N2Africa - Putting nitrogen fixation to work for smallholder farmers in Africa
Successes, Lessons and Challenges from Grain
Legume Sourcing, Processing and Marketing:
Experiences from Guts Agro Industry
Engidu Legesse and Mulugeta Enki. Guts Agro Industry PLC, Addis Ababa, Ethiopia.
Introduction
ILRI-N2Africa
Box 5689 Addis Ababa, Ethiopia ● +251 11617 2200/25/33/35
ilri.org ● n2africa.org ● n2africa-Ethiopia.wikispaces.com
N2Africa project is funded by BMGF
Key achievements
Sourcing: mainly from FCU & some from privates
Production/Process: legumes blended with cereals, legumes based
and fortified
.
Target Market:
• Mainly Low income consumers in semi urban & rural areas
• Government & private institutes, consumer Cooperatives &
wholesale market
Distribution Channel:
Wholesale market & Likkie micro franchise distribution model
Public-Private Partnerships:
• Product development
• Technical expertise
• Market linkage
• Sourcing & quality maintenance
• Established in 2005
• Purpose: manufacturing high quality nutritional food products
• Raw material sourcing: more than 5000 MT grains &
• Production: over 4500MT processed foods,
• Partnership & collaboration:
 HU
 ATA
 2SCALE
 N2Africa
 USAID
• Output financing should be given
due attention at all level
• Due attention for consumer
awareness & behavior, structuring
distribution, & financing
• Multi-actor partnership need to be
beyond the usual partnership
objectives that includes the last
mile distribution, affordability, food
consumption behavior to address
food & nutrition security.
Lessons Learned
• Major challenges in grain legumes sourcing,
• The current out put financing is outdated that is not matching
the agribusiness’ need
• Unreliable production forecast & thereby affecting pricing or
shortage creation
• Challenges for processed product marketing/business, etc.?
• Consumer behavior to feed on processed food
• Purchasing power of mass consumer is limited
• Challenge in coordination
• Access to reliable price information
Challenges
• Untapped agricultural resources
• Gap in malnutrition
• Population size
Opportunities
• More intervention, input quality, access to finance & skill.
• Coordination amongst FCU, processors, distributors
• To ensure sustainable grain legume market, research & extension
backed production should be strengthened in such a way that
increased productivity at farm will take care of the existing high price
of pulses.
• Coordination amongst Multi-actor partnerships (PPPs) to work across
the value chain.
• Out grower scheme for accessing quality raw material
• Inclusive marketing strategy that involves consumers as suppliers
producers and distributors
Way Forward
This document is licensed for use under the Creative Commons Attribution 4.0
International Licence. May 2017