Farms: Karuturi Global on farming in Ethiopia
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Karuturi Global management says - "To start with there will be 20,000 hectares of oil palm, 15,000 hectares of sugar cane and 40,000 hectares of rice, edible oils and maize and cotton. We are building reservoirs, dykes, roads, towns of 15,000 people. "This is phase one. In three years time we will have 300,000 hectares cultivated and maybe 60,000 workers. We could feed a nation here." It's the deal of the century: £150 a week to lease more than 2,500 sq km (1,000 sq miles) of virgin, fertile land -- an area the size of Dorset -- for 50 years. Bangalore-based food company Karuturi Global says it had not even seen the land when it was offered by the Ethiopian government with tax breaks thrown in. Karuturi snapped it up, and next year the company, one of the world's top 25 agri-businesses, will export palm oil, sugar, rice and other foods from Gambella province -- a remote region near the Sudan border -- to world markets. Ethiopia is one of the world's largest recipients of humanitarian food and development assistance, last year receiving more than 700,000 tonnes of food and £1.8bn in aid, but it has offered three million hectares (7.4 million acres) of virgin land to foreign corporations such as Karuturi. "It's very good land. It's quite cheap. In fact it is very cheap. We have no land like this in India," says Karmjeet Sekhon, project manager for what is expected to be one of Africa's largest farms. "There you are lucky to get 1% of organic matter in the soil. Here it is more than 5%. We don't need fertiliser or herbicides. There is absolutely nothing that will not grow on it.
Comments
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Better that you find new colonist from eastern Europe,not from Saudi Arabia,India.
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African countries need forighners to develop and help run them left to do there own thing Africans can not manage most were better off under the colonists .sad but true
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Goverment have kicked out this Karuturi and taken back the land.
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the land that is being given out is technically not used enough. traditional farming techniques are used which cannot eliminate hunger. you need to grow crops on a large scale which is not possible without foreign investment. countries like India and china are present there for their own food security and this produces more food resources for the human population. the farmers are offered stable farming jobs by the farming companies helping them come out of poverty and most of them are offered jobs in the same area. the ones that are displaced had decided to not work for the farming companies because they choose to live their traditional lifestyles which i respect, but growth pains are always there. it's better to choose more filled stomachs that a few angry minds...........................
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the problem in white ass is they are nnt trust worthy....
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It is opening doors to success.
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Dear african brothers, don't trust these foxy western hypocrites who's job is to merely spread propaganda. Look at the bigger picture. Foreign investment brings in capital, creates jobs, increases export of goods thus making your currency valuable, increase human skills and teaches them new techniques, improvement in infrastructure, growth of allied services,etc. Don't let these jealous western bastards, tell you that poverty,etc are the result of these investment. In fact these investments are helping to reduce a part of the poverty. Poverty Happens all around the world and businesses can help generate employment.
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Ehthopian people, don't listen to these western hypocrites. Please look at the bigger picture, Foreign Investment increases employment, generates taxes for the government, increases human skills, the exports of the country increases thus making your currency more powerful. Had there been a western company doing the same thing, there would not have been a single protest. They want dominance and don't wish to see others progress.
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I hear those who criticize the EPRDF and accuse the government of "land grabbing". In reality the problem of Ethiopian agriculture has always been backwardness and using outdated agricultural practices that have stripped vital nutrients from the soil. The EPRDF has created many incentives which include purchasing land cheaply and tax breaks for companies investing in agriculture. This will rapidly develop the agricultural sector of the economy which accounts for 46% of the economy. For too long Ethiopians have relied on subsistence farming which has only exacerbated food insecurity. Breaking old habits are very hard to do but we must in order to achieve economic progress.
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I always find it funny and ironic when British reporters try to preach about displacing native people from their land.
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its ironic india has world's biggest starving population yet the indian government managed to place its investors in africa. It does not make sense....african people need to wake up before its too late.
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I totally feel you :) Indians think they can colonize the world with their stinky ass corrupt business tactics! They are like rats! The world's plague...they are everywhere! Everywhere you look, there's a stinky, towel-head Indian with a nasal accent! They claim to have a vision to develop every country BUT their own! That's the reason India is so poor. If only they were that aggressive in developing their country India would kiss poverty goodbye! Indians get out of Ethiopia! India needs you!
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sardar ji
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hay,babes this is going to may be happened but can you thought what will be happened with the Ethiopian peoples.It is going to very sad.
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...important controls are not in place due not wanting to discourage investors.
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As I tried to indicate, I have a lot of respect for the Ethiopian Govt. I agree they have and continue to transform the country. I'm an armchair anon commenter that probably does not have the first idea of how to successfully run a country. However, I have seen examples of African growth unchecked that has resulted in problems. Nigeria, for example is a disgrace, different problems but an example of uncontrolled wealth creation for the few and ecological destruction (oil waste) for the many.
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You are assuming a lot and getting scared, no government would try to exploit its own people and sustain in long run, Ethiopian government is managed by a group of educated and well responsible people hence it is one of the fastest growing nations, that must be kept in mind and no company would dare to cross governments limitations and that too being such big corporates they don't loose reputation and business.
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(iii) That tax's raised in the medium and long term are not invested in the region (iv) Foriegn companies will not invest in training & employing locals. I hope the agricultural minister ensures tighter controls so Ethiopia can grow with its head held high.
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I broadly agree with the Ethiopian Govt's investment incentives and the fact that Karuturi will need to work hard for results.However I see a lack of controls and hugh risks in the following (i) In short term the poor locals are not being compensated, this is inhumane & insane. (ii) The possibilities of harmful pesticides being used, often pesticides that hve been banned in the West are legal in Africa.This will poisen the water & people.I hope th pesticide that destgroys bees will not be used !
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every one says karuturi grabbed land for so less, what do you expect he can grow crops right away and earn profits, its like giving a seed and saying he got we gave a future 1000 fruits for just a penny. farming is not bed of roses it needs lot of investment and risk as well, do you think west is dumb in loosing such opportunity it needs lot of dedication so only few came forward and karuturi is one of the hard workers among them. one must appreciate him for the risk he has taken in investing.