Sesame production has significantly increased in Ethiopia over the last two decades, making it one of the largest sesame producers globally. Most sesame in Ethiopia is produced in the Tigray and Amhara regions in the northwest. There are several actors involved in the sesame value chain, with most farmers selling to local traders who bulk and transport the crop to collection points for auction at the Ethiopian Commodity Exchange. Some farmers are members of cooperatives who bulk and market the crop collectively. Inputs are primarily supplied by traders and unions with credit also provided through microfinance institutions and traders. Advisory services are offered but are not well coordinated across different providers.
Exploratory Analysis of Contract Farming: Evidence from Ethiopia’s Barley Con...Dr. Amarjeet Singh
The advent of multinational brewing companies to
the Ethiopian brewery sector has contributed to the
introduction of Contract Farming Arrangements (CFAs)
among small scale malt barely farmers in various parts of the
country. That is, subsequent to the arrival of multinational
brewing companies to the Ethiopian business landscape, the
major brewing companies have introduced CFAs with
smallholder barley farmers from major barley growing areas
of the country, particularly in Arisi, Sebeta, and North
Gondar areas. However, no systematic, empirical study has
been conducted to assess the ongoing contract farming
practices implemented by those breweries in terms of
progress, achievements and challenges encountered.
Accordingly, this study endeavours to provide an
original, empirically anchored evidence, on the prospects and
challenges of the ongoing barley CFAs with particular focus
on the perspectives of the smallholder barley farmers towards
addressing existing challenges they face and in order to better
delivery the CFA for the benefits both the smallholder farmers
and the sponsoring companies involved by way of better
organizational commitment. Towards this end, an exploratory,
qualitative studies approach was employed to assess the
concurrent barley CFAs that the prominent foreign and local
breweries are implementing. In doing so, the study conducted
in depth interviews with fifteen respondents, including six
managers from three sponsoring companies and nine
individual farmers’ representatives. This study has hugely
benefited from the unique opportunity that CFA offers in
terms of assessing the direct relationship between the
sponsoring firms and the smallholder farmers involved.
The study results show that there are diverse
organizational support activities that the sponsoring firms are
rendering to the smallholder farmers in the CFAs such as
providing improved quality seeds, subsidizing prices of
improved quality seeds, input credit, premium prices, and
agronomical support in terms of training and technical
assistance. Nonetheless, there are certain concerns raised by
some of the smallholder farmers that deserve due
consideration of the sponsoring firms, which can be addressed
through further organizational commitments from the part of
the sponsoring firms of the CFAs.
Determinants of Coffee Market Outlet Choices in Gewata District, Kaffa Zone, ...Premier Publishers
Ethiopia has a broad genetic diversity among its coffee varieties. Coffee is one of the cash crop which is highly marketed through world next to petroleum. It has a great contribution in earning foreign currency and it is an income source for around 20 % Ethiopian population either directly or indirectly. Linking small producers to markets are widely recognized as a valuable development route and market outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. Even if the study area has great potential of coffee production, the farmers faced the marketing problem particularly in choice of appropriate coffee market outlets. This study was therefore carried out to analyze determinants of coffee producers’ market outlet choice decisions in Gewata district. Purposive and two stage random sampling technique was used and data was collected from 121 coffee producers. Multivariate probit model (MVP) was used to analyze factors influencing the choice of coffee market outlets choice by coffee producers. The multivariate probit model results indicated that quantity of coffee sold, education level, frequency of extension contacts, household size, years of farming experience, distance to nearest market, off/non-farm income, land under coffee and transport access significantly influenced coffee producers’ choice of market outlet. Therefore, strengthening farmers coffee cooperative and enhancing the financial capacity of cooperative with functional collection center, improving accessibility of transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other coffee producing farmers, improving productivity through strengthening supportive institutions (extension service provider).
Comparative Study of Economic Potentials of Cooperative and Non Cooperative M...ijtsrd
Cassava processing greatly influences the price value of cassava produce but processing and marketing through group approach will increase the value addition. Consequently, farmers' income will definitely increase, there will also be increase in savings habit. The study broad objective was to compare the economic potentials of cooperative and non cooperative members in cassava processing and marketing in agricultural zones of Anambra State. The farmers are poor and cannot access the needed agricultural facilities and technologies to enhance their productivity individually, that is why the rationale to compare their economic potentials through group approach becomes vital. Multistage sampling technique was used to determine the sample size of 287 for cassava farmers that were cooperative members and 294 sample size was equally determined for cassava farmers that were not cooperative members. Data obtained were analyzed with both descriptive statistics and inferential statistics. Evidence from the study revealed that majority of the both respondents were females. The findings also revealed that the cooperative farmers earned more income from cassava processing and marketing more than those cassava farmers that were not cooperative members. In order to enhance the cooperative approach of cassava processing and marketing among the farmers, the farmers should be encouraged to expand their cassava production capacity. As a matter of necessity, the farmers should be provided with micro production loan and credit. The cooperative society should adopt more innovative processing technologies. Also, the cooperative society should be more informed with current market information and seek for alternative access from other markets to dispose processed cassava. Okafor I. P. | Umebali E. E "Comparative Study of Economic Potentials of Cooperative and Non Cooperative Members in Cassava Processing and Marketing in Agricultural Zones of Anambra State" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd25247.pdfPaper URL: https://www.ijtsrd.com/management/marketing/25247/comparative-study-of-economic-potentials-of-cooperative-and-non-cooperative-members-in-cassava-processing-and-marketing-in-agricultural-zones-of-anambra-state/okafor-i-p
capacity building in agricultural trade2rishabhkumar
international trade barriers both tariff and non-tariff.
Indian perspective
Trade competitiveness of rice
Case study on India-Pakistan bilateral trade in agriculture
Exploratory Analysis of Contract Farming: Evidence from Ethiopia’s Barley Con...Dr. Amarjeet Singh
The advent of multinational brewing companies to
the Ethiopian brewery sector has contributed to the
introduction of Contract Farming Arrangements (CFAs)
among small scale malt barely farmers in various parts of the
country. That is, subsequent to the arrival of multinational
brewing companies to the Ethiopian business landscape, the
major brewing companies have introduced CFAs with
smallholder barley farmers from major barley growing areas
of the country, particularly in Arisi, Sebeta, and North
Gondar areas. However, no systematic, empirical study has
been conducted to assess the ongoing contract farming
practices implemented by those breweries in terms of
progress, achievements and challenges encountered.
Accordingly, this study endeavours to provide an
original, empirically anchored evidence, on the prospects and
challenges of the ongoing barley CFAs with particular focus
on the perspectives of the smallholder barley farmers towards
addressing existing challenges they face and in order to better
delivery the CFA for the benefits both the smallholder farmers
and the sponsoring companies involved by way of better
organizational commitment. Towards this end, an exploratory,
qualitative studies approach was employed to assess the
concurrent barley CFAs that the prominent foreign and local
breweries are implementing. In doing so, the study conducted
in depth interviews with fifteen respondents, including six
managers from three sponsoring companies and nine
individual farmers’ representatives. This study has hugely
benefited from the unique opportunity that CFA offers in
terms of assessing the direct relationship between the
sponsoring firms and the smallholder farmers involved.
The study results show that there are diverse
organizational support activities that the sponsoring firms are
rendering to the smallholder farmers in the CFAs such as
providing improved quality seeds, subsidizing prices of
improved quality seeds, input credit, premium prices, and
agronomical support in terms of training and technical
assistance. Nonetheless, there are certain concerns raised by
some of the smallholder farmers that deserve due
consideration of the sponsoring firms, which can be addressed
through further organizational commitments from the part of
the sponsoring firms of the CFAs.
