Ethiopia Exchange Plans Forward Contracts for Barley, Cotton

  • Brewers seen keen on sourcing more barley domestically
  • Exchange trades spot contracts for crops such as corn, sesame

By Nizar Manek, 22 February 2017
(Bloomberg) -- 
Ethiopia’s commodity exchange is considering introducing forward contracts to help companies secure future supplies of malt barley for production in Africa’s second-most populous nation.
The contracts will help reduce demand for foreign currency among local units of brewers including Heineken NV, Diageo Plc, and Castel Group’s Brasseries et Glacieres Internationales, or BGI, which they use import malt barley to produce beer, ECX Chief Executive Officer Ermias Eshetu said in an interview on Feb. 16. The textile industry also needs cotton supplies, he said.
(471 words -- Bloomberg Terminal only)