Ethiopia's struggling flower farms appeal for help

ADDIS ABABA (Reuters) - Ethiopian flower-growers appealed on Wednesday for help from airlines, banks and suppliers to keep their industry going as some farms begin to close due to the global slump.

Addis Ababa is seeking to compete with neighbour and major flower exporter Kenya, and believes horticulture could eventually overtake coffee in earnings. In the 2007/2008 season Ethiopia earned more than $525 million from coffee, accounting for about 60 percent of its hard currency earnings.

But with rising costs and slowing demand, four out of 100 flower farms in Ethiopia have been put up for auction in recent weeks after failing to service bank loans.

"Due to the current world economic downturn and the very low market price fetched by growers, I call on all airlines, input suppliers and all those that are supplying this sector and are dependent on its success, to reduce your costs dramatically," said Tsegaye Abebe, chairman of the Ethiopian Horticulture Producers and Exporters Association.

"I would also call on banks to reschedule all loans and cut down on their interest rates to help ease the pain of all growers operating in our country," he added at the opening ceremony of a three-day horticulture industry conference in Addis Ababa.

Prime Minister Meles Zenawi attended the event, underlining the government's interest in promoting the sector.

"Partnership between the Ethiopian government and the horticultural growers private sector is exemplary. Our interest is to see the sector develop fast," Meles said.