Determinants of Coffee Market Outlet Choices in Gewata District, Kaffa Zone, ...Premier Publishers
Ethiopia has a broad genetic diversity among its coffee varieties. Coffee is one of the cash crop which is highly marketed through world next to petroleum. It has a great contribution in earning foreign currency and it is an income source for around 20 % Ethiopian population either directly or indirectly. Linking small producers to markets are widely recognized as a valuable development route and market outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. Even if the study area has great potential of coffee production, the farmers faced the marketing problem particularly in choice of appropriate coffee market outlets. This study was therefore carried out to analyze determinants of coffee producers’ market outlet choice decisions in Gewata district. Purposive and two stage random sampling technique was used and data was collected from 121 coffee producers. Multivariate probit model (MVP) was used to analyze factors influencing the choice of coffee market outlets choice by coffee producers. The multivariate probit model results indicated that quantity of coffee sold, education level, frequency of extension contacts, household size, years of farming experience, distance to nearest market, off/non-farm income, land under coffee and transport access significantly influenced coffee producers’ choice of market outlet. Therefore, strengthening farmers coffee cooperative and enhancing the financial capacity of cooperative with functional collection center, improving accessibility of transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other coffee producing farmers, improving productivity through strengthening supportive institutions (extension service provider).
Comparative Study of Economic Potentials of Cooperative and Non Cooperative M...ijtsrd
Cassava processing greatly influences the price value of cassava produce but processing and marketing through group approach will increase the value addition. Consequently, farmers' income will definitely increase, there will also be increase in savings habit. The study broad objective was to compare the economic potentials of cooperative and non cooperative members in cassava processing and marketing in agricultural zones of Anambra State. The farmers are poor and cannot access the needed agricultural facilities and technologies to enhance their productivity individually, that is why the rationale to compare their economic potentials through group approach becomes vital. Multistage sampling technique was used to determine the sample size of 287 for cassava farmers that were cooperative members and 294 sample size was equally determined for cassava farmers that were not cooperative members. Data obtained were analyzed with both descriptive statistics and inferential statistics. Evidence from the study revealed that majority of the both respondents were females. The findings also revealed that the cooperative farmers earned more income from cassava processing and marketing more than those cassava farmers that were not cooperative members. In order to enhance the cooperative approach of cassava processing and marketing among the farmers, the farmers should be encouraged to expand their cassava production capacity. As a matter of necessity, the farmers should be provided with micro production loan and credit. The cooperative society should adopt more innovative processing technologies. Also, the cooperative society should be more informed with current market information and seek for alternative access from other markets to dispose processed cassava. Okafor I. P. | Umebali E. E "Comparative Study of Economic Potentials of Cooperative and Non Cooperative Members in Cassava Processing and Marketing in Agricultural Zones of Anambra State" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd25247.pdfPaper URL: https://www.ijtsrd.com/management/marketing/25247/comparative-study-of-economic-potentials-of-cooperative-and-non-cooperative-members-in-cassava-processing-and-marketing-in-agricultural-zones-of-anambra-state/okafor-i-p
capacity building in agricultural trade2rishabhkumar
international trade barriers both tariff and non-tariff.
Indian perspective
Trade competitiveness of rice
Case study on India-Pakistan bilateral trade in agriculture
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Abstract—In Ghana, rural people, mostly farmers, experience food insecurity. In bargaining with marketers, farmers tend to lose profits. The use of traditional weights and measures led to inefficient transactions. These difficulties have negatively affected farmers’ productivity, calories intake, and international competitiveness. This research investigates how standard weights and measures can secure farmers’ profits at local markets. Using a random selection of 312 farmers for the questionnaire survey at two markets, we examine the impact of current pricing methods on farmers’ profits and advantages of standard weights and measures for farmers. The results show that price decision-making was based on three primary methods: (1) traditional weights and measures, (2) negotiation with individual marketers, and (3) negotiation with market queens. Markets queens and traditional measures negatively influenced farmers’ profits. Farmers’ perceptions showed that standard weights and measures would not only increase their profits at local markets but also enhance their international competitiveness.
Agricultural mechanization in Africa: Lessons learned from South-South knowle...IFPRI-PIM
PIM webinar conducted on October 4, 2018 by Dr. Hiroyuki Takeshima, International Food Policy Research Institute. More about PIM Webinars and archive her: https://pim.cgiar.org/resource/webinars/
Agro-dealers and the Private Delivery of Seed and informationfutureagricultures
Agro-dealers and the Private Delivery of Seed and informationLessons from Kenya, Malawi and Zimbabwe by Hannington Odame & Leonard Oduori (Future Agricultures Consortium).
In August 2009, the US Department of Justice (DoJ), together with the US Department of Agriculture (USDA) announced a series of workshops intended to “explore competition and regulatory issues in the agriculture industry”. - Agriculture and Antitrust Enforcement Issues in Our 21st Century Economy – will enquire into agriculture and into the dairy, poultry and livestock industries. One of several workshops that has been scheduled will take place in Iowa and address “…seed technology, vertical integration, market transparency and buyer power”.
These hearings will ask if mergers and acquisitions have reduced competition in the US seed industry. While this enquiry is US centric, CAS-IP, in its role to assist the CGIAR and its constituency of resource-poor farmers, argues that the availability of seed to poor farmers is critical to current and future food security. This is no longer a national issue, and the food security of developing nations is of great concern to the US and to other developed nations.
Does use of ict based market information services (mis) improve welfare of sm...ACORN-REDECOM
The need to provide agricultural information to farmers has led to emergence of numerous ICT-based MIS projects in
developing country. These projects aim at promoting commercialization of smallholder agriculture and subsequently their
welfare. This study examines the welfare effects one such project in western Kenya. It uses household food security and
access to medical health services as proxies of welfare. The study finds that farmers that use ICT-based market information
are more food secure and have better access to medical health services than their counterpart. It discusses policy implications
of these findings.
Gian Wouterse - The Health of Farmer-Based Organizations in Ghana:Organizati...IFPRI SIG
"The Health of Farmer-Based Organizations in Ghana:Organizational Diagnostics and Governance Implications" - Gian Wouterse
SIG 2015 Workshop "Integrating Multi-level Governance into the Post-2015 Development Agenda: Opportunities, Trade-offs, and Implications", Nov 9-10, 2015
Potato is number one non-grain food commodity of the world. Even though, Ethiopia has favorable ecology, the production of potato is characterized by poor seed quality, low skills of farmers, diseases, high post-harvest losses and poor organization along chain. The study is aimed to identify potato value chain actors and their roles and analyze marketing margins for actor. For this study 136 potato producers were randomly selected, 5wholesalers, 8collectors, 12 retailers and 6 small scale processors were purposively selected. Quantitative and qualitative data were collected from primary and secondary sources. Descriptive statistics was used to analyze data, chain mapping was implemented to identify actors and their supply linkage. Margin analysis was used to estimate value gained by each actors involved in potato value chain. The identified actors were input suppliers, producers, wholesalers, retailers, small scale processors and consumers. Supporting actors were office of agriculture, irrigation, micro finance, cooperatives, trade and market development, NGOs and bank. The margin analysis revealed that 65.01%, 12.29%, 9.78%, 8.27%, 3.27% share of margin goes to small scale potato processors, potato producers, retailers, wholesalers and collectors respectively. The major constraints were high price of seed, poor infrastructure, interferences of brokers, low storage facilities, weak linkage, disease and pests. The opportunities were suitable agro-ecology and government support. Strengthening the linkage among actors, providing training on storage construction and disease control, improving bargaining power of producers and initiate small scale processors were recommended to improve potato value chain.
This study was analyzed value chain analysis of sesame in Bench Maji Zone of Southwestern, Ethiopia. It was specifically aimed to address the research gaps by, identifying the major value chain actors and mapping the value chain, and identifying major factors affecting market outlet choices of sesame producers in Meinit Goldya and Guraferda Districts. For addressing these objectives the study used both primary and secondary data obtained from field survey and desk review. Multistage random sampling technique was used to draw 270 sesame producers. Descriptive statistics and econometric method of data analysis were used to analyze the data. The major value chain actors for sesame marketing in the districts were producers, wholesalers, rural collector, cooperatives, broker/commission agents, retailers, local consumers, ECX, exporters and non-governmental organizations. The multivariate probit model results indicated that Years of experiences, Coop membership, household size, Education level, Land under sesame, Quantity supply, participating in training and distance to nearest market significantly influenced sesame producer’s choice of market outlet. Depending on results of this study recommend that strengthening farmers sesame cooperative and enhancing the financial capacity of cooperative, improving accessibility of Transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other sesame producing farmers, improving productivity through strengthening supportive institutions(extension service provider) motivating sesame producing farm household to participate different training. Therefore, those important socioeconomic and institutional factors which are mentioned above must take into account to improve the productivity of sesame in the study area.
