This document summarizes an experience with economic inclusion in agri-food value chains in Ethiopia. It identifies problems like low avocado production and high food insecurity. Interventions included designing livelihood packages to provide inputs, training, and jobs to extremely poor households. This increased avocado production and reduced losses and post-harvest, benefiting over 40,000 households. Lessons highlighted investing in the poor can profit value chains and improve food security, and policies need an equity approach to support nutrition goals.

1. PRAIA CABO VERDE
5-8 December 2023
Responding differently to
food & nutrition insecurity:
experience of economic
inclusion in agri-food value
chains in Ethiopia
40th
ANNUAL MEETING
© Shutterstock/PhotopankPL
www.food-security.net
Sidy G. NIANG, SWAC/OECD

2. Presentation overview
1. Problems to solve?
2. How did we proceed?
3. Gaps to fill and opportunities
4. Inclusive packages and pathways
5. Impact
6. Key messages / lessons

3. Problems to solve
SNNP Region
Non conflict area
20,898 T (20% prod. Nat.)
Avocado production gap
vs target: 200,000 Tons
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Low oil content of
local varieties
Poor market
segmentation
High food insecurity
in the region
No new funding No studies

4. Problems to solve?
Extreme poor Household
• < 0.2 ha
• No livestock
• In majority, no cooperative member
• Limited skills and knowledge
• Very low productivity and production
• No financial access
• Daily labor and social transfer
False banana
Maize
Eucalyptus
Mango
Coffee
Banana
Economic inclusion

5. How did we proceed?
Identify critical
bottlenecks for
the agrifood
value chain
Identify barriers
/ opportunities
for inclusion,
rated and
prioritized
Design
Livelihood
packages and
pathways
Monitor, adjust,
influence and
scale up

6. Gaps to fill and opportunities
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Poor market
segmentation
Gap to fill: increase of production
Opportunity: land extension, good practices
(training), use of organic fertilizer (production and
marketing opportunity)
Potentiality for inclusion: Low
Avocado production gap vs target: 200,000 Tons

7. Gaps to fill and opportunities
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Low oil content of
local varieties
Poor market
segmentation
Gap to fill: demand of improved seedling
Opportunity: production of improved variety
seedling (Hass)
Potentiality for inclusion: medium to high

8. Gaps to fill and opportunities
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Low oil content of
local varieties
Poor market
segmentation
Gap to fill: Reduce post-harvest losses
Opportunity: improved harvesting practices (job), post-harvest
materials, primary transport
Potentiality for inclusion: high

9. Gaps to fill and opportunities
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Low oil content of
local varieties
Poor market
segmentation
Gap to fill: market segmentation and
improvement of quality, supply of industries
Opportunity: grading of avocado fruit and
improved supply of industries (job)
Potentiality for inclusion: medium to high

10. Inclusive packages and collaboration
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
30% capacity
(36% of production)
Loses
(20%)
Low oil content
of local varieties
Poor market
segmentation
Production gap
(200,000 T)
Seed
+
Nursery tools
+
Access to land
+
common
interest Group
Certified
nurserymen
Juice
extractor
+
Training
+
common
interest Group
Harvesting
equipment
+
Training in
harvesting and
quality control
+
common
interest Group
Tricycle for
primary
transport
+
Quality Control
Training
+
common
interest Group
Local processors
Certified Avocado
harvesters
Certified primary
transporters
Training on agro-industrial
processing
+
common interest Group
Certified
processing
labourers
Short cycle Income
Generating Activity
Match-making of existing interventions: social protection, Development programmes, Private sector
Local
processing

11. Inclusive packages and pathways
 Social protection
 Labor and employment
department
 Social protection
 Development programme
 Labor and employment
department
 Private sector / NGO
 Social protection
 Labor and employment
department
 Social protection
 Development programme
 Labor and employment
department
 Private sector / NGO

12. Impact
Input suppliers
(seedling) Avocado
growers
Collectors
Domestic market
Whole
seller
Avocado fruit
Oil Processor
International
market
Avocado oil
Losses reduction
(from 20% to10%):
+ 22,000 T
From 30% to
90% capacity
+
Production:
106,000 T
+250,000
seedlings
produced
+84,000 T /
year
+ 40,000
poor HH
+xxx days job

13. Impact: moving from last mile solution to policy
engagement
Invested budget
(20% bottom poor):
+ USD 1.6 million
+USD 40 million value chain growth
+USD 320 / HH / year (52% poverty line) = USD 13 million
+High drop of Food insecurity and malnutrition rate / graduate from
social protection programme
Upscaled pilot to reach 1 million households (5 millions
individuals) in 4 agri-food value chains in 3 regions
 Normative work, Policy dialogue, capacity building
(inclusion mainstreaming instruments), and
institutionnalisation
 Inclusive investment cases presented to Worldwide
investment forum

14. Lessons / Key messages
Investing in poor people can be
profitable to the entire agri-food
chain while improving food and
nutrition security and ensuring
long term well-being.
Agri-food policies need to
move from equality to equity
approach (inclusion) to
support Food and Nutrition
Security objectives
1 million people = 2 million hands
It's not just about charity, it's
really about investing!

15. Lessons / Key messages
1. Business intensification of the FSN response: identify opportunities,
livelihood packages sized for transformational change at the household level;
2. Private sector can invest in inclusive business models to improve FSN while
growing the value chain;
3. Matchmaking and programme flexibility help to optimise the resources and
clear gray areas;
4. Extreme poor HH need additional capacity development;
5. Aligning with the Government policy agenda leads to ownership and ease
policy engagement

16. www.food-security.net
Obrigado
Thank you
Merci