastoralist community residing in and around the command area of the project

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Education is among the benefits gained by the community

omo KuraZ Sugar dEvElopmEnt projECt...was not beneficiaries of any development for long time. The Corporation is working aggressively to fundamentally change the long standing problem in lack of development.

likewise, South Omo Zone Administrator Ato Moluka Wubneh says the Omo Kuraz Sugar Development Project is bringing bright future for theses long marginalized pastoralists living in gloomy situation for a long time.

Pastoralists who reside in villages are benefiting from the social service institutions and infrastructures. “in pastoralist areas of our zone, it was difficult to get 20 students in a school. Now in villagization areas, the number of students is increasing dramatically. This shows the success the villagization program has brought about,” Moluka adds.

The Omo Kuraz Sugar Development Project office has from the outset embraced the local community which has an immense significance in achieving the goal set by the project office.

The Omo-Kuraz Sugar Development Project is one among other projects where five sugar factories will in total be constructed, two of these with 24,000 TCD while the rest with 12,000. The project’s cane cultivation area is 175,000 hectares wide that encircles some woredas of South Omo, Benchmaji and Keffa zonal administrations.

SoCial SErviCE faCilitiES, infraS-truCturES Building undErWay in agEmSa finCha nEW villagE

Construction of infrastructures and social service facilities is well underway around Fincha Sugar Factory to community members to be relocated from the factory’s command area at a cost of over 30 million Birr allocated by Sugar Corporation.

The community members have been living in Fincha Sugar Factory command area known as Kuyisa and others for years without adequate infrastructures and social service facilities.

Sugar Corporation along with the Oromia Regional State had earlier forwarded direction to address the issue of infrastructures and social service facilities before relocating them outside the factory’s command area.

Accordingly, the construction of infrastructures and social service facilities at a cost of over 30 million Birr in a place called Agemsa Fincha is 50 percent accomplished.

Health station, primary and secondary schools, electricity, potable water and administration offices are among the constructions in progress at the new village for the community.

Public Relations Section of Fincha Sugar Factory disclosed that the construction of the facilities is expected to be finalized in the current Ethiopian year, 2006.

omo KuraZ Sugar dEvElopmEnt projECt to undErtaKEmaSSivE CanE plantation

Stakeholders of Omo Kuraz Sugar Development Project have agreed to play their role to accelerate cane plantation underway at the project.

The agreement was reached at a discussion forum Sugar Corporation held with federal and Southern Nations, Nationalities and Peoples Region (SNNPR) stakeholders from 2 – 4 February, 2014 in Hawassa Town.

Sugar Corporation Director General with the Rank of Minister, Shiferaw Jarso, presided the discussion forum attended by Deputy Chief of State of SNNPR Tagese Chafo and other heads of various stakeholders’ bureaus.

On the occasion, the stakeholders assessed their so far performance in fostering the various activities of the project on their part as well as challenges encountered in executing their works and also forwarded opinions of decision to further strengthen their role in the future.

Participants of the discussion forum reviewed the villagisation process, infrastructure provision , social service giving institutions development, irrigation, cane plantation and housing development so far undertaken and came up with an action plan that clearly indicate who will do what and when in the remaining period of the current fiscal year.

As per the action plan, the stakeholders have agreed to do their level best to help realize cane plantation on 16 thousand hectares of land in

the current 2006 E.C. out of which 3 thousand hectares of land is already cultivated. To this effect, the stakeholders stressed the need to plant 70 hectares of cane a day to achieve the plan.

The discussion forum also agreed to organize pastoralists in sugarcane out grower associations so that they will benefit more from the sugar development project by providing cane for the factories planned to be built. They underlined the need to hold successive discussions with local communities to create awareness on the benefit of the project as a whole and their advantages in engaging in cane out grower associations.

A desk would be set at Sugar Corporation to monitor and support each of the sugar development projects, it was noted during the discussion.

Stakeholders on road construction, irrigation, housing development, and other related infrastructure developments attended the three-day discussion and consultation forum.

The Omo Kuraz Sugar Development Project is found in the SNNP Regional State and will have a total area of 175 thousand hectares of land for sugar cane cultivation which encompasses some areas of South Omo, Bench-Maji and Kaffa Zones. it is a huge project where five sugar factories will be built, three each with 12 thousand TCD while the rest two each are a 24 thousand TCD sugar mill plants.

EnvironmEntal protECtion WorKS undErWay in arjo didESSa Sugar

dEvElopmEnt projECt arEa

Arjo Didessa Sugar Development Project is undertaking environmental protection works around the project areas.

According to public relations section of the project the command area surrounded by a dense forest and used as a shelter by wild animals is damaged by a wild fire frequently. The wild fire has been detected as a threat to the forest as well as to the resources of the sugar development project. As a result, the project is setting firebreaks around cane farms and clearing the surroundings of the factory as well as employees residence to prevent wild fire the report from the section disclosed.

in addition, the project is preparing tree seedlings to undertake forestation in its surrounding in the upcoming rainy season as this can play a positive role in shielding the cane farm from the risk of flooding.

Awareness creation works for the public around are also given attention to prevent the wild fire and nurture the forest which has positive impact on the climate, the report of the section further added.Found at western Ethiopia of Oromiya Regional

State in East Wollega and Eilu Ababora Zones, Arjo Didessa Sugar Development Project is expected to enter production with a capacity of producing 8,000 quintals of sugar a day which shall be raised into 12,000 quintals when reaching its full design crushing capacity.

The project had been under ownership of a Pakistani private company known as Al-Habasha P.l.C. prior its transfer to Sugar Corporation in August, 2012.

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quarterly newsletter published by Communication directorate :+251-(0)11-552-7475/6322 : +251-(0)11-515-1283 : 20034 Code 1000 A.A etsugar@hotmail.com

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Leadership of sugar corporation experience sharing visit and signing

ceremony of MoU

Development activates in line with sugar industries