Determinants of Teff Market Channel Choice in Abay Chomen District, Western E...Premier Publishers
This study analyzes the determinants of Teff market outlet choices in Abay chomen District of Ethiopia. Survey of one hundred eighty-four (184) household heads was conducted in three kebeles of the district in 2016. Multivariate Probit model was used to identify determinants of households’ teff market outlet choice decisions. Farm gate collectors, retailers and wholesaler marketing outlets were used by teff producing farmers in the study area. The model result revealed that age of the households significantly determined the probability of choosing farm gate, retailers and wholesalers market outlets. The study also revealed that sex, land size and quantity of teff produced in 2016 significantly affected the farm gate outlet choice of the smallholders. Additionally, the retailer outlet choice of farmers was significantly determined by quantity of teff produced. On the other hand, the wholesale market outlet choice of farmers was significantly determined by education level of the farmers. This implies that the need to invest on improving the education status of farmers; improving the production capacity of farmers that would help smallholder farmers to choose the more rewarding market outlet. Therefore, any policy attempting to benefit smallholder farmers to link with fair market outlets should focus on their educational status and their production capacity.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Abstract—In Ghana, rural people, mostly farmers, experience food insecurity. In bargaining with marketers, farmers tend to lose profits. The use of traditional weights and measures led to inefficient transactions. These difficulties have negatively affected farmers’ productivity, calories intake, and international competitiveness. This research investigates how standard weights and measures can secure farmers’ profits at local markets. Using a random selection of 312 farmers for the questionnaire survey at two markets, we examine the impact of current pricing methods on farmers’ profits and advantages of standard weights and measures for farmers. The results show that price decision-making was based on three primary methods: (1) traditional weights and measures, (2) negotiation with individual marketers, and (3) negotiation with market queens. Markets queens and traditional measures negatively influenced farmers’ profits. Farmers’ perceptions showed that standard weights and measures would not only increase their profits at local markets but also enhance their international competitiveness.
Agricultural mechanization in Africa: Lessons learned from South-South knowle...IFPRI-PIM
PIM webinar conducted on October 4, 2018 by Dr. Hiroyuki Takeshima, International Food Policy Research Institute. More about PIM Webinars and archive her: https://pim.cgiar.org/resource/webinars/
Agro-dealers and the Private Delivery of Seed and informationfutureagricultures
Agro-dealers and the Private Delivery of Seed and informationLessons from Kenya, Malawi and Zimbabwe by Hannington Odame & Leonard Oduori (Future Agricultures Consortium).
In August 2009, the US Department of Justice (DoJ), together with the US Department of Agriculture (USDA) announced a series of workshops intended to “explore competition and regulatory issues in the agriculture industry”. - Agriculture and Antitrust Enforcement Issues in Our 21st Century Economy – will enquire into agriculture and into the dairy, poultry and livestock industries. One of several workshops that has been scheduled will take place in Iowa and address “…seed technology, vertical integration, market transparency and buyer power”.
These hearings will ask if mergers and acquisitions have reduced competition in the US seed industry. While this enquiry is US centric, CAS-IP, in its role to assist the CGIAR and its constituency of resource-poor farmers, argues that the availability of seed to poor farmers is critical to current and future food security. This is no longer a national issue, and the food security of developing nations is of great concern to the US and to other developed nations.
Does use of ict based market information services (mis) improve welfare of sm...ACORN-REDECOM
The need to provide agricultural information to farmers has led to emergence of numerous ICT-based MIS projects in
developing country. These projects aim at promoting commercialization of smallholder agriculture and subsequently their
welfare. This study examines the welfare effects one such project in western Kenya. It uses household food security and
access to medical health services as proxies of welfare. The study finds that farmers that use ICT-based market information
are more food secure and have better access to medical health services than their counterpart. It discusses policy implications
of these findings.
Gian Wouterse - The Health of Farmer-Based Organizations in Ghana:Organizati...IFPRI SIG
"The Health of Farmer-Based Organizations in Ghana:Organizational Diagnostics and Governance Implications" - Gian Wouterse
SIG 2015 Workshop "Integrating Multi-level Governance into the Post-2015 Development Agenda: Opportunities, Trade-offs, and Implications", Nov 9-10, 2015
Potato is number one non-grain food commodity of the world. Even though, Ethiopia has favorable ecology, the production of potato is characterized by poor seed quality, low skills of farmers, diseases, high post-harvest losses and poor organization along chain. The study is aimed to identify potato value chain actors and their roles and analyze marketing margins for actor. For this study 136 potato producers were randomly selected, 5wholesalers, 8collectors, 12 retailers and 6 small scale processors were purposively selected. Quantitative and qualitative data were collected from primary and secondary sources. Descriptive statistics was used to analyze data, chain mapping was implemented to identify actors and their supply linkage. Margin analysis was used to estimate value gained by each actors involved in potato value chain. The identified actors were input suppliers, producers, wholesalers, retailers, small scale processors and consumers. Supporting actors were office of agriculture, irrigation, micro finance, cooperatives, trade and market development, NGOs and bank. The margin analysis revealed that 65.01%, 12.29%, 9.78%, 8.27%, 3.27% share of margin goes to small scale potato processors, potato producers, retailers, wholesalers and collectors respectively. The major constraints were high price of seed, poor infrastructure, interferences of brokers, low storage facilities, weak linkage, disease and pests. The opportunities were suitable agro-ecology and government support. Strengthening the linkage among actors, providing training on storage construction and disease control, improving bargaining power of producers and initiate small scale processors were recommended to improve potato value chain.
This study was analyzed value chain analysis of sesame in Bench Maji Zone of Southwestern, Ethiopia. It was specifically aimed to address the research gaps by, identifying the major value chain actors and mapping the value chain, and identifying major factors affecting market outlet choices of sesame producers in Meinit Goldya and Guraferda Districts. For addressing these objectives the study used both primary and secondary data obtained from field survey and desk review. Multistage random sampling technique was used to draw 270 sesame producers. Descriptive statistics and econometric method of data analysis were used to analyze the data. The major value chain actors for sesame marketing in the districts were producers, wholesalers, rural collector, cooperatives, broker/commission agents, retailers, local consumers, ECX, exporters and non-governmental organizations. The multivariate probit model results indicated that Years of experiences, Coop membership, household size, Education level, Land under sesame, Quantity supply, participating in training and distance to nearest market significantly influenced sesame producer’s choice of market outlet. Depending on results of this study recommend that strengthening farmers sesame cooperative and enhancing the financial capacity of cooperative, improving accessibility of Transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other sesame producing farmers, improving productivity through strengthening supportive institutions(extension service provider) motivating sesame producing farm household to participate different training. Therefore, those important socioeconomic and institutional factors which are mentioned above must take into account to improve the productivity of sesame in the study area.
Determinants of Teff Market Channel Choice in Abay Chomen District, Western E...Premier Publishers
This study analyzes the determinants of Teff market outlet choices in Abay chomen District of Ethiopia. Survey of one hundred eighty-four (184) household heads was conducted in three kebeles of the district in 2016. Multivariate Probit model was used to identify determinants of households’ teff market outlet choice decisions. Farm gate collectors, retailers and wholesaler marketing outlets were used by teff producing farmers in the study area. The model result revealed that age of the households significantly determined the probability of choosing farm gate, retailers and wholesalers market outlets. The study also revealed that sex, land size and quantity of teff produced in 2016 significantly affected the farm gate outlet choice of the smallholders. Additionally, the retailer outlet choice of farmers was significantly determined by quantity of teff produced. On the other hand, the wholesale market outlet choice of farmers was significantly determined by education level of the farmers. This implies that the need to invest on improving the education status of farmers; improving the production capacity of farmers that would help smallholder farmers to choose the more rewarding market outlet. Therefore, any policy attempting to benefit smallholder farmers to link with fair market outlets should focus on their educational status and their production capacity.
