Addis Fortune (Addis Ababa)

20 April 2014

Ethiopia: Wonji Sugar Factory Signs New Agreement With Farmer's Union

The Wonji Sugar factory and the Sugar Cane Producers' Cooperatives Union in the surrounding area, in Oromia regional state has signed an agreement for the supply of sugar cane for a price of 50 Br per quintal. The company also has plans to increase the area used to produce sugar cane by six thousand hectares, out of which 75 pc will be cultivated by the farmers' union.

The union renegotiates and signs a deal with the factory every three years. In the last such a deal (the 8th agreement) the farmers were able to sell their produce for 35 Br a quintal.

"The new price will be effective for products delivered from July 2013 up to June 2016," Teshome Abera, deputy general manager of the Union, told Fortune.

During the agreement signing ceremony that was held on March 1, 2014 at Rift Valley hotel in Adama town in Oromia region, the director of sugar corporation which oversees sugar factories in the country, Shiferaw Jarso, says the factory will be ready for other engagements of large scale Ethanol production and cattle fattening that the union plans to start using the by-products of the company.

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