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Horizon Plantations Plans to Double Coffee Sales in 3 years

HORIZON Plantations Plc plans to almost double annual revenue at coffee projects within three years as part of a $500 million agricultural investment program.

HORIZON will spend $25 million to train workers, improve roads and replace washing units at the Limmu and Bebeka coffee plantations, which together have over 18,000 hectares (44,479 acres) under coffee, General Operations Director, Kemal Mohammed, said.

The development is part of a five-year investment program by Sheikh Mohammed Al Amoudi for agriculture projects, which also include Upper Awash Agro-Industry Enterprise, the country’s largest orange grower with 1,200 hectares of citrus, and the 10,000-hectare Saudi Star Agricultural Development rice farm, he said.

“We are sure because of the initiatives we have now, because of the inputs and techniques we’re applying, the productivity will increase to the maximum at the end of the five years,” Kemal said about the coffee plantations.

Ethiopia, Africa’s biggest coffee producer, may see earnings from shipments of Arabica coffee rise 25 percent to about $900 million in 2014-2015 as prices rise because of shortage caused by a drought in Brazil, an exporters’ association said last month.

Bebeka, in southwest Ethiopia, is the world’s biggest unfragmented coffee estate with 10,030 hectares under plantation. It also produces black pepper, cinnamon, cardamom, ginger and turmeric.

Limmu, 350 kilometers (218 miles) southwest of Addis Ababa in the Oromia region, has 8,000 hectares under coffee and produces 5,000 tons a year of the beans. Investment in Limmu may help double production to about 1.5 tons a hectare by 2018, Kemal said. Bebeka Coffee Estate doubled production to about 1.4 tons of coffee last year, according to Kemal. Around 90 percent of the company’s coffee last year was directly sold to buyers in countries including the U.S., Germany, South Korea and Japan, Kemal said.

Source: Bloomberg