Sharing gains of the potato in Kenya: A case of thin governanceSharing gains ...Premier Publishers
The potato offers a good alternative for diversification from maize, the staple food in Kenya. This article presents the results of a study on the potato marketing system, the factors affecting prices and the predominant governance system impacting on the market. Survey data were collected from 402 farmers in the three potato growing regions and addition information on monthly prices in major markets was provided the Ministry of Agriculture. There were also semi-structured interviews with the major actors in the potato sector.
Potato marketing exhibits the captive governance structure with traders collaboratively acting as the lead firm. An analysis of the split in selling price between the various players indicates that margins were concentrated at the coordination of marketing activities as opposed to the production activities. Coordination activities took about 40% of the consumer price. Besides the market channel used, the production region, the size of the land cultivated and the yields obtained determined the price obtained by the farmers. Given the distribution of the value added in the chain and the current dominance of traders, we argue in favour of upgrading the value chain and giving more power to the farmers and their organizations.
Factors influencing the intensity of market participation among smallholder w...AI Publications
Participation in commercial agriculture holds considerable potential for unlocking suitable opportunity sets necessary for providing better incomes and sustainable livelihoods for small scalefarmers. In developing countries like Ethiopia, most smallholder farmers are characterized by poor market participation because they lack market information on marketing of agricultural products. This study examined factors that influence the intensity of market participation among smallholder farmers in JabiTehnan districtusing survey data collected from randomly selected 120 farmers. The aim of this study was to analyze market participation of smallholder wheat farmers in JabiTehnan district. Both qualitative and quantitative data were collected from primary and secondary data sources using cross sectional data.Probit model regression result showed that, perception of wheat market price, quantity of wheat produced, size of land allocated for wheat and frequency of extension contact had significant and positively effect on market participation decision, while distance to nearest market, family size had significant negative effect. Based on the study policy interventions like family planning, awareness to farmers to supply wheat to the market when price is fair for them, strength extension service and infrastructure like market access, improve land management practice by use of a right input at a right timeas a means to enhance wheat market participation.
Development of Ethiopian seed and Quality control system by Fenta Assefaafenta assefa
Seed system in Ethiopia represents;
organizational,
institutional, and
individual operations
Associated with the development, multiplication, processing, storage, distribution, and marketing of seed in the country.
Farmers, particularly smallholder ones, are involved in multiple kinds of seed systems,
which can guarantee them in obtaining the quantity and quality of seeds they need and to market their produce.
The study assessed the socio economic variables of cashew farmers in Oyo State. Two towns within
Ibarapa East Local Government Area (Temidire and Eruwa) were purposively sampled. These areas are known
for the cultivation, production and marketing of this crop. A total sampling frame of fifty-six respondents was
used.
Commercialization of Smallholder Teff Producers in Ethiopia: Constraints and ...Premier Publishers
This study was designed to assess the smallholder farmers’ teff production and marketing constraints and opportunities in Guduru District, Horro Guduru Wollega Zone, Ethiopia. Two-stages sampling procedure was followed to select 154 teff producer farmers from four randomly selected kebeles. An interview schedule was used to collect household survey data during the 2016/2017 farming season. The Household Commercialization Index was used to assess the levels of market participation. The results revealed that about 78% of sampled farmers sold teff during a production year of 2016/2017. The Kendall’s coefficient of concordance result revealed that production constraints like high cost of fertilizer and delayed delivery, credit problem, shortage of land, unpredictable rainfall, limited improved seed acquisition, insufficient labor, loss of soil fertility and marketing constraints like poor road, limited alternative outlets, fluctuation of teff price, low bargaining power of farmers, inadequate market information and week farmers’ cooperative were pressing constraints of teff production and marketing in study area in order of their importance. The implication of this finding is that promotion of better access to communication facilities and institutional services may significantly contribute to promoting market participation and hence commercialization of teff producer smallholders.
Assessment of Dairy Marketing in Assosa District, EthiopiaPremier Publishers
The important roles of livestock in the developing countries within the agricultural sector in contributing to rural livelihoods and particularly those of the poor are well recognized. Ethiopia holds large potential for dairy development due to its large livestock population, the favorable climate for improved, high-yielding animal breeds, and the relatively disease-free environment for livestock. This study was initiated to Assessment of Dairy Marketing in Assosa District, Ethiopia. The focus of the study was to identify actors and their roles in dairy marketing chains; and to identify the challenges and opportunities of dairy marketing chains in the study area. The type of data use for assessment is cross sectional data. Different variables were hypothesized to determine dairy marketing. The daa was supplemented by primary and secondary sources. Primary survey was conducted in Assosa district to obtain the total number of households that have dairy animals in the three selected kebeles for dairy production. The secondary data is generated from both published and unpublished documents. Descriptive statistics has been used to assess the generated data. The results obtained from this assessment indicate absence of training service and lack of transportation service were found to be the most important significant variables influencing dairy marketing in the district. Therefore, providing training and improving transportation facilities to strengthen the vertical and horizontal linkages among the marketing agents are recommended to develop and strengthen information on dairy marketing in the study area.
Similar to 53cfc701045db kit case study sesame production and marketing in northwest ethiopia (20)
"Understanding the Carbon Cycle: Processes, Human Impacts, and Strategies for...MMariSelvam4
The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
Natural farming @ Dr. Siddhartha S. Jena.pptxsidjena70
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Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Venturesgreendigital
Willie Nelson is a name that resonates within the world of music and entertainment. Known for his unique voice, and masterful guitar skills. and an extraordinary career spanning several decades. Nelson has become a legend in the country music scene. But, his influence extends far beyond the realm of music. with ventures in acting, writing, activism, and business. This comprehensive article delves into Willie Nelson net worth. exploring the various facets of his career that have contributed to his large fortune.
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Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
53cfc701045db kit case study sesame production and marketing in northwest ethiopia
1. Royal Tropical Institute
As the fifth largest producer of sesame worldwide (FAOSTAT,
2011), sesame – ‘white gold’ – is not a new crop for Ethiopia.
In the last two decades, production has risen significantly.
From 1997 to 2007 total area under production increased
over 200% (Kindie, 2007). This is in contrast to other African
countries where production has only taken off over the last
five years, as in the case of Burkina Faso and Mozambique.
Although the white Humera type of sesame is well-known in
the world market, the largest part of the Ethiopian sesame
is exported to China. The importance of sesame produc-
tion and marketing can be observed in local towns such as
Humera, Dansha, Metema and Kokit, where the local economy
is ‘booming’. Increasingly the sector attracts investments in
storage and processing, especially in the ECX market towns of
Humera, Metema and Gonder.
In addition to this, the Ethiopian system serves as an interest-
ing example because of the large involvement of the govern-
ment, specifically through the establishment of the Ethiopian
Commodity Exchange (ECX), a governmental body.
In Ethiopia, sesame has become a major source of income
for farmers, ranging from small-scale to very large so-called
Before the 1990s, extension services were seen as a service to be provided solely by governments. During the
1990s, however, confidence declined in the effectiveness of public-sector extension agencies. This led to the
emergence of an alternative paradigm, where it was assumed that market-based solutions and the privatization of
extension provision could become an effective and sustainable base for development. A large number of govern-
ments and aid agencies experimented with this. In many countries, however, privatization (often achieved merely
by withdrawing funding for public-sector agencies) resulted in most farmers losing their access to any form of
advice, let alone impartial and independent advice (Christoplos, 2010; Davis et al., 2012; Swanson et al., 2010).
Other organizations have jumped in to fill this gap, including the private sector, NGOs and farmer organizations.
The result has been ‘messy’ systems, referred to as ‘pluralistic service systems’, in which farmers are supported
by different actors, funded from different sources (Wongtschowski et al. 2013).
But how can such pluralistic systems operate successfully? Two major questions need further analysis in this
regard:
1. To what extent do these service providers work together? In other words:
what are – if at all – the coordination mechanisms in the pluralistic system?
2. To what extent are these emerging systems responding better to farmers’ needs?
The Royal Tropical Institute (KIT), in collaboration with SNV, Common Fund for Commodities (CFC), Wageningen UR
Centre for Development Innovation and Agri-ProFocus, have made a purposeful effort to answer these questions
by documenting case studies in the vegetable oil seed sector, where a number of innovative projects have tried
to strengthen different service providers and seed producers. Field work was conducted in Burkina Faso, Ethiopia,
Mozambique and Uganda; this document presents the case of the sesame value chain in northwest Ethiopia.
kit case study
Pluralistic service systems
Sesame production and marketing in northwest Ethiopia
Wouter Kleijn and Mariana Wongtschowski
2. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 2
‘investor’ farmers, and prices have been steadily rising in the
past years. But there is still a lot of room for improvement.
Average productivity is still very low and marketing channels
should be further developed. Lack of inputs, finance, infra-
structure, transport and services are the main causes of these
problems. This study focuses on service provision to farmers
(technical training and coaching, organisation, market infor
mation), also known as agricultural advisory services.
This case-study aims to provide a brief overview of the various
services offered with regard to sesame, how these cater to
the demand of farmers and other actors down the value chain
and the extent of coordination of activities between service
providers. The geographical focus of this study is northwest
Ethiopia where 70% of the Ethiopian sesame is produced.
Field work was conducted in the Tigray and Amhara regions in
November 2013. Twenty semi-structured
interviews were conducted with
cooperatives, unions, banks,
government officials, proces-
sors/exporters, pesticide
dealers, traders and NGOs,
as well as two focus group
discussions with farmers.
Chain description
Since the 1990s sesame has grown to become one of the ma-
jor cash crops in Ethiopia. Global demand continues to grow
and therefore prices have been steadily rising until the end
of 2013, when prices went down. Some argue demand from
China is particularly high since Ethiopia uses sesame to repay
loans on Chinese-built infrastructure (Levitt, 2013).
Sesame production is an activity pursued by small-scale, mid-
scale and large-scale farmers. Small-scale farming usually
involves plots of one or two hectares. However, in Amhara and
Tigray, some commercial producers cultivate 500 hectares or
more. There is no reliable data on productivity but average
productivity levels are estimated by the local woreda offices
at between 300 and 400 kg/hectare. Post-harvest losses are
very high, harvesting, drying and threshing losses are esti-
mated at 15% (SBN 2014).
Although there is a lack of reliable data it is clear that levels
of productivity differ from farmer to farmer based on expertise
and available resources (both tangible and non-tangible).
Moreover, there is a clear trend towards decreasing levels of
productivity with area size increase (SBN, 2013).
There is not one fixed value chain in Ethiopia. A workshop
of stakeholders organized by the Sesame Business Network
(SBN) identified 9 typical value chains, which have different
variations and specificities. And while conducting the field-
work new variations on these chains were identified. However
the value chain most commonly used, by far, is the following1
(figure 1):
Dire Dawa
Harari
Addis Ababa
A local sesame spot market
Map showing
regions of Ethiopia
1
This statement is based on interviews with many stakeholders (NGOs, cooperatives, farmers, traders etc) and an assumption that most farmers are not members
of a cooperative so will have to sell to traders.
3. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 3
Although cooperative membership is on the rise, the majority
of Ethiopian farmers are not members of cooperatives. Only
9% of smallholders were members of agricultural coopera-
tives and only 40% of rural households had access to coop-
eratives within their kebeles, according to a study based on
2005 data (Bernard Spielman, 2009). Even if membership
has grown considerably over the last decade, many farmers
are still left out. However, in the sesame value chain, the level
of membership seems to be significantly higher than for most
other crops. A study by SBN, using data from the Woreda
Cooperative Promotion Agencies, found that, in the Amhara
region, cooperative membership was 31%, while in Tigray it
was estimated at 46%2
. Through bulking members’ harvests,
cooperatives reduce transport costs. Cooperatives provide
an alternative to traders who keep margins between the farm
gate price and ECX price to themselves and allegedly attempt
to set up price agreements with other traders. Cooperatives
aim to return most of that margin back to their members
through dividends.
Whether a member or not, most farmers actually sell their
produce at local spot markets to traders (hence not through
cooperatives, see also Box 1) who, in comparison to many
other sub-Saharan countries, are licensed by the govern-
ment and are subjected to regulations and taxes. Hereafter, a
negotiation unfolds resulting in a price lower than, but linked
to, the ECX price (which in turn is decided by demand for the
different grades of sesame).
In addition to buying from farmers on spot markets, traders
often own or rent small warehouses to store sesame to sell at
a later time, since prices normally will start to rise during the
beginning of the harvesting season in September. They also
provide credit using different modalities. Some interviewed
traders provided interest-free credit, but on the condition that
the farmer in question commits to sell all their produce to the
trader. Other traders demand high rates of interest (average
of 250% a year and sometimes higher). Some traders also sell
pesticides, sometimes on credit as well.
At some spot markets, digital billboards display the current
ECX prices and a phone call to the telephone number 904
provides anyone with that same information. At these spot
markets, government inspectors provide a first check on the
quality/cleanliness of the sesame and verify safety proce-
dures concerning transport. Traders then usually use rented
trucks to transport the sesame to a local ECX collection point
where they will sell it for the daily set price based on the grade
awarded to it at the collection point. The grade is determined
by four criteria: oil content, colour, moisture and inert material.
At the ECX auction, private processors then buy the sesame to
process it further and export it through Port Sudan or Djibouti
to China, India and, to a lesser extent, the Middle East, US,
Japan and EU markets.
Another value chain that is often used is the following:
2
These figures refer to farmers organized in primary sesame producers’ cooperatives.
Figure 1: Most practiced sesame value chain in northwest Ethiopia
farmers
(members/
non-members
cooperatives)
traders
(licensed by
the government)
ecx
processing
and export
to china, eu, us,
japan, israel, etc.
Figure 2: Sesame value chain in northwest Ethiopia through cooperatives
farmers
(usually
members)
cooper-
atives union ecx
processing
and export
to china, eu,
us, japan,
israel, etc.
4. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 4
This is an option pursued by farmers that have a cooperative
collection point relatively close to their farm3
. In theory, there
are, some advantages when selling to cooperatives:
• First, the profit margin between the negotiated price de-
cided upon locally and the ECX market price is eventually
meant to be returned to the farmer in the form of a divi-
dend. However, under the most practiced scenarios (see
Figure 1), traders keep most of the profit to themselves
and, if no cooperative is located nearby and functioning,
bring down the price through informal price agreements.
• Secondly, cooperatives often provide credit (for example,
by using loans obtained through the union) and inputs on
credit which they sometimes purchase from private input-
dealers or from a union as well.
Usually after buying from farmers, cooperatives will either sell
the sesame to ECX directly or to a union. Under the second
scenario, a union functions as a bulk buyer after which it sells
the sesame to ECX.
Some other but less used possibilities include:
Farmers Cooperatives Unions Processing export
Under this scenario, unions export directly without going
through ECX. The small margin made by the Exchange is
therefore kept by the unions, and possibly cooperatives and
farmers as well. Moreover, some problems associated with
ECX (see Box 1) are avoided. An example is the Selam Union
in Amhara which secured contracts with Israeli and Chinese
buyers in 2013, brokered by non-profit organization Agricul-
tural Cooperative Development International/Volunteers in
Overseas Cooperative Assistance (ACDI-VOCA). However, for
this scenario, a strong union with strong member coopera-
tives is required, which is not always the case.
Farmers Cooperatives Private sector companies:
processing export (contract farming)
Currently private processors, Selet Hulling and Dipasa, are
sourcing their sesame directly from a few selected, relatively
well-functioning, cooperatives through a contract farming
scheme. These schemes are often used when the quality of
sesame needs to be high to access higher-value (organic)
markets, usually in Europe. However, this scenario is still
incipient because it takes larger investments from the private
sector, well-organized cooperatives and bears the risk of
farmers’ side selling.
Farmers Direct export through cooperatives
As opposed to the previous value chain model, processors/
exporters no longer purchase sesame from the cooperative
but the cooperative exports the sesame directly. An example
of this value chain is the Kafta Humera Investor Farmers’ Co-
operative which processes the sesame around Humera town
and directly exports to foreign countries without involvement
of processing/exporting companies.
Farmers (investors) Processing export
Some individual investor farmers (usually with over a 100
hectares) are already exporting directly through Port Sudan.
Input supply
The main inputs used are pesticides. Pesticides are often
supplied by a union. However, interviews with representatives
of several cooperatives revealed they were often critical about
this service. The pesticides are too expensive in comparison
with market prices offered by traders or private dealers and
arrive too late. In some towns/cities, private input dealers
exist (several in Gonder, two in Humera Town) that sell to
cooperatives or farmers individually. In addition, plenty of
local traders sell pesticides to farmers, sometimes on credit.
Fertilizers are still rarely used. Most seeds used by farmers
are still farmer-saved but can be traced back to Sudan. Setit 1,
Humera 1 and Abasena are examples of officially released im-
proved varieties. The adoption rate of these varieties is limited
but increasing.4
Generally, the inputs supplied are not accompanied by
services, with the exception of a few private pesticide dealers
who give some limited advice on how to apply the chemicals
(see section on service delivery).
Credit
Credit is essential and is one of the biggest problems among
farmers5
. Many small towns have at least one microfinance
institution (MFI). ACSI and DECSI are the most important
MFI’s, respectively in Amhara and Tigray. Interest rates to
individual farmers are 18%, and for group lending 13%, for
these two banks.
Yet, according to interviewed stakeholders, loans are too
small, ranging from 5,000 to 15,000 Ethiopian birr in total
(US$ 259-777), depending on the collateral of farmers.
To pay for all the required inputs, as well as land preparation
3
Although cooperatives generally buy from their members, occasionally they buy from non-members as well. This is only possible when cooperatives
have sufficient capital to purchase from farmers in the harvesting season. See Box 1 for more on this.
4
The availability of the improved varieties is increasing through collaboration of the Agricultural research centres (Humera and Gondar), Government
seed entreprises, Bureaus of Agriculture and the SBN support program.
5
SBN’s baseline among cluster members revealed that, in the Tigray region, finance is the number one constraint for farmers and other stakeholders
in the sesame value chain. In the Metema region, it was ranked as the third most important challenge.
5. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 5
and harvesting, with labour being expensive, loan-size needs
to be tripled to be effective6
.
Commercial banks also offer loans but only against collateral
which farmers usually do not have since cattle and land do
not qualify as such in Ethiopia. For this reason, the Sanja
branch of the Commercial Bank of Ethiopia does not provide
loans to individual farmers, although they will provide loans
to the local union7
.
Box 1: EXC system: an effective state intervention?
While conducting fieldwork it became apparent that, although a very interesting model, the cooperative-
union-ECX value chain does suffer from some inefficiencies.
Cooperatives
The effectiveness of cooperatives varies greatly. Financial management and basic business planning skills are
often lacking among cooperative management members. Also a lack of cash during the peak season, exactly
the time when a cooperative needs to purchase sesame from their members, is a serious constraint. Moreover,
interaction and exchange between cooperatives seems to be very limited. However, there are some positive
examples of strong and thriving farmer cooperatives (see Box 2).
Unions
In theory, a union is a useful institutional arrangement to bundle the power of cooperatives, improve their
communication and benefit from economies of scale. For example, a union could export directly, whereas
a cooperative usually does not have the required amount of sesame nor expertise. Moreover, unions provide
pesticides and loans to cooperatives. However, in practice, input and loan provision if often too little and too
late. In fact, tensions exist between some unions and cooperatives. In 2013, several unions in the Metema region
ordered cooperatives to sell through them instead of selling directly to ECX, in which they were supported by the
zonal office of agriculture. In addition, cooperatives will be capped at a maximum amount of profit when selling
to the union, which will be returned to farmers. Metema Union set a limit of 120 birr ($6.2) per quintal (100 kg)
for the 2013 harvesting season, which is only a small amount compared to previous years. With dividends for
members decreasing as a result, cooperatives in Metema are already noticing farmers selling to traders at the
spot market. The advantage of selling through cooperatives (dividends are returned to farmers which is not the
case when selling to traders) is not delivered. As a result, the growth and strength of cooperatives is hampered.
ECX
ECX warehouses are often managed by a low number of staff. Consequently, delivery of sesame from ECX to
processors/exporters might be too late, as was observed during the field work. One processor stated that they
had been waiting for over a month for their sesame, which was stored in a warehouse only 15 minutes’ drive
away. Post-harvest losses, from using low quality bags, are also a problem.
However, taking all of this into account, in general value chain actors, including farmers, were said to be happy
with the way the system was set up in comparison to pre-ECX times. Previously, traders could set the price and
hence settle for low prices to make large profits. As such, market transparency and market conform pricing
have greatly increased. Moreover, through ECX, there is now a guaranteed market for their produce, whereas
before farmers would largely depend on traders showing up or not8
.
At the same time it should be pointed out that since the establishment of ECX demand and thus prices have
been increasing steadily, while at the same time sesame is used as commodity to finance Chinese-led infra-
structure development projects in Ethiopia. This is a significant autonomous development that greatly benefits
farmers and other sesame value chain actors and does not hurt the way the ECX-system is perceived.
6
According to a calculation of a local NGO employee.
7
A recent credit and production cost study by SBN led to some of the following findings: Average of 1.5 loans per farmer, 49% of production costs are borrowed, infor-
mal money lenders provide about half of the credit for small-scale farmers and timely credit supply mainly needed for (first and second) weeding and harvesting.
8
At the time of the research, independent data and studies on the efficiency of the ECX system were lacking. According to an ECX study, producers improved their
earnings from 30% to more than 60% of free on board value (ECX, 2013). However, interviews with a large number of stakeholders (ranging from farmers to NGO
staff) revealed that, albeit not functioning perfectly, the ECX system was perceived as a considerable improvement to the previous situation.
6. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 6
Advisory service providers
Public extension services
Extension workers provide technical assistance and are
based at the woreda level. However their reach is limited.
Farmers throughout the production cycle receive one or
two visits, and some are not visited at all. There is evidence
that at times extension workers tend to focus on emerging/
advanced farmers, thereby leaving out small-scale farmers
(the official policy is to work with ‘model farmers’ who in turn
should reach out to surrounding farmers).
Cooperatives
The main non-tangible service provided by cooperatives is
to organize farmers in order to bulk their produce. Through
this, they provide opportunities to create an alternative to
traders, who keep margins to themselves, and to set up
price agreements with other traders, reduce transport costs,
obtain loans, and offer storage space (thereby opening up
the possibility of selling at a later time against higher prices)
and inputs (namely pesticides, often on credit). See Box 1
and 2 for more information on the problems and opportuni-
ties faced by cooperatives.
Some cooperatives are stronger than others but most coop-
eratives interviewed dealt with the following problems:
• Lack of capacity in finance, business planning and or-
ganizational management
Most cooperatives lack these basic skills which prevent
them from designing a clear strategy for the next produc-
tion season or establishing partnerships with buyers
or processors directly. The various financial institutions
interviewed (both microfinance and commercial banks)
complained, for example, about the lack of professional-
ism among cooperatives, which hampered their ability to
give out loans.
• Lack of working capital in peak season
Finance is a big constraint as cooperatives often do not
hold enough capital to purchase all of the harvest from
their members. Hence members sell to traders who ben-
efit from their monopolistic position and lower the price
paid to farmers. Moreover, traders make an extra profit
which would otherwise go to the farmers.
Of course the organizational and financial capacity and
strength of cooperatives varies significantly (see also Box 2).
ECX
The ECX provides market information through electronic
billboards at some spot markets, through their website,
newspapers and through a telephone number (904).
Another non-tangible service is grading of the sesame before
it is exported abroad. This grading occurs at ECX collection
Box 2: Egri Mitkal cooperative
An example of a seemingly strong cooperative is the Egri
Mitkal cooperative (1,160 members).
The cooperative faced some adversity in previous years when
it had a problem of competition with traders, which brought
down the price since they did not hold enough capital. To pre-
vent this from happening again, the cooperative leadership
sat down with their members and discussed their preferences
for the sale of their production in the forthcoming season.
Members shared three preferences:
a) Selling at current market price and receiving cash in hand
three days later from ECX through the cooperative.
b) Cash at a set date in the future. On the international stock
exchange, this would be called a ‘future’. Farmers with a
long-term vision and enough resources opt for this, since
towards December or January the price is usually much
higher than at the beginning of the harvesting season.
This option spreads the time of payment for the coopera-
tive thereby freeing up some working capital. This option
is rather advanced since farmers can also choose to sell
only a certain share of their sesame at a future date.
c) Farmers receive cash on credit at a predetermined price,
before they actually sell their sesame.
In addition, the funds used for the cooperative’s working
capital were diversified using:
a) the cooperatives own capital (profit made in previous
years);
b) money from the savings and credit cooperative of which
cooperative members are also a member; and
c) a loan obtained from the municipality (on a banking inter-
est rate).
As a result, the cooperative expects to buy 98% produce from
its members. What has helped throughout this whole process
is their transparency, the cooperative leaders said. In addi-
tion, Egri Mitkal’s history partially explains their approach;
the cooperative is made up off former militia fighters who
were awarded 2.5 hectares of land each by the government
after the war. As such, their internal cohesion is strong in
comparison with other cooperatives.
Not only do such cooperatives provide essential services to
their members, they could also function as potential service
providers to other cooperatives.
Well organized and financially solvent cooperatives like Egri
Mitkal could, for example, provide or assist in training for
other cooperatives for a small fee. This could be a new source
of income for Egri Mitkal (for which they actually showed
an interest) and an effective way to train other cooperatives
since they might be more likely to listen to colleagues than to
independent trainers.
7. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 7
points and is both a service for the first buyers as part of the
transaction like traders, cooperatives and unions (depending
on the value chain) but mostly to sesame end-buyers (export-
ers and processors). The ECX is preparing to introduce online
trading soon and establish remote trading centres across
Ethiopia (allAfrica.com, 2013).
Traders
Traders provide limited advisory services. When traders buy
sesame from farmers and sell pesticides at local spot markets
they give advice on how to use pesticides, but this information
is marginal since traders’ knowledge of pesticide use is limited.
Private pesticide dealers
In some villages and towns (like Gonder and Humera) private
pesticide dealers provide limited advisory services to their
clients on how to use the products.
Microfinancers
Microfinance banks, like ACSI or Dedebite, provide training on
savings’ culture to farmers, in addition to their core business
of providing loans.
Processors/exporters
Processing companies in the sesame sector usually export
as well. Examples include Warka Trading, Kaleb, Dipasa and
Selet Hulling. The degree to which processing is carried out
differs among the various companies. Generally they do not
provide direct services (in the non-tangible sense), but Dipasa
and Selet Hulling have set up outgrower schemes, each with
two separate cooperatives. In these outgrower schemes, the
companies typically provide technical assistance. In addition,
there is some degree of control on the supply and quality
of sesame (through quality of inputs used and agricultural
practices), which is necessary since the harvested sesame is
sold by Dipasa and Selet Hulling to high-value and sometimes
organic markets in Europe.
NGOs
At present, the main NGOs involved in the sesame sector in
northwest Ethiopia are ACDI-VOCA and SBN, the latter part-
nering with the International Fertilizer Development Center
(IFDC) and Cooperatives for Change (C4C).9
• AMDe, implemented by ACDI-VOCA, consist of two
programmes in the Amhara and Tigray regions relevant
to the sesame sector. These are larger programmes since
multiple value chains are targeted, not just sesame. The
first, Cooperative Development Program, supports two un-
ions and six cooperatives by providing advisory services
like brokering (e.g. the Selam Union managed to establish
a link to buyers in Israel and China through ACDI-VOCA)
and trainings in financial and business management. The
second, Agricultural Growth Program-Agribusiness and
Market Development (AGP-AMDe), targets farmers in the
Tigray region in six value chains, including sesame. Yet at
the time of this research, the specific list of activities and
their reach was not clear.
• SBN was officially launched at the beginning of 2013 and
will be operational for at least 2.5 years, with the possibil-
ity of an extension of another 2.5 years. It is supported
by Dutch funding (Netherlands Embassy in Addis Ababa,
DGIS The Hague and the 2SCALE project, also supported
by DGIS). After workshops with stakeholders, back in 2013,
19 clusters were established in 2013. The number of local
cluster will increase to 35 in 2014. Clusters are networks of
all the relevant local actors in a certain area that partici-
pate in the sesame value chain. This includes cooperatives,
banks, government extension offices, processors, and
traders, as long as they are in relative proximity to each
other (see section on the coordination of service provision
for more details on how these clusters operate).
In addition, 24 demo-plots have been established in the
recent production season, providing training and demon-
stration of best agricultural practices. The plan is to in-
crease the number of demo-plots to close to 1000 in 2014,
by utilizing Farmer Training Centres (100) and farmer plots
(800). Seed multiplication both of sesame and rotation
crops, will be continued. Training in financial management
and business planning have been provided to coopera-
tives and SBN field staff are currently conducting research
on the exact amount of post-harvest losses and how to
prevent them. About one third of the project budget is
reserved for matching grants in which local value chain
actors can receive support to successfully develop and
execute planned activities, which can range from assisting
an informal pesticide dealer to obtain a license, to provid-
ing training to a cooperative to write a business plan in
order to secure a loan.
Two farmers conducting post-harvest cleaning of sesame
9
Not much information was gathered on the C4C project, hence it is not discussed in this paper
8. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 8
Name of service
provider and number of
field staff
Extension service -
government.
Constituted by: Bureau
of Agriculture (focusing
on agricultural produc-
tion and best practices)
and Cooperative Promo-
tion Agency (focusing on
cooperative capacities).
Cooperatives.
Traders.
Banks.
Pesticide dealers (in
town, through shops).
ECX.
SBN (partners with C4C
and IFDC).
ACDI-VOCA.
Type
Public.
Private.
Private.
Private.
Private.
Public.
Support program,
based on tripartite col-
laboration agreement
(Universities, BoA and
Agricultural Research
Institutes).
NGO.
Who pays for services
provided?
Government (free).
Members.
Embedded services to
farmers.
Bank (free-of-charge for
farmers).
Embedded services to
farmers.
Unclear to what extent
public expenditure com-
pensates for some of the
costs made or whether
ECX is actually (through
taxes) financially sustain-
able or even profitable.
Handling and storage
costs have to be paid for.
I do not know whether
this covers costs.
Free coaching services
of SBN staff.
Co-funding mechanism
for supporting local
initiatives will start in
2014 (SBC fund).
Fund for addressing stra-
tegic issues will also
be operational in 2014
(SBN fund). SBN is fund-
ed by the Netherlands
Embassy in Addis Ababa,
DGIS The Hague and the
2SCALE project (also
funded by DGIS).
Free services for farm-
ers funded by the US
Agency for International
Development (USAID).
Cost-sharing for invest-
ments in storage and
machinery (but not an
advisory service).
Target group
Small to medium
farmers.
BoA can in principle
reach all small and
medium farmers
through their network.
CPA can reach the
organized farmers
(around 40%).
Anybody. Two excep-
tions: many farmers live
in very remote areas and
do not have access; the
Kafta Humera Investors
Cooperative is only meant
for investor farmers.
Anybody.
Farmers (often through
cooperatives).
Cooperatives or indi-
vidual farmers.
Unions, traders,
investor farmers,
processors/exporters,
cooperatives.
Farmers, mostly those
who are members
of cooperatives, and
other value chain
actors (processors,
banks, input-dealers
etc.).
Cooperatives unions,
and farmers.
Services provided
Production, some mar-
keting but very limited.
Some training in form-
ing cooperatives is
provided through the
Cooperative Promotion
Agency.
Organization of mem-
bers which makes the
provision of pesticides,
loans, and brokering to
find buyers (marketing
channels) possible.
Limited advice on use
of pesticides.
Trainings on saving
and loans.
Limited advice on the
use of pesticides.
Price market infor-
mation, bulking
and brokering for
marketing channels
(export overseas). The
latter service is directly
targeted at their sup-
pliers.
15 demo-plots for
technical assistance.
Training on financial
management and
business planning
have been provided to
cooperatives.
Brokering (Selam
Union was linked to
markets in Israel and
China), and financial
and business man-
agement training to
cooperatives.
Number of farmers and/or
volume of production sold
with support of provider
-
Max. 40% of farmers
are members of coop-
eratives.
Data unavailable but prob-
ably vast majority ( 80%)
of sesame farmers.
Unknown.
Unknown but most pes-
ticides are sold through
traders or a union.
95% of sesame goes
through ECX so indi-
rectly the large majority
of farmers.
Mostly farmers who are
part of cooperatives
(max 40%). Right now
reaching 18 clusters, aim
to go up to 30 Reach of
70,000 farmers in close
to 100 kabeles.
Unknown.
Table 1: Service provider description
9. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 9
Demand side
With the introduction of the ECX-system in 2009 some basic
services became available to actors in the sesame value
chain. Although not always functioning optimally (Box 1), it is
an example of how public service providers can enhance the
accessibility and inclusiveness of the chain through service
provision. The ECX provides services like price and market
information, grading and brokering for marketing channels (to
stimulate export overseas).
Usually farmers living closer to economic hubs like villages
and towns benefit from their relative proximity to other actors.
Farmers located in more isolated areas do not. For example,
farmers who are not members of cooperatives (probably
over 60%) are often excluded from the kind of advantages
cooperatives offer, like provision of inputs via the Government
through cooperatives and direct marketing of Unions. They
depend on local traders who benefit from their monopolistic
position. The same goes for services provided by NGOs since
they tend to focus on working through cooperatives, thereby
leaving out the majority of farmers.
Another issue is the accessibility of services for women. In
Ethiopia, as in many other sub-Saharan African countries,
men tend to dominate the more profitable crops, which in-
clude sesame. This automatically means some of the services
provided are less accessible to women. Moreover, women
tend to have less information and time to access and benefit
from potential services offered. Indeed, research shows that
technical advice – one of the services high in demand – rarely
reach female farmers.
Within cooperatives there is also a clear gender bias, with wom-
en’s participation constituting only 20% (Woldu et al., 2013).
In terms of general demand by farmers, most of them said
they required hardware, like mechanization or finance, more
than agricultural advisory services. When mentioning advi-
sory services they especially stressed the need for technical
assistance (production and yield improvement, harvest loss
reduction, pest control) and financial/business management.
Coordination of service provision
Coordination of services and coordination between service
providers is limited. Although the bureau of agriculture or
zonal office could potentially play a role here, until recently
there was no regional platform in place where sesame stake-
holders exchange thoughts and knowledge, discuss chal-
lenges and set goals to overcome these challenges. However,
by May 2014 two coordination meetings were held in Amhara
and Tigray, accompanied by an annual sesame business meet-
ing in Gondar. There are also plans for an sesame business
council.
A prominent example of the lack of communication and the
negative effects that derive from it can be found between
cooperatives. While interviewing three cooperatives on their
disagreements with a union (Box 1), which were ongoing for
about a month, none of them had considered taking up the is-
sue jointly with one or more of the 14 other cooperatives that
are union members.
SBN provides the only sector-wide coordination in northwest
Ethiopia. On a cluster level, organization of and coordina-
tion between actors is arranged. Two cluster meetings have
already been held during the last six months, in addition to a
regional commencement meeting open to stakeholders from
all regions. The first meetings of the clusters, held in February
and March 2013, were organized to conduct a baseline study.
The second, in June 2013, was used to formulate economic
objectives, strategies, actions and activities for the clusters to
cover the 2013-2015 period.
More cluster meetings will take place in the near future,
yet it is not exactly clear how often and which topics will be
covered. It is most likely that in the next meetings the action
plans will be evaluated and discussions will be held on the
current state of affairs within the cluster and beyond.
Another topic of discussion for upcoming cluster meetings
will be that of matching grants. One-third of the programme’s
budget is reserved for grants to which cluster members may
apply. In order to do so, they have to submit a proposal for
Table 2: Service demand and supply by various actors
Which services are needed?
Financial/business management
(cooperatives).
Technical (including pest
management).
Services provided by public sector
Some by the Cooperative Promotion
Agency, but limited.
Limited number of farmers reached,
through public extension.
Services provided by private sector
Some by MFI’s and banks.
Very limited. Two processing compa-
nies targeting the organic market in
Europe (Dipasa Agriprom and Selet
hulling) provide technical assistance
in a contract arrangement with coop-
eratives, but this is an exception (4
cooperatives involved out of a total of
100 cooperatives in NW Ethiopia).
Services provided by civil society
ACDI-VOCA, SBN.
SBN has assisted through demo-
plots and technical assistance and
is providing informal advice on
postharvest loss.
10. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 10
partial funding of activities they want to upscale or to support
new business activities. A guiding principle for SBN is that
applicants themselves have to commit considerable resources
and time to qualify for a grant. Examples of SBN-supported
activities could include receiving support in writing a business
plan to obtain finance, train emerging member farmers of
cooperatives to provide training to other members, extend
the number of trainings on savings culture by microfinance
institutions, etc.
The cluster meetings have been facilitated by SBN staff. Yet a
sense of shared responsibility and structural communication
among cluster members (a cluster ‘feeling’ as it was described
by SBN) still needs to be strengthened further, if not only to
guarantee some sustainability when the project ends.
More generally, NGOs do coordinate their activities to some
extent. For example, SBN partners with IFDC and C4C.
The larger 2SCALE project (extending to more regions and
commodities) has integrated with the SBN project for the
sesame value chain. The contributions in human and financial
resources are integrated in one budget and the partners have
one work plan and ME system. The activities of Agriterra and
SNV (C4C) are aligned to the overall sesame sector support
activities. C4C especially focuses on strengthening unions,
whereas SBN’s focus is more on cooperatives.
Trends
With the introduction of the ECX system, the role of the public
sector in the sesame value chain has clearly been strength-
ened. However, with an increasing role for cooperatives the
picture is mixed.
Although, strictly speaking, cooperatives are farmer organiza-
tions (and as such not part of the public sector) their role is
strengthened through government policies (like ECX provid-
ing price information) and institutions like the Cooperative
Promotion Agency. The absolute number of cooperatives is
rising as well as the level of membership of existing coopera-
tives. The role of unions is somewhat similar. When function-
ing well, unions bundle together the forces of cooperatives
creating economies of scale, thereby creating opportunities
for obtaining loans, providing possibilities for direct export
abroad, etc.
Hence it appears as if a playing field has been established in
which the state plays a strong role through the ECX system,
occurring alongside increased cooperative entrepreneurship.
However, it is difficult to predict how this is going to develop
in the next few years. Stakeholders that were interviewed did
mention that there are a number of inefficiencies that should
be resolved. Union-cooperative relations are not always
optimal, some cooperatives are still much weaker than others
and the majority of farmers are not even a member of a coop-
erative. Moreover, supply of pesticides by the private sector
seems to be more dynamic (including the embedded services
on how to use them) than unions providing pesticides through
cooperatives. Although this argument goes beyond the mere
provision of advisory services, this is a clear example that
more space for the private sector, next to a strong ECX and
cooperative system, can at times be beneficial for farmers and
the further development of the sesame value chain.
However, the gap between supply of services and demand,
mostly by farmers, is considerable. Therefore, there is still
plenty of room for increased service provision by the public
sector (several organizations), private sector (several types of
companies) and supporting projects. Since the Ethiopian ses-
ame sector is more developed than in other African countries,
cooperatives and advanced farmers are occasionally fulfilling
a role as service provider as well. This type of service provision
could be scaled up and is a possible entry point for interven-
tion. With increasing demand and rising prices for sesame, it is
likely that service provision will also rise through NGOs or the
private sector, all of which will require effective coordination.
11. Pluralistic advisory services in the sesame value chain of northwest Ethiopia 11
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Acknowledgements
This paper is written by the Royal Tropical Institute (KIT) yet
the field work is the result of a collaborative effort with the
Centre of Development Innovation (CDI) of Wageningen. We
are also grateful for the cooperation with and local facilitation
by the Sesame Business Network (SBN). Finally we would like
to thank the Dutch Directorate for International Cooperation
(DGIS) for its support in the form of core funding to KIT.